01.FAQs_FIs_01092020

Sep 30, 2026

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Frequently Asked Questions (FAQs) clarifying the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) requirements for financial institutions. The text explains that the FAQs are for reporting institutions’ common queries and do not replace obligations in the underlying policy document. It also provides guidance on where to submit queries to Bank Negara Malaysia, and includes a structured table of contents covering governance, risk-based approach, customer due diligence, politically exposed persons, third-party reliance, reporting obligations, record keeping, enforcement orders, and targeted financial sanctions, with appendices on higher risk countries and wire transfers.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages45

Reading Time1 h 53 min

AccessFree to download

Introduction

Glossary

Definition and Interpretation

Application of Risk-Based Approach

AML/CFT Compliance Programme

Customer Due Diligence (CDD)

Politically Exposed Persons (PEPs)

Reliance on Third Parties

Higher Risk Countries

Money or Value Transfer Services (MVTS)

Wire Transfers

Cash Threshold Report (CTR)

Suspicious Transaction Report (STR)

Record Keeping

Enforcement Orders

Targeted Financial Sanctions

Other Reporting Obligations

Appendix A: Infographic on Higher Risk Countries

Appendix B: Infographic on Wire Transfers

Frequently Asked Questions on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (FAQs on AML/CFTand TFS for FIs) Introduction The Frequently Asked Questions (FAQs) are intended to provide clarification to reporting institutions on common queries in relation to the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions policy document (Policy Document) . These FAQs are not intended to replace any requirements in the Policy Document. Any refinements to the FAQs will be updated by Bank Negara Malaysia from time to time. Should you have any additional queries related to Policy Document , please submit the queries via any of the following means: a. Mail : Director Financial Intelligence and Enforcement Department Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur [b. Email : amlpolicy@bnm.gov.my](b. Email : amlpolicy@bnm.gov.my) Bank Negara Malaysia 1 September 2020 TABLE OF CONTENTS Introduction ................................................................................................................... 1 Glossary ......................................................................................................................... 3 Definition and Interpretation ........................................................................................ 4 Application of Risk-Based Approach .......................................................................... 7 AML/CFT Compliance Programme .............................................................................. 9 Customer Due Diligence (CDD) .................................................................................. 12 Politically Exposed Persons (PEPs) .......................................................................... 24 Reliance on Third Parties ........................................................................................... 25 Higher Risk Countries................................................................................................. 25 Money or Value Transfer Services (MVTS) .............................................................. 26 Wire Transfers ............................................................................................................. 27 Cash Threshold Report (CTR) .................................................................................... 27 Suspicious Transaction Report (STR) ....................................................................... 28 Disclosure of Suspicious Transaction Report, Cash Threshold Report and Related Information..................................................................................................... 29 Record Keeping........................................................................................................... 30 Enforcement Orders.................................................................................................... 31 Targeted Financial Sanctions .................................................................................... 31 Other Reporting Obligations ...................................................................................... 39 APPENDIX A: Infographic on Higher Risk Countries............................................... 40 APPENDIX B: Infographic on Wire Transfers ........................................................... 42 GLOSSARY | No | Abbreviation | Description | | --- | --- | --- | | 1 | AKPK | Agensi Kaunseling & Pengurusan Kredit | | 2 | AMLA | Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 | | 3 | AML/CFT | Anti-Money Laundering and Countering Financing of Terrorism | | 4 | ASNB | Amanah Saham Nasional Berhad | | 5 | BO | Beneficial Owner | | 6 | CDD | Customer Due Diligence | | 7 | CDM | Cash Deposit Machine | | 8 | CTR | Cash Threshol

FAQs

What is the purpose of these FAQs for financial institutions?

The FAQs are intended to clarify common queries of reporting institutions relating to the AML/CFT and TFS policy document. They are not meant to replace any requirements in the policy document.

How can reporting institutions submit additional queries related to the policy document?

Queries can be submitted via mail or email to Bank Negara Malaysia using the provided contact details for the Financial Intelligence and Enforcement Department.

In the definition of beneficial owner, does it include senior management positions like CEO, CFO, COO?

The first step to identify the beneficial owner focuses on shareholders and directors, excluding individuals appointed as executives such as CEO, CFO, or COO, unless those individuals are also shareholders or directors.

Sep 30, 2026

Upload by adawds