Bank Negara to expose errant financial institutions


KUALA LUMPUR: Bank Negara Malaysia (BNM) will reveal actions taken against financial institutions and intermediaries for non-compliance with rules and regulations, effective January 2018, Governor Muhammad Ibrahim said.

He said the information that includes the names of financial institutions, nature of the offences and the amount of fines and compounds imposed would be made transparent at the central bank’s website.

“This is aimed at further increasing the impact of enforcement actions as a credible deterrent,” he said at the 9th International Conference on Financial Crime and Terrorism Financing 2017 here today.

Between 2015 and June 2017, a total of RM115.8 million in fines and penalties were imposed on institutions for breaching BNM regulations and affecting the integrity of the financial system.

Speaking to reporters later, Muhammad said BNM had not hesitated to impose hefty fines when circumstances warranted action be taken against financial institutions that did not adhere to compliance and corporate governance standards.

He said ample time had been given to the financial institutions to prepare their systems and people for this eventuality.

The central bank will work with all regulatory agencies such as the Securities Commission, Bursa Malaysia and other enforcement agencies to ensure the integrity of Malaysia’s financial system.

For example, over the last three months, the names of 415 individuals involved in facilitating financial scams were shared among financial institutions, he said.

To coordinate and expedite actions against the operators of financial scams, a task force led by the Attorney-General’s Chambers had also been established under the National Coordination Committee to Counter Money Laundering, he said.