May 29, 2025
Bank Negara Malaysia (BNM), which is the country’s central bank, recently fined four major banks in Malaysia a total of nearly RM5 million. Why? Because these banks didn’t follow important rules meant to keep the financial system clean and safe from misuse like money laundering.
Let’s break it down simply:
What Did the Banks Do Wrong?
- HSBC and HSBC Amanah
They got the biggest fine — over RM3 million. The problem? They didn’t properly check who really owns the accounts (called beneficial ownership). This is a big deal because if banks don’t know who’s behind an account, it could be used for shady activities like hiding illegal money.
Also, HSBC admitted that some of their staff missed red flags when screening for people or organizations under international sanctions. Their system wasn’t strong enough either. - Maybank Islamic
This bank was fined RM1.2 million. Their mistake was not reporting accurate customer data to a national credit system. This may sound small, but it can affect people’s credit history, which impacts whether they can get loans or credit cards. - Bank Pembangunan Malaysia
They were fined just under RM500,000. Like HSBC, they didn’t do a good enough job checking customer identities and screening for risky clients. The bank’s own staff didn’t fully understand what was expected when it came to customer verification.
Why It Matters
These rules exist for a reason: to stop criminals from using banks to hide or move illegal money. When banks skip steps or make mistakes, it opens the door to fraud, scams, and even terrorism funding.
BNM isn’t just handing out fines to punish — it’s a way of saying: “Take this seriously. Fix your systems. Train your people. Protect our financial system.”
The Bottom Line
Even big-name banks can mess up. But the good news is, Malaysia’s financial watchdog is paying attention and holding them accountable. Hopefully, these penalties will push all banks to tighten up their processes, protect their customers, and play by the rules.
