Bank Negara Malaysia, the nation’s central bank, has imposed an Administrative Monetary Penalty (AMP) of RM600,000 on digital payment services provider TNG Digital Sdn. Bhd. (TNGD).
The penalty was levied on May 18, 2023, for violations of the Financial Services Act 2013 (FSA) and anti-money laundering policies.
According to a statement released by Bank Negara Malaysia, TNGD contravened the FSA alongside two key policy documents:
- The Anti-Money Laundering and Counter Financing of Terrorism – Electronic Money and Non-Bank Affiliated Charge & Credit Card (AML/CFT Sector 4) policy document
- The Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions policy document (AML/CFT and TFS for FIs PD)
These violations came to light after TNGD self-reported to the Bank, admitting to onboarding two individuals who were already sanctioned under local anti-money laundering and anti-terrorism financing laws.
Details of the Violations
TNGD was found in breach of section 48(1) of the FSA for failing to properly screen its customers.
The company did not conduct sanctions screening for the first individual and failed to make further enquiries for the second individual, who was listed in the United Nations Security Council Resolutions List and the Minister of Home Affairs Domestic List.
Bank Negara Malaysia explained that the RM600,000 penalty was calculated after considering both aggravating and mitigating factors.
“This included an assessment of the actions that TNGD had taken to address its non-compliance issues,” it wrote in a statement.
BNM also wrote that TNGD has since paid the RM600,000 penalty in full, as of May 31, 2023.
The action sends a strong message to financial institutions about the importance of strict adherence to anti-money laundering and counter-terrorism financing regulations.
For more details, the public can refer to the official Enforcement Action Publication Notice (P.N. 07/2023) released by Bank Negara Malaysia.