Malaysia plans to impose cash transaction limit of RM25,000 from next year

Bank Negara Malaysia says industries with large cash transactions will be exempted from the cash transaction limit.

KUALA LUMPUR: Malaysia is planning to impose a cash transaction limit (CTL) of RM25,000 starting next year to further strengthen the country’s financial integrity.

“This is to address the abuse of physical cash used for illicit activities,” Bank Negara Malaysia (BNM) deputy governor and chairman of the National Coordination Committee to Counter Money Laundering (NCC) Rasheed Ghaffour said.

However, industries with large cash transactions, such as high-value dealers, medical tourism, hotels and wholesalers, are exempted from the CTL, he said at a media briefing here today.

This exemption is to balance the genuine needs of industries with large cash transactions.

Rasheed said the move would not affect households as NCC’s engagement with over 1,000 individuals across the country revealed that large single cash transactions on average among the B40 low-income group were RM2,284, M40 middle-income group RM4,104 and T20 high-income group RM7,843.

In January, BNM lowered the daily cash threshold report (CTR) from RM50,000 to RM25,000.

Up to September 2019, over five million CTR reports were received, representing about RM483 billion in cash transactions. - FMT