KUALA LUMPUR (Oct 28): Bank Negara Malaysia (BNM) has fined two subsidiaries of AMMB Holdings Bhd (KL:AMBANK) a total of RM552,000 for failing to promptly report cash transactions of RM25,000 and above, following lapses in their reporting systems.
The central bank said it imposed penalties of RM276,000 each on AmBank (M) Bhd and AmBank Islamic Bhd on Sept 10 for breaches of anti-money laundering and counter-terrorism financing requirements.
The breaches were discovered during the banking group's own review of its transaction and regulatory reporting records, which found that cash threshold reports (CTRs) had not been submitted for multiple transactions.
BNM attributed the failures to technology implementation lapses caused by inadequate oversight on system changes.
CTRs are used to monitor large cash transactions and help authorities investigate potential financial crimes. Banks must submit these reports to BNM within five working days of a transaction.
In a statement on Wednesday, BNM said AmBank Group had since submitted the missing reports and taken steps to improve its systems, operating procedures and internal controls.
Both banks paid their respective RM276,000 penalties on Sept 22.
BNM said the penalties took into account the severity of the breaches, the group's past compliance record and its failure to exercise reasonable care in meeting regulatory requirements.
However, the central bank also considered the group's decision to voluntarily report the breaches and the corrective measures taken to prevent similar incidents.
"BNM will not hesitate to take appropriate supervisory and/or enforcement actions should any reporting institutions fail to meet any legal and/or regulatory requirements," it said.
BNM fined AmBank RM875,000 in November 2024 for failing to verify BNM’s approval before facilitating two foreign currency investments, breaching financial regulations.
Previously, AmBank was fined RM53.7 million in 2015 for weaknesses in its reporting systems and processes. In 2021, the group also reached a RM2.83 billion global settlement with the Ministry of Finance over its involvement in 1Malaysia Development Bhd (1MDB)-related transactions. Billions of ringgit from 1MDB transactions were deposited into former prime minister Datuk Seri Najib Razak’s personal AmBank accounts and used for his benefit.