Bank Negara Malaysia (BNM) had, on 28 August 2024, imposed an administrative monetary penalty (AMP)^[1] of RM30,600 on BSB Darussalam Sdn. Bhd. (BDSB) for non-compliance with customer due diligence (CDD) requirements under sections 74 and 75(1)(b) of the Money Services Business Act 2011 (MSBA), which is to be read together with paragraphs 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).

The non-compliances with CDD requirements were detected by BNM during an on-site examination. BDSB failed to conduct CDD on three customers in relation to money-changing transactions above RM3,000, facilitated through deliberate acts by its personnel to split the transactions into amounts below the stipulated threshold for the conduct of CDD.

Reporting institutions (RIs) are required to conduct CDD on the customers to enable them to assess their exposure to money laundering (ML) / terrorism financing (TF) risks and take appropriate measures to prevent the RI from being a conduit for facilitating ML/TF and any other serious crimes activities.

In deciding to impose the AMP, BNM considered relevant aggravating and mitigating factors, which include:

1. the degree of culpability of individuals within the firm, leading to the non-compliance;
2. the effectiveness of controls in place to detect and prevent non-compliance;
3. BDSB’s past compliance record; and
4. remedial actions taken by BDSB to prevent the recurrence of non-compliance. This includes actions to strengthen its compliance monitoring processes and actions taken to reprimand individuals involved.

BDSB paid a total of RM30,600 for the AMP imposed by BNM on 12 September 2024.

[1] BNM imposed the AMP pursuant to section 75(2)(b) of MSBA.