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Monday, October 19, 2015

Bank Negara clarifies its enforcement powers

Bank Negara headquarters. - Reuters pic
Bank Negara headquarters. - Reuters pic
KUALA LUMPUR: Bank Negara, clarifying its powers to enforce compliance, said it will take action against those found to have not complied with the rules and regulations. These are administrative actions administered by the bank itself.

Below is the full statement issued by the central bank on Monday.

Administrative Enforcement Actions

Bank Negara Malaysia (the Bank) wishes to provide clarity regarding its powers to enforce compliance with the regulatory laws that are administered by the Bank. The Bank would take enforcement actions, also known as administrative actions, on parties that are found to have transgressed or have not complied with the rules and regulations issued under these laws. These actions may be taken concurrently with, and are separate and distinct from, criminal proceedings that are under the sole purview of the Attorney General.

Hence, separate from any decision on criminal proceedings, the Bank is authorised under the Financial Services Act 2013 and Islamic Financial Services Act 2013 to pursue administrative actions. This would include the imposition of monetary penalties, issuance of an order to comply, making restitution to any person aggrieved by a breach, public and private reprimands and an order to take steps to mitigate or remedy a breach. 

This is to ensure the integrity of, and confidence in, the financial system. -Star

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