Enforcement Action Publication Notice 04/2023 (P.N. 04/2023)

Bank Negara Malaysia (the Bank) had on 14 November 2022, imposed an Administrative Monetary Penalty (AMP)[1] of RM132,000 on MCIS Insurance Berhad (MCIS) for non-compliances with the Financial Services Act 2013 (FSA) read together with the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions policy document (AML/CFT and TFS for FIs PD).

MCIS failed to conduct targeted financial sanctions screening on its customers prior to their onboarding. This is in breach of section 48(1)(a) of FSA read together with AML/CFT and TFS for FIs PD.

The AMP amount was determined by taking into account relevant aggravating and mitigating factors, which include MCIS’s past compliance record and actions taken to address the breaches and prevent their recurrence.

MCIS paid RM132,000 for the AMP imposed by the Bank on 25 November 2022.

[1] The Bank imposed AMP pursuant to section 234(3)(b)(i) of FSA.