Malaysia launches amended Money Services Business Act

It clarifies offenses and the punishment for illegal operators.

Malaysia's Money Services Business (Amendment) Act 2024 is now in force effective 1 August, its central bank announced.

Amongst amendments include a mandatory imprisonment for a term not exceeding 10 years and a minimum fine of MYR 50,000 (approximately $11,035) for illegal operators of money services businesses (MSB) in Malaysia.

It also clarifies the offence of abetting illegal operators; and provides a clearer definition of remittance business and the scope of evidence that can be used to charge an illegal operator.

Authorities are empowered to forfeit the property of an illegal operator upon prosecution to deter repeat offenders.

It also outlines administrative instead of criminal actions to be taken by Bank Negara Malaysia (BNM) against operational breaches by MSB licensees. These administrative actions are in line with more proportionate enforcement actions appropriate to the severity of the offence, the financial regulator said.