Bank Negara Malaysia
on Money Laundering
Bank Negara Malaysia (BNM) has revised the Anti-Money Laundering, Countering Financing of Terrorism (AML/CFT) and Targeted Financial Sanctions for Financial Institutions (TFS for FIs) Act. If you are interested in reading the full policy, you can find the comprehensive 188-page policy document here.
Following the 1MDB scandal, Malaysia has been actively working against money laundering and corruption. This enhancement is designated to banking and deposit-taking institutions, insurance and Takaful companies, gaming businesses, moneylenders, and pawnbrokers.
This will ensure more accountability across the board, ensuring reporting institutions have conducted an effective AML/CFT such as simplified customer due diligence (CDD) and establishing non-face-to-face business relationships. This allows more institutions to conduct simplified CDD with only minimal customer information needed for verification purposes.
The AML/CFT also provides guidelines and requirements for the compliance officer. They act as the reference point for AML/CFT matters within the reporting institution so the candidates must be chosen based on financial integrity. Reporting institutions are required to assess the roles and responsibilities of the Compliance Officer, as well as ensure that they are clearly defined and documented.
BNM has also released a response to the feedback received on AML/CFT and TFS for FIs Exposure Draft. Get more updates from their official website.