AmBank fined by BNM following delays in cash transaction reports

Traders Union
All News
Regulators
AmBank fined for late reports

Highlights

Bank Negara Malaysia fined AmBank (M) Bhd and AmBank Islamic Bhd RM276,000 each on 10 Sept for delays in reporting cash transactions.
The delays in submitting cash threshold reports were believed to have resulted from weaknesses in technology implementation and controls over internal system changes.
AmBank Group paid the penalties on 22 Sept and took corrective measures, while BNM said the seriousness of the violations was assessed in light of the group's historical record.

This article was translated from the original. Read the original version by our correspondent here.

Details of the fines and causes of the violations

As reported by The Edge Malaysia, citing Bank Negara Malaysia in a statement on Wednesday, penalties of RM276,000 each were imposed on AmBank (M) Bhd and AmBank Islamic Bhd on 10 Sept for breaching anti-money laundering and counter-terrorism financing reporting requirements.

The violations were identified through the banking group's internal review of transaction records and regulatory reporting, which found that cash threshold reports, or CTRs, had not been submitted for various transactions. BNM said the failures stemmed from weaknesses in technology implementation following inadequate oversight of system changes.

CTRs are used to monitor large-scale cash transactions and help authorities investigate potential financial crimes. Banks must submit these reports to BNM within five working days of a transaction, and both banks paid their respective penalties on 22 Sept.

Corrective measures and compliance record

BNM said AmBank Group had submitted the outstanding reports and taken steps to improve its systems, operating procedures and internal controls. The central bank said the penalties also took into account the seriousness of the violations, the group's past compliance record and its failure to exercise reasonable care in meeting regulatory requirements.

At the same time, BNM also considered the group's voluntary disclosure of the violations and the corrective measures taken to prevent similar incidents from recurring. BNM stressed that it would not hesitate to take appropriate supervisory and/or enforcement action if reporting institutions failed to comply with legal or regulatory requirements.

This case adds to the history of enforcement action involving AmBank. In November 2024, BNM fined AmBank RM875,000 for failing to verify BNM's approval before facilitating two foreign currency investments, while in 2015 the bank was fined RM53.7 million over weaknesses in its reporting systems and processes; in 2021, the group also reached a global settlement of RM2.83 billion with the Ministry of Finance over its involvement in transactions related to 1Malaysia Development Bhd, or 1MDB.

In our previous article on the impact of the 1MDB scandal on corporate governance, we discussed how failures in controls, audits and checks and balances continue to fuel debate about who should be held accountable when oversight fails. We also highlighted the role of boards of directors, the importance of whistleblower protection, and the need for internal auditors to take a more proactive, data-driven approach to detecting risks early.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.