On 27 August 2026, Bank Negara Malaysia (BNM) imposed an administrative monetary penalty (AMP)^[1] of RM11,500 on Ruhanmas Forex Sdn. Bhd. (Ruhanmas) for failure to comply with targeted financial sanctions (TFS) requirements.^[2]

As a reporting institution (RI), Ruhanmas is required to maintain a sanctions database based on the Domestic List and the UNSCR List, and conduct sanctions screening on its customers against both the Domestic List and the UNSCR List. This is essential to protect the RI and the broader financial system from being used for terrorism financing and other activities subject to United Nations sanctions.

BNM discovered these breaches following an on-site supervisory examination on Ruhanmas. During the examination, it was found that Ruhanmas had failed to maintain a sanctions screening mechanism, and to conduct sanctions screening on its customers. These breaches were attributed to Ruhanmas’ lack of understanding of applicable regulatory requirements.

Ruhanmas has since taken remedial measures by subscribing to a commercial sanctions database service, which has been integrated into its currency exchange system.

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

1. inadequate steps/measures to ensure compliance with TFS obligations;
2. past compliance record; and
3. post-misconduct behaviour, including the effectiveness of remedial actions to prevent the recurrence of the breaches.

On 17 September 2026, Ruhanmas paid RM11,500 for the AMP imposed by BNM.

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

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

^{[1] BNM imposed the AMP pursuant to section 75(2)(b) of the Money Services Business Act 2011 (MSBA).}sup>

^{[2] These requirements are set out under section 74(3) of the MSBA read together with paragraphs 27.3.1, 27.3.6, 27.4.1, 28.2.2, 28.3.1, 29.2.2 and 29.3.1 of 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).}

^{Further details of these requirements are available in the AML/CFT/CPF and TFS for FIs PD.}