Bank Negara: Amended money services business law comes into effect today

KUCHING (Aug 1): The Money Services Business (Amendment) Act 2024 (MSBA 2024), enforced by Bank Negara Malaysia (BNM), comes into effect from Aug 1.

In announcing this today, the central bank said the amendments to the MSBA will strengthen its ability to take effective enforcement actions against illegal operators to serve as a strong deterrent against unauthorised activities that could expose customers to risks and undermine the integrity of the money services business (MSB) industry.

“The amendments provide for, among others mandatory imprisonment for a term not exceeding 10 years and a minimum fine of RM50,000 for illegal operators of MSB,” said BNM in a statement.

BNM said the amendments also provide greater clarity on the offence of abetting illegal operators, and clearer definition of remittance business and the scope of evidence that can be used to charge an illegal operator.

With the amendments, the central bank said the authorities can forfeit the property of an illegal operator upon prosecution to deter repeat offenders.

BNM said it can take administrative instead of criminal actions against operational breaches by MSB licensees in line with more proportionate enforcement actions appropriate to the severity of the offence.

The MSBA, which was first issued in 2011, governs the conduct and supervision of the MSB industry, which comprises money changers, remittance service operators, and currency wholesalers.

The MSBA has played an instrumental role in elevating the industry’s professionalism and compliance standards, and preventing the abuse of MSB entities for criminal purposes.

For further information on MSBA 2024, visit bnm.gov.my/legislation.

Members of the public can report any illegal money service business operators at bnmlink.bnm.gov.my.