BNM Boosts Transparency, Requires Banks To Issue Written Notices To Accounts Closed Under AMLA -- MOF
KUALA LUMPUR, Oct 22 (Bernama) -- Bank Negara Malaysia (BNM) has strengthened transparency in the handling of appeals of closed bank accounts by requiring financial institutions to issue written notices to affected account holders, said the Finance Ministry.
Deputy Finance Minister Lim Hui Ying said the notice must be accompanied by the reason for the closure of the account without disclosing sensitive information of the investigation to avoid tipping off.
“This notice must also explain the account holder’s right to lodge an appeal, including the appeal channels available, the time period allocated and the process to be followed to lodge an appeal application,” she said during an question and answer session in the Dewan Rakyat today.
She was replying a question from Teresa Kok Suh Sim (PH–Seputeh) on the government's move to streamline coordination between banks, BNM and enforcement agencies to expedite and clarify the appeal process for bank accounts closed on suspicion under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
Through this approach, Lim said BNM can balance the need to prevent money laundering activities with protecting the rights of account holders from arbitrary account closures.
BNM was also working with financial institutions to issue an industry reference protocol by July 1, 2024, aimed at ensuring that all financial institutions have uniform guidance in implementing the reporting, handling and appeal of accounts suspected of being mule accounts.
This protocol encompasses the integration of processes and actions by the Royal Malaysian Police and financial institutions to ensure integrated and effective implementation, where financial institutions are required to review the current status of cases as a primary consideration before implementing follow-up actions such as whitewashing, delisting or account restoration.
Lim added that BNM constantly monitors the financial industry's practices in resolving consumer complaints to ensure that complainants are treated fairly.
Meanwhile, Lim assured that all cases under AMLA would be handled transparently and fairly, including those involving foreign entities.
She said the integrity of the country's financial system was the government's priority, and every enforcement action would be carried out based on existing laws.
She said this in reply to a supplementary question from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN–Machang) who sought assurances that the government would not bow to external pressure regarding the case of a foreign company that was accused of violating immigration laws and was charged under AMLA over a project in Springhill, Port Dickson.
-- BERNAMA
