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BNM’s penalty on Maybank, CIMB a clear win for the people: Wee

Although penalties imposed were ‘insignificant’ compared to their profits, MCA president commends central bank’s move

8:56 PM MYT

 

KUALA LUMPUR – Bank Negara Malaysia’s (BNM) decision to impose penalties on Maybank and CIMB following recent disruptions to their banking services is a clear victory for the people, said Datuk Seri Wee Ka Siong.

The MCA president said that while the penalties imposed were insignificant compared to the banks’ profits, BNM’s actions were commendable. 

He explained that the total penalty imposed on Maybank and CIMB was only 0.03% and 0.01% respectively of their pre-tax profits in 2023. 

“This percentage is much smaller than the ‘merchant fees’ charged to businesses by the banks, so BNM’s investigation is justified,” he said in a video clip uploaded to his social media platform today. 

On 29 July, CIMB Bank Bhd and CIMB Islamic Bank Bhd (CIMB), as well as Malayan Banking Bhd and Maybank Islamic Bhd (Maybank), were issued administrative monetary penalties under Bank Negara Malaysia (BNM). 

CIMB was fined RM760,000, while Maybank was fined RM4,320,000 for non-compliance with paragraph 48(1)(a) of the Financial Services Act 2013 and paragraph 58(1)(a) of the Islamic Financial Services Act 2013 in conjunction with paragraph 10.32 of the Risk Management Policy Document in Technology. 

Between June 1, 2023, and May 31, 2024, Maybank’s regional mobile bank platform and MAE applications experienced several unplanned outages, causing prolonged disruption to banking services for customers and other stakeholders. 

Wee had called for action against the banks on April 7, arguing that the penalties would serve as a lesson and prevent similar incidents from recurring. 

This followed disruptions to Maybank’s banking services on April 6, which affected the Maybank2u website, M2U and MAE applications, as well as credit and debit cards – causing widespread public frustration. 

Continuing his comments, he urged banks to lower the fees of electronic payment machines or merchant fees as online payments are now widely used. 

“The banks have made significant profits. They should do whatever they can to reduce costs for the people. They should help ease the burden on the people. 

“Enough is enough. I hope BNM’s actions will continue because the welfare of the people must be prioritised,” he said. – August 15, 2024 

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