BNM Imposes Penalty On 14 Banks, Financial Institutions For Data Reporting Oversights

Alex Cheong Pui Yin

7th May 2024 - 2 min read

Bank Negara Malaysia (BNM) revealed that it had imposed administrative monetary penalty (AMP) of up to RM600,000 on 14 financial institutions for not complying with the Financial Services Act 2013 (FSA) and the Islamic Financial Services Act 2013 (IFSA). Specifically, they had submitted late, inaccurate, and incomplete data that is critical for BNM’s surveillance of the financial system and policy formulation to safeguard Malaysia’s monetary stability.

In a statement, BNM shared that as many as five banks were hit with a penalty of RM600,000, while others had to pay between RM8,000 to RM360,000; the penalties were determined based on the severity and nature of the transgressions. Here’s the full list of financial institutions affected by this:

CIMB Bank: RM600,000
HSBC Bank: RM600,000
Bank Muamalat: RM600,000
Bank Islam: RM600,000
Bank of America: RM600,000
Citibank: RM360,000
Affin Bank: RM120,000
UOB: RM120,000
OCBC Bank: RM120,000
Affin Islamic Bank: RM120,000
CIMB Islamic Bank: RM120,000
Al Rajhi Banking and Investment Corporation: RM40,000
MBSB Bank: RM40,000
MIDF Amanah Investment Bank: RM8,000

“The financial institutions had committed various non-compliances associated with late, incomplete and/or inaccurate submissions of critical data related to financial performance and payments, external asset and liabilities, cash balance of payments and borrower’s credit information, that may impact analysis, decision-making and publications by BNM,” said the central bank.

BNM further explained that these transgressions are typically caused by factors like technical issues affecting the financial institutions’ internal systems, incorrect applications of statistical requirements, and inadequate operating procedures. That said, it also noted that the impacted institutions have taken steps to address these issues. Among other things, they have enhanced their systems and strengthened the processes for validating their submissions to BNM moving forward.

BNM also reassured that the erroneous submissions have been fully rectified and did not affect the releases of aggregate data by BNM for the relevant reporting periods.

To note, aside from the Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA), banks and financial institutions in Malaysia are also required to adhere to requirements listed under various other policy documents when submitting their information to BNM. These include STATsmart Reporting, External Sector Statistics (ESS) System, and Central Credit Reference Information System (CCRIS).

(Source: Bank Negara Malaysia)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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