According to UBS, Bank Negara is likely to cut its overnight policy rate by 25 basis points in 2015, with lower oil prices cushioning the pressure on inflation.
KUALA LUMPUR: Bank Negara Malaysia has reminded all financial institutions to observe reporting obligations imposed under the Financial Services Act 2013 (FSA), in particular the requirement to promptly notify the bank of any significant findings.
“The bank has initiated enforcement actions under the FSA against a financial institution for failure to promptly notify the bank of a significant audit finding in relation to its dealers’ misconduct involving the fixing of the USD/MYR exchange rate.
“The finding indicates that there were communications with traders from other foreign financial institutions which included inappropriate references to the fixing rate submission process. In this regard, the Bank has commenced the due process as stipulated under the FSA,” Bank Negara said in a statement on Tuesday.
The central bank added that it viewed views such reporting breaches seriously, especially on financial institutions’ involvement with offshore ringgit non-delivery forward (NDF) market or any activities that relates towards market manipulation and hence, would not hesitate to take appropriate enforcement actions against any other financial institutions which have breached provisions under the FSA.
“The enforcement actions may include the imposition of monetary penalties, issuance of a written order to comply, making public reprimands and issuance of a written order to mitigate or remedy such breaches,” it said.
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