Bank Negara Malaysia imposed a total compound of MYR 875,000 on AmBank (M) Berhad for failing to comply with a Direction to Financial Institution issued under section 214(6) of the Financial Services Act 2013, after the bank facilitated two investment transactions in foreign currency assets by a resident individual with domestic ringgit borrowing without first sighting Bank Negara Malaysia’s approval. Under the Foreign Exchange Policy Direction to Financial Institutions, banks must maintain and implement internal controls and procedures to ensure compliance by the institution and its clients with any direction, approval, requirement, restriction and condition issued under section 214 of the Act, including sighting written approval before facilitating transactions that require it. The non-compliance was attributed to gaps in AmBank’s internal policies and procedures; the bank has since strengthened its foreign exchange policy practices, including staff training and improved internal information flow. The compound was imposed on 18 November 2024 and paid on 6 December 2024, with Bank Negara Malaysia citing consideration of aggravating and mitigating factors, including AmBank’s past non-compliance record, and it reminded financial institutions to advise customers on the need to obtain written approval where applicable.
Bank Negara Malaysia 2025-01-28
Bank Negara Malaysia imposes MYR 875,000 compound on AmBank for failing to obtain foreign exchange policy approval
Bank Negara Malaysia fined AmBank (M) Berhad MYR 875,000 for non-compliance with a Direction to Financial Institution under the Financial Services Act 2013. The penalty was due to AmBank facilitating foreign currency transactions without prior approval, highlighting gaps in its internal controls. AmBank has since enhanced its foreign exchange policy practices, including staff training and improved information flow.