Malaysia

BNM assistant governor Encik Adnan Zaylani Mohamad Zahid warns that enforcement action will be taken against legal professionals for AML non-compliance starting in 2020.

DFIs should firmly ground their business models on strong governance and a culture of professional management, said BNM governor Nor Shamsiah Yunus.

BNM's draft policy document proposes to extend the maximum tenor of a repo to five years from 365 days previously, and to expand the securities that are eligible for repo.

The policy move is aimed at providing greater flexibility and efficiency in foreign exchange risk management and business operations.

The updated rules allow non-face-to-face onboarding, remove voice logging for client orders, and introduce higher governance standards, among others.

BNM has set out the requirements money changers must observe in non-face-to-face customer onboarding, to ensure effective and robust AML/CFT controls.

The current and former directors each face 1MDB-related charges carrying a maximum 10-year jail term and a minimum penalty of 1 million ringgit.

In raids were jointly conducted by central bank, police and immigration officers, authorities seized almost $1mn, along with documents, computers and mobile phones.

From 1 July 2020, banks will be required to maintain a minimum NSFR of 100% at all times and to submit NSFR reports to BNM on a quarterly basis.

The DOJ probe is looking into whether Deutsche Bank failed to comply with US AML or foreign bribery laws in the course of raising $1.2bn for 1MDB in 2014.