Malaysia’s UBB Investment Bank fined $2.45m for reporting failures

UBBIB also failed to properly identify and verify customers’ identity during onboarding.

Bank Negara Malaysia (BNM) and the Labuan Financial Services Authority (LFSA) have fined UBB Investment Bank Limited (UBBIB) $2.45m (MYR10m) for failures to comply with anti-money laundering and anti-terrorism financing laws.

An investigation by BNM and LFSA found that UBBIB failed to properly submit suspicious transaction reports (STRs) related to 53 transactions conducted between 2023 and 2024.

Under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), financial institutions must report suspicious transactions to the central bank.

A separate investigation by the LFSA said that UBBIB failed to properly identify and verify the customer’s identity during its onboarding process.

The fine is composed of MYR9m for AMLA offenses, and MYR1m for offence under the Labuan Financial Services and Securities Act 2010.

UBBIB paid the fine on 11 June 2026.