The penalty pertains to action under the Financial Services Act and Islamic Financial Services Act by AmBank and AmBank Islamic, respectively. KUALA LUMPUR: AMMB Holdings Bhd has agreed to pay a penalty of RM53.7 million to Bank Negara Malaysia over non-compliance with certain regulations by AmBank (M) Bhd and AmBank Islamic Bhd. In a filing to Bursa Malaysia, it said the penalty pertained to action pursuant to section 234 of the Financial Services Act 2013 and Section 245 of the Islamic Financial Services Act 2013 by AmBank and AmBank Islamic, respectively. It said AmBank Group has commenced its own review and had been co-operating with the central bank over this matter, including providing information. “This review has led to the strengthening of our governance structure and is ongoing and the penalty has no material impact on AmBank Group’s earnings for the financial year 2016,” it said. AmBank Group said it took its compliance responsibility seriously and had agreed with Bank Negara’s four-year programme of work towards achieving market best practices. “We have agreed to set aside an average of RM25 million per annum for four years for investment in systems, infrastructure and training. “This series of measures will further enhance the robustness of the group’s processes, reporting as well as improving its governance structure against such circumstances recurring in the future and ensuring that AmBank Group is well placed for future growth,” it added. – BERNAMA
AMMB Holdings, which is 24% owned by Australian bank AmBank Group, has reportedly agreed to pay MYR 53.7m ($12.69m) over two of its subsidiary's non-compliance with certain regulations; the units involved were AmBank and AmBank Islamic. Upon the announcement, ANZ said it took its compliance responsibility seriously and had agreed with Bank Negara’s four-year programme of work towards achieving market best practises, which will see it invest MYR 25m ($5.92m) in systems, infrastructure, and training annually for four years.