KUALA LUMPUR – Bank Negara Malaysia (BNM) has fined Habib Jewels Sdn Bhd RM96,250 for failing to comply with anti-money laundering and counterterrorism financing regulations.
The central bank in a statement said the jeweller had failed to submit suspicious transaction reports (STRs) when requested. It paid the fine on February 23.
There were seven suspicious transactions by customers that Habib Jewels’ own internal system had red-flagged, but the jeweller failed to promptly submit STRs, BNM’s statement said as reported by media.
The requirement to submit STRs are stipulated in the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla) to mitigate the risk of reporting institutions from being used as a channel for money laundering, terrorism financing and other serious crime activities.
BNM said Habib Jewels had failed to submit the STRs for over a period of one year, and this was detected by the central bank during an on-site examination.
Non-compliance is in breach of Section 14(1)(b) of Amla read together with paragraphs 19.1.1 and 19.3.3 of the policy document, Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing and Targeted Financial Sanctions for Designated Non-Financial Businesses and Professions and Non-Bank Financial Institutions.
“Under Amla, all reporting institutions are required to promptly report any suspicious transactions to Bank Negara which is the competent authority as appointed under Section 7(1) of Amla.”
BNM added that this was the first time Habib Jewels had breached STR reporting requirements, and the jeweller had since improved its reporting mechanism and the functions of its compliance officer. – May 11, 2024