Legislation
To enable the Bank to meet the objectives of a central bank, it is vested with comprehensive legal powers under the following legislation to regulate and supervise the financial system. These pieces of legislation includes:
Money Services Business Act 2011
The Money Services Business Act 2011 (MSBA) came into force on 1 December 2011 and provides for the licensing, regulation and supervision of the money services business industry which comprises of the comprising money changing, remittance and wholesale currency businesses and other related matters.
The MSBA was enacted with the aims to modernize and elevate the status of the money-changing and remittance business into a more dynamic, competitive and professional industry, while strengthening safeguards against the threats of money laundering, terrorist financing and other illegal activities.
The Bank has the power to regulate the industry through the issuance of regulations, guidelines, circulars, standards and notices. Apart from the power to compound and prosecute any person who contravenes the MSBA, the Bank is also empowered with other enforcement powers, namely to issue directive to a licensee or money services agent if it is contravening or has contravened the MSBA or is carrying on money services business in a manner detrimental to the interest of customers and public generally. The Bank may also take administrative action or institute civil actions against any person who has contravened the MSBA.
Date came into force: 1 December 2011
Not yet incorporating with latest amendment, Act A1711, that was gazetted on 6 June 2024 and came into force on 1 August 2024.
Download: Money Services Business (Amendment) Act 2024
Anti-Money Laundering, Anti-Terrorism Financing, Anti-Restricted Activity Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) (Act 613)
The AMLA provides for the offences of money laundering (ML) and restricted activity financing (RAF), the measures to be taken for the prevention of ML, terrorism financing (TF) and RAF offences, the investigation powers conferred and the forfeiture of property involved in or derived from ML, TF and RAF offences, as well as terrorist property, proliferator property, proceeds of unlawful activity and instrumentalities of an offence.
The First Schedule of the AMLA lists the reporting institutions i.e. financial institutions (FIs), non-bank financial institutions (NBFIs) and designated non-financial businesses and professions (DNFBPs) which are required to perform specific obligations designed to prevent ML, TF and RAF offences.
The AMLA also defines serious offences, which if committed, are likely to result in a person benefitting or deriving proceeds from the offence.
The AMLA promotes a collaborative and multi-agency approach by setting out the powers and functions of:
- the competent authority which is responsible for overseeing the performance of obligations by reporting institutions, facilitating the enforcement of the AMLA and co-operating with foreign financial intelligence units;
- enforcement agencies which are responsible for investigating offences under the AMLA; and
- regulatory or supervisory authorities which are responsible for facilitating the implementation of the AMLA.
The Minister of Finance has appointed Bank Negara Malaysia (BNM) as the competent authority under the AMLA. BNM is responsible to perform the functions as the competent authority under the AMLA.
Date came into force: 15 January 2002
Not yet incorporating with latest amendment, Act A1761, that was gazetted on 14 May 2025 and came into force on 1 March 2026.
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