On 19 September 2025, Bank Negara Malaysia (BNM) imposed an administrative monetary penalty (AMP)^[1] of RM17,400 on JAGS Money Sdn. Bhd. (JAGS) for non-compliances with customer due diligence (CDD) requirements under section 74(3) of the Money Services Business Act 2011 (MSBA). This is read together with paragraphs 14C.1(b), 14C.4(a) and 14C.12.1 of the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document (AML/CFT and TFS for FIs PD)^[2] involving money-changing transactions exceeding RM3,000.

Additionally, on 31 July 2025, BNM, with the consent of the Deputy Public Prosecutor, also imposed a compound^[3] of RM69,600 against JAGS for its failure to comply with the requirements under section 27(1) of the MSBA on the issuance of receipts to customers for money-changing transactions.

These provisions require JAGS, as a reporting institution (RI), to maintain proper records of transactions supported by receipts and to conduct CDD on its customers. The requirement to issue receipts is to protect customers in the event of disputes, while the CDD requirement enables RIs to assess their exposure to money laundering (ML) and terrorism financing (TF) risks. This includes taking appropriate measures to prevent RIs from facilitating ML/TF and other serious crime activities.

BNM detected these non-compliances during an on-site examination. The non-compliances with CDD requirements and the non-issuance of a receipt occurred due to the actions of a former JAGS employee.

In response, JAGS has taken remedial measures by enhancing its guidelines for employees and strengthening its monitoring mechanism to ensure compliance with internal processes and procedures, as well as BNM requirements.

In deciding to impose the AMP and compound, BNM considered the relevant aggravating and mitigating factors, including:

(a) severity of the non-compliances;

(b) JAGS’ current controls to ensure compliance with the requirements, which were assessed as generally adequate.

(c) JAGS’ past compliance record; and

(d) JAGS’s post-misconduct behaviour and the effectiveness of the remedial actions taken by JAGS to prevent the recurrence of non-compliances.

JAGS paid RM17,400 for the AMP on 30 September 2025, and RM69,600 for the compound on 7 August 2025.

BNM requires all RIs to ensure compliance with AML/CFT and money services business requirements. BNM will not hesitate to take appropriate supervisory and enforcement actions should any RIs fail to meet legal or regulatory requirements.

The enforcement action taken is in line with the approach and processes outlined in the published Enforcement Approach.

^[1] BNM imposed the AMP pursuant to section 75(2)(b) of the Money Services Business Act 2011.

^[2] The AML/CFT and TFS for FIs PD was in effect from 1 January 2020 to 5 February 2024 and has since been superseded by the Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing and Targeted Financial Sanctions for Financial Institutions Policy Document (AML/CFT/CPF and TFS for FIs PD), which took effect on 6 February 2024. These requirements are preserved under paragraphs 14C.1(b), 14C.12.1 and 14C.4(a) of the AML/CFT/CPF and TFS for FIs PD.

^[3] BNM imposed the compound pursuant to section 88(1) of the MSBA.