On 24 September 2026, Bank Negara Malaysia (BNM) imposed an administrative monetary penalty (AMP)^[1] of RM8,400 on Smile Honesty Forex Sdn. Bhd. (SHFSB) for failure to comply with the requirement to conduct customer due diligence (CDD).^[2]

As a reporting institution (RI), SHFSB 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 breach during an on-site supervisory examination on SHFSB. During the examination, it was found that SHFSB had failed to conduct CDD on a customer in relation to a currency exchange transaction due to staff oversight.

SHFSB has since taken remedial measures by strengthening its internal controls to address the identified gaps.

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

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

On 7 October 2026, SHFSB paid RM8,400 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 SHFSB 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] This requirement is set out under section 74(3) of the MSBA, read together with paragraph 14C.4(a) 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 identify the customer and verify that customer’s identity using reliable, independent source documents, data or information.}