KUALA LUMPUR: The Association of Credit Management Malaysia (ACMM) expresses deep concern over the growing number of sudden and unexplained bank account closures faced by individuals and legitimate businesses across Malaysia.
ACMM president Dr Sri Ganesh Michiel said in recent months, many businesses, particularly those in industries “arbitrarily” classified as high-risk, have experienced sudden account suspensions or closures without clear explanation or evidence.
“While ACMM fully supports Bank Negara Malaysia’s (BNM) initiatives to strengthen anti-money
laundering measures and protect the financial system, we urge that these enforcement actions be conducted fairly, transparently, and in accordance with the principles of justice and due process.
“These closures have caused severe disruptions to their operations, affecting cash flow, payroll, supplier payments, and overall business continuity.
“Worse still, such actions eliminate the financial and audit trail necessary for proper accountability, creating further complications for compliance and tax reporting,” he said in a statement.
He added that no individual or company should be punished, penalised, or discriminated against unless found guilty by a court of law.
“Account closures based merely on suspicion or internal risk classification, without sufficient justification or opportunity for appeal, contradict the fundamental principles of fairness and natural justice,” he said.
He called on BNM, the Finance Ministry and relevant authorities to establish clear, transparent, and standardised procedures for banks to follow when closing or freezing accounts, including the obligation to provide written explanations for such actions to account holders.
He said authorities should also iImplement an independent appeal mechanism to review cases of account closure, ensuring affected individuals or companies to have the right to be heard and to provide evidence of legitimacy.
He said they should also ensure that all legitimate businesses, regardless of their sector classification, have fair access to banking facilities unless proven guilty of unlawful activity in a court of law.
“Authorities should introduce stronger oversight and accountability requirements for banks that take unilateral actions affecting customers’ livelihoods and reputations,” he said.
© New Straits Times Press (M) Bhd
