BNM wants code of conduct for money services business

KUALA LUMPUR: Bank Negara Malaysia (BNM) would like the money services business to establish a code of conduct for the industry in 2014 in order to instil professionalism and good business practices, said BNM Deputy Governor Datuk Muhammad Ibrahim.

In his speech during the official launching of the Malaysian Association of Money Services Business (MAMSB), Muhammad said the association – which governs the money-changing business, remittance business and wholesale currency business – should consider implementing a certification process.

 “We also expect the association to play a proactive role to improve the image of the industry players and weed out the black sheep within the industry, through the effective implementation and enforcement of the code of conduct, and by working with the relevant authorities to help combat illicit transfers of funds and unauthorised activities,” he added.

According to Muhammad, Bank Negara would focus on the industry’s compliance with the Money Services Business Act 2011, which aims to deliver better consumer protection, improve business opportunities, and safeguard against money laundering and other illegal activities. 

“The enhanced focus is part of Malaysia’s effort to counter money laundering and terrorism financing risks,” he said.

“Another potential risk is in the exploitation of new products and services made possible with the advancements in technology, where the money services business industry might become a target to channel proceeds from illegal activities,” added Muhammad. 

He said the central bank would continue to conduct on-site visits to check on compliance, and where necessary, would use the enforcement tools to enforce compliance.

The MAMSB, he suggested, would provide the bridge for constructive engagement between Bank Negara and the industry. 

“The industry must be able to operate with a high degree of transparency and in full compliance with applicable laws and regulations.  This is important not only to build confidence in the services that the industry provides, but also to protect the integrity of the broader financial system,” he explained. 

“The sanctity of financial system is of utmost importance as it is the pillar for our economy,” Muhammad stressed.