Kuala lumpur: Bank Negara Malaysia (BNM) has implemented a new requirement for financial institutions to issue written notices to account holders whose accounts are closed under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), as announced by the Finance Ministry.
According to BERNAMA News Agency, Deputy Finance Minister Lim Hui Ying stated that these notices must provide the reason for account closures while ensuring sensitive investigation details remain confidential to prevent any potential compromise of ongoing investigations. Furthermore, the notices will inform account holders of their right to appeal, including detailed instructions on how to proceed with an appeal, the available channels, and the timeframe for doing so.
Lim was responding to a question from Teresa Kok Suh Sim (PH-Seputeh) concerning the government’s strategy to enhance coordination between banks, BNM, and enforcement agencies to streamline and clarify the appeal process for accounts closed due to AMLA suspicions.
The deputy minister emphasized that this initiative aims to strike a balance between combating money laundering and protecting account holders from unjustified account closures. Furthermore, BNM is collaborating with financial institutions to develop a standardized industry reference protocol by July 1, 2024. This protocol will guide financial institutions in the reporting, handling, and appeals of accounts suspected to be mule accounts.
This protocol will also integrate processes between the Royal Malaysian Police and financial institutions to ensure coordinated and effective implementation. Financial institutions will be required to assess the current status of cases thoroughly before taking any further actions such as whitewashing, delisting, or restoring accounts.
Lim also highlighted that BNM is committed to monitoring the financial industry’s practices in resolving consumer complaints, ensuring fair treatment for all complainants. She assured that all cases under AMLA, including those involving foreign entities, would be handled with transparency and fairness.
Responding to a supplementary query from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang), Lim affirmed that maintaining the integrity of Malaysia’s financial system is paramount. Thus, all enforcement actions will adhere strictly to existing laws, resisting any external pressures, such as in the case involving a foreign company accused of breaching immigration laws and charged under AMLA related to a project in Springhill, Port Dickson.