KUALA LUMPUR: Bank Negara Malaysia (BNM) has imposed a fine of RM96,250 on Habib Jewels Sdn Bhd for non-compliance with anti-money laundering and counter-terrorism financing regulations.
Habib failed to promptly submit suspicious transaction reports (STRs) to the central bank as required under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
Bank Negara noted that the jeweller had paid the fine on Feb 23.
"The non-compliance with the STR submission requirements, which took place over a period of one year, was detected by Bank Negara during the on-site examination.
"Habib failed to promptly submit STRs on seven series of suspicious transactions by its customers even though the series of transactions matched Habib's internal red flags," it said in a statement today.
Bank Negara said the failure was in breach of requirements set out in section 14(1)(b) of AMLA read together with paragraphs 19.1.1 and 19.3.3 of Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Designated Non-Financial Businesses and Professions (DNFBPs) and Non-Bank Financial Institutions (NBFIs) policy document for DNFBPs and NBFIs.
"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 the AMLA."
This requirement serves to mitigate the risk of reporting institutions from being used as a channel for money laundering, terrorism financing and other serious crime activities.
Additionally, this report provides Bank Negara and law enforcement agencies with valuable information and/or intelligence of potential criminal activities to support financial crime investigations.
Bank Negara said the compound amount was determined in accordance with the penalty framework and in consideration of relevant aggravating and mitigating factors.
This included the lack of reasonable care on the part of Habib in compliance of laws and its own standard operating procedures and severity of the non-compliance.
The central bank said this also includes the fact that this was Habib's first non-compliance, the effective remedial actions taken by Habib to prevent recurrence of non-compliance, and the current compliance nature and practices by the dealers in precious metals and precious stones industry.
"Habib has since strengthened its STR reporting mechanism and the functions of its compliance officer.
"The enforcement action taken is in line with the approach and processes outlined in the recently published Enforcement Approach document," it noted.
