Bank Negara Malaysia

Resolution & Recovery

BNM Issues Draft Framework on Recovery, Resolution Planning

By Editors | 20/01/2020

Each financial institution will be required to identify and plan for the execution of a suite of recovery options to restore its long-term viability under a range of stress events.

Structural Regulation

Malaysia Joins Digital Banking Revolution with Exposure Draft

By Natalie Curtis | 14/01/2020

Herbert Smith Freehills breaks down Malaysia’s new framework for digital banks, comparing the regime to those in Singapore and Hong Kong.

Emerging Prudential Risks

BNM Issues Revised Equity Exposure Rules for FIs

By Editors | 06/01/2020

Financial institutions need BNM’s prior written approval to acquire or hold 20% or more of the voting shares or voting power in a corporation. Compliance is required by 31 December 2021.

Anti-Money Laundering

Malaysia Replaces AML/CFT Framework with Two Policy Documents

By Manesh Samtani | 03/01/2020

The first document is for banks, insurers, money services businesses and payments providers. The second is for NBFIs and DNFBPs, including lawyers, accountants, casinos, real estate agents and trust companies.

Climate Risk

BNM Publishes Draft Taxonomy to Help FIs Classify Climate Risks

By Editors | 02/01/2020

Supervised institutions are expected to integrate climate-related risks and considerations into their business strategies and risk management practices, BNM says.

Conduct, Culture & Accountability

BNM Issues Draft Responsibility Mapping Framework for FIs

By Editors | 30/12/2019

The framework will ensure that responsibilities and accountabilities for key functions at financial institutions are clearly allocated to appropriately senior and competent individuals.

Structural Regulation

Malaysia Issues Draft Licensing Framework for Digital Banks

By Manesh Samtani | 28/12/2019

Foreign financial institutions will be allowed to hold a majority stake, but preference will be given to applications where Malaysian nationals own the controlling equity interest.

KYC & CDD

BNM Issues Draft Rules on Financial Sector Use of Electronic KYC

By Editors | 17/12/2019

BNM recommends the use of AI, machine learning or other forms of predictive algorithms to ensure accurate identification and verification, and to automate decision-making in customer onboarding.

Trading & Investment

Malaysia Central Bank Revises Repo Rules

By Editors | 14/11/2019

New rules increase repo transaction tenor to five years and expand the list of eligible securities allowed in repo transactions.