Bank Negara Malaysia (BNM) imposed an Administrative Monetary Penalty of MYR 29,000 on Merchantrade Asia Sdn. Bhd. for non-compliances with targeted financial sanctions screening requirements under the Money Services Business Act 2011. The breaches related to oversight of sanctions screening procedures and gaps in updating Merchantrade’s sanctions database when the Domestic List was published. As a reporting institution, Merchantrade is required to screen existing, potential and new customers against the Domestic List and the United Nations Security Council Resolutions list, and to verify potential matches to avoid false positives. Merchantrade has since strengthened its controls by subscribing to a commercial database for timely sanctions list updates and providing regular on-the-job training to staff and agents; BNM noted that the penalty level reflected aggravating and mitigating factors including severity, areas for process improvement, past compliance record and remedial actions, and confirmed the MYR 29,000 penalty imposed on 6 March 2025 has been paid.
Bank Negara Malaysia 2025-04-30
Bank Negara Malaysia imposes MYR 29,000 penalty on Merchantrade Asia for sanctions screening breaches
Bank Negara Malaysia imposed a MYR 29,000 penalty on Merchantrade Asia Sdn. Bhd. for non-compliance with financial sanctions screening under the Money Services Business Act 2011. The breaches involved inadequate oversight and updating of sanctions databases. Merchantrade has enhanced its controls and training, and the penalty reflects various factors including severity and remedial actions.