BNM Slaps AEON Credit with RM520,000 Fine Over Sanctions Screening Failures
Bank Negara Malaysia (BNM) has imposed an Administrative Monetary Penalty (AMP) of RM520,000 on AEON Credit Service (M) Berhad for failing to comply with targeted financial sanctions (TFS) regulations.
The regulatory action follows an on-site supervisory examination by BNM, which revealed that the non-bank financial institution had onboarded a customer listed on the Domestic List of specified entities. Under current anti-money laundering and counter-terrorism financing framework guidelines, reporting institutions are legally required to immediately reject positive matches against both the Domestic List and the United Nations Security Council Resolutions (UNSCR) List, as well as freeze their funds.
BNM noted that AEON Credit not only failed to reject the potential match despite a positive identification but also delayed freezing the customer's account once the entity's identity was confirmed. The central bank attributed these lapses to a lack of staff oversight and gaps within the company’s standard operating procedures (SOP).
In determining the RM520,000 penalty, the central bank weighed several aggravating and mitigating factors, including the overall severity of the breaches, the firm's historical compliance record, and its post-misconduct behavior.
AEON Credit has since initiated remedial measures, which include updating its internal SOPs and conducting refresher training sessions for relevant staff to ensure strict compliance with TFS protocols moving forward.
The central bank reiterated that it will continue to take decisive enforcement actions against any reporting institution that fails to meet regulatory standards to protect the integrity of the broader financial system from terrorism financing risks.
Norbert Gehrke
