⛔️Malaysia🇲🇾: Central Bank (BNM) raises compliance standards for fintechs and e-wallets

⛔️Malaysia🇲🇾: Central Bank (BNM) raises compliance standards for fintechs and e-wallets

The law aimed at combating money laundering and terrorist financing came into effect on January 31 of this year. However, stricter requirements have now been added for customer verification, transaction monitoring, and corporate governance standards.

▶️E-money issuers must now carry out more rigorous identity checks, including mandatory verification against domestic sanctions lists and UN lists. The use of automated tools is recommended, as manual processes are deemed insufficient and error-prone.

▶️Instead of a one-time verification at registration, payment providers must perform ongoing monitoring of:

⚠️High-risk customers

⚠️Corporate clients linked to politically exposed persons (PEPs)

⚠️Users conducting large transaction volumes

▶️Real-time monitoring of suspicious transactions is now required.

▶️Limited-purpose products (e.g., store gift cards) are exempt from many requirements, while open-loop e-wallets fall fully under BNM regulations.

▶️To obtain or retain a license, e-money companies must demonstrate robust AML/CFT controls and effective oversight from their senior management.

☝️Non-compliance will result in substantial fines.

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