https://www.thevibes.com/articles/news/106238/anti-money-laundering-at-forefront-of-bnms-enforcement-actions-in-2024

BANK NEGARA Malaysia (BNM) has reported that anti-money laundering (AML) and countering financial terrorism have been among the primary regulatory breaches addressed in 2024, with the central bank imposing a total of RM18.9 million in penalties on financial institutions.

In its Annual Report 2024, BNM revealed that it took 326 supervisory and enforcement actions during the year against a range of financial institutions, individuals, and entities in violation of regulations.

These actions covered a broad spectrum of violations, including those related to prudential and foreign exchange policies, which remain key areas of concern for the bank.

The central bank also carried out extensive on-site surveillance, visiting 123 entities across 166 premises to detect illicit financial activities.

The enforcement operations were further supported by critical collaborations with law enforcement agencies, including the Royal Malaysia Police (PDRM) and the National Anti-Financial Crime Centre (NFCC), which played a key role in disrupting illegal schemes and dismantling fraudulent entities.

In an ongoing effort to combat illegal money services businesses (MSBs), BNM took decisive action by issuing 37 cease-and-desist orders against unlicensed MSB operators.

Additionally, the central bank seized RM28.4 million worth of assets derived from illegal activities and secured convictions against 11 illegal MSB operators.

These operators were found guilty of violating the Money Services Business Act 2011 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, resulting in a total of RM891,000 in fines.

BNM also highlighted its efforts to provide restitution to victims of financial mismanagement, securing RM125.5 million in restitutions for 1.5 million customers who were adversely affected by financial institutions failing to meet regulatory standards.

Furthermore, the bank took supervisory action against insurance and takaful brokers, as well as financial advisers, whose performance did not meet expected professional standards.

Looking ahead, BNM stated that it would continue to refine its regulatory and supervisory frameworks, aligning them with its broader financial stability mandate. The central bank is committed to ensuring that Malaysia’s financial system remains resilient in the face of emerging risks and potential future shocks.

By maintaining a stringent enforcement regime, BNM aims to safeguard the integrity of the financial system while upholding the country’s efforts to combat financial crime.