Page 174 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

STATEMENT ON
COMPLIANCE

Counter Terrorist Financing programme and Shariah FRAUD COUNTERMEASURES
compliance. The review objective is also to ensure
that the internal policies, procedures, and controls are Here at BMMB, we recognise the growing sophistication
being updated and align with the prevailing regulatory of fraudsters and scammers who continually evolve their
requirements and industry best practices. tactics to deceive unsuspecting individuals. The Bank
understands the significant impact of the financial
iv. Risk reporting fraud can have on individuals, families, and businesses,
and fully committed to take proactive measures to mitigate
Comprehensive and timely compliance reporting is these risks. Throughout the year, the Bank has undertaken
essential for effective managing compliance risk while constant initiatives to strengthen security standards and
promoting a culture of transparency, accountability, fraud management programs across digital banking
and integrity. The Bank has established reporting platforms, ATMs, and other relevant channels.
procedures to appropriate levels of management This includes migration of SMS OTP to more secure
and Board. Compliance activities are periodically multi-factor authentication, kill switch function, cooling-off
reported to the Senior Management, Shariah period for certain online banking activity, enhance capability
Committee, BRCC and/or Board of Directors for of fraud management system and 24/7 Scam Response
deliberation and/or endorsement. This includes updates Hotline. The initiatives are continuously being enhanced
on new regulatory guidelines issued, results of gap to ensure better customer experience without compromising
analysis conducted, AML dashboard, compliance review the security of Bank’s products and services.
reports, training progress updates, breaches/incidence,
and other material compliance concerns. In addition to the active participation in various industry
taskforces and working groups that aimed at combating
cybercrimes, the Bank also engages and pledges its
ANTI-MONEY LAUNDERING & COUNTER FINANCING extensive supports to the National Scam Response Center
OF TERRORISM AND TARGETED FINANCIAL SANCTION (NSRC) which is established as a national command hub
(AML/CFT & TFS)
to coordinate swift action to disrupt online financial scams.
The Bank is committed to combat money laundering and
the financing of terrorism in the Bank’s business operations. INTEGRITY AND ANTI-BRIBERY & CORRUPTION
As an effort to methodically understand the risk exposure,
the Bank conducts Institutional Risk Assessment (IRA) on The Bank adopts a zero-tolerance policy against any form
periodic basis covering both the AML/CFT and sanction of bribery and corruption. The Bank view bribery and
risk. IRA is a proactive approach that enables the Bank to corruption as significant risks not only to the financial
identify, evaluate, and address the specific AML/CFT and industry but also to the good of the society as a whole.
TFS risks associated with the products, services, and As part of the bank continuous efforts to promote good
activities, and assess the adequacy of available mitigating governance and combat bribery and corruption, the Bank
controls to manage such risk where action plan is being has in 2023 developed and launched BMMB Organisational
formulated for areas with enhancement opportunity. Anti-Corruption Plan (OACP) with the aims to uphold the
highest standards of integrity, transparency, and ethical
To effectively mitigate AML/CFT risk, the Bank continues conduct in all aspects of the Bank’s operations. The OACP
invest in technology upgrades and enhancements to represents the Bank’s steadfast commitment in combating
stay ahead of evolving threats and meeting regulatory corruption and integrity misconduct by implementing
expectations. Enhancement has been made to the Bank’s various initiatives to further strengthen the existing
AML/CFT solution to improve detection capabilities which Anti-Bribery & Corruption (ABC) programs. The initiatives
in turns strengthen its transaction monitoring and screening are being monitored centrally by Integrity Governance Unit
processes to protect the Bank from being exploited as a with periodic status reporting to senior management and
conduit for ML/TF activities. Board.

Bank Muamalat reckons the needs to contribute to the
collective efforts in safeguarding the integrity of the financial
system. The Bank actively collaborates with its industry peers,
regulatory authorities, Law Enforcement agencies (LEAs),
and other stakeholders to share insights, best practices,
and intelligence related to AML/CFT & TFS risks.

172