AmBank was fined RM875,000 by BNM

Bank Negara Malaysia (BNM) has imposed a RM875,000 fine on AmBank (M) Berhad for failing to comply with the Directive to Financial Institutions under the Financial Services Act 2013 (FSA). The penalty was issued on November 18, 2024, and AmBank settled the payment on December 6, 2024.

According to BNM, AmBank failed to obtain prior approval from the central bank before facilitating two foreign currency asset investment transactions involving domestic ringgit-denominated loans by resident individuals. This breached Section 214(6) of the FSA, which mandates written approval from BNM for such transactions.

Following an internal policy review, BNM identified compliance weaknesses within AmBank that contributed to the violation. In response, AmBank has implemented corrective measures, including staff training and enhancing internal communication flows to strengthen compliance with foreign exchange regulations.

BNM also reiterated the importance of adhering to foreign exchange regulations, urging financial institutions and individuals to seek prior approval from BNM when required.