BNM said Zurich General Insurance Malaysia Bhd (ZGIMB) was fined RM1.04 million, while Zurich General Takaful Malaysia Bhd (ZGTMB) was penalised RM520,000 for non-compliance detected on Jan 19.

In a statement today, it said both companies failed to update their sanctions database after the publication of a new sanctions local list, and did not properly screen all customers.

They failed to fully check and confirm whether flagged customers were true matches, it said.

BNM said that in one case, ZGIMB failed to freeze funds and report to the authorities immediately after identifying a relevant entity.

“These breaches were attributed to gaps in Zurich’s sanctions screening systems and SOPs, as well as a lack of staff oversight and awareness.

“Zurich has since taken remedial measures by enhancing its SOPs and conducting refresher training for relevant staff to ensure compliance with targeted financial sanctions requirements,” it said.

It said that in deciding on the penalties, it considered factors such as the severity of the breaches, level of compliance care, past record, and remedial actions taken.

The penalties were paid on Jan 26.