Bank Negara Malaysia imposes MYR 6,000 administrative monetary penalty on JAGS Money for sanctions screening breaches

Bank Negara Malaysia imposed an administrative monetary penalty of MYR 6,000 on JAGS Money Sdn. Bhd. for non-compliance with targeted financial sanctions screening requirements under the Money Services Business Act 2011 and the central bank’s AML/CFT and targeted financial sanctions policy framework. The breaches stemmed from failures to promptly update the firm’s sanctions database following publication of Malaysia’s Domestic List and to screen new customers against that list. Reporting institutions are required to screen existing, potential and new customers against the Domestic List and the United Nations Security Council Resolutions list as part of customer due diligence and ongoing due diligence processes. JAGS has taken remedial measures including subscribing to timely notifications of Domestic List publications and enhancing internal procedures to ensure timely sanctions database updates; the penalty was paid on 17 March 2025. Bank Negara Malaysia noted that it considered aggravating and mitigating factors including severity, the firm’s control environment, compliance history and post-misconduct remediation, and reiterated it will take supervisory and enforcement action where reporting institutions fall short of targeted financial sanctions requirements.