Malaysia fines money changer for customer due diligence lapses

BSB Darussalam has paid the $7,000 penalty.

Bank Negara Malaysia (BNM) has imposed an administrative monetary penalty to BSB Darussalam Sdn. Bhd. (BDSB) for non-compliance with customer due diligence (CDD) requirements, according to an announcement on October 2024.

BDSB, a money changing business, has paid the penalty of MYR30,600 (approximately $7,018) imposed by BNM on 12 September.

The central bank detected the non-compliances with CDD requirements during an on-site examination.

BDSB notably failed to conduct CDD on three customers in relation to money-changing transactions above RM3,000, facilitated through deliberate acts by its personnel to split the transactions into amounts below the stipulated threshold for the conduct of CDD, the BNM found.

BDSB’s non-compliance falls under sections 74 and 75(1)(b) of the Money Services Business Act 2011 (MSBA), which is to be read together with paragraphs 14C.4(a) and 14C.12.1 of the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document (AML/CFT and TFS for FIs).

(US$1 = MYR 4.36; based on Wise currency conversion rates, 28 October 2024, 10:52 AM)

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