KUALA LUMPUR: Bank Negara Malaysia (BNM) has imposed administrative monetary penalties (AMP) totalling RM1.66mil on four financial institutions for non-compliance with the Financial Services Act 2013 (FSA) and/or Islamic Financial Services Act 2013 (IFSA).
In a statement on Tuesday (Jan 28), BNM said the AMP amounts, imposed on July 22, 2024, have been paid by the institutions involved, namely Malayan Banking Bhd (Maybank), RHB Bank Bhd, Maybank Islamic Bhd and AmInvestment Bank Bhd.
Maybank and RHB Bank paid RM750,000 each, while Maybank Islamic paid RM150,000 and AmInvestment Bank RM10,000.
The central bank said these penalties were imposed due to the institutions' failure to comply with sections 143(3)(b) and 143(4) of the FSA and/or sections 155(3)(b) and 155(4) of the IFSA regarding the submission of information to BNM, read together with the requirements under several policy documents.
It said that under these requirements, the financial institutions are required to submit timely, accurate and complete data, as specified in the policy documents.
"The financial institutions committed non-compliances associated with late, incomplete and/or inaccurate submissions of critical data related to financial and payments, external assets and liabilities, cash balance of payments and borrower’s credit information, which may impact analysis, decision-making and publications by BNM,” the central bank said.
It noted the importance of financial institutions submitting timely, accurate and complete statistical data to support BNM’s surveillance and policy formulation to safeguard monetary and financial stability.
"The data is also relied upon for key monetary and financial statistics published by BNM. As such, financial institutions must ensure that their internal systems and operational procedures are sufficiently robust for timely and accurate statistical reporting to BNM, effectively resolve data issues at source and maintain adequate resources to manage financial institutions’ reporting obligations,” it added.
BNM said common root causes of non-compliance include unresolved issues affecting financial institutions’ internal information technology systems, incorrect application of statistical requirements and inadequate operating procedures.
It said the financial institutions have taken remedial actions to address these issues, including enhancing their systems, strengthening processes for validating submissions and providing additional staff training.
The AMP amounts were determined by considering relevant aggravating and mitigating factors as well as the representations made by the financial institutions, which include past compliance records and post-misconduct behaviour, such as timely rectification of non-compliance and remedial measures taken by them. - Bernama
