Bank Negara Malaysia (BNM) has imposed an administrative monetary penalty of RM637,500 on Petronas unit, Setel Ventures Sdn Bhd for failing to comply with requirements relating to targeted financial sanctions.
BNM said the penalty was imposed on April 15, 2026, following breaches involving the updating of Setel’s sanctions database and customer screening requirements.
Setel is required to update its sanctions database without delay upon publication of the Domestic List and conduct sanctions screening on its entire customer database against the list.
It is also required to determine whether any potential matches identified through the screening process are true matches, which BNM said is essential to safeguard reporting institutions and the wider financial system from being abused for terrorism financing activities.
The breaches came to light following a report by Setel involving several specified entities.
The Central Bank notes that Setel has since taken remedial measures, including updating and rectifying gaps in its SOPs and enhancing its internal systems to strengthen compliance with TFS requirements.
