BY: BANK NEGARA MALAYSIA
Following Bank Negara Malaysia’s (BNM) media release on December 27, 2016; it has announced that a financial institution was fined RM1,400,000 as administration monetary penalty.
The fine was for not promptly informing the central bank of an important audit related to a dealer’s misconduct involving the fixing of USD/MYR exchange rate. The financial institution has since paid the penalty.
The institution is now being closely monitored and has been ordered to address shortcomings in its internal controls, to ensure timely notification of findings and to review its existing internal policies, procedures and practices; and also to set up a solid surveillance mechanism to prevent market abuse practices.
This will be complemented with periodic compliance and audit reviews. The financial institution has given its full commitment to rectify these shortcomings and to prevent recurrences of such breaches.
Bank Negara Malaysia wishes to remind all financial institutions that money and foreign exchange market manipulations are prohibited under the 2013 Financial Services Act (FSA).
Financial institutions which are aware of such findings are required to promptly notify BNM as required under the FSA.
The bank will not hesitate to take serious enforcement actions on any party who breaches the law.
BNM will continue to closely monitor market activities to ensure market participants are not involved in money and foreign exchange market manipulation.
BNM, in carrying out its mandate under the law, is responsible in ensuring that the public’s and genuine investors’ interests are protected at all times.
BNM fines financial institution RM1.4 million
