Bank Negara Malaysia (BNM) has imposed financial penalties and fines totaling nearly RM5 million on four lending institutions for violating financial services percentages.
HSBC Bank Malaysia Berhad and its Islamic subsidiary, HSBC Amanah Malaysia Berhad, incurred the highest penalty of RM3.26 million. Meanwhile, Maybank Islamic Berhad, the sharia-compliant unit of Malayan Banking Berhad, was fined RM1.2 million.
Bank Pembangunan Malaysia Berhad also received a penalty of RM493,500.
According to a statement on Wednesday, the fines were settled by the institutions involved between March and April this year.
Bank Negara Malaysia identified significant weaknesses in the compliance practices of the four financial institutions that were fined nearly RM5 million.
HSBC and Bank Pembangunan Malaysia Berhad were found to be weak in conducting customer due diligence, particularly in identifying beneficial ownership. BNM’s inspection also revealed a lack of understanding and gaps in the sanctions screening system at both banks.
HSBC also found internal weaknesses in its screening system during a review in 2023.
Meanwhile, the penalty against Maybank Islamic stemmed from incorrect data reporting to the Central Credit Reference Information System (CCRIS), which affected the credit records of three customers.
BNM stressed the importance of accurate CCRIS reporting to ensure fair credit assessment for borrowers.
