KUALA LUMPUR (June 24): AEON Credit Service (M) Bhd (KL:AEONCR) has been fined RM520,000 for failing to comply with targeted financial sanctions requirements.

Bank Negara Malaysia (BNM) imposed the penalty after an on-site examination found a sanctioned entity onboarded as a customer, according to a statement. The company also delayed freezing the customer's account after confirming their identity as a sanction target, the central bank said.

AEON Credit paid the fine on April 16, BNM said.

The customer is in the ‘Domestic List’ — names and entities designated by the government under the law on anti-money laundering, anti-terrorism financing and proceeds of unlawful activities — as well as in a list of people and organisations sanctioned by the United Nations Security Council.

The customer’s identity was not disclosed.

BNM said AEON Credit failed to reject the customer despite a positive match and did not promptly freeze the account upon confirmation that the customer was a specified entity. The breaches were attributed to inadequate staff oversight and gaps in the company's standard operating procedures.

The central bank said AEON Credit has since taken remedial measures, including enhancing its procedures and conducting refresher training for relevant staff to strengthen compliance with targeted financial sanctions requirements.

BNM said it will not hesitate to take appropriate supervisory or enforcement actions against reporting institutions that fail to meet their legal and regulatory obligations.

Shares of AEON Credit were up two sen or 0.3% at RM5.88 at the time of writing of Wednesday, valuing the company at RM3 billion.