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. The jeweller has paid the fine, according to a statement released by BNM.
The fine was issued due to Habib Jewels’ failure 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.
“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. The alleged offence took place over one year and was detected by BNM during on-site examination,” the central bank noted.
In accordance with the law, also known as Anti-Money Laundering Act (AMLA), reporting institutions are obligated to promptly flag any suspicious transactions to BNM. This requirement aims to mitigate the risk of these institutions being exploited for money laundering, terrorism financing and other serious crimes.
Moreover, such reports provide valuable information and intelligence to BNM and law enforcement agencies to support investigations into potential criminal activities.
The amount of the fine was determined taking into account various aggravating and mitigating factors, including “the lack of reasonable care on the part of Habib” and “effective remedial actions taken by Habib to prevent recurrence of non-compliance,” as stated by BNM.
According to BNM, the compound amount was determined in consideration of relevant aggravating and mitigating factors, including “the lack of reasonable care on the part of Habib” and “effective remedial actions taken by Habib to prevent recurrence of non-compliance”.
Following the incident, Habib Jewels has bolstered its STR reporting mechanism and enhanced the functions of its compliance officer, BNM added.
