Bank Negara Malaysia reinforces laws on Money Laundering
Bank Negara Malaysia (BNM) has revised the Anti-Money Laundering, Countering Financing of Terrorism (AML/CFT) and Targeted Financial Sanctions for Financial Institutions (TFS for FIs) Act, effective 31 January of this year. If you are interested in reading the full policy, you can find the comprehensive 188-page policy document on here.
Following the 1MDB scandal, Malaysia has been actively working against money laundering and corruption. This enhancement is designated to banking and deposit-taking institutions, insurance, Takaful branches, gaming business, moneylenders as well as pawnbrokers.
It will ensure more accountability on the board and make sure the reporting institutions have conducted an effective AML/CFT such as simplified customer due diligence (CDD) and establishing non-face-to-face business relationships. This allows more institutions to conduct simplified CDD with only minimal customer information needed for verification purposes.
The AML/CFT also provides guidelines and requirements for the compliance officer. They act as the reference point for AML/CFT matters within the reporting institution so the candidates must be chosen based on financial integrity. Reporting institutions are required to assess the roles and responsibilities of the Compliance Officer, as well as ensure that they are clearly defined and documented.
BNM has also released a response to the feedback received on AML/CFT and TFS for FIs Exposure Draft. Get more updates from their official website.
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