BNM penalises company and two banks for sanctions violations

Bank Negara Malaysia (BNM) has imposed penalties on a company and two banks for violating sanctions requirements, the central bank announced. The enforcement actions underscore BNM's commitment to maintaining robust compliance with international sanctions regimes and domestic financial crime prevention measures.

The central bank said the penalties were consistent with its Enforcement Approach, which targets organisations that have been identified by government bodies as posing money laundering or terrorism financing risks. BNM regularly reviews the sanctions lists maintained by international bodies and Malaysian authorities to ensure financial institutions and regulated entities maintain compliance.

The sanctions breaches represent a continued focus area for BNM, which has intensified its supervisory oversight of anti-money laundering and counter-terrorism financing controls across the financial sector. The central bank has previously emphasized that financial institutions must implement robust screening procedures to identify and report suspicious transactions involving sanctioned individuals or entities.

BNM did not disclose the specific identities of the penalised entities or the amounts of the penalties in its announcement. The enforcement action reflects the central bank's zero-tolerance approach toward sanctions violations and failures in financial crime compliance protocols.