On 24 September 2026, Bank Negara Malaysia (BNM) imposed an administrative monetary penalty (AMP)^[1] of RM113,100 on TML Remittance Center Sdn. Bhd. (TML) for failure to comply with customer due diligence (CDD) requirements.^[2] 

As a reporting institution (RI), TML is required to conduct CDD on its customers.^[3] The requirement to conduct CDD is intended 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 criminal activities.

BNM discovered the breaches during an on-site supervisory examination on TML. During the examination, it was found that TML had failed to conduct CDD on its customers in relation to remittance transactions. The breaches were attributed to non-compliance with BNM’s regulatory requirements and TML’s standard operating procedures during the customer onboarding process, as well as inadequacies in branch-level oversight of daily operations.

TML has since taken remedial measures by enhancing its remittance system and strengthening its monitoring mechanisms to ensure compliance with internal processes and procedures, as well as BNM’s requirements.

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

On 25 September 2026, TML paid RM113,100 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 any legal and/or regulatory requirements.

The enforcement action taken against TML 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).}

^{[2] These requirements are set out under section 74(3) of the MSBA read together with paragraphs 14C.4(b), 14C.10.1, 14C.4(a) and 14C.12.3 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).}

^{[3] When conducting CDD, RIs are required to verify that any person acting on behalf of the customer is so authorised, and to identify and verify the identity of that person. RIs are also required to identify an individual customer and beneficial owner, by obtaining the required customer information. Furthermore, RIs are required to identify the customer and verify such customer’s identity using reliable, independent source document, data or information.}