Bank Negara Malaysia (BNM) announced that it had imposed an Administrative Monetary Penalty of RM193,500 on Syarikat S.M. Ziaudeen Sdn. Bhd. (SSMZ) for non-compliance with customer due diligence (CDD) and ongoing due diligence (ODD) requirements under the Money Services Business Act 2011 and the relevant anti-money laundering and targeted financial sanctions policy requirements. SSMZ has paid the penalty. An on-site examination found that SSMZ failed to conduct CDD for 22 money-changing transactions exceeding RM3,000 each and failed to conduct ODD on a customer transaction despite it being flagged as high risk in its system. In determining the penalty, BNM considered factors including employee culpability, the effectiveness of controls, SSMZ’s past compliance record and remedial actions, with SSMZ reporting that it strengthened standard operating procedures and enhanced employee training. The cited AML/CFT policy document has since been superseded by an updated policy document that preserves the relevant requirements.
Bank Negara Malaysia 2025-09-24
Bank Negara Malaysia imposes RM193,500 penalty on Syarikat S.M. Ziaudeen for customer due diligence breaches
Bank Negara Malaysia imposed a RM193,500 penalty on Syarikat S.M. Ziaudeen Sdn. Bhd. for non-compliance with due diligence requirements under the Money Services Business Act 2011. The penalty followed an on-site examination revealing failures in due diligence on high-risk transactions. SSMZ has paid the penalty and reported enhancements to its procedures and employee training.