Archive for Bank Negara
KUALA LUMPUR (December 1, 2011): The Money Services Business Act 2011 comes into force today, and at the same time, the Money-Changing Act 1998 is repealed, said Bank Negara Malaysia.
In a statement here today, the central bank said the new Act supports the development of a more dynamic, competitive and professional money services business industry, while strengthening safeguards against money laundering, terrorist financing and illegal activities.
“The Act provides a single, uniform regulatory framework for licensees carrying on the money changing, remittance and wholesale currency businesses, which are currently governed under three separate laws.
“These are, namely, the Money Changing Act 1998, the Payments Systems Act 2003 and the Exchange Control Act 1953,” it added.
According to Bank Negara, the new Act introduces strengthened prudential requirements, focusing particularly on ensuring the effective oversight and control of the conduct and operations of licensed entities to safeguard the integrity of, and confidence in the money services business industry.
“This includes, strengthened fit and proper requirements for shareholders, directors and chief executive officers of licensed entities, and financial and operational requirements that reflect the size and scope of business of an entity,” it said.
Bank Negara also said a licensed entity must comply with specific obligations under the Act to institute and maintain effective internal control mechanisms (which include risk management, accounting and security measures to ensure the safety and integrity of its business), governance arrangements that are accountable and transparent as well as adequate procedures to ensure compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.
The Act will further promote greater transparency in dealings with customers and enhances the protection afforded over customers’ funds handled by licensed entities.
This is supported by wider enforcement powers provided for Bank Negara Malaysia to take early action against non-compliance or breaches of regulatory requirements.
In line with efforts to further develop and modernise the industry, Bank Negara said licensed entities that can demonstrate the financial and operational capacity to effectively manage and control risks in the business with high professional standards of conduct, will be able to expand their current scope of activities to provide a wider range of services that can include money changing, remittance and/or wholesale currency services under a single licence.
“This will be subject to compliance with minimum financial and operational standards set by Bank Negara,” it added.
Bank Negara said such entities will also enjoy greater operational flexibilities and be able to broaden their outreach, including through the appointment of existing smaller licensees as agents.
The new landscape thus provides opportunities for greater synergies to be reaped through business arrangements that are more efficient, while evolving a more advanced and viable industry, that will complement the banking sector in delivering convenient and high quality financial services to individuals and businesses.
Bank Negara said it has closely engaged the industry on this new regulatory framework and will support a smooth transition to the new regime.
Access by the public to money changing and remittance services will not be affected during the transition to this new regime, it added.
For further information on the Money Services Business Act, members of the public can contact BNMLINK at 1-300-88-5465. — Bernama
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Central Credit Reference Information System (CCRIS)
CCRIS is a system that collects credit information on borrowers from financial institutions and supplies the information back to them. This is one of the sources of information used by financial institutions to help them establish a view of the credit histories of potential or current borrowers. It is not a blacklist system as perceived by some people.
One of the functions of Bank Negara Malaysia is to regulate and supervise the financial institutions so that the financial system of the country would be sound and stable. As such, the Bank promotes prudent credit policies and professionalism among the financial institutions, including the adoption of best business practices in credit risk management. One way of doing this is by providing CCRIS to the financial institutions so that they can make faster and better informed lending decisions.
Check CCRIS? Worried that someone may have stolen your identity?
You can obtain your credit report once in every 3 months.
If you are from the Klang Valley, you can get your credit report instantly at Bank Negara Malaysia (Block D, Ground Floor) or by mail/fax (take 2 – 4 weeks to process your request for credit report via mail/fax as the report will be sent to the nearest financial institutions to your home address for your collection.)
For more information, you can contact BNMLINK
Frequently Asked Questions (FAQ) about CCRIS, please click HERE