Bank Negara Malaysia Takes Enforcement Action Under Financial Services Act 2013Ref No : 01/17/07 24 Jan 2017 Embargo : For immediate release
Pursuant to Bank Negara Malaysia’s (the Bank) press release dated 27 December 2016, the Bank wishes to announce that a financial institution has been imposed an administrative monetary penalty of RM1,400,000 for failure to promptly notify the Bank of a significant audit finding in relation to its dealers’ misconduct involving the fixing of the USD/MYR exchange rate. The financial institution has paid the penalty.
The financial institution has been strongly censured and issued with an order to address the shortcomings in internal controls to ensure timely notification of material findings and review existing internal policies, procedures and practices as well as to put in place robust surveillance mechanisms to prevent market abuse behaviours. These will be complemented by periodic compliance and audit reviews. The financial institution has given their full commitment to rectify these shortcomings and to prevent recurrence of such breaches.
The Bank would like to remind all financial institutions that money and foreign exchange market manipulation activities are prohibited under the Financial Services Act 2013 (FSA). Financial institutions which are aware of such findings, are required to promptly notify the Bank as required under the FSA. The Bank will not hesitate to take serious enforcement actions on any party that breaches the law.
Bank Negara Malaysia continues to closely monitor market activities in ensuring market participants are not involved in any money and foreign exchange market manipulation activities. It is the responsibility of the Bank in carrying out its mandate under the law to ensure that public and genuine investors' interests are protected at all times.
Bank Negara Malaysia
24 Jan 2017
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