9 October, 2019
Bank Negara Malaysia issues policy document on Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) — Money Services Business (Sector 3) (Supplementary Document No. 2)
Following the exposure draft issued by Bank Negara Malaysia (“BNM”) on 9 August 2019, BNM issued a policy document on Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) – Money Services Business (Sector 3) (Supplementary Document No. 2) (“PD”) which took effect on 19 September 2019.
The PD sets out BNM’s requirements and expectations on money changers licensed under the Money Services Business Act 2011 which implements electronic Know Your Customer (“e-KYC”) for establishing business relationships and conducting consumer due diligence (“Reporting Institutions”).
The Reporting Institutions are required to comply with the requirements set out in the PD which includes, among others, to obtain the prior written approval of BNM to implement e-KYC for the provision of money changing business through online channel or mobile channel.
The PD supersedes paragraph 18 of the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) — Money Services Business (Sector 3), issued on 15 September 2013, insofar as it applies to the Reporting Institutions.
In addition to the foregoing, BNM has also issued a set of Frequently Asked Questions to provide clarification on the PD.
BNM issues policy document on Shariah Governance
BNM had, on 20 September 2019, issued a policy document on Shariah Governance (the “Shariah PD”), which are applicable to:
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Islamic banks licensed under the Islamic Financial Services Act 2013;
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takaful operators (including professional retakaful operators) licensed under the Islamic Financial Services Act 2013;
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banks and investment banks approved under paragraph 15(1)(a) of the Financial Services Act 2013 to carry on Islamic banking business;
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prescribed development financial institutions approved under subsection 33B(1) of the Development Financial Institutions Act 2002 to carry on Islamic financial business,
(collectively, “Islamic FIs”).
Pursuant to the Shariah PD:
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BNM seeks to further strengthen the effectiveness of Shariah governance arrangements of Islamic FIs. In particular, the Shariah PD sets out strengthened oversight accountabilities on the board of directors, Shariah committee and other key organs of the Islamic FI which are involved in the implementation of Shariah Governance.
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save for paragraph 12.5, the other provisions of the Shariah PD will come into effect on 1 April 2020.
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paragraph 12.5 will come into effect on 1 April 2023, pursuant to which a nine-year limit is imposed on the tenure of office for a Shariah committee member in a Islamic FI.
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the policy on Shariah Governance Framework for Islamic Financial Institutions issued on 22 October 2010 is amongst the superseded policy.
Securities Commission Malaysia registers first property crowdfunding operator
EdgeProp Sdn Bhd is the first company registered by the Securities Commission Malaysia as a recognised market operator to establish and operate a property crowdfunding platform in Malaysia. According to the announcement made by the Securities Commission Malaysia, EdgeProp Sdn Bhd was granted an approval, in principle, in September 2019.
Property crowdfunding provides an alternative source of financing for first-time homebuyers. The guidelines on recognised market issued by the Securities Commission Malaysia also sets out the eligibility and obligations of the homebuyers.
For further information, please contact:
Putri Noor Shariza Noordin, Partner, Shearn Delamore & Co
shariza@shearndelamore.com
