KUALA LUMPUR (March 31): A total of 284 supervisory and enforcement actions were taken against financial institutions last year, according to Bank Negara Malaysia (BNM).

In addition, monetary penalties amounting to RM15.9 million were imposed on these institutions, the central bank said in its 2025 annual report.

In 2024, BNM imposed a total of RM18.9 million penalties on financial institutions, as 326 supervisory and enforcement actions were taken.

Of the 284 actions, 150 were taken against institutions regulated by BNM, while the remaining 134 involved non-regulated entities, including individuals.

Of the 150 supervisory and enforcement actions taken against institutions regulated by BNM, the majority involved commercial banks (52), insurers (32) and money services businesses (20).

BNM said offences were mainly related to anti-money laundering, technology risk management, prudential standards and foreign exchange policies.

A notable area for enforcement and supervisory action in 2025 was unplanned system downtime that disrupted essential banking services, said the central bank.

As such, BNM acted against nine banks that failed to meet regulatory expectations, including imposing total penalties of RM5.6 million.

BNM deployed “disrupt and dismantle” actions as well as “combative actions” against financial crimes such as illegal deposit-taking, illegal money services business and money laundering. 

These actions aim to safeguard financial integrity, protect public interest and ensure reporting institutions fulfil their responsibilities in preventing the financial system from being exploited by criminals.

BNM uses supervisory actions, such as warning letters, reprimands and enforceable undertakings, to serve as preventive and corrective tools to rectify compliance gaps, improve governance and strengthen internal controls, it said. 

Enforcement actions, such as administrative monetary penalties and compounds, are imposed for material regulatory breaches to reinforce accountability and deter misconduct.

Guided by its enforcement approach framework, BNM said its actions are consistent, transparent and proportionate, and reflect its zero-tolerance stance against financial crimes and serious non-compliances.

These actions reinforce BNM’s zero-tolerance stance against financial crimes and its commitment to protecting consumers, maintaining trust and upholding integrity in Malaysia’s financial system.

Click here to read more stories on BNM Annual Report 2025.