Bank Negara Malaysia (BNM) has imposed administrative monetary penalties totalling RM40,400 on three firms for breaches involving targeted financial sanctions and customer due diligence requirements.
The central bank fined Ruhanmas Forex Sdn Bhd RM11,500 for failing to comply with targeted financial sanctions requirements after an on-site supervisory examination found that the company did not maintain a sanctions screening mechanism or conduct sanctions screening on its customers.
As a reporting institution, Ruhanmas is required to maintain a sanctions database based on the Domestic List and United Nations Security Council Resolution List, and screen customers against both.
BNM said the breaches were attributed to Ruhanmas’ lack of understanding of the applicable regulatory requirements.
Ruhanmas has since subscribed to a commercial sanctions database service and integrated it into its currency exchange system. The company paid the RM11,500 penalty on Sept 17.
Separately, BNM imposed a RM6,900 penalty on SMJ Teratai Sdn Bhd on July 23 for failing to conduct customer due diligence on a customer involved in money-changing transactions.
The central bank said the breach resulted from a lack of reasonable care by staff in implementing customer due diligence requirements.
SMJ Teratai has since retrained staff, enhanced its standard operating procedures and strengthened its governance framework and internal controls. It paid the penalty on Aug 5.
BNM also fined Wawasan Ilham (M) Sdn Bhd RM22,000 on Aug 27 after an on-site supervisory examination found that it had failed to conduct customer due diligence on a customer for a money-changing transaction.
The breach was attributed to inadequate oversight and a weak compliance culture. BNM also considered Wawasan Ilham’s past compliance record, including repeated misconduct involving similar breaches, when determining the penalty.
