Bank Negara Malaysia revises Policy Document on Governance, Risk Management, and Operations for Money Services Business

28 July 2025

On 9 April 2025, Bank Negara Malaysia ("BNM") revised the Policy Document on Governance, Risk Management, and Operations for Money Services Business (“MSB”), which took effect immediately. The policy document supersedes the previous policy document of the same name issued on 30 June 2022. As with its predecessor, the revised policy document applies to MSBs licensed under the Money Services Business Act 2011 and sets out the minimum requirements that MSBs must observe in implementing sound governance, appropriate risk management and robust internal control systems for their business.

The revised policy document introduces several key updates, including (a) a new paragraph encouraging the board of MSBs to ensure that the MSB’s compliance officers are duly certified/accredited by relevant certification/accreditation bodies, (b) the permitting of forward exchange transactions with BNM approval, (c) the removal of BNM’s right under the policy document to grant exemptions from compliance with the requirements of the policy document, and (d) the mandating of annual Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing training for compliance officers.