Malaysia fines two money services firms for non-compliances

Merchantrade and JAGS were penalized for non-compliance with the Money Services Business Act 2011.

Bank Negara Malaysia (BNM) penalized Merchantrade Asia Sdn. Bhd. and JAGS Money Sdn. Bhd. for non-compliance with the Money Services Business Act 2011.

For Merchantrade, the non-copliances are due to its oversight of sanctions screening procedures, and gaps in updating their sanctions database.

The non-compliances resulted from JAGS’ failure to promptly update the sanctions database, and failure to conduct sanctions screening on new customers.

JAGS has been fined RM6,00, whilst Merchantrade was fined RM29,000, according to separate announcements by the BNM.

Merchantrade has paid the fine on 6 March 2025, and JAGS on 17 March 2025.