Bank Negara Malaysia has imposed administrative monetary penalties of RM193,500 on Syarikat S M Ziaudeen Sdn Bhd (SSMZ) and RM340,000 on Alipay Malaysia Sdn Bhd (Alipay) for regulatory non-compliance.
BNM said SSMZ had breached customer due diligence and ongoing due diligence obligations under the Money Services Business Act 2011 (MSBA), Bernama reported.
The penalty, imposed on Aug 28, 2024, related to violations of sections 74 and 75(1)(b) of the MSBA, read with the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document (AML/CFT and TFS for FIs PD).
Sections 74 and 75(1)(b) of the MSBA relate to the powers of BNM to issue guidelines and administrative actions.
SSMZ paid the penalty on Aug 28.
BNM said the RM340,000 penalty imposed on Alipay on June 19 stemmed from breaches of paragraph 48(1)(a) of the Financial Services Act 2013, also read with the AML/CFT and TFS for FIs PD.
Paragraph 48(1)(a) of the FSA relates to institutional compliance with standards specified by the bank.
Alipay settled the penalty on July 3.
The central bank said the enforcement actions were consistent with the procedures outlined in its Enforcement Approach document.
