KUALA LUMPUR (Sept 4): TNG Digital Sdn Bhd said it is fully committed to complying with Bank Negara Malaysia's (BNM) standards, following the central bank having imposed an Administrative Monetary Policy (AMP) on the company for contravening the Financial Services Act 2013 (FSA) by onboarding two sanctioned individuals.
In a statement on Monday, the electronic payment system company said although the actual breaches occurred more than three years ago and their total transactions on the TNG Digital platform were minimal, TNG Digital still treated these breaches with utmost seriousness and promptly reported them to the bank.
“In cooperation with BNM's unwavering standards in compliance measures, TNG Digital has proactively come forward to the bank (BNM) with its own discoveries during periodic compliance review,” TNG Digital said.
In the company’s report submitted to BNM, TNG Digital informed BNM of the discoveries made regarding sanctioned users, in addition to conducting a thorough review and making improvements to the internal procedures and systems to prevent future occurrences.
“In support of the recent announcement made by BNM, TNG Digital is using these cases as a prime example of our strong compliance with BNM’s regulations and policies.
“With our users as our top priority, we aim to reinforce their confidence in the compliance of our platform. We will continue to cooperate with BNM, adhere to protocols, and practice the highest standard of self-accountability,” said TNG Digital chief executive officer Alan Ni.
TNG Digital reported these two cases that contravened the FSA, in accordance with the Anti-Money Laundering and Counter Financing of Terrorism — Electronic Money and Non-Bank Affiliated Charge & Credit Card (Sector 4) policy document, and the Anti-Money Laundering and Counter Financing of Terrorism, and Targeted Financial Sanctions for Financial Institutions policy document (AML/CFT and TFS for FIs PD).
BNM imposed an AMP of RM600,000 on TNG Digital on May 18, 2023 for contravening the FSA by onboarding two individuals sanctioned under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Declaration of Specified Entities and Reporting Requirements) (Amendments) Order 2014.
According to the central bank, TNG Digital “failed to conduct sanctions screening” on the first sanctioned person, and failed to ascertain and make further enquiries that the second person matched with the United Nations Security Council Resolutions List or the Minister of Home Affairs Domestic List.
TNG Digital made the payment on May 31, it said.