Financial Services
Exposure draft issued by Bank Negara Malaysia
Bank Negara Malaysia (“BNM”) had issued an exposure draft on:
a) Islamic Banking Window (“IBW ED”) for public feedback by 31 March 2024. The IBW ED:
- sets out BNM’s proposed enhancement to the Guidelines on Skim Perbankan Islam to reflect authorisation, prudential and operational regulatory requirements applicable to domestic and overseas Islamic Banking Window based on relevant changes in legislative and regulatory requirements.
- when it becomes a policy, it will supersede the existing Guidelines on Skim Perbankan Islam.
- when it becomes a policy, it will apply to (i) banks and investment banks licensed under the Financial Services Act 2013 which are approved under section 15 thereof; and (ii) prescribed development financial institutions which are approved under paragraph 33B(1)(b) of the Development Financial Institutions Act 2002, to carry on Islamic Banking Window operations.
b) Currency Processing Business for public feedback by 15 March 2024. Pursuant to the exposure draft, when it becomes a policy:
- it specifies the regulatory requirements which must be adhered to by a registered currency processor to promote prudent practice, professionalism, integrity, accountability and transparency, as well as to recommend best practices to be followed.
- it will apply to persons registered under subsection 26(1) of the Currency Act 2020 to carry on currency processing business.
Revised Policy Documents on AML/ CFT/ CPF and TFS
BNM issued the revised versions of the:
- Policy Document on Anti-Money Laundering (“AML”), Countering Financing of Terrorism (“CFT”), Countering Proliferation Financing (“CPF”) and Targeted Financial Sanctions (“TFS”) for Financial Institutions, which came into effect on 6 February 2024.
- Policy Document on AML, CFT, CPF and TFS for Designated Non-Financial Businesses and Professions and Non-Bank Financial Institutions, which came into effect on 6 February 2024 save for the provisions relating to CPF (which will be on a date specified by the competent authority).
