Banks to report cash transactions above RM25k as at Jan 1, 2019


  • Banking
  • Tuesday, 30 Oct 2018

KUALA LUMPUR: As at Jan 1, 2019, banks must report any cash transactions exceeding RM25,000 in their daily cash threshold report, a reduction from the current RM50,000 limit.

Bank Negara Malaysia Governor Datuk Nor Shamsiah Yunus said despite the advancements made in epayments, the use of cash among the public and small and medium-sized businesses remains high.

"This  opens  up  the  economy  to  risks  as  cash  is  still  being used  by  criminals  to  launder  illegal  proceeds,  as  we  have  seen  from  some  high-profile  cases  over  the  past  year  or  so.  

"Similarly,  this  is  the  preferred  mode  to finance  terrorist  activities,  which  will involve  transacting  in  cash," she said in her keynote speech at the 10th International Conference on Financial Crime and Terrorism Financing.

The present requirements call for sources of funds to be disclosed for any financial transactions exceeding RM50,000 that is done over the counter, involving physical currencies and bearer negotiable instruments such as travellers’ cheques. 

* The amount excludes bank drafts, cheques, electronic transfers or fixed deposit rollovers or renewals.

Under the proposed ruling, the amount will be reduced to RM25,000.

The governor said this change will bring the cash threshold report in Malaysia to be more at par with other countries.

"When we compare Malaysia with other countries, our current threshold is too high and disconnected from the size of our economy, especially relative to our purchasing power," she said.

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