Page 174 - Bank Muamalat_AR24

172 BANK MUAMALAT MALAYSIA BERHAD

STATEMENT ON COMPLIANCE

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