Dewan Rakyat Passes Money Services Business (Amendment) Bill 2024 to Strengthen Regulatory Framework

In a significant move aimed at strengthening Malaysia’s financial regulatory landscape, the Dewan Rakyat has successfully passed the Money Services Business (Amendment) Bill 2024. Led by Deputy Finance Minister Lim Hui Ying, the bill received unanimous approval following its third reading, marking an essential step towards enhancing the existing legal framework governing money services.

As reported by Bernama, the bill aims to reinforce the current legal framework governing money services to ensure more effective enforcement against unlicensed money services and non-compliance with regulations by license holders. Despite the positive impact of the Money Services Business Act 2011 (Act 731) on licensed entities, the industry continues to grapple with unlicensed operations, necessitating legislative reinforcement.

Lim highlighted four key considerations underlying the proposed amendments. These encompass the urgent need to curb unlicensed money services, given their significant adverse effects on the country’s economy, along with addressing various Hawala modus operandi to ensure appropriate enforcement measures. Hawala, an informal method of transferring money without physical currency movement, poses unique challenges to regulatory authorities. The proposed amendments aim to tailor enforcement actions to the evolving nature of such practices, ensuring that penalties serve as an effective deterrent against offenders.

Furthermore, the amendments aim to empower courts to issue forfeiture orders for assets seized under Act 731, further reinforcing the deterrent against non-compliance and illegal financial activities.

The enactment of these amendments to the Money Services Business (Amendment) Bill 2024 underscores the government’s commitment to strengthening financial regulations and cultivating a secure financial environment.