KUALA LUMPUR (Aug 1): The amended Money Services Business Act (MBSA), enforced by the central bank of Malaysia, is in force effective Aug 1.

The amendments call for mandatory imprisonment for a term of up to 10 years and a minimum fine of RM50,000 for illegal operators, Bank Negara Malaysia (BNM) said in a statement on Thursday. The changes also provide greater clarity on the offence of abetting illegal operators, it added.

“The amendments will strengthen BNM’s ability to take effective enforcement actions to serve as a strong deterrent against unauthorised activities that could expose customers to risks and undermine the integrity of the money services business industry,” BNM said.

The MSBA, first issued in 2011, governs the conduct and supervision of the money service business industry comprising money changers, remittance service operators, and currency wholesalers.

The amended MSBA was passed in the Dewan Rakyat in March and was gazetted in June following royal ascent.

The 2024 amendment also provides clearer definition of remittance business and the scope of evidence that can be used to charge an illegal operator, and give BNM the authority to forfeit the property of an illegal operator upon prosecution to deter repeat offenders.

Further, the amended MSBA allows BNM to impose administrative instead of criminal actions against operational breaches by licensees in line with “more proportionate enforcement actions appropriate to the severity of the offence”, the central bank added.