Bank Negara Malaysia imposes MYR 87,000 administrative penalty and compound on JAGS Money for customer due diligence and receipt breaches

Bank Negara Malaysia (BNM) imposed an administrative monetary penalty of MYR 17,400 on JAGS Money Sdn. Bhd. for non-compliance with customer due diligence requirements for money-changing transactions exceeding MYR 3,000, and imposed a further compound of MYR 69,600 for failing to issue receipts for money-changing transactions. The customer due diligence breaches were imposed under section 74(3) of the Money Services Business Act 2011, read together with specified provisions of BNM’s Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document, with the requirements noted as preserved under the successor policy document effective from 6 February 2024. The compound was imposed under section 27(1) of the same Act, with the consent of the Deputy Public Prosecutor. BNM detected the non-compliances during an on-site examination and attributed the conduct to the actions of a former employee; JAGS has since strengthened employee guidelines and monitoring, and BNM noted it considered factors including severity, existing controls, past compliance record, and post-misconduct remedial actions. The AMP was paid on 30 September 2025 and the compound on 7 August 2025. BNM reiterated that reporting institutions must comply with AML/CFT and money services business requirements and that it will take supervisory and enforcement action where legal or regulatory obligations are not met, consistent with its published Enforcement Approach.