Aeon Credit Service (M) Bhd has been fined RM520,000 by Bank Negara Malaysia (BNM) for failing to comply with requirements relating to targeted financial sanctions.
The central bank imposed the administrative monetary penalty (fine) on April 6 after an on-site supervisory examination found a sanctioned entity onboarded as a customer.
It said the financial services company also delayed freezing the customer’s account on confirming it was a specified entity. The customer’s identity was not disclosed.
BNM said as a reporting institution (RI), Aeon Credit is required to reject a potential customer when there is a positive match against individuals and entities listed in the Domestic List and United Nations Security Council Resolutions List.
The Domestic List is a list of names and particulars of specified entities declared by the home affairs minister under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
“Aeon Credit is also required to freeze the customer’s funds upon determination of the customer’s identity as a specified entity in the lists. This is essential to protect the RI and the broader financial system from being abused for terrorism financing activities,” BNM said in a public notice issued today.
“These breaches were attributed to lack of staff oversight and gap in Aeon Credit’s standard operating procedure (SOP),” it said.
BNM said the company has since taken remedial measures by enhancing its SOP and conducting refresher training for staff to ensure compliance with targeted financial sanctions requirements.
The central bank also warned it will not hesitate to take appropriate supervisory or enforcement actions against reporting institutions that fail to meet their legal and regulatory obligations.
Aeon Credit paid the fine on April 16.
The company is a subsidiary of Japan’s Aeon Financial Service Co Ltd, with AEON Co Ltd as its ultimate holding company. The Aeon Group is an integrated conglomerate consisting of eight businesses across various sectors.
Aeon Credit shares closed 2 sen or 0.3% higher at RM5.88, valuing the company at RM3 billion.
