Bank Negara Malaysia (BNM) has imposed Administrative Monetary Penalties (AMPs) totalling RM493,500 on Bank Pembangunan Malaysia Berhad (BPMB) for non-compliance with the Development Financial Institutions Act 2002 and the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document, relating to customer due diligence and sanctions screening requirements. BNM imposed an AMP of RM229,500 for failures to identify and take reasonable measures to verify the identities of beneficial owners, with the issue identified during an on-site examination and attributed to staff’s inadequate understanding of the specific beneficial ownership requirements. A separate AMP of RM264,000 was imposed for gaps in sanctions screening processes that led to delays in updating sanctions information and screening existing customers after publication of relevant United Nations Security Council and domestic lists, although BNM noted there were no specified entities onboarded and no transactions of specified entities facilitated by BPMB. BPMB has enhanced procedures and delivered staff training in both areas, and BNM cited remedial actions and the fact that these were BPMB’s first non-compliances of the respective types among the mitigating factors; BPMB has paid the total penalties.
Bank Negara Malaysia 2025-05-28
Bank Negara Malaysia imposes RM493,500 administrative penalty on Bank Pembangunan Malaysia for customer due diligence and sanctions screening breaches
Bank Negara Malaysia imposed Administrative Monetary Penalties totaling RM493,500 on Bank Pembangunan Malaysia Berhad for non-compliance with the Development Financial Institutions Act 2002 and anti-money laundering policies. Penalties included RM229,500 for inadequate verification of beneficial owners and RM264,000 for lapses in sanctions screening. BPMB has since enhanced procedures and staff training, and has paid the penalties.