MCO News Updates - BNM


BANK NEGARA MALAYSIA (BNM)

Please be informed that Bank Negara Malaysia (BNM) issued the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) Policy Document which came into force on 1 January 2020. BNM has since, on 1 September 2020, issued the latest FAQs and Guidance providing further clarifications on the requirements of this AML/CFT and TFS Policy Document.

Please click on the following for further details:
i) Guidance on Verification of Individual Customers
ii) Guidance on Beneficial Ownership
iii) FAQs on AML/CFT and TFS for Designated Non-Financial Businesses and Professions & Non-Bank Financial Institutions


• Newsletter #11.
Please be informed that Bank Negara Malaysia (BNM) has released its announcement Newsletter #11 as follows:

Webinar Series 3: National AML/CFT Compliance Programme
The upcoming Webinar Series 3 will focus on Customer Due Diligence requirements including verification of individual customers, identification and verification of the beneficial owners. Reporting institutions (RIs) may refer to the Webinar Series 3 Flyer for more information on the complete schedule and registration to the webinar.

Data and Compliance Report 2020 Clinic & Extension of Submission Deadline 
Online session of DCR Clinic will guide Reporting Institutions (RIs) through each and every question in the DCR and share some useful tips to assist RIs in completing the DCR. Further details on the DCR Clinic are as follow:
Date : Thursday, 27 August 2020
Time : 3.00pm to 4.30pm

In addition, RIs are also reminded that the submission deadline of the DCR has been extended to 4 September 2020.

Please click here for the newsletter.


• BNM - DCR Submission Deadline Extended to 4 September 2020.
Please be inform that Bank Negara Malaysia (BNM) has granted an extension of time up to 4 September 2020 for the submission of the DCR.

Please click here for more details.


• DCR 2020 Clinic for DNFBPs & NBFIs.
P
Please be informed that Bank Negara Malaysia (BNM) will conduct a series of DCR Clinic for all RIs of DNFPB to ease RIs in completing and submitting the DCR. The DCR Clinic will take the participants through step-by-step guidance on how to complete the DCR, as well as to address any queries being raised. The DCR Clinic although mainly held in English, is also conducted in Malay and Mandarin.

Please click here for more details.


• Process in Completing the DCR.
Please be informed that Bank Negara Malaysia (BNM) has issued a Data and Compliance Report 2020 (DCR) to reporting institutions (RIs) to facilitate RIs to self-assess their risks and vulnerabilities to money laundering and terrorism financing as well as helping them to understand and mitigate the risk of their business.

For ease of understanding on how to respond to the DCR, BNM has produced two videos aimed to guide the reporting institutions' step-by-step process in completing the DCR. The videos can be accessed through the following links:
i.  What is DCR?
ii. How to complete DCR?

BNM has also prepared the DCR in Bahasa Malaysia. Respondents who wish to complete the DCR in Bahasa Malaysia may download the form at: http://amlcft.bnm.gov.my/Docs/DCR_2020_BM.xlsx.

As part of the initiatives to elevate the reporting institutions' awareness and compliance to AML/CFT requirements, BNM has embarking on sharing of essential requirements under the AML/CFT and TFS for DNFBPs and NBFIs Policy Document through issuance of their newsletter.

Please click here for more details.


• Issuance of National Risk Assessment (NRA) Perception Survey & Data and Compliance Report 2020.
Please be informed that Bank Negara Malaysia (BNM) is conducting an Issuance of National Risk Assessment (NRA) Perception Survey & Data and Compliance Report 2020.

As part of data collection exercise, a Perception Survey is conducted to enhance understanding on key stakeholders’ perception of Malaysia’s exposure to prevailing crimes (domestic and foreign) and vulnerabilities of various sectors to ML and TF risks. For your information the perception survey is a separate exercise from the recently issued Data and Compliance Report (DCR) 2020 which aimed to allow individual reporting institution's self- assessment on its level of ML/TF risk exposures as well as compliance with the AML/CFT requirements.

Kindly complete this survey before 19 June 2020 at this link as follows: -
i. Crime Risk; and
ii. Sector Risk


• Issuance of Data and Compliance Report 2020 (DCR)
Please be informed that Bank Negara Malaysia (BNM) has issued a Data and Compliance Report (DCR) which contain features that allows reporting institutions to self-assess their risks and vulnerabilities to money laundering and terrorism financing as well as helping them to understand and mitigate the risk of their business from being exploited by criminals.

Members who are classified as reporting institutions are required to submit the DCR to BNM by 21 August 2020. Any queries can be directed to compliancesurvey@bnm.gov.my.

Please click the following for further details:
I) DCR 2020
II) DCR Infographic
III) ML/CFT and TFS for DNFBPs and NBFIs Policy Document.

• Bank Negara Malaysia’s AML/CFT Initiatives During the Covid-19 Pandemic.

In the light of the current climate affected by the Covid-19 pandemic, BNM is fully cognisant of the potential disruptions to the normal business operations of your members, particularly small and medium sized businesses.

Therefore, in order to ease compliance burden of our reporting institutions (RIs), BNM strives to apply a more pragmatic approach in undertaking our AML/CFT supervisory activities, which are adjusted based on emerging risks and thorough considerations of  relevant circumstances and developments of current situations.

During this period, greater focus will be placed to intensify awareness among the RIs as well as conducting off-site monitoring to effectively manage and monitor ML/TF risks. Scheduled examinations will be postponed to later of the year to allow firms to focus efforts and resources to resume business activities smoothly and get back to some normalcy after the MCO.

As such these are some of the supervisory activities planned or undertaken:

1) Launch of National AML/CFT Compliance Programme Live Webinar Series.
Following the launch of its first Webinar Series 1 on 27 April, Bank Negara Malaysia (BNM) is now scheduling more sessions of these series for specific sectors. The Webinar Series 1 is focused upon the changes in the revised Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) and Targeted Financial Sanctions (TFS) for DNFBPs and NBFIs Policy Document. This will be the main medium of awareness session that BNM will undertake during the MCO period.

2) Issuance of regular newsletter to update on supervisory activities and topical AML/CFT issues.
BNM has issued a circular informing RIs on the regulatory expectations in implementing the AML/CFT measures, focusing on risk-based approach during the Covid-19 Pandemic.

Click here for the circular regarding regulatory expectation on AML/CFT measures during the Covid-19 and FAQs on AML/CFT matters relevant to DNBPs and NBFIs.

Click here for the infographic of the FAQs.

3) Dissemination of Data and Compliance Report (DCR)
This will serve as an off-site surveillance tool to monitor ML/TF risk exposures of the RIs and sectors. BNM will be issuing a simplified version of DCR which can also serve as a self-assessment to the RIs/ members in assessing their ML/TF risk exposure and level of compliance with the AML/CFT requirements. RIs will be given sufficient time to revert on this report, while their focus in getting back into operation.

4) Reschedule of on-site and off-premise examination.
The affected RIs have been engaged individually to communicate on the expectations.

In addition, BNM will continue to engage with the reporting institutions to provide guidance and support on issues faced in meeting the AML/CFT regulatory obligations throughout this challenging period.

BNM welcomes any feedback or suggestions. You may reach out to BNM via email at fied@bnm.gov.my or through its officers below:
1) Cik Amarjit Kaur Paridam Singh (amarjit@bnm.gov.my)
2) En. Norazmali (azmali@bnm.gov.my)
3) Puan Mun Chooi Wan (chooiwan@bnm.gov.my)
4) Pn. Sarah Syamimi (sasya@bnm.gov.my)