Enforcement Action Publication Notice 01/2023 (P.N. 01/2023)

Bank Negara Malaysia (the Bank) had on 1 March 2022, imposed a total compound[1] of RM151,200 on Wawasan Ilham (M) Sdn. Bhd. (WISB) for contravening the Money Services Business Act 2011 (MSBA) read together with Money Services Business (Duties of Licensees) Regulations 2012 (MSB Duties). Additionally on 27 September 2022, the Bank imposed an Administrative Monetary Penalty (AMP)[2] of RM12,600 on WISB for contravening the MSBA read together with the Anti-Money Laundering and Counter Financing of Terrorism – Money Services Business (Sector 3)[3] policy document (AML/CFT Sector 3 PD).

During an on-site examination in August 2019, the Bank discovered that WISB failed to issue a number of money changing receipts to customers in the form and manner prescribed by the Bank. Additionally, it was also found that WISB failed to conduct customer due diligence on its customers in relation to money changing transactions which were above RM3,000. These failures are in breach of requirements set out in section 27(1) of the MSBA read together with paragraph 5(a) of MSB Duties and section 74(3) of the MSBA read together with the AML/CFT Sector 3 PD, respectively.

The compound and AMP amount were determined by taking into account relevant aggravating and mitigating factors, which include WISB’s conduct in addressing the non-compliances and WISB’s commitment to prevent recurrence of similar non-compliances.

WISB paid a total of RM163,800 for the compound and AMP imposed by the Bank on 6 December 2022.

[1] The Bank issued the compound pursuant to section 88(1) of the MSBA.

[2] The Bank issued the AMP pursuant to section 75(2)(b) of the MSBA.

[3] The AML/CFT Sector 3 PD was in effect from 15 September 2013 to 31 December 2019 and since 1 January 2020 has been replaced with policy document on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs).