BNM fines company, 2 banks over sanctions breaches

KUALA LUMPUR, 26 AUGUST 2026 —

Bank Negara Malaysia imposed administrative penalties totalling RM901,500 on Setel Ventures Sdn Bhd, Standard Chartered Bank Malaysia Bhd and Standard Chartered Saadiq Bhd for breaches of targeted financial sanctions rules.

“The breaches were attributed to gaps in Setel’s standard operating procedures and sanctions screening system,” Bank Negara said.

Setel paid the penalty on May 6 and has since updated its SOPs and strengthened internal systems to meet Targeted Financial Sanctions requirements.

Bank Negara also fined Standard Chartered Bank Malaysia and Standard Chartered Saadiq RM132,000 each for failing to update their sanctions databases promptly after the Domestic List was issued. This caused sanctions screening to run against outdated lists.

“No specified entities were onboarded, and no transactions involving such entities were facilitated by either bank,” the central bank said.

The breaches stemmed from gaps in the banks’ screening controls and deficiencies in aligning processes with regulatory requirements.

Both Standard Chartered units have since improved oversight and made sanctions screening timelier to comply with BNM’s rules.

They paid their penalties on June 15. “These enforcement actions are in line with the approach and processes outlined in Bank Negara Malaysia’s published Enforcement Approach,” the central bank said.

Related: Bank Negara Malaysia (BNM) · Kuala Lumpur