On 14 May 2026, Bank Negara Malaysia (BNM) imposed an Administrative Monetary Penalty (AMP)^[1] of RM16,800 on Jin Cheng Gong Sdn. Bhd. (JCG) for failure to comply with customer due diligence (CDD) requirements.^[2]

As a reporting institution (RI), JCG is required to conduct CDD on its customers and beneficial owners.^[3] The requirements to conduct CDD is to enable RIs to assess their exposure to money laundering (ML) and terrorism financing (TF) risks, as well as to mitigate the risk of RIs from being used as channels for ML/TF, and other serious criminal activities.

BNM discovered the breaches during its supervisory examination on JCG. In the course of the examination, it was found that JCG had failed to identify and/or verify the beneficial owners in relation to money-changing transactions due to JCG’s lack of awareness and oversight in ensuring comprehensive CDD.

JCG has since taken remedial measures by conducting staff training and changing its management to strengthen its CDD compliance.

In deciding the AMP to be imposed, relevant aggravating and mitigating factors were considered. These include the severity of the breaches and JCG’s:

1. current controls to ensure compliance with the CDD requirements;
2. past compliance record; and
3. post misconduct behaviour, including the effectiveness of remedial actions to prevent recurrence of breaches.

On 26 May 2026, JCG paid RM16,800 for the AMP imposed by BNM.

BNM requires all RIs to maintain a high level of commitment in ensuring compliance with anti-money laundering and countering financing of terrorism (AML/CFT) requirements. BNM will not hesitate to take appropriate supervisory and/or enforcement actions should any RI fail to meet its legal and/or regulatory requirements.

The enforcement action taken against JCG is in line with the approach and processes outlined in BNM’s published Enforcement Approach.

^[1] BNM imposed the AMP pursuant to paragraph 75(2)(b) of the Money Services Business Act 2011 (MSBA).

^[2] These requirements are set out under section 74(3) of the MSBA, read together with paragraphs 14C.4(c), 14C.10.1 and 14C.10.2 of the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document (AML/CFT and TFS for FIs PD).

Note: The AML/CFT and TFS for FIs PD was in effect from 1 January 2020 to 5 February 2024 and has since been superseded by the Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing and Targeted Financial Sanctions for Financial Institutions Policy Document (AML/CFT/CPF and TFS for FIs PD), which took effect on 6 February 2024. These requirements are preserved under paragraphs 14C.4(c), 14C.10.1 and 14C.10.2 of the AML/CFT/CPF and TFS for FIs PD.

^[3] When conducting CDD on customers, RIs are required to identify and verify the identity of the individual customer by obtaining the required key information. RIs are further required to identify the beneficial owner (BO) and take reasonable measures to verify the identity of the BO using relevant information or data from reliable sources, such that the RI is satisfied with the identity of the BO.