Bank Negara Malaysia (BNM) imposed an administrative monetary penalty of MYR 460,000 on Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) for failing to promptly submit suspicious transaction reports (STRs) to BNM. BNM found that SME Bank did not promptly report suspicious activities involving several customers, which BNM attributed to inadequate staff awareness of STR requirements. SME Bank has implemented remedial actions, including enhancements to its internal AML/CFT policies and staff training. In setting the penalty, BNM considered aggravating and mitigating factors including the severity of the breach, SME Bank’s lack of reasonable care, existing controls, and past compliance record, and noted that SME Bank paid the penalty on 3 December 2025.
Bank Negara Malaysia 2026-01-29
Bank Negara Malaysia imposes MYR 460,000 penalty on SME Bank for failing to promptly submit suspicious transaction reports
Bank Negara Malaysia imposed a MYR 460,000 penalty on Small Medium Enterprise Development Bank Malaysia Berhad for delayed submission of suspicious transaction reports, citing inadequate staff awareness of reporting requirements. SME Bank has since enhanced its anti-money laundering and counter-financing of terrorism policies and staff training, and paid the penalty on 3 December 2025.