On 15 April 2026, Bank Negara Malaysia (BNM) imposed an administrative monetary penalty (AMP)^[1] of RM637,500 on Setel Ventures Sdn. Bhd. (Setel) for failure to comply with requirements relating to targeted financial sanctions (TFS).^[2]

As a reporting institution (RI), Setel is required to update its sanctions database without delay upon publication of the Domestic List^[3] and conduct sanctions screening on its entire customer database against the Domestic List. Setel is also required to ascertain whether the potential match is a true match. This is essential to protect the RI and the broader financial system from being abused for terrorism financing activities.

These breaches were discovered following Setel’s report involving several specified entities^[4]. Upon further assessment, BNM found that Setel had failed to immediately update its sanctions database upon publication of the Domestic List. Setel also failed to conduct sanctions screening of customers in its database and subsequently failed to ascertain whether potential matches were true matches.

These breaches were attributed to gaps in Setel’s standard operating procedure (SOP) and sanctions screening system. Setel has since taken remedial measures by updating and rectifying gaps in its SOP and enhancing internal systems to ensure compliance with TFS requirements.

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

1. lack of reasonable care in ensuring compliance with the TFS requirements;
2. past compliance record; and
3. post-misconduct behaviour, including the effectiveness of remedial actions to prevent the recurrence of breaches.

On 6 May 2026, Setel paid RM637,500 for the AMP imposed by BNM.

BNM requires all RIs to maintain a high level of commitment in ensuring compliance with TFS 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 Setel is in line with the approach and processes outlined in BNM’s published Enforcement Approach.

^{[1] BNM imposed the AMP pursuant to section 234(3)(b)(i) of the Financial Services Act 2013 (FSA).}

^{[2] These requirements are set out under section 48(1)(a) of the FSA read together with paragraphs 27.3.5, 27.3.7, 27.4.2 and 27.4.5 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 27.3.5, 27.3.7, 27.4.4 and 27.4.8 of the AML/CFT/CPF and TFS for FIs PD.}

^{[3] The Domestic List is a list of names and particulars of specified entities declared by the Minister of Home Affairs under the relevant subsidiary legislation made under section 66B(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).}

^{[4] Individuals or entities listed in the Domestic List.}