Bank Negara Malaysia (BNM) has imposed a combined RM264,000 in administrative monetary penalties (AMPs) on Standard Chartered Bank Malaysia Bhd (SCBMB) and Standard Chartered Saadiq Bhd (SCSB) for breaches of targeted financial sanctions requirements.
BNM said both entities were each fined RM132,000 on June 10, 2026 for failing to update their sanctions database without delay following the publication of Malaysia’s Domestic List.
As reporting institutions, the banks are required to maintain an updated sanctions database and screen existing, potential and new customers against the Domestic List and the United Nations Security Council Resolutions (UNSCR) List as part of their customer due diligence processes.
The central bank said the requirements are intended to protect financial institutions and the wider financial system from being abused for terrorism financing activities.
The breaches were identified during an on-site supervisory examination of the two institutions. BNM found that the banks had failed to update their sanctions database promptly after the Domestic List was published, resulting in sanctions screening being conducted against an outdated database.
However, BNM said no specified entities were onboarded and no transactions involving such entities were facilitated by the banks.
The central bank attributed the breaches to gaps in the banks’ sanctions screening controls and deficiencies in ensuring that their screening processes complied with regulatory requirements.
Following the findings, SCBMB and SCSB implemented remedial measures to strengthen their sanctions screening controls, including enhanced oversight and improvements to the timeliness and effectiveness of screening processes.
In determining the penalties, BNM considered various aggravating and mitigating factors, including the severity of the breaches, the banks’ lack of reasonable care in ensuring compliance with targeted financial sanctions requirements, their past compliance records and their post-misconduct remedial actions.
SCBMB and SCSB each paid the RM132,000 penalty imposed by BNM on June 15, 2026.
