Bank Negara has its own powers to enforce compliance

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Even if the attorney general does not take action, the central bank has its own powers which it may use to enforce compliance with its regulatory laws.

It is time for Bank Negara governor Zeti to act to help restore faith in the system.

This statement was issued by the bank today:

Administrative Enforcement Actions

Bank Negara Malaysia (the Bank) wishes to provide clarity regarding its powers to enforce compliance with the regulatory laws that are administered by the Bank. The Bank would take enforcement actions, also known as administrative actions, on parties that are found to have transgressed or have not complied with the rules and regulations issued under these laws. These actions may be taken concurrently with, and are separate and distinct from, criminal proceedings that are under the sole purview of the Attorney General.

Hence, separate from any decision on criminal proceedings, the Bank is authorised under the Financial Services Act 2013 and Islamic Financial Services Act 2013 to pursue administrative actions. This would include the imposition of monetary penalties, issuance of an order to comply, making restitution to any person aggrieved by a breach, public and private reprimands and an order to take steps to mitigate or remedy a breach.

This is to ensure the integrity of, and confidence in, the financial system.

Bank Negara Malaysia
19 October 2015

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tunglang

Bank Negara has its own powers to enforce compliance. THEN WHY WAIT?

Finn

Cannot trust BNM!