BNM - AML/CFT Newsletter 2/2023

1.

[FOR ACTION] Preparation for Malaysia's Mutual Evaluation (ME) 2024-2025

The upcoming ME on Malaysia will take place between April 2024 and December 2025. Actions required from the Reporting Institutions (RIs) from the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Designated Non-Financial Businesses and Professions (DNFBPs) are to:

• implement AML/CFT controls using the AML/CFT Guide as reference;
• appoint and notify Compliance Officer to BNM through Compliance Officer Nomination Notification Form;
• report suspicious activities to BNM; and
• screen all customers against the Sanction Lists.

2.

[FOR ACTION] Targeted Financial Sanctions (TFS) on terrorism financing, proliferation financing and other UN-Sanctions regimes

RIs are required to:

• conduct sanction screening as part of their customer due diligence and on-going due diligence process;
• refer to sample of TFS template;
• ensure screening on their customer is conducted based the updated Sanction Lists.

In the event of a positive name match:

• Reject transactions for new/potential customers:
• Freeze funds/ properties for existing customers;
• Block transactions(where applicable);
• Report STRs and Determination Form in the Appendix 5 and 6A,6B, 7A or 7B of the Policy Document.

RIs are reminded that BNM can take enforcement actions on non-compliances with the TFS requirements.

3.

[FOR ACTION] Updated Suspicious Transaction Report (STR) Form

BNM had improved the STR forms to better capture information on suspicious activities. Please use the new STR forms and identify the subject of the suspicious activity, i.e., individual customer, corporate customer or legal person customer. RIs can either submit using STR forms or via Financial Intelligence System (FINS). STR forms for the respective sectors can be accessed: AML/CFT Policies - Anti Money Laundering / Countering Financing of Terrorism (AML/CFT) (bnm.gov.my)

4.

[FOR INFO] Enforcement Actions by BNM: Breaches under the AMLA

RIs to take note that BNM has been taking enforcement actions on non-compliance with AMLA requirements, including non-submission of STR and failure to screen TFS. BNM has also been publishing these enforcement actions as part of the transparency framework.

5.

[FOR ATTENTION] AML/CFT Data & Compliance Report

BNM will not be issuing the DCR for year 2023 and will resume to issue DCR in 2024 to DNFBP and NBFI RIs.

Nevertheless, RIs including those who have received their respective report cards, are expected to fully comply with the requirements of the AMLA and AML/CFT and TFS for DNFBPs and NBFIs Policy Document.

6.

Other Updates: Outcomes of the FATF Plenary, 21-23 June 2023