Bank Negara Seeks Feedback on Proposed Amendments to Money Services Business Act

Bank Negara Malaysia issued a Consultation Paper on 19 March 2019 to seek feedback on the Proposed Amendments to the Money Services Business Act 2011.
The proposed amendments to be made to the Money Services Business Act 2011 (‘Act) include the following –
  1. The definition of ‘remittance business’ will be amended to set out activities that form part of ‘facilitating the transfer of funds’;
  1. A provision will be introduced to make admissible in court proceedings, all evidence obtained by under the Act regardless of how such evidence is obtained;
  1. Amendments will be introduced to explain the term ‘abetment’ and to provide illustrations of activities that constitute abetment.
  1. A mandatory term of imprisonment of up to ten years and a minimum fine of RM50,000 will be imposed on a person who is convicted of carrying on money services business without a licence;
  1. A provision will be introduced to allow the court to issue an order to forfeit any property which is the subject matter of an offence or appears to have been used in the commission of an offence upon the offence being proved against an accused; and
  1. Amendments will be introduced to enable Bank Negara to institute administrative actions against licensees for non-compliance with ten provisions under the Act (five of which relate to licensing, two to operational and three to management and shareholding matters).
The proposed amendments are far-reaching and will significantly enhance the regulatory framework for money services businesses in Malaysia.
The consultation period ends on 19 April 2019.