Bank Negara Malaysia (BNM) imposed an Administrative Monetary Penalty of RM560,000 on MBSB Bank Berhad for failing to submit a suspicious transaction report (STR) despite the transactions meeting the bank’s internal “red flags”. The penalty was imposed on 20 November 2025 and paid on 3 December 2025. As a reporting institution, MBSB Bank is required to submit an STR to BNM when a customer’s transaction or attempted transaction fits its established “red flags”, as set out under the Islamic Financial Services Act 2013 and related BNM AML/CFT policy requirements. BNM found the bank did not file an STR relating to unusually large cash withdrawals, attributing the failure to inadequate staff awareness of STR requirements. In setting the penalty, BNM considered aggravating and mitigating factors including the severity of the breach, the bank’s lack of reasonable care, its existing compliance controls and its past compliance record, and noted that MBSB Bank has taken steps to strengthen its AML/CFT risk preventive measures.
Bank Negara Malaysia 2026-01-29
Bank Negara Malaysia imposes RM560,000 administrative penalty on MBSB Bank for failing to file a suspicious transaction report
Bank Negara Malaysia imposed a RM560,000 penalty on MBSB Bank Berhad for not submitting a suspicious transaction report despite meeting internal "red flags," citing inadequate staff awareness. The penalty, imposed on 20 November 2025 and paid on 3 December 2025, considered the breach's severity and the bank's compliance history, with MBSB Bank taking steps to enhance its anti-money laundering and counter-financing of terrorism measures.