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20 Mac 2019

Call for Public Feedback: Consultation Paper on the Proposed Amendments to the Money Services Business Act 2011

https://www.bnm.gov.my/-/call-for-public-feedback-consultation-paper-on-the-proposed-amendments-to-the-money-services-business-act-2011-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/call-for-public-feedback-consultation-paper-on-the-proposed-amendments-to-the-money-services-business-act-2011-1&languageId=ms_MY

Reading: Call for Public Feedback: Consultation Paper on the Proposed Amendments to the Money Services Business Act 2011 Share: Call for Public Feedback: Consultation Paper on the Proposed Amendments to the Money Services Business Act 2011 Tarikh Siaran: 20 Mac 2019         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

20 Mac 2019

Buletin RINGGIT (Keluaran Bil. 1/2019) kini boleh dimuat turun

https://www.bnm.gov.my/-/buletin-ringgit-keluaran-bil.-1/2019-kini-boleh-dimuat-turun-1

https://www.bnm.gov.my/documents/20124/761679/Ringgit+Ed105+2019-01+v6.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/buletin-ringgit-keluaran-bil.-1/2019-kini-boleh-dimuat-turun-1&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Bil. 1/2019) kini boleh dimuat turun Share: Buletin RINGGIT (Keluaran Bil. 1/2019) kini boleh dimuat turun Tarikh Siaran: 20 Mac 2019 Artikel utama pada keluaran ini ialah Transaksi Tanpa Tunai Yang Selamat Antara topik lain yang menarik termasuk : DuitNow Apa Yang Anda Perlu Tahu Panduan Kewangan Berkesan Untuk Pasangan Muda 12 Perancangan Kewangan Individu Untuk Tahun 2019 Hak Sebagai Peminjam Wang Berlesen RINGGIT merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA dan ia diterbitkan dua bulan sekali bermula 2019. Buletin ini diterbitkan di dalam Bahasa Malaysia sahaja. Klik pada pautan di bawah untuk muat turun : Isu - Bil. 1/2019 [PDF]   © 2024 Bank Negara Malaysia. All rights reserved.

. R A K A N K E W A N G A N A N D A B I L . 1/2019 12 Perancangan Kewangan Individu untuk tahun 2019 Panduan Kewangan Berkesan Untuk Pasangan Muda PERCUMA | PP 16897/05/2013 (032581) DuitNow – Apa Yang Anda Perlu Tahu Transaksi Tanpa Tunai Yang Selamat Sistem e-pembayaran merupakan kaedah melakukan transaksi barangan dan perkhidmatan melalui sistem pembayaran elektronik atau sistem pembayaran dalam talian. Sistem pembayaran elektronik telah berkembang sejak sedekad yang lalu disebabkan oleh kepesatan dalam sektor perbankan dan peningkatan pembelian melalui internet. Ketika dunia semakin maju dengan pembangunan teknologi, sistem pembayaran elektronik dan peranti pemprosesan pembayaran turut mengalami perubahan yang pesat. Bank Negara Malaysia (BNM) mentakrifkan wang elektronik (e-money) sebagai instrumen pembayaran yang menyimpan dana secara elektronik sebagai tukaran kepada dana yang dibayar kepada pengeluar wang elektronik dan boleh digunakan untuk membuat pembayaran kepada mana-mana pihak selain pengeluar wang elektronik tersebut. Wang elektronik boleh dikeluarkan dalam pelbagai bentuk, sama ada berasaskan kad atau rangkaian (seperti dompet elektronik menerusi peranti mudah alih). Dana terkumpul wang elektronik akan disimpan di dalam akaun amanah / akaun deposit yang dikhususkan di institusi kewangan berlesen. Pengeluar wang elektronik adalah dilarang untuk membayar faedah atau keuntungan ke atas baki wang elektronik dan menggunakan wang elektronik untuk memberi pinjaman kepada orang lain. Penggunaan e-money adalah lebih selamat, mudah dan boleh dikesan. Selain itu, kesilapan yang dilakukan oleh juruwang juga dapat dikurangkan. Kad debit dan kad kredit adalah pilihan transaksi tanpa tunai yang paling lazim digunakan di Malaysia. Transaksi mudah alih menjadi semakin popular dengan jumlah perniagaan dalam talian yang semakin meningkat. Selain itu, teknologi baharu telah dilengkapi dengan kad pembayaran dan penggunaan telefon pintar dengan ciri pembayaran tanpa sentuh. Ciri-ciri ini mempercepatkan proses pembayaran. Dalam kaji selidik yang dijalankan oleh Visa Inc. mendapati lebih daripada tiga juta transaksi tanpa sentuh pada setiap bulan. Kad yang dimuatkan dengan wang tunai boleh digunakan untuk membayar tol di lebuh raya dan tempat letak kereta. Kini ia telah berkembang untuk digunakan dalam rangkaian runcit, restoran, pengangkutan awam dan penjagaan kesihatan. Walaupun sistem tanpa tunai semakin meningkat dan diterima secara lebih meluas, terdapat beberapa halangan terhadap perkembangannya. Sistem tanpa tunai masih belum diterima sepenuhnya oleh sektor perniagaan. Masih terdapat sektor perniagaan yang menerima wang tunai sahaja. Oleh itu, walaupun pengguna mungkin telah dilengkapi instrumen tanpa tunai, pembekal dan peniaga perlu menukar polisi mereka sebelum transaksi tanpa tunai dapat dilaksanakan sepenuhnya. Walaupun ramai pengguna Malaysia yang menggunakan sistem tanpa tunai, khususnya dalam kalangan masyarakat di bandar, masih ramai juga pengguna yang bergantung kepada wang tunai, terutama masyarakat yang tinggal di luar bandar. Usaha untuk mengubah minda dan menanam keyakinan terhadap sistem tanpa tunai mungkin mengambil sedikit masa. Kajian Visa Inc. juga mendapati semakin ramai rakyat Malaysia yang yakin dengan sistem tanpa tunai. Enam daripada sepuluh responden mengatakan mereka akan menggunakan sistem tanpa tunai sepanjang masa. Dalam Transaksi Tanpa Tunai Yang Selamat “Dalam kaji selidik Visa Inc. mendapati lebih daripada tiga juta transaksi tanpa sentuh setiap bulan.” 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Mandeep Singh Shabana Naseer Ahmad Ringgit merupakan penerbitan usaha sama antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan secara berkala sebanyak enam edisi mulai tahun 2019. Untuk memuat turun Ringgit dalam format “PDF“, sila layari laman sesawang www.fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks : 03-7873 0636 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Faks : 03-2174 1515 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 Faks : 03-7875 5468 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. “Dalam kaji selidik Visa Inc. mendapati lebih daripada tiga juta transaksi tanpa sentuh setiap bulan.” kajian yang sama seterusnya, menunjukkan bahawa lebih daripada 50% rakyat Malaysia mempunyai lebih banyak kad pembayaran berbanding dua tahun lalu, dengan separuh daripada responden memilih pembayaran tanpa tunai atau tanpa sentuh. Pengguna juga perlu menyedari akan risiko sistem pembayaran tanpa tunai dan perlu mempunyai pengetahuan untuk melindungi diri mereka sendiri. Antara risiko yang perlu dihadapi ialah: • Penipu menggunakan aplikasi pembayaran dalam talian palsu di pasaran yang boleh mencuri butir-butir peribadi dan perbankan anda seperti ID log masuk dan kata laluan perbankan, nombor kad kredit / debit, dan lain-lain. • Penipu mewujudkan laman sesawang palsu. Laman sesawang ini kelihatan sama seperti laman sesawang perbankan atau portal membeli-belah yang akan memancing dan mencuri maklumat anda. Penipu boleh menggunakan maklumat tersebut untuk mengugut anda. • Anda mungkin menerima e-mel dengan pautan yang menawarkan diskaun jika anda membeli barangan dari laman sesawang tertentu. E-mel tersebut mungkin e-mel palsu yang akan mengarahkan anda ke laman sesawang palsu atau dijangkiti perisian hasad (malware). • Anda juga boleh menerima SMS atau mesej WhatsApp yang mengesyorkan anda memuat turun aplikasi mudah alih untuk pembayaran dalam talian. Ini juga boleh jadi palsu. bil. 1/2019 | 3 tanpa OTP / TAC. Oleh yang demikian, jangan sekali- kali berkongsi OTP / TAC anda dengan pihak ketiga. 7. Sentiasa pilih kata laluan yang kukuh untuk akaun pada aplikasi perbankan internet atau pembayaran dalam talian. Pastikan kata laluan anda sekurang- kurangnya mengandungi lapan aksara, mempunyai gabungan huruf besar dan kecil, nombor dan simbol. Contohnya, ‘Cool15is@King’ 8. Elakkan membuat transaksi tanpa tunai daripada komputer awam seperti di kafe siber. 9. Jangan gunakan rangkaian Wi-Fi yang tidak selamat untuk membuat bayaran dalam talian. Melakukannya mungkin membiarkan penyerang mencuri maklumat anda. 10. Pasang penyelesaian antivirus pelbagai lapisan dengan ciri-ciri seperti di bawah: • Menyekat laman sesawang palsu, penipuan atau dijangkiti perisian hasad. • Menyekat e-mel yang membawa pautan atau lampiran yang berniat jahat. • Penyemak imbas selamat untuk transaksi perbankan dan membeli-belah yang selamat. 11. Pasang aplikasi keselamatan mudah alih yang boleh: • Menghalang aplikasi palsu atau berniat jahat daripada dipasang pada telefon pintar anda. • Menghalang akses ke laman sesawang palsu dan dijangkiti perisian hasad. • Membolehkan anda mengunci aplikasi anda (aplikasi pembayaran dalam talian seperti PayTm) dengan kata laluan untuk mengelakkan sebarang penyalahgunaan. E-money dan e-wallet boleh melengkapkan penggunaan kad kredit dan kad debit untuk mempercepatkan proses pemindahan wang tunai dan cek di Malaysia. Sumber: FOMCA • Rangkaian Wi-Fi yang bebas, tidak selamat boleh direka oleh penipu untuk menipu pengguna yang tidak berhati-hati. Panduan untuk transaksi tanpa tunai yang selamat: 1. Muat turun aplikasi pembayaran dalam talian hanya dari kedai rasmi seperti Google Play Store dan Apple Play Store. 2. Sebelum anda memuat turun sebarang aplikasi, dapatkan pengesahan mengenai pembuat aplikasi tersebut. Baca juga ulasan daripada penggunanya. 3. Lebih penting lagi, baca kebenaran yang diminta oleh aplikasi. Jika aplikasi tersebut meminta lebih banyak maklumat daripada apa yang sepatutnya, maka lebih baik jangan memuat turun aplikasi tersebut. 4. Jangan sekali-kali mengunjungi laman sesawang perbankan atau membeli-belah dalam talian dengan menggunakan pautan yang diterima melalui e-mel atau pesanan ringkas. 5. Pilih laman sesawang yang anda yakini untuk membuat pembayaran anda. 6. Memastikan terdapat dua bentuk pengesahan untuk transaksi perbankan melalui internet melalui pembayaran menggunakan kad kredit / debit anda. Ini bererti apabila anda membuat pembayaran, anda akan diminta untuk mengesahkan diri anda sebanyak dua kali. Sebagai contoh, semasa membayar melalui perbankan internet, anda akan memasukkan ID dan kata laluan masuk dan juga OTP / TAC (kod yang dihantar ke nombor mudah alih berdaftar anda) sebelum anda dapat membuat pembayaran akhir. Oleh itu, walaupun penipu berjaya mencuri maklumat perbankan anda, mereka tidak akan dapat melakukan 4 | RINGGIT Semenjak 8 Oktober 2018, ramai pengguna menerima khidmat pesanan ringkas (SMS) daripada bank mereka untuk membuat pendaftaran perkhidmatan DuitNow. Ini menimbulkan kekeliruan sama ada SMS yang diterima mereka adalah sahih atau sebaliknya. SMS berkenaan adalah sebagai pra-pelancaran untuk memperkenalkan perkhidmatan tersebut, sekali gus memudahkan pendaftaran bagi pihak pelanggan bank. DuitNow adalah perkhidmatan perbankan terbaharu yang diperkenalkan oleh Payments Network Malaysia Sdn Bhd (PayNet). PayNet juga sebelum ini telah menerajui beberapa perkhidmatan perbankan, antaranya MEPS untuk pengeluaran duit melalui ATM dan JomPay yang memudahkan pembayaran bil. Apakah DuitNow? D u i t N o w m e r u p a k a n perkhidmatan perbankan baharu yang memudahkan pengguna menerima dan membuat pindahan wang kepada pihak ketiga secara selamat dan tidak terikat kepada penggunaan nombor akaun bank semata-mata. Melalui DuitNow, pengguna boleh memautkan nombor telefon bimbit, nombor kad pengenalan awam (MyKad), nombor kad pengenalan tentera / polis atau nombor passport (untuk bukan warganegara) ke akaun bank mereka. Selepas memautkannya, pengguna boleh menerima pembayaran terus ke akaun mereka. Langkah ini sekali gus telah memudahkan beberapa proses pembayaran. Selain itu, penggunaan DuitNow juga akan memudahkan syarikat atau agensi kerajaan untuk membayar terus ke dalam akaun anda menggunakan nombor pengenalan diri (ID) anda tanpa perlu meminta nombor akaun bank. Hal yang sama juga sekiranya pihak kerajaan ingin melakukan sesuatu pembayaran terus kepada rakyat. Simpanan rekod juga menjadi lebih mudah dengan menggunakan DuitNow. Pada masa yang sama, DuitNow turut menyokong akaun perbankan milik syarikat. Syarikat boleh memautkan nombor pendaftaran syarikat mereka ke akaun bank dan seterusnya menerima pembayaran yang dibuat ke nombor pendaftaran syarikat mereka. Ini juga boleh meningkatkan kadar keyakinan pembeli terhadap syarikat berkenaan. Secara keseluruhan, DuitNow dilihat sebagai langkah PayNet untuk memudahkan pengguna mengingati maklumat penerima pembayaran. Bagaimanakah DuitNow Berfungsi? DuitNow berfungsi seperti perbankan normal yang memerlukan pengguna memasukkan nombor telefon bimbit atau nombor (ID) pada ruang penerima, seterusnya memasukkan amaun yang ingin dipindahkan. Seperti pembayaran biasa, pengguna akan dibawa ke skrin seterusnya untuk mengesahkan maklumat penerima seperti nama penerima. Sebaik sahaja disahkan, pemindahan wang akan dilakukan seperti sedia kala. DuitNow Apa Yang Anda Perlu Tahu bil. 1/2019 | 5 DuitNow menawarkan pemindahan percuma untuk nilai bawah RM5,000. Menurut PayNet, sekiranya nombor telefon bimbit atau ID tidak dipautkan ke nombor akaun, maka ia akan memaparkan mesej yang menunjukkan penerima berkenaan tidak wujud, sekali gus tidak membolehkan anda membuat pemindahan wang. Penggunaan Nombor Telefon Bimbit / ID Setiap nombor telefon bimbit atau ID boleh dipautkan ke satu bank sahaja. Sebagai contoh, sekiranya anda telah menerima SMS berkenaan nombor telefon yang dipautkan ke akaun Maybank, maka anda tidak boleh menggunakan nombor telefon yang sama untuk akaun bank lain. Anda perlu membatalkan pendaftaran tersebut terlebih dahulu sebelum dapat menggunakannya untuk perkhidmatan perbankan lain. Perkara yang sama juga untuk ID anda. Pada masa ini, pendaftaran dan pembatalan pendaftaran diuruskan melalui bank secara dalam talian atau menggunakan aplikasi mudah alih sahaja. Jaminan Keselamatan Dengan penggunaan nombor telefon bimbit, ramai yang risau mereka akan tersilap dan melakukan pemindahan wang tanpa sengaja. Anda tidak perlu risau kerana pemindahan wang melalui DuitNow ini hanya satu hala sahaja dengan menggunakan perbankan dalam talian atau aplikasi mudah alih. Pengguna hanya boleh menerima pembayaran menggunakan nombor telefon bimbit atau ID mereka. Pengguna tidak boleh melakukan pembayaran menggunakan nombor telefon bimbit, sebaliknya perlu melakukannya melalui akaun bank mereka seperti biasa. Melangkah ke Hadapan Pengenalan DuitNow ini dijangka akan menjadi titik tolak untuk sejumlah perkhidmatan lain dalam arena kewangan. Sebagai contoh, dengan pengenalan DuitNow ini juga kita mungkin akan dapat melihat PayNet menggunakan kerangka sama dalam pengenalan sistem kod QR universal yang dinantikan ramai. Malah, ia juga mungkin memudahkan syarikat teknologi kewangan lain dalam mengintegrasikan kemudahan pembayaran, dan menambah baik penawaran masing-masing. Sumber: Amanz.my “Setiap nombor telefon bimbit atau ID boleh dipautkan ke satu bank sahaja. Sebagai contoh, sekiranya anda telah menerima SMS berkenaan nombor telefon yang dipautkan ke akaun Maybank, maka anda tidak boleh menggunakan nombor telefon yang sama untuk akaun bank lain. ” 6 | RINGGIT Majlis perkahwinan yang mewah adalah idaman hampir setiap pasangan kerana ia berlaku mungkin hanya sekali dalam seumur hidup. Namun begitu, dalam merancang majlis perkahwinan dan rumahtangga, ramai pasangan muda melakukan kesilapan dalam pengurusan kewangan yang boleh menjejaskan masa hadapan mereka. Sediakan diri anda untuk kebahagiaan rumahtangga dan kebebasan kewangan dengan mengikuti panduan untuk pasangan muda. 1. Fahami Bagaimana Pasangan Anda Membelanjakan Wang Wang boleh menjadi isu sensitif bagi semua pihak, tidak terkecuali p a s a n ga n m u d a . S e t i a p pasangan harus memahami hubungan masing-masing dengan wang sebelum mengambil keputusan u n t u k b e r k o n g s i komitmen kewangan bersama-sama. Anda harus mengetahui t a b i a t b e r b e l a n j a pasangan anda. Dengan memahami sifat pasangan anda tentang wang, anda boleh merancang hal kewangan dengan lebih berkesan. 2. Bincang Soal Wang Sebelum Berkahwin Hari perkahwinan adalah hari paling penting dalam kehidupan anda bersama. Walau bagaimanapun, realiti hanya akan datang selepas majlis tersebut berakhir. Jadi, anda harus berbincang tentang soal komitmen jangka masa panjang sebelum anda melangkah ke pelamin. Adakah anda berdua mahu menjadi rakan kongsi yang setara dalam hal kewangan atau perkongsian setara itu mustahil? Apa yang penting di sini ialah komunikasi yang kerap dan jujur. Bincangkan sejarah dan matlamat kewangan masing- masing, termasuklah topik yang digeruni iaitu hutang bersama. Lebih awal anda mencapai kata sepakat dengan pasangan anda, lebih senang perhubungan anda dengan pasangan anda dalam aspek kewangan. 3. Bincangkan Matlamat Kewangan Jangka Masa Panjang Matlamat kewangan boleh berubah dari semasa ke semasa. Ia bukan satu ketetapan pasti yang dicapai dengan hanya satu perbincangan. Luangkan masa setiap bulan untuk duduk berbincang tentang soal wang, Panduan Kewangan Berkesan Untuk Pasangan Muda bil. 1/2019 | 7 menilai keadaan dan mengatur semula matlamat kewangan bersama. Perbincangan bulanan ini adalah masa yang terbaik untuk berbincang tentang kereta baharu yang diidamkan atau percutian ke luar negara yang diimpikan. Jika anda berdua jelas tentang apa yang anda mahukan, lebih mudah bagi anda merealisasikan matlamat bersama. 4. Mulakan Belanjawan Yang Realistik (Dan Berpegang Padanya) Memulakan satu belanjawan yang konsisten mampu membantu anda dan pasangan pada masa hadapan. Langkah pertama ialah dengan mel ihat ga j i bu lanan dan perbelanjaan masing-masing. Jika anda sedang merancang perkahwinan, fikirkan jumlah yang mampu dibelanjakan dan jumlah yang boleh disimpan. Cara terbaik untuk merancang belanjawan bagi perkahwinan ialah dengan mengurangkan jumlah pendapatan dan melebihkan anggaran kos di dalam belanjawan anda. Di samping itu, anda juga masih perlu menyimpan untuk keperluan kecemasan. 5. Sejajarkan Pelan Simpanan Persaraan ANDA Persaraan yang selesa boleh dimiliki dengan merancang lebih awal. Setiap pasangan perlu menelit i pelan persaraan daripada majikan masing- masing dan pastikan setiap manfaat yang ada daripada pelan tersebut digunakan. 6. Pastikan Komunikasi Anda Jujur Dan Terbuka Dalam perhubungan dan juga kehidupan, amat penting bagi kita memastikan komunikasi adalah jujur dan terbuka. Apa sahaja isu yang tersorok tentang hutang atau perbelanjaan pastinya akan mendatangkan kerumitan dan merosakkan pelan kewangan bersama. Oleh itu, pastikan anda mengamalkan perbualan terbuka dalam “janji temu kewangan” bulanan anda. Inilah peluang bagi anda menilai semula pelan kewangan bersama agar ia memenuhi kehendak dan gaya hidup anda. 7. Mulakan Perancangan Keluarga Dari Awal Anda perlu bersedia untuk menimang cahaya mata. Namun begitu, kos membesarkan anak di Malaysia agak tinggi. Pe ra n ca n ga n ya n g i d e a l perlu bermula sebelum anak dilahirkan agar anda mempunyai masa untuk membina kekuatan kewangan sebagai persediaan untuk menghadapi waktu tersebut. 8. Bersedia Untuk Menghadapi Apa Jua Keadaan Kadangkala anda akan menghadapi situasi yang tidak dijangka seperti mesin basuh atau kenderaan rosak ataupun yang melibatkan soal kesihatan. Amat penting bagi anda memiliki sejumlah wang yang mampu menolong anda dalam situasi ‘kemalangan’ yang lazimnya muncul entah dari mana. Apabila anda merancang untuk berkahwin dan memulakan keluarga, soal kematian juga perlu difikirkan. Seeloknya anda memiliki insurans nyawa atau takaful keluarga agar pasangan anda dapat dilindungi jika anda tiada kelak. 9. Melabur Dengan Bijak Memulakan sesuatu pelaburan tidak memerlukan modal jutaan ringgit di dalam bank. Bagaimanapun, ia memerlukan fokus jangka masa panjang untuk anda membina aset bersama. Pelaburan anda mungkin bermodal serendah RM5,000 tetapi pastikan anda melaburkan jumlah yang anda selesa pada set iap bu lan. In i termasuk membina jaring keselamatan dengan jumlah gaji selama enam bulan sebelum anda memulakan portfolio pelaburan anda. Sumber: www.aia.com.my 8 | RINGGIT Perancangan Kewangan Individu Untuk Tahun 2019 Setiap individu perlu mempunyai perancangan kewangan individu sendiri terutama ketika menghadapi keadaan ekonomi yang kurang memberangsangkan. Tujuan perancangan kewangan individu perlu diadakan adalah supaya anda dapat mengurus kewangan dengan baik dan tidak terlibat dalam masalah hutang yang berlebihan. Berikut adalah 12 intipati perancangan kewangan individu yang anda perlu tahu. 1. Mencukupkan Simpanan Kecemasan Simpanan kecemasan sangat penting kerana keadaan ekonomi yang tidak menentu. Antara p e r ka ra ya n g b o l e h berlaku dan memerlukan simpanan kecemasan ialah seperti kehilangan pekerjaan dan kos sara hidup yang tinggi. 2. Meningkatkan Simpanan Percutian Bagi individu yang sudah berkeluarga, aktiviti percutian atau beriadah bersama- s a m a k e l u a r g a memerlukan kos yang tinggi. Oleh itu, anda perlu menyediakan satu simpanan untuk perbelanjaan aktiviti percutian. 3. Simpanan Perbelanjaan Tetap Tahunan Antara perbe lan jaan t e ta p ta h u n a n ya n g w a j i b a d a a d a l a h seperti memperbaharui cukai dan insurans / takaful kenderaan dan p e r b e l a n j a a n m u s i m perayaan seperti hari raya. 4. Simpanan Perbelanjaan Persekolahan Anak-Anak P e r b e l a n j a a n perseko lahan anak- anak adalah termasuk kos pembelian barang k e p e r l u a n s e p e r t i p a ka i a n , b u k u d a n alat tulis, selain kos p e n g a n g k u t a n d a n perbelanjaan harian anak-anak di sekolah. bil. 1/2019 | 9 Sumber: www.duitkertas.com 5. Dana Pendidikan Anak- Anak S e l a i n s i m p a n a n perbelanjaan sekolah, a n d a j u g a p e r l u menyediakan satu dana pendidikan tinggi untuk anak-anak. Dana pendidikan ini akan m e m b a n t u u n t u k memudahkan anak anda mendaftar ke institut pengajian tinggi tanpa perlu membuat pinjaman pendidikan. 6. Dana Persaraan Jika anda sudah mempunyai dana persaraan melalui pencen atau simpanan KWSP, anda perlu tingkatkan lagi dana persaraan melalui instrumen lain bagi memastikan dana persaraan anda mencukupi walaupun kos sara hidup meningkat. 7. Dana Derma Kos sara hidup yang meningkat bukanlah satu alasan untuk anda berhenti membuat dana tabung derma. 8. Menambah Aset Ramai yang membuat spekulasi bahawa harga rumah akan turun pada tahun ini dan juga tahun h a d a p a n . I n i a d a l a h peluang terbaik anda untuk menambah aset seperti pembelian rumah. 9. Mempelbagaikan Pelaburan Anda perlu mempelbagaikan pelaburan supaya anda tidak bergantung kepada satu instrumen pelaburan sahaja untuk memperoleh pulangan keuntungan yang diharapkan. 10. Menyediakan Penggantian Dan Perlindungan Pendapatan Anda perlu menyediakan satu pelan penggantian d a n p e r l i n d u n g a n p e n d a p a t a n u n t u k k e l u a r g a a n d a . Penggantian ini akan membantu keluarga anda sekiranya berlaku sesuatu yang tidak diingini atas diri anda. Contohnya, anda perlu mempunyai perlindungan insurans / takaful yang menyediakan keluarga dari segi kewangan jika sesuatu berlaku terhadap diri anda. 11. Menambah Sumber Pendapatan Pada masa kini, setiap individu hanya berpeluang untuk menambah sumber pendapatan secara separuh masa. Jadikan media sosial sebagai platform untuk anda meningkatkan pendapatan. 12. Pengurangan Hutang Jika masih ada lagi hutang- hutang kecil seperti kad kredit dan hutang peribadi, anda perlu selesaikan segera. Jadikan tahun 2019 sebagai tahun bebas hutang kecil anda. Hidup anda akan lebih tenang tanpa hutang-hutang kecil tersebut. 10 | RINGGIT Hak Sebagai Peminjam Wang Berlesen Ramai dalam kalangan pengguna yang kurang arif mengenai cara-cara untuk membuat pinjaman wang daripada syarikat pemberi pinjam wang berlesen. Ramai pengguna mengadu bahawa mereka telah ditipu oleh syarikat pemberi pinjam wang yang mengenakan kadar faedah yang terlampau tinggi. Mereka juga tidak diberikan sesalinan surat perjanjian. Untuk mengelakkan insiden tersebut, pengguna dinasihati supaya tidak terburu-buru membuat pinjaman. Mereka perlu menyiasat terlebih dahulu latar belakang sesebuah syarikat yang menawarkan perkhidmatan pinjaman wang. Menurut Akta Pinjaman Wang 1951 (Akta 400), pemberi pinjam wang (PPW) ialah mana-mana orang yang menjalankan perniagaan pinjaman wang yang didaftarkan di bawah Akta Pinjaman Wang 1951. PPW perlu mematuhi syarat-syarat yang ditetapkan dalam akta tersebut. Sebagai contoh, menurut seksyen 18 Akta 400, PPW hendaklah menyimpan dengan teratur tiap-tiap akaun peminjam. Akaun tersebut hendaklah ditulis dalam turutan dengan angka dan perkataan yang jelas. Akaun tersebut tidak boleh memudahkan penghapusan, penyisipan atau penggantian mana-mana muka surat. Mana-mana PPW yang tidak mematuhi kehendak tersebut tidak boleh menguatkuasakan tuntutan-tuntutan mereka. Peminjam pula hendaklah diberikan pernyataan atau maklumat yang tidak mengelirukan bagi setiap pinjaman yang dibuat. Setiap pinjaman hendaklah menggunakan borang pinjaman yang ditetapkan oleh Kementerian Perumahan dan Kerajaan Tempatan (KPKT) sahaja, selaku pengawal selia PPW, iaitu Jadual J (pinjaman tanpa cagaran) atau Jadual K (pinjaman dengan cagaran). Peminjam berhak untuk diberikan satu salinan perjanjian secara percuma. Peminjam juga hendaklah mendapatkan resit bayaran bagi setiap bayaran balik pinjaman yang dibuat. Peminjam turut diingatkan supaya tidak menandatangani borang perjanjian yang kosong. Sebarang transaksi pembayaran pinjaman hendaklah diterima selepas perjanjian diisi penuh, dimatikan setem dan pembayaran dibuat di pejabat PPW yang berkenaan. Jika peminjam gagal menjelaskan hutang kepada PPW: a) Mengikut perjanjian pinjaman di bawah tajuk ‘hak tindakan’, jika peminjam gagal melunaskan hutangnya d a l a m t e m p o h 28 hari selepas tempoh genap tarikh bayaran ansuran atau melakukan perbuatan kebangkrapan secara terpaksa atau sukarela, PPW berhak untuk menamatkan perjanjian tersebut; b) PPW dikehendaki memberi notis 14 hari bagi tujuan menamatkan perjanjian itu; c) Jika dalam tempoh tersebut peminjam tidak dapat juga menjelaskan hutangnya, PPW berhak untuk menamatkan perjanjian tersebut; d) Tindakan menuntut baki jumlah hutang termasuk faedah serta lain-lain kos guaman dan mahkamah akan dituntut oleh pihak PPW di mahkamah; dan e) Jika pinjaman bercagar, PPW berhak ke atas cagaran tersebut mengikut proses undang-undang. Pengguna boleh mengetahui perbezaan antara PPW yang sah atau haram melalui iklan. Mengikut Peraturan 8, Peraturan-peraturan Pemberi Pinjam Wang (Kawalan dan Perlesenan), setiap iklan sama ada dalam bentuk papan iklan, kain pemidang atau kad mesti mengandungi butir-butir berikut: a) Nombor lesen PPW dan tarikh pengesahannya; b) Nombor permit iklan; c) Nama, alamat dan nombor telefon PPW berlesen; dan d) Kadar faedah yang ditawarkan. Cara lain untuk peminjam mengenal pasti sama ada sesuatu premis itu menjalankan perniagaan pemberi pinjam wang secara sah adalah melalui portal KPKT, di alamat www.kpkt.gov.my atau boleh berhubung terus melalui talian telefon 03-8000 8000, atau datang sendiri ke Bahagian Pemberi Pinjam Wang dan Pemegang Pajak Gadai, Kementerian Perumahan dan Kerajaan Tempatan, Aras 22, No. 51, Persiaran Perdana, Presint 4, Putrajaya. Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) bil. 1/2019 | 11 imSME_A4 (bleed).pdf 1 15/3/2019 4:53:56 AM

Public Notice

19 Mac 2019

Phishing Attempts by Impersonating Email and Training Website from Bank Negara Malaysia

https://www.bnm.gov.my/-/phishing-attempts-by-impersonating-email-and-training-website-from-bank-negara-malaysia

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/phishing-attempts-by-impersonating-email-and-training-website-from-bank-negara-malaysia&languageId=ms_MY

Reading: Phishing Attempts by Impersonating Email and Training Website from Bank Negara Malaysia Share: Phishing Attempts by Impersonating Email and Training Website from Bank Negara Malaysia Tarikh Siaran: 19 Mac 2019         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

14 Mac 2019

Biasiswa Bank Negara Malaysia Sesi Akademik 2019/2020 Membentuk Bakat Terunggul

https://www.bnm.gov.my/-/biasiswa-bank-negara-malaysia-sesi-akademik-2019/2020-membentuk-bakat-terunggul-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/biasiswa-bank-negara-malaysia-sesi-akademik-2019/2020-membentuk-bakat-terunggul-1&languageId=ms_MY

Reading: Biasiswa Bank Negara Malaysia Sesi Akademik 2019/2020 Membentuk Bakat Terunggul Share: Biasiswa Bank Negara Malaysia Sesi Akademik 2019/2020 Membentuk Bakat Terunggul Tarikh Siaran: 14 Mac 2019 Permohonan dalam talian untuk Biasiswa Bank Negara Malaysia 2019 / 2020 akan dibuka mulai 16 Mac 2019. Untuk maklumat lanjut tentang syarat-syarat kelayakan, bidang pembelajaran dan cara memohon, sila layari laman yang berikut: bnm.my/scholarship2019.   © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

08 Mac 2019

Tindakan Penguatkuasaan Terhadap Pengendali Perniagaan Perkhidmatan Wang Haram di Kedah dan Perlis

https://www.bnm.gov.my/-/tindakan-penguatkuasaan-terhadap-pengendali-perniagaan-perkhidmatan-wang-haram-di-kedah-dan-perlis-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/tindakan-penguatkuasaan-terhadap-pengendali-perniagaan-perkhidmatan-wang-haram-di-kedah-dan-perlis-1&languageId=ms_MY

Reading: Tindakan Penguatkuasaan Terhadap Pengendali Perniagaan Perkhidmatan Wang Haram di Kedah dan Perlis Share: Tindakan Penguatkuasaan Terhadap Pengendali Perniagaan Perkhidmatan Wang Haram di Kedah dan Perlis Tarikh Siaran: 08 Mac 2019 Pada 7 Mac 2019, Bank Negara Malaysia (BNM) telah membuat pertuduhan terhadap empat individu di Mahkamah Sesyen Alor Setar dan Kangar kerana menjalankan aktiviti penukaran wang tanpa lesen di bawah seksyen 7 (1) Akta Perniagaan Perkhidmatan Wang 2011 (MSBA), yang merupakan kesalahan di bawah seksyen 4(1) MSBA. Dua daripada tertuduh mengaku bersalah atas pertuduhan itu dan dijatuhi hukuman denda dan penjara seperti yang berikut: Mahkamah Sesyen Alor Setar Lee Boon Kian (KP: 600422-02-5187): Didenda sebanyak RM60,000 (penjara 12 bulan jika gagal membayar denda) untuk kesalahan di bawah seksyen 4(1) MSBA. Di samping itu, beliau juga didenda sebanyak RM30,000 (penjara 6 bulan jika gagal membayar denda) kerana menggunakan perkataan 'perniagaan perkhidmatan wang' tanpa mendapat kelulusan, iaitu suatu kesalahan di bawah seksyen 23 (1) MSBA. Lee Ai Choo (KP: 681231-02-5480): Didenda sebanyak RM60,000 (penjara 12 bulan jika gagal membayar denda). Di Mahkamah yang sama, tertuduh yang lain, Kok Eng Huat (KP: 561227-02-5545) menuntut dibicarakan dan Mahkamah menetapkan ikat jamin sebanyak RM30,000 dengan satu penjamin. Tarikh sebutan seterusnya ditetapkan pada 28 Mac 2019. Mahkamah Sesyen Kangar Tertuduh, Chin Foh Lean (KP: 501227-02-5284) menuntut dibicarakan dan Mahkamah menetapkan ikat jamin RM50,000 dengan satu penjamin. Tarikh sebutan seterusnya ditetapkan pada 9 April 2019. Mata wang asing yang dijumpai di dalam premis itu juga dirampas untuk siasatan lanjut di bawah Seksyen 4(1) Akta Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Hasil daripada Aktiviti Haram 2001. Premis yang dikendalikan oleh individu-individu tersebut di atas di Bukit Kayu Hitam, Kedah dan Padang Besar, Perlis diserbu pada 3 Mac 2019 dengan kerjasama Polis Diraja Malaysia. Serbuan ini merupakan sebahagian daripada tindakan penguatkuasaan yang berterusan oleh BNM untuk melindungi orang ramai daripada kemungkinan kerugian kewangan apabila berurusan dengan entiti tidak berlesen. Oleh itu, orang ramai dinasihati untuk tidak berurusan atau melakukan apa-apa urus niaga penukaran wang atau pengiriman wang dengan pengendali perniagaan perkhidmatan wang haram dan ejen-ejen mereka. Mana-mana orang yang menjalankan urus niaga dengan pengendali perniagaan perkhidmatan wang haram melakukannya dengan risiko akan mengalami kerugian kewangan, dan tindakan undang-undang yang wajar akan diambil terhadapnya oleh pihak berkuasa yang berkenaan. Orang ramai dinasihati merujuk senarai pengendali perniagaan perkhidmatan wang berlesen melalui laman sesawang BNM (www.bnm.gov.my).   © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

14 Feb 2019

Tindakan Penguatkuasaan Terhadap Pengendali Perniagaan Perkhidmatan Wang Secara Haram di Kuala Lumpur

https://www.bnm.gov.my/-/tindakan-penguatkuasaan-terhadap-pengendali-perniagaan-perkhidmatan-wang-secara-haram-di-kuala-lumpur-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/tindakan-penguatkuasaan-terhadap-pengendali-perniagaan-perkhidmatan-wang-secara-haram-di-kuala-lumpur-1&languageId=ms_MY

Reading: Tindakan Penguatkuasaan Terhadap Pengendali Perniagaan Perkhidmatan Wang Secara Haram di Kuala Lumpur Share: Tindakan Penguatkuasaan Terhadap Pengendali Perniagaan Perkhidmatan Wang Secara Haram di Kuala Lumpur Tarikh Siaran: 14 Feb 2019 Pada 12 Februari 2019, Bank Negara Malaysia (BNM) menyerbu lapan premis yang menjalankan urus niaga penukaran dan pengiriman wang tanpa lesen. Tindakan ini diambil berdasarkan peruntukan di bawah seksyen 7(1) Akta Perniagaan Perkhidmatan Wang 2011 (APPW), yang merupakan kesalahan di bawah seksyen 4(1) APPW. Mana-mana individu atau syarikat yang melakukan suatu kesalahan di bawah seksyen 4(1) APPW apabila disabitkan, boleh didenda tidak melebihi RM5 juta atau dipenjarakan selama tempoh tidak melebihi 10 tahun atau kedua-duanya sekali. Dokumen-dokumen berkaitan dan peralatan computer telah disita untuk membantu siasatan. Serbuan dilakukan di beberapa premis di sepanjang Jalan Tuanku Abdul Rahman and Jalan Dato’ Keramat, Kuala Lumpur. Entiti-entiti yang terlibat ialah: Anver Cahaya Enterprise (002422813-D) Kawzar Enterprise (002222493-K) Mabruk Mohaideen Enterprise (PG0413789-U) Nisha Khan Enterprise (002616692-V) Rifai Maju Enterprise (002689961-X) B First Resources (002581856-X) Money Me@Hotel Kita (945197-U) Nur Ekspress Enterprise (002392685-H) Operasi serbuan ini dijalankan dengan kerjasama Polis Diraja Malaysia (PDRM) dan Jabatan Imigresen Malaysia (JIM). Lima pendatang tanpa izin yang terlibat menjaga premis dan pelanggan kepada entiti tersebut telah ditahan untuk siasatan oleh Jabatan Imigresen Malaysia atas kesalahan melanggar Akta Imigresen 1959/63 (Akta 155). Serbuan ini adalah sebahagian daripada tindakan penguatkuasaan berterusan yang dilaksanakan oleh BNM untuk melindungi orang ramai daripada kemungkinan mengalami kerugian kewangan kerana berurusan dengan entiti tanpa lesen. Orang ramai dinasihati agar tidak menjalankan apa-apa urus niaga penukaran atau kiriman wang dengan pengendali perniagaan perkhidmatan wang secara haram dan ejen mereka. Mana-mana individu yang menjalankan urus niaga dengan pengendali perniagaan perkhidmatan wang secara haram akan bertanggungjawab atas risiko yang diambil oleh mereka. Tindakan undang-undang yang wajar juga boleh diambil oleh pihak berkuasa yang berkaitan terhadap mereka. Orang ramai dinasihatkan supaya merujuk kepada senarai pengendali perniagaan perkhidmatan wang berlesen melalui laman sesawang Bank Negara Malaysia (www.bnm.gov.my).   © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

25 Jan 2019

Requirements for Directors and Chief Executive Officers to Attend the Money Services Business Directors Education Programme (MSB-DEP)

https://www.bnm.gov.my/-/requirements-for-directors-and-chief-executive-officers-to-attend-the-money-services-business-directors-education-programme-msb-dep-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/requirements-for-directors-and-chief-executive-officers-to-attend-the-money-services-business-directors-education-programme-msb-dep-1&languageId=ms_MY

Reading: Requirements for Directors and Chief Executive Officers to Attend the Money Services Business Directors Education Programme (MSB-DEP) Share: Requirements for Directors and Chief Executive Officers to Attend the Money Services Business Directors Education Programme (MSB-DEP) Tarikh Siaran: 25 Jan 2019         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

14 Jan 2019

Policy Document on Investment-linked Business

https://www.bnm.gov.my/-/policy-document-on-investment-linked-business-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/policy-document-on-investment-linked-business-1&languageId=ms_MY

Reading: Policy Document on Investment-linked Business Share: 2 Policy Document on Investment-linked Business Tarikh Siaran: 14 Jan 2019         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

14 Jan 2019

Financial Consumer Alert: List of unauthorised companies and websites has been updated.

https://www.bnm.gov.my/-/financial-consumer-alert-list-of-unauthorised-companies-and-websites-has-been-updated.-47

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/financial-consumer-alert-list-of-unauthorised-companies-and-websites-has-been-updated.-47&languageId=ms_MY

Reading: Financial Consumer Alert: List of unauthorised companies and websites has been updated. Share: Financial Consumer Alert: List of unauthorised companies and websites has been updated. Tarikh Siaran: 14 Jan 2019         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

07 Jan 2019

Policy Document on Publishing Open Data using Open API

https://www.bnm.gov.my/-/policy-document-on-publishing-open-data-using-open-api-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/policy-document-on-publishing-open-data-using-open-api-1&languageId=ms_MY

Reading: Policy Document on Publishing Open Data using Open API Share: Policy Document on Publishing Open Data using Open API Tarikh Siaran: 07 Jan 2019         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

04 Jan 2019

Buletin RINGGIT (Keluaran Disember 2018) kini boleh dimuat turun

https://www.bnm.gov.my/-/buletin-ringgit-keluaran-disember-2018-kini-boleh-dimuat-turun-1

https://www.bnm.gov.my/documents/20124/761679/Ringgit+Ed104+Dec+2018+v5.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/buletin-ringgit-keluaran-disember-2018-kini-boleh-dimuat-turun-1&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Disember 2018) kini boleh dimuat turun Share: Buletin RINGGIT (Keluaran Disember 2018) kini boleh dimuat turun Tarikh Siaran: 04 Jan 2019 Artikel utama pada keluaran ini ialah Mewariskan Harta Kepada Orang Tersayang Antara topik lain yang menarik termasuk : Apa Yang Anda Boleh Lakukan Dengan Bonus Tahunan Memilih Kad Perubatan Yang Sesuai Senarai Insentif Yang Diterima Golongan B40 dalam Belanjawan 2019 Mengenal Pasti Penipuan Kewangan Berkaitan Pinjaman Peribadi RINGGIT merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA dan ia diterbitkan pada setiap bulan. Buletin ini diterbitkan di dalam Bahasa Malaysia sahaja. Klik pada pautan di bawah untuk muat turun : Isu - Disember/2018 [PDF]   © 2024 Bank Negara Malaysia. All rights reserved.

R A K A N K E W A N G A N A N D A E D I S I DIS 2 0 1 8 Mengenal Pasti Penipuan Kewangan Berkaitan Pinjaman Peribadi Memilih Kad Perubatan Yang Sesuai PERCUMA | PP 16897/05/2013 (032581) Apa Yang Anda Boleh Lakukan Dengan Bonus Tahunan Mewariskan Harta Kepada Orang Tersayang Penulisan wasiat merupakan perkara yang sering dianggap sebagai sesuatu yang remeh. Hanya kira- kira 2% daripada penduduk Malaysia yang telah menulis wasiat. Majoriti penduduk ‘terlepas pandang’ tentang kepentingan menulis wasiat. Berdasarkan rekod Bahagian Pembahagian Pusaka, Jabatan Ketua Pengarah Tanah dan Galian Persekutuan, kira-kira RM60 bilion jumlah harta tidak dituntut oleh waris si mati sehingga tahun 2016. Adakah penulisan wasiat benar-benar diperlukan? Mari kita lihat beberapa persoalan umum dan akibat tidak menulis wasiat. Kebaikan Mempunyai Wasiat A. Secara Konvensional Jadual di bawah menunjukkan kelebihan menulis wasiat dan akibat meninggalkan keluarga anda tanpa menyediakannya. Jika seseorang meninggal dunia dengan wasiat Harta pusaka akan diberi kepada waris pilihan anda. Anda berhak memilih pentadbir aset yang bakal melaksanakan wasiat. Anda juga boleh melantik penjaga yang boleh menjaga kebajikan anak-anak anda sehingga mereka matang. Kos untuk memproses pembahagian harta adalah rendah dan hanya mengambil masa beberapa bulan. Wasiat akan memastikan orang tersayang mendapat jaminan daripada sudut kewangan, selain mengelakkan konflik antara ahli keluarga. Jika seseorang meninggal dunia tanpa wasiat Tanpa mempertimbangkan keperluan waris, harta pusaka akan dibahagikan mengikut Akta Pembahagian 1958 dan bukannya mengikut kehendak anda. Mahkamah akan membuat keputusan untuk anda. Proses pembahagian mungkin melibatkan kos yang tinggi, dan dalam kes yang melibatkan konflik kekeluargaan, yuran guaman boleh melonjak berlipat kali ganda kerana kes-kes sebegini boleh mengambil masa sehingga beberapa tahun untuk diselesaikan. Keadaan ini menyebabkan keluarga anda menghadapi masalah kewangan dan persengketaan sebelum dapat mewarisi pusaka anda. Sering kali, pertikaian tentang pembahagian harta si mati menyebabkan perselisihan sesama ahli keluarga. Persediaan wasiat boleh menggelakkan konflik yang mungkin berlaku pada masa depan apabila berlaku kematian. Mewariskan Harta Kepada Orang Tersayang “Sering kali, pertikaian tentang pembahagian harta si mati menyebabkan perselisihan sesama ahli keluarga.” 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Mandeep Singh Shabana Naseer Ahmad Ringgit merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan pada setiap bulan. Untuk memuat turun Ringgit dalam format “PDF“, sila layari laman sesawang www. fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks : 03-7873 0636 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Faks : 03-2174 1515 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 Faks : 03-7875 5468 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. “Sering kali, pertikaian tentang pembahagian harta si mati menyebabkan perselisihan sesama ahli keluarga.” B. Secara Islam Bagi orang Islam, wasiat hendaklah ditulis mengikut undang-undang Islam. Wasiat perlu bagi orang Islam. Tanpa penyediaan wasiat, harta pusaka akan dibahagikan mengikut kaedah Faraid, yang menyebabkan anak angkat atau anak tiri tidak layak mewarisi apa-apa harta. Jika seorang Muslim meninggal dunia dengan wasiat Selepas menolak hutang dan liabiliti, seorang Muslim boleh memilih untuk menyumbang 1/3 daripada harta pusakanya kepada bukan waris, dan bakinya akan diberi kepada waris Faraid (mengikut undang-undang). Sesiapa boleh menjadi waris anda, (pengagihan lebih daripada ½ harta pusaka kepada bukan waris memerlukan persetujuan daripada waris, tetapi walaupun tanpa persetujuan mereka, pengagihan boleh dilakukan sebagai Hibah semasa anda masih hidup). Kebaikan lain adalah sama dengan wasiat secara konvensional. Dis 2018 | 3 • Pertukaran agama; contohnya kepada agama Islam, iaitu wasiat terikat kepada Undang-undang Syariah Kesimpulan Lebih penting lagi, anda tidak mahu harta anda diambil alih oleh kerajaan akibat tidak dituntut oleh sesiapa. Beri perhatian untuk menulis fasal-fasal dalam wasiat tersebut dengan jelas dan sempurna kerana wasiat yang tidak sah atau boleh dicabar adalah sama seperti anda tidak membuat wasiat. Sumber: Loanstreet.com.my Jika seorang Muslim meninggal dunia tanpa wasiat Harta akan diagihkan mengikut undang-undang Faraid. Andaikan kedua-dua ibu bapanya telah meninggal dunia, 1/8 daripada harta pusaka si mati akan diberi kepada isteri, dan selebihnya akan diberi kepada anak lelaki dan anak perempuan (dengan pertalian darah tetapi tidak termasuk anak luar nikah) dengan nisbah 2:1. Ahli keluarga bukan Islam tidak berhak mewarisi harta pusaka ahli keluarga Muslim. Anak angkat atau anak tiri tidak berhak mewarisi harta pusaka. Kesan-kesan lain adalah sama dengan tidak mempunyai wasiat konvensional. Penyediaan wasiat bertujuan untuk memastikan harta pusaka tersebut akan diagihkan mengikut keutamaan dan kehendak si mati. Siapakah Yang Perlu Menulis / Memperbaharui Wasiat? Wasiat perlu dikemas kini dari semasa ke semasa untuk merangkumi semua aset yang baru diambil alih atau perubahan dalam waris. Berikut beberapa keadaan yang memerlukan anda menulis atau mengemas kini wasiat anda: • Perkahwinan, perkahwinan semula atau perceraian • Memulakan atau menamatkan perniagaan • Kematian ahli keluarga atau benefisiari • Pembelian atau pelupusan aset 4 | RINGGIT Apabila tiba musim hujung tahun, ramai yang akan menerima bonus tahunan daripada syarikat atau majikan masing-masing. Namun, terdapat individu yang gagal mengurus bonus tersebut dengan baik. Berikut adalah beberapa cadangan dan perkara yang anda boleh lakukan dengan bonus tahunan anda. Selesaikan hutang Perkara pertama anda perlu lakukan apabila mempunyai lebihan wang adalah menyelesaikan hutang anda; sama ada hutang dengan pihak bank, hutang PTPTN, hutang kedai atau individu. Hidup anda lebih tenang apabila tidak terbeban dengan hutang. Bagi hutang yang melibatkan pelaburan, anda tidak perlu usik atau kurangkan hutang tersebut j ika pinjaman atau pembiayaan tersebut masih menguntungkan. Tambah pelaburan jangka masa panjang Selepas berjaya menyelesaikan beberapa hutang, anda boleh mula merancang untuk memulakan pelaburan atau menambah pelaburan anda. Untuk pelaburan jangka masa panjang, fokus pada dana persaraan dan dana pendidikan anak- anak. Semakin banyak anda laburkan untuk dana persaraan, semakin cepat anda boleh bersara. Dengan menggunakan bonus tahunan anda setiap tahun, dana persaraan anda lebih terjamin. Tambah simpanan kecemasan Jika sebelum ini, anda hanya menyimpan tiga bulan gaji sebagai simpanan kecemasan, k in i anda boleh meningkatkan simpanan tersebut sehingga enam bulan. Semakin berusia, semakin banyak masalah yang bakal / mungkin anda hadapi. Oleh itu, simpanan kecemasan ini boleh dijadikan sebagai satu dana yang akan membantu anda ketika anda memerlukan. Dalam keadaan ekonomi yang tidak menentu, anda juga perlu bersedia dengan segala kemungkinan yang boleh berlaku seperti kehilangan pekerjaan. Apa Yang Anda Boleh Lakukan Dengan Bonus Tahunan $ $$ $ $ Dis 2018 | 5 Tambah tabung untuk pembelian mahal Tabung untuk pembelian mahal bermaksud satu tabung yang baka l d i g u n a k a n u n t u k perbelanjaan yang besar, terutama ketika m u s i m p e r a y a a n d a n m u s i m a w a l persekolahan. Ketika itu, banyak perbelanjaan yang akan digunakan. Tabung in i pent ing bagi mengelakkan masalah wang gaji dihabiskan untuk perbelanjaan besar tersebut. Tambah ilmu Selain menambah pelaburan dan simpanan, anda juga perlu meningkatkan lagi ilmu pengurusan kewangan dan pelaburan. Anda boleh menyertai pelbagai seminar atau beli buku rujukan di kedai buku. Buku rujukan tersebut juga boleh digunakan sebagai panduan untuk mengurangkan cukai pendapatan anda. Lebih banyak ilmu yang anda belajar, semakin banyak idea pengurusan kewangan dan pelaburan yang anda boleh lakukan. Tingkatkan pelan perlindungan insurans / takaful anda Ini juga merupakan masa terbaik untuk anda mengambil pelan perlindungan insurans / takaful atau menyemak semula pelan yang anda sedia ada. Jika sebelum ini jumlah pampasan yang anda ambil hanya RM100,000, anda boleh menambah jumlah tersebut ke satu jumlah yang lebih besar sesuai dengan diri anda. Selain pampasan, semak juga manfaat kad perubatan anda sama ada masih sesuai atau tidak dengan keadaan semasa. Anda juga boleh menggunakan bonus tersebut untuk menyambung bayaran caruman bagi memudahkan anda membuat caruman setiap bulan. Sumber: www.duitkertas.com “Selain menambah pelaburan dan simpanan, anda juga perlu meningkatkan lagi ilmu pengurusan kewangan dan pelaburan.” 6 | RINGGIT Memilih Kad Perubatan Yang Sesuai Kad perubatan telah menjadi satu keperluan dalam kalangan rakyat Malaysia pada hari ini. Seorang pengguna yang memiliki kad perubatan akan mendapat akses kepada hospital dan klinik swasta yang menawarkan perkhidmatan dengan lebih cepat dan mudah. Walaupun kepentingannya tidak disangkal, namun pengguna perlu bijak memilih kad perubatan yang bersesuaian dengan keperluan mereka. Pengguna perlu mengimbangi antara kos, aspek liputan rawatan, akses kepada perkhidmatan dan perkhidmatan lain yang disediakan bagi memastikan pengguna mendapat perlindungan yang menyeluruh. Bagi membantu anda dan keluarga anda memilih kad perubatan yang sesuai, berikut adalah beberapa panduan mudah: 1. Pastikan had tahunan Walaupun perlindungan bagi rawatan di hospital agak besar kosnya, tetapi pengguna perlu mempertimbangkan had tahunan sebelum membuat keputusan. Pemegang polisi perlu memahami berapakah jumlah bil yang dibenarkan bagi setiap tahun dan jangka masa perlindungan tersebut. 2. Kad perubatan asas atau produk pelaburan Pengguna perlu memastikan jenis insurans / takaful yang dilanggan – sekiranya ia polisi asas atau yang dipakej sekali bersama- sama dengan produk pelaburan (investment linked). Pengguna dengan polisi asas dan produk pelaburan perlu membayar kadar bulanan yang lebih mahal. Namun begitu, polisi seperti ini mempunyai kelebihan simpanan tunai, yang juga boleh digunakan untuk membayar kadar bulanan bagi satu jangka masa tertentu. 3. Bandingkan pakej polisi lain dan pilih yang sesuai dengan anda Akhir sekali, pengguna perlu memahami jenis dan kos rawatan yang ditanggung oleh polisi. Pengguna juga boleh membandingkan dengan pakej polisi lain atau menambah baik pakej yang sedia ada. Sebagai contoh, terdapat polisi yang memberikan elaun bagi pemegang polisi yang dimasukkan ke dalam wad. Memiliki kad perubatan adalah satu keperluan, namun pemahaman tentang polisi akan membantu anda apabila ingin mendapatkan rawatan kelak. Pengguna disaran supaya membaca terma dan syarat polisi serta memahami kepentingan untuk mengisytihar penyakit sedia ada bagi mengelakkan kesulitan pada kemudian hari. Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) Dis 2018 | 7 Senarai Insentif Yang Diterima Golongan B40 dalam Belanjawan 2019 Golongan isi rumah berpendapatan rendah (B40) merupakan penerima manfaat terbesar daripada Belanjawan 2019. Beberapa inisiatif telah diperkenalkan oleh kerajaan bagi menyalurkan bantuan kepada golongan B40 untuk membantu mengurangkan bebanan kos sara hidup yang dihadapi oleh golongan tersebut. Sumber: kapital.my BANTUAN SARA HIDUP (BSH) BSH adalah sebuah program bantuan yang sebelum ini dikenali sebagai Bantuan Rakyat 1Malaysia (BR1M). Beberapa penambahbaikan dilakukan dengan matlamat supaya pemberian ini dapat dilaksanakan dengan lebih bersasar. Terdapat tiga kategori penerima BSH: • Isi rumah berpendapatan bulanan RM2,000 dan ke bawah akan menerima bantuan berjumlah RM1,000. • Isi rumah berpendapatan bulanan daripada RM2,001 hingga RM3,000 akan menerima bantuan berjumlah RM750. • Isi rumah berpendapatan bulanan daripada RM3,001 hingga RM4,000 akan menerima bantuan berjumlah RM500. Selain itu, bantuan tambahan sebanyak RM120 untuk setiap anak berumur 18 tahun ke bawah dan terhad kepada 4 orang, kecuali anak kurang upaya yang tidak dihadkan umur. BANTUAN PEMILIKAN RUMAH Dana berjumlah RM1 bi l ion yang ditubuhkan oleh Bank Negara Malaysia bagi membantu golongan yang memiliki pendapatan RM2,300 sebulan dan ke bawah untuk memiliki rumah pertama melalui pembelian rumah mampu milik berharga RM150,000 dan ke bawah. SUBSIDI ELEKTRIK Golongan B40 akan menerima subsidi bil elektrik isi rumah sebanyak RM40. Subsidi ini akan disalurkan khusus kepada golongan miskin dan miskin tegar yang berdaftar di bawah program e-Kasih. DANA PERLINDUNGAN KESIHATAN Sebuah skim jaringan p e r l i n d u n g a n k e s i h a t a n b a k a l d i p e r k e n a l k a n bermula Januari 2019 hasi l usaha sama kerajaan dan syarikat swasta. Mela lu i sk im in i , golongan B40 akan mendapat perlindungan kesihatan percuma untuk empat sakit kritikal utama dengan jumlah sebanyak RM8,000. Golongan ini juga layak menerima pendapatan gantian maksimum 14 hari semasa tempoh rawatan pada kadar RM50 sehari. SUBSIDI MINYAK BERSASAR Kera jaan bercadang untuk memperkenalkan satu mekanisme pemberian subsidi minyak yang lebih bersasar supaya hasrat utama kerajaan untuk membantu golongan yang layak untuk menerima bantuan, berjaya dicapai. Hanya golongan sasaran yang layak akan menerima subsidi tersebut. Apabila subsidi ini dilaksanakan, harga minyak petrol RON95 akan diapungkan. Melalui mekanisme subsidi bersasar ini, kerajaan akan memberi subsidi minyak sebanyak 30 sen seliter kepada pemilik kereta persendirian dengan enjin berkapasiti 1,500cc ke bawah dan motosikal berkapasiti enjin 125cc ke bawah (tidak termasuk kenderaan di bawah kategori kenderaan mewah). Pemberian subsidi minyak ini hanya terhad kepada 100 liter minyak sebulan bagi kereta dan 40 liter bagi motosikal. Sebanyak RM2 bilion peruntukan akan disalurkan bagi pelaksanaan subsidi minyak ini dan dijangkakan akan memberi manfaat kepada lebih 4 juta pemilik kereta dan 2.6 juta pemilik motosikal. 8 | RINGGIT Tidak dinafikan pinjaman peribadi adalah satu kemudahan kewangan yang popular dalam kalangan rakyat Malaysia. Sehingga hari ini, ramai rakyat Malaysia mempunyai pinjaman peribadi dan mendapat manfaat daripadanya. Jika digunakan untuk kebaikan, pinjaman peribadi banyak memberi manfaat kepada setiap individu. Contohnya, untuk membaiki rumah, membantu ibu bapa, menguruskan hutang, dan juga sebagai modal untuk perniagaan. Namun, anda perlu berhati-hati terhadap pinjaman peribadi yang ditawarkan; terutamanya jika pinjaman tersebut tidak ditawarkan oleh bank. Bank Negara Malaysia (BNM) juga sering memberi nasihat dan peringatan kepada orang ramai supaya lebih berhati-hati dengan tawaran pinjaman peribadi daripada pihak yang tidak dikenali. Kami ingin kongsikan dengan anda beberapa cara untuk mengenal pasti penipuan kewangan berkaitan pinjaman peribadi. 1. Tawaran melalui media sosial Pernahkah anda melihat iklan di media sosial, seperti Facebook, Instagram, WeChat atau Twitter, berkenaan tawaran pinjaman peribadi yang boleh diluluskan walaupun nama anda sudah disenarai hitam? Jangan terkejut kerana perkara tersebut sudah menjadi kebiasaan untuk pemberi pinjaman peribadi melakukan penipuan. Ini adalah perkara yang paling mudah untuk anda mengenal pasti pemberi pinjaman peribadi tersebut adalah betul atau sekadar satu penipuan. Sebenarnya, tawaran seperti ini adalah satu berita gembira kepada individu yang tidak layak mendapatkan pinjaman peribadi daripada pihak institusi kewangan. 2. Pinjam RM5,000, bayar RM5,000 Cara lain yang membolehkan anda mengetahui pemberi pinjaman tersebut menipu adalah melalui tawaran pinjaman tanpa faedah atau keuntungan di pihak pemberi pinjaman. Contohnya adalah seperti tawaran, ‘Pinjam RM5,000, Bayar RM5,000’. Ini bermakna, pihak pemberi pinjaman menawarkan pinjaman tanpa kadar faedah atau keuntungan. Seperti kita tahu, setiap syarikat pemberi pinjaman adalah satu perniagaan dan sudah pasti mahukan keuntungan daripada setiap pinjaman yang ditawarkan. Jadi, sangat mustahil untuk sesuatu syarikat memberi perkhidmatan mereka tanpa menjana keuntungan. Selain itu, anda juga perlu berhati-hati jika ada syarikat pemberi pinjaman yang memberikan kadar faedah yang terlalu rendah sehingga kurang daripada kadar faedah semasa sebagaimana yang ditawarkan oleh pihak institusi kewangan. 3. Bayaran awal dan pendahuluan Modus operandi yang biasa dilakukan oleh syarikat jenis ini adalah dengan memberitahu bahawa permohonan pinjaman tersebut sukar untuk diluluskan. Oleh itu, untuk meluluskan permohonan pinjaman tersebut, peminjam perlu memberi bayaran pendahuluan. Mengenal Pasti Penipuan Kewangan Berkaitan Pinjaman Peribadi Dis 2018 | 9 Selepas bayaran awal diterima, syarikat tersebut biasanya akan terus hilang dan tidak dapat dihubungi. Kes seperti ini biasanya berlaku apabila pemohon pinjaman peribadi terlalu mengharap dan terdesak untuk mendapatkan pinjaman peribadi tersebut. Akhirnya, pinjaman peribadi tidak dapat, kerugian pula yang perlu ditanggung. Selain bayaran awal, syarikat pemberi pinjaman yang ingin menipu anda biasanya akan meminta anda membayar kos pengurusan yang terlalu tinggi. 4. Akaun media sosial palsu Bagi individu yang aktif dalam dunia media sosial, anda mungkin pernah dihubungi oleh individu yang menawarkan pinjaman peribadi. Kebiasaannya, mereka akan menggunakan gambar wanita cantik untuk mengumpan anda. Perkara pertama anda boleh lihat ialah gambar pada akaun media sosial tersebut. J ika gambar yang digunakan adalah gambar seperti haiwan atau gambar orang lain, kemungkinan untuk berlaku penipuan adalah tinggi. Mereka juga gemar untuk menghantar pesanan ringkas (SMS) atau melalui aplikasi WhatsApp dengan tawaran yang sangat menar ik dan sukar untuk ditolak. Selain itu, mereka juga lebih gemar untuk memproses segala urusan secara dalam talian sahaja dan tidak perlu berjumpa. Cara ini menjadikan mereka lebih mudah untuk melakukan penipuan kerana tidak perlu berjumpa dengan orang ramai. 5. Memaksa tandatangan Bagi individu yang sudah diluluskan pinjaman peribadi, mereka perlu menandatangani surat perjanjian sebagai tanda persetujuan. Jika anda sebagai peminjam tidak diberi peluang untuk membaca isi kandungan perjanjian dan dipaksa menandatangan perjanjian tersebut, itu menandakan anda mungkin akan ditipu melalui perjanjian yang berat sebelah. Perkara yang sering berlaku adalah apabila peminjam tidak sedar tentang kadar faedah yang mereka ambil adalah terlalu tinggi. Akhirnya, pelanggan terpaksa membayar jumlah pinjaman tersebut sehingga melebihi 10 kali ganda daripada jumlah pinjaman. Bagaimana Jika Anda Sudah Tertipu dan Apa Yang Perlu Dilakukan? Jika anda merupakan mangsa skim penipuan pinjaman peribadi, anda boleh lakukan perkara-perkara berikut: 1. Buat laporan polis Pertama sekali, sila buat laporan di balai polis. Tujuan laporan polis dilakukan adalah supaya pihak polis boleh membantu jika terdapat penipuan dan juga melindungi diri anda daripada sebarang ancaman. Berdasarkan Seksyen 420 Kanun Keseksaan, penipuan tersebut akan disiasat dan si penipu boleh dipenjara maksimum 10 tahun serta boleh dikenakan denda jika bersalah. 2. Dapatkan nasihat daripada penasihat kewangan A n d a m u n g k i n menghadapi masalah yang lebih teruk untuk mengurus kewangan anda selepas terjebak dalam penipuan pinjaman peribadi tersebut. Oleh itu, cara terbaik adalah untuk mendapatkan nasihat kewangan supaya pengurusan kewangan anda menjadi lebih baik. 3. Sebarkan nama penipu tersebut Jangan berasa malu untuk kongsikan pengalaman anda ditipu oleh syarikat pinjaman peribadi. Perkongsian tersebut mungkin berjaya menyelamatkan ramai lagi individu daripada terjebak dalam penipuan yang sama dan mungkin mengalami kerugian yang lebih besar. Akhir kata, jika anda ingin mendapatkan pinjaman peribadi, pastikan anda memohon daripada syarikat atau melalui saluran yang betul supaya tidak tertipu. Sumber: iMoney.my 10 | RINGGIT Jangan SERAHKAN KAD ATM anda kepada orang lain. Akaun Bank anda mungkin disalah guna untuk tujuan PENIPUAN. Anda BOLEH DIDAKWA secara Fraud membantu menyembunyikan harta orang lain yang membawa hukuman PENJARA, boleh sampai 5 tahun atau DENDA atau kedua-duanya. Siasatan Jenayah Siber & Multimedia JSJK Bukit Aman # BAHAYA BM_bnk_scamvictim_poster_A4 edit.pdf 1 9/12/2018 6:12:08 PM

Public Notice

23 Dis 2020

Pertukaran Mata Wang Kertas dan Duit Syiling Rosak serta Mata Wang yang Tidak Lagi Sah Diperlakukan di Institusi Kewangan

https://www.bnm.gov.my/-/pertukaran-mata-wang-kertas-dan-duit-syiling-rosak-serta-mata-wang-yang-tidak-lagi-sah-diperlakukan-di-institusi-kewangan

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/pertukaran-mata-wang-kertas-dan-duit-syiling-rosak-serta-mata-wang-yang-tidak-lagi-sah-diperlakukan-di-institusi-kewangan&languageId=ms_MY

Reading: Pertukaran Mata Wang Kertas dan Duit Syiling Rosak serta Mata Wang yang Tidak Lagi Sah Diperlakukan di Institusi Kewangan Share: 98 Pertukaran Mata Wang Kertas dan Duit Syiling Rosak serta Mata Wang yang Tidak Lagi Sah Diperlakukan di Institusi Kewangan Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 0920 pada Rabu, 23 Disember 2020 23 Dis 2020 Orang ramai dinasihati supaya membuat pertukaran mata wang kertas dan duit syiling rosak serta mata wang yang tidak lagi sah diperlakukan di mana-mana institusi kewangan. Institusi kewangan akan: membuat pertukaran untuk orang ramai pada hari yang sama bagi kes mata wang kertas rosak yang jelas nilainya; dan merujuk BNM untuk membuat penilaian bagi kes mata wang kertas rosak yang kurang jelas nilainya, duit syiling rosak dan mata wang yang tidak lagi sah diperlakukan. BNM akan membuat pembayaran kepada orang ramai pada tarikh yang lain, selepas penilaian dibuat. Kaunter pertukaran di Ibu Pejabat BNM dan Pejabat-Pejabat BNM ditutup kepada orang ramai, tetapi dibuka hanya kepada institusi kewangan untuk menerima perkara (ii) di atas. Untuk maklumat lanjut, sila hubungi: Ibu Pejabat BNM Kuala Lumpur +603-26988044 (samb. 7390, 7416 or 7414) BNM Johor Bahru +607-225 7888 BNM Pulau Pinang +604-258 7588 BNM Kuala Terengganu +609-638-2001 BNM Kuching +6082-224-200 BNM Kota Kinabalu +6088-522-310 Bank Negara Malaysia 23 Disember 2020 © Bank Negara Malaysia, 2020. All rights reserved.

Public Notice

21 Dis 2020

Jawatankuasa Pasaran Kewangan akan memacu pembangunan kadar penanda aras kewangan alternatif untuk Malaysia

https://www.bnm.gov.my/-/jawatankuasa-pasaran-kewangan-akan-memacu-pembangunan-kadar-penanda-aras-kewangan-alternatif-untuk-malaysia

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/jawatankuasa-pasaran-kewangan-akan-memacu-pembangunan-kadar-penanda-aras-kewangan-alternatif-untuk-malaysia&languageId=ms_MY

Reading: Jawatankuasa Pasaran Kewangan akan memacu pembangunan kadar penanda aras kewangan alternatif untuk Malaysia Share: 6 Jawatankuasa Pasaran Kewangan akan memacu pembangunan kadar penanda aras kewangan alternatif untuk Malaysia Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1415 pada Isnin, 21 Disember 2020 21 Dis 2020 Jawatankuasa Pasaran Kewangan[1] (Financial Markets Committee, FMC) telah dilantik sebagai jawatankuasa untuk menyelia pembangunan kadar rujukan alternatif (alternative reference rate, ARR) bagi Malaysia dan untuk mempertimbangkan kesinambungan Kadar Tawaran Antara Bank Kuala Lumpur (Kuala Lumpur Interbank Offered Rate, KLIBOR). Pembaharuan penanda aras kewangan sedang dijalankan pada peringkat antarabangsa bagi meningkatkan integriti penanda aras kadar faedah atau kadar rujukan global, sejajar dengan cadangan Lembaga Kestabilan Kewangan (Financial Stability Board, FSB). Bank menjangkakan ARR yang dikenal pasti akan bergerak selari dengan KLIBOR yang sedia ada, lantas memberikan waktu yang cukup bagi para peserta pasaran dan pihak berkepentingan untuk bersedia menggunakan ARR. FMC terdiri daripada wakil Bank Negara Malaysia, Suruhanjaya Sekuriti Malaysia, institusi kewangan, penanggung insurans, pengurus dana dan perbendaharaan korporat. FMC akan menjadi forum utama bagi membincangkan perkembangan terkini pada peringkat antarabangsa mengenai penanda aras kewangan dan bertanggungjawab memberikan cadangan tentang hala tuju strategik untuk kadar penanda aras kewangan di Malaysia. Tugas utama jawatankuasa pertamanya adalah untuk mendapatkan maklum balas orang ramai pada peringkat awal mengenai pengenalpastian ARR yang sesuai dan penambahbaikan rangka kerja KLIBOR jika rangka kerja itu dikekalkan. FMC juga akan mempertimbangkan standard industri secara menyeluruh bagi memudahkan penerapan ARR untuk kontrak kewangan semasa yang menggunakan KLIBOR sebagai rujukan. Kemas kini secara berkala tentang kemajuan yang dicapai oleh FMC termasuk penilaian dan saranannya akan diterbitkan untuk rujukan oleh semua peserta pasaran.     [1] Jawatankuasa Pasaran Kewangan ialah jawatankuasa yang ditubuhkan oleh Bank Negara Malaysia pada bulan Mei 2016 dan terdiri daripada wakil Bank Negara Malaysia, institusi kewangan, syarikat, penyedia perkhidmatan kewangan dan institusi lain yang mempunyai peranan atau penyertaan penting dalam pasaran kewangan.   Bank Negara Malaysia 21 Disember 2020 © Bank Negara Malaysia, 2020. All rights reserved.

Public Notice

17 Dis 2020

Selamat datang ke laman web BNM berwajah baharu!

https://www.bnm.gov.my/-/selamat-datang

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/selamat-datang&languageId=ms_MY

Reading: Selamat datang ke laman web BNM berwajah baharu! Share: 2 Selamat datang ke laman web BNM berwajah baharu! Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 0033 pada Khamis, 17 Disember 2020 17 Dis 2020 Laman web BNM kini telah diperbaharui untuk meningkatkan pengalaman pengguna. Ia kini lebih mudah dilayari untuk mencari maklumat dan adalah mesra peranti mudah alih. Fungsi carian juga telah dipertingkatkan untuk memberi keputusan yang lebih relevan. Menu juga telah ditukar untuk mempermudahkan akses kepada kandungan yang paling diminta. Kandungan web lain telah diletakkan di halaman utama. Untuk pengunjung biasa kami, semua halaman kini mempunyai alamat web (URL) yang baharu. Sekiranya anda menghadapi kesukaran untuk mencari halaman biasa anda, anda boleh membiasakan diri dengan halaman utama yang baharu, atau anda boleh mencuba halaman carian baharu: www.bnm.gov.my/search Beberapa halaman yang popular kini mempunyai alamat baru. Kadar pertukaran matawang asing: www.bnm.gov.my/exchange-rates Kadar terbaharu: www.bnm.gov.my/latest-rates Senarai Institusi Kewangan Berlesen: www.bnm.gov.my/list-of-licensed-financial-institutions NSDP: www.bnm.gov.my/national-summary-data-page-for-malaysia ARC: www.bnm.gov.my/advance-release-calendar Maklumat COVID19: www.bnm.gov.my/covid19 Bantuan Bayaran Balik Bersasar: www.bnm.gov.my/tra Bagi mereka yang telah melanggan e-mel kami, anda boleh melanggan semula di www.bnm.gov.my/subscribe Sekiranya anda tidak dapat mencari halaman kegemaran anda, sila isikan maklumat di borang maklum balas (bnm.my/websitefeedback ) dan kami akan berusaha membantu anda mencarinya. Sebarang kesulitan adalah dikesali. Terima kasih atas sokongan berterusan anda. Bank Negara Malaysia 17 Disember 2020 © Bank Negara Malaysia, 2020. All rights reserved.

Public Notice

10 Dis 2020

Online Ordering, Payment and Delivery Facility for Sale of Asia-Pacific Economic Cooperation Meetings 2020 in Malaysia (APEC 2020) Commemorative Currency Issued by Bank Negara Malaysia

https://www.bnm.gov.my/-/online-ordering-payment-and-delivery-facility-for-sale-of-asia-pacific-economic-cooperation-meetings-2020-in-malaysia-apec-2020-commemorative-currency-issued-by-bank-negara-malaysia

09 Dis 2020

Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions

https://www.bnm.gov.my/-/transitional-arrangements-for-regulatory-capital-treatment-of-accounting-provisions-1

09 Dis 2020

Buletin RINGGIT (Keluaran Bil. 5/2020) kini boleh dimuat turun

https://www.bnm.gov.my/-/buletin-ringgit-keluaran-bil.-5/2020-kini-boleh-dimuat-turun

https://www.bnm.gov.my/documents/20124/947994/Ringgit+Bil+052020.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/buletin-ringgit-keluaran-bil.-5/2020-kini-boleh-dimuat-turun&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Bil. 5/2020) kini boleh dimuat turun Share: 3 Buletin RINGGIT (Keluaran Bil. 5/2020) kini boleh dimuat turun Tarikh Siaran: 09 Dis 2020 Artikel utama pada keluaran ini ialah Intipati Belanjawan 2021. Antara topik lain yang menarik termasuk : Perlindungan Tenang: Mampu dan Mudah untuk Semua Mengatasi Cabaran Merancang Simpanan Persaraan Banjir - Adakah Kenderaan Anda Dilindungi? RINGGIT merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA dan ia diterbitkan dua bulan sekali bermula 2019. Buletin ini diterbitkan di dalam Bahasa Malaysia sahaja. Klik pada pautan di bawah untuk muat turun : Issue - Bil 5/2020 [PDF] © 2024 Bank Negara Malaysia. All rights reserved.

R A K A N K E W A N G A N A N D A B I L . 5/2020 Banjir - Adakah Kenderaan Anda Dilindungi? Mengatasi Cabaran Merancang Simpanan Persaraan Perlindungan Tenang: Mampu dan Mudah untuk Semua Adakah anda mempunyai sebarang komen mengenai RINGGIT? Sila imbas kod QR untuk tinjauan bagi Majalah Ringgit. I n t I p a t I “Teguh KiTa, Menang BersaMa” #Belanjawan2021 #Budget2021 “Teguh KiTa, Menang BersaMa” #Belanjawan2021 #Budget2021 PERCUMA | PP 16897/05/2013 (032581) Pada 6 November 2020, YB Senator Tengku Dato’ Sri Zafrul Abdul Aziz selaku Menteri Kewangan Malaysia telah membentangkan Belanjawan 2021 yang bertemakan “Teguh Kita, Menang Bersama”. Belanjawan 2021 telah dirangka berdasarkan tiga matlamat induk iaitu Kesejahteraan Rakyat, Kelangsungan Ekonomi dan Ketahanan Ekonomi. Kesemua matlamat ini adalah merupakan kesinambungan kepada pakej PRIHATIN, PRIHATIN PKS TAMBAHAN, PENJANA dan juga KITA PRIHATIN. Antara strategi yang dicadangkan untuk mengukuhkan kesejahteraan rakyat di dalam Belanjawan 2021 termasuklah: Perlindungan mySalam diperluaskan ke atas tuntutan kos peranti perubatan seperti stent untuk jantung atau prosthesis. Program Baucar Perlindungan Tenang RM50 kepada golongan B40 sebagai bantuan kewangan untuk membeli produk Perlindungan Tenang termasuk takaful hayat dan kemalangan diri. Menaikkan kadar bantuan kebajikan bulanan seperti berikut: • Kadar Bantuan OKU Tidak Berupaya Bekerja dinaikkan daripada RM250 kepada RM300. • Kadar Bantuan Warga Emas dan Bantuan Penjagaan OKU dan Pesakit Kronik Terlantar dinaikkan daripada RM350 kepada RM500. • Kadar Elaun Pekerja OKU dinaikkan daripada RM400 kepada RM450. • Kadar Bantuan Kanak-kanak Keluarga Miskin dinaikkan daripada RM100 seorang anak (maksimum RM450 sekeluarga), kepada RM150 seorang anak berumur 7 tahun hingga 18 tahun atau RM200 seorang anak berumur 6 tahun dan ke bawah (maksimum RM1,000 sekeluarga). Strategi 1: Pandemik COVID-19 dan kesihatan awam Strategi ini merupakan usaha bagi memerangi pandemik COVID-19 dan juga melindungi kesihatan awam. Antaranya adalah seperti yang berikut: Strategi 2: Memelihara kebajikan golongan rentan Strategi ini adalah untuk memelihara kebajikan golongan rentan, merangkumi lebih 400,000 isi rumah berpendapatan kurang daripada Pendapatan Garis Kemiskinan (PGK). Antara langkah-langkah yang diambil adalah seperti yang berikut: Langkah 1: Penambahbaikan Bantuan Kewangan Strategi 1: Pandemik Covid-19 & Kesihatan Awam Perluasan Program mySalam Strategi 1: Pandemik Covid-19 & Kesihatan Awam Baucar Perlindungan Tenang RM50 Strategi 2: Memelihara Kebajikan Golongan Rentan “Teguh Kita, Menang Bersama” Intipati “Teguh Kita, Menang Bersama” B E L A N J A W A N 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Dr. Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Maizatul Aqira Ishak Baskaran Sithamparam Nur Asyikin Aminuddin Ringgit merupakan penerbitan usaha sama antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan secara berkala sebanyak enam edisi mulai tahun 2019. Untuk muat turun Ringgit dalam format “PDF“, sila layari laman sesawang www.fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks: 03-7877 1076 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. • Bantuan Prihatin Rakyat (BPR) dengan kadar bantuan dan kategori pendapatan seperti berikut: Individu bujang berpendapatan kurang daripada RM2,500 menerima RM350. Had umur kelayakan individu bujang diturunkan kepada 21 tahun berbanding syarat sebelum ini ialah 40 tahun. Bantuan Prihatin Rakyat (BPR) Strategi 2: Memelihara Kebajikan Golongan Rentan Strategi 2: Memelihara Kebajikan Golongan Rentan Strategi 2: Memelihara Kebajikan Golongan Rentan Strategi 2: Memelihara Kebajikan Golongan Rentan Isi rumah berpendapatan <RM2,500 1 orang anak RM1,200 2 orang anak atau lebih RM1,800 Bantuan Prihatin Rakyat (BPR) Isi rumah berpendapatan RM2,500 - RM4,000 1 orang anak RM800 2 orang anak atau lebih RM1,200 Bantuan Prihatin Rakyat (BPR) Isi rumah berpendapatan RM4,001 - RM5,000 1 orang anak RM500 2 orang anak atau lebih RM700 Bantuan Prihatin Rakyat (BPR) bil. 5/2020 | 3 Langkah 2: Meringankan Beban Hidup Rakyat Kadar cukai pendapatan diturunkan sebanyak 1% bagi banjaran pendapatan bercukai RM50,001 hingga RM70,000. Menambah baik Bantuan Pembayaran Bersasar seperti berikut: Peminjam kategori B40/perusahaan mikro (pinjaman kurang daripada RM150,000) diberi pilihan: • Opsyen 1: Menangguhkan ansuran bulanan selama 3 bulan atau • Opsyen 2: Pengurangan ansuran bulanan sebanyak 50% selama 6 bulan. Peminjam daripada golongan M40, proses permohonan bantuan bayaran balik pinjaman akan dipermudahkan. Peminjam hanya perlu membuat pengisytiharan kendiri (self-declaration). Pengurangan kadar caruman minimum KWSP pekerja daripada 11% kepada 9% mulai Januari 2021 untuk tempoh 12 bulan. Pengeluaran simpanan KWSP Akaun 1 secara bersasar untuk membantu ahli-ahli yang terjejas pendapatan mereka. Sistem Insurans Pekerjaan (SIP) akan dilanjutkan dan tempoh Elaun Mencari Kerja akan dilanjutkan selama 3 bulan dan kadar layak menuntut daripada 80% gaji bagi bulan pertama, 50% bagi bulan kedua hingga keenam dan seterusnya 30% bagi tiga bulan terakhir. Penurunan Kadar Cukai Pendapatan Strategi 2: Memelihara Kebajikan Golongan Rentan Strategi 2: Memelihara Kebajikan Golongan Rentan Strategi 2: Memelihara Kebajikan Golongan Rentan Strategi 2: Memelihara Kebajikan Golongan Rentan Strategi 2: Memelihara Kebajikan Golongan Rentan Bantuan Pembayaran Sasaran untuk B40 dan Perusahaan Mikro Pengurangan Caruman KWSP Daripada 11% kepada 9% Pengeluaran Simpanan KWSP Akaun 1 Lanjutan Tempoh Elaun Mencari Kerja Selama 3 Bulan • 80% gaji bagi bulan pertama • 50% gaji bagi bulan kedua • 30% gaji bagi 3 bulan terakhir RM150 juta diperuntukkan untuk 130,000 pencari kerja 4 | RINGGIT Strategi 3: Menjana dan Mengekalkan Pekerjaan Berikutan pandemik COVID-19, kadar pengangguran telah meningkat kepada 5.3% atau 820,000 penganggur pada Mei 2020 iaitu tertinggi sejak 1989. Oleh itu, beberapa langkah-langkah yang telah diambil bagi mengekang masalah pengangguran ini antaranya: Langkah 1: Insentif PenjanaKerjaya Insentif untuk pekerja bergaji RM1,500 ke atas akan dinaikkan daripada kadar rata RM800 sebulan, kepada 40% daripada gaji bulanan, terhad kepada gaji maksimum RM4,000 bagi tempoh 6 bulan. Insentif tambahan sebanyak 20% daripada gaji bulanan pekerja diberikan kepada majikan yang mengambil pekerja OKU, penganggur jangka panjang dan pekerja yang diberhentikan bagi tempoh 6 bulan. Insentif sebanyak 60% daripada gaji bulanan disediakan dengan 40% kepada majikan dan 20% kepada pekerja tempatan yang menggantikan pekerja asing bagi tempoh 6 bulan. Kadar maksimum program latihan yang layak dituntut majikan dinaikkan daripada RM4,000 kepada RM7,000 bagi menjalani program kemahiran tinggi atau sijil profesional. Langkah 2: Reskilling & Upskilling Program Kementerian Pengajian Tinggi persijilan profesional (KPT-PACE) iaitu graduan baharu ditawarkan baucar bernilai RM3,000 bagi kursus sijil profesional di universiti awam dan swasta. Pelaksanaan program latihan dan kerja secara usahasama dengan majikan swasta oleh Pembangunan Sumber Manusia Berhad (HRDF). Strategi 3: Menjana dan Mengekalkan Pekerjaan Penambahbaikan Program PenjanaKerjaya Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Penambahbaikan Program PenjanaKerjaya Insentif tambahan sebanyak 40% + 20% Penambahbaikan Program PenjanaKerjaya Insentif tambahan sebanyak 40% + 20% Penambahbaikan Program PenjanaKerjaya Program Peningkatan Kemahiran & Latihan Semula (Reskilling & Upskilling Programme) RM150 juta untuk KPT-PACE Baucar RM3,000 seorang untuk 50,000 graduan bagi pengambilan sijil professional Program Peningkatan Kemahiran & Latihan Semula (Reskilling & Upskilling Programme) RM100 juta untuk HRDF Program latihan dan kerja secara usahama dengan majikan sektor swasta bil. 5/2020 | 5 Malaysia Digital Economy Corporation (MDEC) memudahkan peralihan bakat tenaga kerja sedia ada bagi mengisi keperluan dalam industri Teknologi Maklumat dan Komunikasi. Pelepasan cukai yuran pengajian akan diperluas meliputi perbelanjaan menghadiri kursus peningkatan kemahiran oleh badan-badan bertauliah, terhad kepada RM1,000 bagi setiap tahun taksiran. Langkah 3: Malaysia Short Term Employment Programme (MYSTEP) 50,000 peluang pekerjaan secara kontrak dalam sektor awam dan Syarikat Berkaitan Kerajaan atau GLC bermula Januari 2021. Langkah 4: Program Subsidi Upah Bersasar Program Subsidi Upah Bersasar dilanjutkan selama tiga bulan khusus bagi sektor pelancongan dan peruncitan. Langkah 5: Perlindungan Sosial • P e n g e l u a r a n simpanan Akaun 2 KWSP untuk membeli produk p e r l i n d u n g a n i n s u r a n s d a n takaful hayat dan penyakit kritikal yang diluluskan oleh KWSP. • Pelepasan cukai pendapatan individu sehingga RM3,000 ke atas caruman Skim Persaraan Swasta dilanjutkan sehingga tahun taksiran 2025. Secara kesimpulannya, melihat kepada senario ekonomi semasa akibat gelombang ketiga wabak COVID-19, FOMCA berpandangan bahawa Belanjawan 2021 sedikit sebanyak dapat membantu golongan yang terjejas akibat penularan wabak ini. Selain itu, FOMCA juga menyifatkan pembentangan Belanjawan 2021 sebagai menyeluruh meskipun kerajaan menghadapi pelbagai kekangan daripada segi kewangan. Malahan, Belanjawan 2021 ini juga bukan sahaja mengurangkan bebanan rakyat tetapi pada masa yang sama ianya bertujuan bagi menggerakkan ekonomi negara ─ Mohd Yusof Abdul Rahman, Timbalan Presiden, FOMCA. Sumber: www.treasury.gov.my Caruman Skim Bencana Pekerjaan PERKESO kepada: • Anggota Pasukan Sukarelawan Angkatan Tentera, Sukarelawan Simpanan Polis, Sukarelawan Pertahanan Awam Malaysia dan Sukarelawan Maritim Malaysia. • Guru takmir, imam, bilal, siak, noja, dan merbut. • Pekerja sektor awam berstatus Contract for Service. • Delivery riders. Strategi 3: Menjana dan Mengekalkan Pekerjaan Program Peningkatan Kemahiran & Latihan Semula (Reskilling & Upskilling Programme) RM100 juta untuk MDEC Memudahkan peralihan bakat tenaga kerja sedia ada bagi mengisi keperluan industri ICT Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Strategi 3: Menjana dan Mengekalkan Pekerjaan Perluasan Skop Pelepasan Cukai Yuran Pengajian Terhad kepada RM1,000 bagi setiap tahun taksiran Bagi perbelanjaan kursus peningkatan kemahiran Short-term Employment Programme (MySTEP) RM700 juta Menawarkan 50,000 peluang pekerjaan Program Subsidi Upah Bersasar Skim Bencana Pekerjaan PERKESO RM24 juta 6 | RINGGIT Perlindungan yang Mampu dan Mudah untuk Semua Perlindungan insurans dan takaful penting dalam perancangan kewangan masa depan kerana ia menawarkan jaringan keselamatan untuk anda dan keluarga. Ia memastikan semua ahli keluarga mendapat perlindungan daripada segi kewangan sekiranya berlaku kematian, kebakaran dan kejadian yang tidak diingini. Anda dan orang tersayang yang bergantung kepada anda akan menerima sejumlah wang untuk membantu perbelanjaan harian dan membolehkan mereka meneruskan kehidupan sekiranya berlaku sesuatu kejadian yang tidak diingini. Ini dapat membantu anda dalam membina semula dan meneruskan kehidupan tanpa terjerumus ke dalam perangkap kemiskinan. Melalui Perlindungan Tenang, anda kini boleh membeli atau menyertai pelan perlindungan yang mampu dan mudah difahami, dengan proses tuntutan yang senang dan ringkas. Untuk menggalakkan rakyat Malaysia menggunakan perlindungan insurans dan takaful bagi mengurus risiko kewangan dalam kehidupan mereka, kerajaaan telah mengumumkan inisiatif Program Baucar Perlindungan Tenang sebanyak RM50 di bawah Belanjawan 2021 sebagai bantuan kewangan kepada golongan B40 untuk membeli produk Perlindungan Tenang. Produk Perlindungan Tenang menawarkan perlindungan kepada pemegang polisi serta keluarga dalam menghadapi peristiwa yang tidak dijangka (bergantung kepada jenis polisi) seperti kematian, kemalangan, hilang upaya kekal, kebakaran atau kerosakan harta benda. Untuk maklumat lebih lanjut, orang ramai dinasihatkan untuk menghubungi syarikat insurans/pengendali takaful yang berkenaan, atau layari laman sesawang www.mycoverage.my Keistimewaan Perlindungan Tenang Mampu dan berbaloi • Premium/caruman serendah RM1.00 sebulan. • Pelan boleh diperbaharui setiap tahun. Mudah • Mudah difahami. • Bayaran tuntutan terus kepada pemegang polisi atau benefisiari (penama), sekiranya berlaku musibah. • Proses pengunderaitan (underwriting) yang mudah dan pengeluaran polisi/sijil yang segera. Senang untuk dibeli dan disertai Produk Perlindungan Tenang boleh dibeli melalui: • Internet di laman sesawang syarikat insurans/ pengendali takaful; • Kaunter cawangan-cawangan syarikat insurans/ pengendali takaful; • Cawangan-cawangan bank tertentu; • Kaunter POS Malaysia; atau • Syarikat pengendali telefon mudah alih tertentu. Proses tuntutan adalah mudah dan ringkas • Tuntutan akan dibayar dalam tempoh lima (5) hari bekerja dari tarikh penerimaan dokumen yang lengkap. Program Baucar Perlindungan Tenang sebanyak RM50 merupakan inisiatif yang diumumkan di bawah Belanjawan 2021 sebagai bantuan kewangan kepada golongan B40 untuk membeli produk Perlindungan Tenang. Strategi 1: Pandemik Covid-19 & Kesihatan Awam Program Baucar Perlindungan Tenang bil. 5/2020 | 7 Mengatasi Cabaran Merancang simpanan persaraan merupakan satu komitmen jangka panjang yang mencabar. Apatah lagi, ketidaktentuan yang silih berganti memberi kesan kepada pengurusan kewangan peribadi kita, serta boleh memberi impak terhadap strategi simpanan persaraan kita. Tidak hairanlah, 16% rakyat Malaysia sangat bimbang tentang perbelanjaan isi rumah pada usia tua mereka1. Sehubungan itu, Skim Persaraan Swasta (PRS) telah diperkenalkan sebagai skim simpanan dan pelaburan jangka panjang sukarela yang direka bagi membantu rakyat Malaysia menyimpan lebih banyak untuk persaraan. PRS juga amat sesuai bagi golongan yang tidak ada apa-apa skim persaraan wajib – seperti golongan yang bekerja sendiri, berniaga mahupun suri rumah sepenuh masa. Private Pension Administrator Malaysia (PPA), selaku pentadbir pusat PRS, telah menyenaraikan beberapa perkara yang perlu dititikberatkan untuk menolong anda terus berada di landasan yang tepat dalam mencapai matlamat simpanan persaraan anda. Mulakan Sedikit, Mulakan Sekarang. Menyimpan untuk persaraan adalah satu usaha jangka panjang dan langkah pertama selalunya merupakan langkah yang paling sukar. Ramai yang tidak tahu bagaimana untuk memulakannya atau telah berputus asa kerana berpendapat bahawa ianya sudah terlambat. Satu cara untuk menjadikan proses ini tidak begitu mencabar adalah dengan melengkapkan diri dengan pengetahuan asas pengurusan kewangan. Terdapat pelbagai alat bantu dan bahan pembelajaran atas talian di laman web PPA yang boleh digunakan secara percuma, seperti kalkulator persaraan, yang dapat membantu anda mengira pelan simpanan untuk mencapai matlamat simpanan persaraan anda. Anda boleh layari www.ppa.my/ms untuk mengakses kemudahan ini. “Berita baiknya adalah anda tidak memerlukan jumlah yang besar untuk mula menyimpan untuk masa depan anda,” kata Husaini Hussin, Ketua Pegawai Eksekutif PPA. “Sekiranya anda masih belum mula menabung, pertimbangkan untuk mulakan sedikit dengan PRS, yang merupakan skim simpanan jangka panjang sukarela untuk rakyat Malaysia menyimpan lebih banyak untuk tujuan persaraan di bawah kerangka kerja yang dikawal selia dan tersusun.” Teruskan Menyimpan Secara Konsisten Setelah anda mula menyimpan, adalah penting untuk anda terus konsisten melakukannya. Sekiranya anda masih bekerja dan tidak terjejas secara kewangan disebabkan oleh pandemik global ini, maka teruskanlah menabung secara konsisten untuk persaraan anda, selain daripada melalui skim persaraan mandatori. Ahli PRS yang menyimpan secara konsisten ke dalam akaun PRS mereka setiap bulan boleh memilih untuk menyimpan lebih banyak dalam bulan-bulan yang mereka mampu. Merancang Simpanan Persaraan 1 Strategi Literasi Kewangan Kebangsaan 2019-2023 8 | RINGGIT Simpanan Persaraan Adalah Untuk Jangka Masa Panjang Perlu difahami bahawa simpanan persaraan anda dalam PRS adalah untuk jangka masa panjang. Walaupun setelah membuat pengeluaran pra-persaraan, anda digalakkan untuk terus menyimpan secara konsisten setelah anda mampu berbuat sedemikian. “Sekiranya situasi kerjaya anda tidak berubah, maka tiada alasan untuk mengubah cara menyimpan atau matlamat persaraan anda,” tambah Husaini. “Terus kekal dengan perancangan persaraan anda sekarang kerana PRS adalah direka untuk membantu pencarum mencapai matlamat persaraan mereka.” Untuk mula menyimpan di PRS, anda boleh mendaftar melalui perkhidmatan PRS Online PPA. Berikut adalah ringkasan prestasi Dana PRS sejak tarikh diperkenalkan: Kategori Dana PRS Pulangan* (Konvensional) Pulangan (Patuh Syariah**) Konservatif 4.59 % 4.19 % Sederhana 6.42 % 5.48 % Pertumbuhan 6.84 % 7.62 % Bukan Teras 11.15 % 8.84 % Sumber: Morningstar * Pulangan adalah dikira secara purata tahunan sejak tarikh diperkenalkan, setakat 31 Oktober 2020. ** PRS dikawal selia oleh Suruhanjaya Sekuriti Malaysia (SC) dan aktiviti Dana Syariah dipantau oleh Majlis Penasihat Syariah SC. Sumber: www.ppa.my (Private Pension Administrator Malaysia) Caruman ini akan menghasilkan penjimatan lebih banyak melalui Pengecualian Cukai PRS. Ini adalah kelebihannya bila anda simpan sendiri untuk masa depan. “Ini adalah masa yang tepat untuk menyimpan lebih banyak atau setidaknya mengekalkan jumlah caruman yang biasa anda lakukan untuk memberi kelebihan ke atas pergerakan pasaran,” jelas Husaini lagi. “Apabila anda menyimpan sejumlah wang ke dalam akaun persaraan anda setiap bulan, simpanan anda akan menghasilkan pulangan daripada pertumbuhan kompaun dari masa ke masa. Seperti kata pepatah - sikit-sikit, lama-lama jadi bukit.” Pastikan Simpanan Persaraan Anda Tetap Terpelihara Sekiranya anda perlu menilai semula kos sara hidup anda pada tempoh yang mencabar ini, jangan berhenti mencarum secara total tetapi pertimbangkan untuk menyemak semula bajet anda, laraskan sedikit jumlah yang anda ingin simpan dan tingkatkan semula apabila keadaan bertambah baik. Anda disarankan untuk menggunakan dana kecemasan dan akaun bukan persaraan anda terlebih dahulu, kerana memelihara simpanan persaraan anda sepatutnya menjadi keutamaan walaupun pada tempoh yang tidak menentu. Ini kerana semakin lama simpanan anda dilaburkan, maka semakin banyak jugalah pulangan simpanan persaraan anda bercambah melalui kuasa kompaun. Namun begitu, sekiranya anda masih perlu membuat pengeluaran daripada dana persaraan anda, terdapat beberapa pilihan yang boleh anda lakukan. Pada awal tahun ini, Kerajaan telah meluluskan pengeluaran pra-persaraan dari PRS tanpa dikenakan penalti cukai sehingga 31 Disember 2020. Selain itu, pengeluaran pra-persaraan tanpa penalti cukai juga boleh dilakukan bagi tujuan perumahan dan penjagaan kesihatan. Kemudahan pengeluaran ini memberikan lebih banyak fleksibiliti kepada ahli PRS untuk menggunakan simpanan mereka bagi membiayai sesuatu keperluan yang penting. Bagi menggalakkan simpanan hari tua, pelepasan cukai pendapatan individu sehingga RM3,000 ke atas caruman Skim Persaraan Swasta atau PRS dilanjutkan sehingga tahun taksiran 2025. Strategi 3: Menjana dan Mengekalkan Pekerjaan Menggalakkan Simpanan Skim Persaraan Swasta (PRS) Pelepasan cukai pendapatan sehingga RM3,000 untuk menggalakkan simpanan hari tua bil. 5/2020 | 9 Adakah Kenderaan Anda Dilindungi? Banjir Apabila musim tengkujuh melanda negara ini, timbul kebimbangan dalam kalangan pengguna kenderaan tentang risiko kenderaan mereka ditenggelami air akibat banjir. Walaupun mereka telah mengambil langkah berjaga-jaga, seperti meletak kenderaan di tempat letak kereta yang tinggi, serta mengelak daripada melalui kawasan yang sering dilanda banjir semasa hujan lebat, namun risiko kenderaan ditenggelami air banjir masih ada. Oleh itu, pengguna pasti tertanya-tanya sama ada mereka boleh membuat tuntutan insurans atau takaful bagi kerosakan kenderaan yang diakibatkan oleh banjir. Secara amnya, polisi insurans/takaful motor komprehensif memberikan pampasan bagi musibah seperti kerosakan atau kehilangan kenderaan akibat kemalangan, kebakaran mahupun kecurian. Namun demikian, kerosakan akibat banjir atau apa jua yang disebabkan banjir adalah dikategorikan sebagai bencana alam dan disenaraikan sebagai risiko yang tidak dilindungi oleh polisi insurans/takaful motor. Antara kerosakan atau kehilangan akibat banjir yang tidak dilindungi ialah: • kerosakan terhadap kenderaan yang ditenggelami banjir. • kehilangan kenderaan akibat hanyut semasa banjir. • kebakaran dan letupan kenderaan akibat dimasuki air banjir. • kemalangan terhadap kenderaan dengan objek lain yang dihanyutkan air banjir seperti batang pokok atau sampah. Selain banjir, bencana alam lain yang tidak dilindungi termasuklah: • gempa bumi dan bencana lain yang terhasil akibat daripadanya seperti ombak besar/tsunami. • tanah runtuh (dan akibat daripadanya seperti letupan gas atau kebakaran akibat gangguan elektrik berikutan tanah runtuh). • ribut petir (dan akibat daripadanya seperti kerosakan daripada kenderaan dipanah petir semasa ribut). Walau bagaimanapun, pihak insurans/takaful akan melindungi kenderaan pengguna apabila berlaku banjir, sekiranya pengguna melanggan perlindungan komprehensif* berserta perlindungan tambahan untuk bencana alam semula jadi. Perlindungan tambahan ini juga terpakai untuk risiko bencana alam yang lain, seperti gempa bumi, tanah runtuh dan ribut petir. Perlindungan tambahan ini dikenakan caj premium/sumbangan tambahan sekitar 0.5% daripada jumlah yang dilindungi. Sebagai contoh, sekiranya kenderaan diinsuranskan sebanyak RM30,000, pemilik kenderaan akan dikenakan premium/sumbangan tambahan sebanyak RM150. Walau bagaimanapun, jumlah pemilik kenderaan di negara ini yang memilih untuk mendapatkan perlindungan insurans/ takaful motor daripada banjir dan bencana alam yang lain didapati masih di tahap amat rendah. Menurut data yang dikongsikan oleh Persatuan Insurans Am Malaysia (PIAM), hanya 2% hingga 4% pemilik kenderaan memilih untuk melindungi kenderaan mereka daripada bencana alam seperti banjir. Kebanyakan pemilik kenderaan berpendapat bahawa mereka tidak akan mengalami musibah bencana alam. Oleh itu, mereka mengelak daripada membeli perlindungan tambahan untuk bencana alam bagi menjimatkan kos. Pengguna hanya sedar kepentingan untuk mendapatkan polisi tambahan perlindungan banjir apabila kenderaan mereka telah rosak atau musnah akibat banjir. FOMCA menyarankan agar pengguna dapat menyemak semula polisi insurans/takaful motor dan mempertimbangkan untuk melanggani pakej perlindungan tambahan insurans/ takaful untuk menguruskan risiko kerugian akibat bencana alam seperti banjir. *Perlindungan komprehensif juga dikenali sebagai polisi pihak pertama seperti berlaku kematian/kecederaan pihak ketiga, kehilangan/kerosakan kepada kenderaan yang disebabkan kecurian, kebakaran dan kemalangan terhadap pihak lain. Sumber: www.piam.org.my / www.fomca.org.my 10 | RINGGIT Pusat Khidmat Aduan Pengguna Kebangsaan (NCCC) telah menerima sebanyak 4,268 aduan terhadap penjual produk pengguna umum. Kebanyakan aduan adalah daripada para pengguna dalam lingkungan umur 31-40 tahun iaitu 40.21% dan 21-30 tahun 22.16%. Antara aduan yang diterima adalah terhadap kualiti produk, perkhidmatan baik pulih, bayaran balik, jaminan dan informasi yang mengelirukan. Aduan mengenai kualiti produk mencatat jumlah yang tertinggi iaitu sebanyak 32.47% atau 1,386 aduan yang telah dikemukakan oleh para pengguna. Antara aduannya adalah kualiti produk yang tidak memenuhi tahap minima dan juga produk yang dibeli telah rosak dan tidak dapat berfungsi dengan baik. Barangan atau produk pengguna umum ini dibeli oleh para pengguna untuk kegunaan harian seperti perabot, peralatan elektrik dan elektronik serta pelbagai barangan lain. Barangan yang dijual kepada para pengguna mestilah bersesuaian dan selamat digunakan oleh mereka. Kebiasaannya, jangka hayat peralatan rumah seperti perabot, barangan eletrik dan elektronik adalah agak lama tetapi seringkali para pengguna mengadu barangan pengguna umum yang diterima oleh mereka telah rosak sebaik sahaja tamat tempoh jaminan. Para pengguna merasakan diri mereka telah ditipu kerana membeli barangan dengan harga yang mahal tetapi tidak boleh bertahan lama. Sekiranya barangan yang dibeli tidak berfungsi dengan baik, para pengguna mempunyai hak untuk menuntut barangan tersebut dibaiki atau diganti semula dengan nilai barangan tersebut. Perkara ini termaktub di bawah Akta Perlindungan Pengguna Seksyen 32 yang memberikan perlindungan kepada pengguna dan menetapkan bahawa semua barangan yang dibeli harus mempunyai jaminan kualiti barangan yang sepatutnya. Pada tahun 2019, sebanyak 11.08% aduan telah diterima berkaitan dengan pembaikpulihan. Seringkali barangan yang dihantar untuk dibaikpulih, perkhidmatannya tidak sempurna. NCCC menerima aduan bahawa para pengguna dipaksa untuk membayar bagi tujuan baikpulih dan juga upahnya. Para pengguna mengharapkan juruteknik dapat membaiki peralatan elektrik atau elektronik yang tidak berfungsi walaupun masih dalam tempoh jaminan. Tetapi tempoh baikpulih mestilah mematuhi masa yang telah ditetapkan. Selain itu, NCCC juga menerima aduan mengenai tuntutan balik barangan atau bayaran iaitu sebanyak 9.02%. Seseorang pengguna boleh menuntut semula wangnya sekiranya barangan tersebut tidak mengikut spesifikasi dan tidak dapat berfungsi seperti yang telah dimaklumkan. Namun ramai penjual enggan menukarkannya dengan barangan yang baru. Penjual mendakwa barangan yang dijual tidak boleh diganti mahupun diberi pilihan tuntutan balik bayaran. Di samping itu, aduan mengenai jaminan barangan juga telah mencatatkan sebanyak 7.99%. Kebanyakan aduan adalah mengenai penjual dan pengedar yang enggan menggantikan barangan rosak dengan barangan yang baru walaupun barangan tersebut masih dalam tempoh jaminan. FOMCA menasihatkan para pengguna yang mempunyai masalah sedemikian supaya melaporkan perkara tersebut kepada Pusat Khidmat Aduan Pengguna Nasional (NCCC) dan juga kepada Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna (KPDNHEP). FOMCA juga berpandangan kerajaan harus memperkenalkan ‘Lemon Law’ untuk barangan kegunaan pengguna seperti di Singapura. Menurut peruntukan ini, barangan yang rosak dan masih dalam jaminan perlu diganti dengan yang baru sekiranya barangan tersebut terpaksa dihantar dengan kerap ke pusat untuk diperbaiki. Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) Suara Pengguna: Kualiti dan Perkhidmatan Produk Pengguna bil. 5/2020 | 11 Q " Tanpa moratorium menyéluhfln’, K peminlam sukar mendapat bantuan W * mm» "9 “ Bantuan bayaran balik blniaman bersasar hanya untuk B60 " patina! yang utiqjsaldhatpundunflt '0‘ Iémnfiua « hmlnpohi “ Bank minta terlalu banyak dokumen " o uv.pumrh1a-Isa-an Intnihlpuh I VXIGOJVIOIIIXII-IXBOIJUMULU :0 “ l3mse's'permohonan téflaltu’ lama " e-mol atau semak laman web moreka unluk buluan lanjut auemaxif Lawati https://www.bnm.gov.my/tra untuk mendapatkan maklumat lanjut mengenai bantuan bayaran balik pinjaman secara bersasar Tanggapan Salah Mengenai _ % Bantuan Bayaran Balik Pinjaman Bersasar unluk mendapatkan nasihal atau pilihan bantuan bayaran balik “-"I A. . ' 3'- "_$ayafi¢fa'kUabht’:nemohon PKPD dan mm: " ‘ ‘ ' W ,2 -. - - -x ' .. “N. _|I"“'°""" |"“‘¢“". ._ J ‘ “Bantuan masih tidak cukup uniuk menampung hutang " ‘n_ _ I hm . ._|. _ — uomwm OM31!!!‘ - wmmm hun:I?h!a»~taIn’-wanna: “Tiada kos tambahan tmtuk bantuan bayaran balik plnjaman bersasar " 0 htdth ahuhrus cumin 0 Pclaiivhmflntrpflihannflailolnsnnhlifi Ac snhnngninnn '0 " Rekod (CRIS saya akan terielas” o aenamansadanpemuuunuitum ° Fen-M-Mmitmm-s-8|-rl nnsamauaesssamseuunaanuuzozuiaauaa-n 0 FIG: Dalam masamaui dinavarm datum nmdccmsanda Apakah yang anda boleh lakukan? Inga: 3 langkah ini: O Hubungi bank anda dahulu: Ielefon. O Hubungi AKPK di tahan 03-2616 7766 Q Hubungi BNMTELELINK melalui talian 1-300-88-5465 atau bnm.myIRAsurvey unluk membuak aduan BANK NEGARA MALAYSIA CENYRAK BANK OF HAUWSIA

Public Notice

01 Dis 2020

Exposure Draft on Perlindungan Tenang

https://www.bnm.gov.my/-/exposure-draft-on-perlindungan-tenang

https://www.bnm.gov.my/documents/20124/948107/Perlindungan+Tenang.pdf

27 Nov 2020

Report on Capital Flows, Exchange Rates and Policy Frameworks in Emerging Asia

https://www.bnm.gov.my/-/report-on-capital-flows-exchange-rates-and-policy-frameworks-in-emerging-asia

Reading: Report on Capital Flows, Exchange Rates and Policy Frameworks in Emerging Asia Share: Report on Capital Flows, Exchange Rates and Policy Frameworks in Emerging Asia Release Date: 27 Nov 2020 Under the directive of the Asian Consultative Council (ACC) of the Bank for International Settlements (BIS), a Working Group of regional central banks was set up by the BIS Representative Office for Asia and the Pacific in 2019 to collectively examine their policy frameworks. Specifically, the Working Group was to focus on the joint use of monetary, macroprudential, exchange rate and capital flow management policies in dealing with volatile capital flows and exchange rate movements. Members of the Working Group include representatives from the central banks and monetary authorities of China, Hong Kong SAR, India, Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand, as well as observers from the central banks of Australia, Japan and New Zealand. As a member of this Working Group, Bank Negara Malaysia (BNM) is pleased to share the above Report. This report provides insights to the considerations and policy approach of the central banks represented by the Working Group towards capital flows and exchange rates. Click here to view the report. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

26 Nov 2020

Online Auction of Ringgit Banknotes with Special Serial Numbers

https://www.bnm.gov.my/-/online-auction-of-ringgit-banknotes-with-special-serial-numbers

Reading: Online Auction of Ringgit Banknotes with Special Serial Numbers Share: Online Auction of Ringgit Banknotes with Special Serial Numbers Release Date: 26 Nov 2020 Bank Negara Malaysia is holding an online auction of Ringgit banknotes with special serial numbers from 23 to 28 November 2020. The auction is conducted by the Bank’s appointed auctioneer, MNP Auctioneers (Central) Sdn. Bhd. (MNP) and bids can be placed at this link. Ringgit banknotes with special serial numbers, such as sets of the first 10 banknotes (e.g. CC0000001-0000010) and super solid numbers with repetitive prefix (e.g. CC3333333) will be auctioned. The online registration and bidding can be completed at www.best2bid.com. Further information on the auction can be obtained via MNP’s website at www.mnp.com.my or MNP’s customer service hotline at 017-400 6611. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

19 Nov 2020

Bank Negara Malaysia joins NGFS Steering Committee

https://www.bnm.gov.my/-/bank-negara-malaysia-joins-ngfs-steering-committee

Reading: Bank Negara Malaysia joins NGFS Steering Committee Share: Bank Negara Malaysia joins NGFS Steering Committee Release Date: 19 Nov 2020 Bank Negara Malaysia was announced as a new member of the Central Bank & Supervisors Network for Greening the Financial System (NGFS) Steering Committee. In a press release yesterday, the NGFS said the appointment to the Committee is for a two-year term commencing on 18 November 2020. Deputy Governor Jessica Chew remarked that "Bank Negara Malaysia is deeply honored to be a part of the Steering Committee of the NGFS. Addressing climate risk is an imperative and we welcome the opportunity to further strengthen our collaboration with fellow central banks and financial regulators to provide an effective global response." Read the press release at: https://www.ngfs.net/en/communique-de-presse/three-new-members-join-ngfs-steering-committee © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

17 Nov 2020

Report on the Roles of ASEAN Central Banks in Managing Climate and Environment-related Risks

https://www.bnm.gov.my/-/report-on-the-roles-of-asean-central-banks-in-managing-climate-and-environment-related-risks

Reading: Report on the Roles of ASEAN Central Banks in Managing Climate and Environment-related Risks Share: 14 Report on the Roles of ASEAN Central Banks in Managing Climate and Environment-related Risks Release Date: 17 Nov 2020 As an area of common concern, Governors of the Association of Southeast Asian Nations (ASEAN) central banks and monetary authorities[1] agreed on the need to undertake a study for ASEAN central banks to better understand, manage and respond to climate and environment-related risks. In this regard, Bank Negara Malaysia (BNM) as lead of the Task Force on the Roles of ASEAN Central Banks in Managing Climate and Environment-related Risks, is pleased to share the above Report. The Report was endorsed by ASEAN Central Bank Governors on 2 October 2020.   The Report assesses the implications of climate and environment-related risks on both financial and monetary stability, the roles and limits of central banks and puts forward a set of non-binding recommendations that can be considered by central banks in the region. It consciously considers the ASEAN context, perspectives and state of readiness.   Click here to view the report.     [1]Autoriti Monetari Brunei Darussalam, National Bank of Cambodia, Bank Indonesia, Bank of the Lao P.D.R., Bank Negara Malaysia, Central Bank of Myanmar, Monetary Authority of Singapore, Bank of Thailand, Bangko Sentral ng Pilipinas and State Bank of Vietnam, are collectively referred to as ASEAN central banks. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

06 Nov 2020

Muat Turun Ucapan Belanjawan 2021 oleh Menteri Kewangan Malaysia

https://www.bnm.gov.my/-/muat-turun-ucapan-belanjawan-2021-oleh-menteri-kewangan-malaysia

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/muat-turun-ucapan-belanjawan-2021-oleh-menteri-kewangan-malaysia&languageId=ms_MY

Reading: Muat Turun Ucapan Belanjawan 2021 oleh Menteri Kewangan Malaysia Share: Muat Turun Ucapan Belanjawan 2021 oleh Menteri Kewangan Malaysia Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1830 pada Jumaat, 6 November 2020 6 Nov 2020 Ucapan Bajet Tahun 2021 dari YB Tengku Dato' Sri Zafrul Abdul Aziz, Menteri Kewangan Malaysia. Klik pada pautan di bawah untuk memuat turun. Ucapan Bajet Tahun 2021Bank Negara Malaysia 6 November 2020 © Bank Negara Malaysia, 2020. All rights reserved.

Public Notice

27 Okt 2020

Buletin RINGGIT (Keluaran Bil. 4/2020) kini boleh dimuat turun

https://www.bnm.gov.my/-/buletin-ringgit-keluaran-bil.-4/2020-kini-boleh-dimuat-turun

https://www.bnm.gov.my/documents/20124/947994/Ringgit+Ed114+2020-04+web.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/buletin-ringgit-keluaran-bil.-4/2020-kini-boleh-dimuat-turun&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Bil. 4/2020) kini boleh dimuat turun Share: Buletin RINGGIT (Keluaran Bil. 4/2020) kini boleh dimuat turun Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1258 pada Selasa, 27 Oktober 2020 27 Okt 2020 Artikel utama pada keluaran ini ialah Bulan Literasi Kewangan Oktober 2020: Bijak Wang Pilihan Saya Antara topik lain yang menarik termasuk : Perkara Yang Perlu Diketahui Berkaitan Wang Tak Dituntut Inisiatif eBerkat: MDEC bantu usahawan mikro dan PKS Berhati-hatilah dengan Skim Cepat Kaya! Suara Pengguna: Aduan Pengurusan Sistem Pengangkutan Awam RINGGIT merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA dan ia diterbitkan dua bulan sekali bermula 2019. Buletin ini diterbitkan di dalam Bahasa Malaysia sahaja. Klik pada pautan di bawah untuk muat turun : Issue - Bil 4/2020 [PDF] Bank Negara Malaysia 27 Oktober 2020 © Bank Negara Malaysia, 2020. All rights reserved.

R A K A N K E W A N G A N A N D A B I L . 4/2020 Suara Pengguna: Aduan Pengurusan Sistem Pengangkutan Awam Inisiatif eBerkat MDEC Bantu Usahawan Mikro dan PKS PERCUMA | PP 16897/05/2013 (032581) Perkara Yang Perlu Diketahui Berkaitan Wang Tak Dituntut Adakah anda mempunyai sebarang komen mengenai RINGGIT? Sila imbas kod QR untuk tinjauan bagi Majalah Ringgit. Bijak Wang Pilihan Saya Bulan Literasi Kewangan Oktober 2020 BULAN LITERASI KEWANGAN 2020 Selaras dengan Strategi Literasi Kewangan Kebangsaan 2019 – 2023, objektif FLM 2020 adalah untuk memberi maklumat, mendidik dan menyokong rakyat Malaysia dalam memantapkan pengurusan kewangan. Ini termasuk melengkapkan individu dengan instrumen dan pengetahuan untuk mencapai matlamat kewangan, menguruskan hutang dan melindungi diri mereka daripada penipuan kewangan. Berdasarkan Kaji Selidik Keupayaan dan Rangkuman Kewangan dari Sudut Permintaan 2018, 1 daripada 3 rakyat Malaysia mempunyai tahap keyakinan yang rendah dalam pengetahuan dan perancangan kewangan mereka, 52% rakyat Malaysia berasa sukar untuk menyediakan RM1,000 sekiranya berlaku kecemasan dan hampir separuh rakyat Malaysia tidak yakin bahawa mereka mempunyai simpanan yang mencukupi untuk persaraan. Memandangkan rakyat Malaysia juga menghadapi cabaran kewangan akibat pandemik COVID-19, FLM 2020 menyediakan lebih 100 program bertujuan untuk memperkasakan individu dalam membuat keputusan kewangan yang bijak dengan instrumen dan pengetahuan yang tepat. Jaringan Pendidikan Kewangan (FEN) telah melancarkan Bulan Literasi Kewangan (Financial Literacy Month, FLM 2020), dengan tema “Bijak Wang Pilihan Saya”. Majlis pelancaran peringkat Kementerian Pendidikan Malaysia turut disempurnakan oleh Timbalan Menteri Pendidikan II, YB Dato’ Dr. Mah Hang Soon pada 6 Oktober 2020 di Putrajaya. FEN dianggotai oleh lapan agensi dan diterajui bersama Bank Negara Malaysia dan Suruhanjaya Sekuriti Malaysia. Ahli-ahli lain adalah Kementerian Pendidikan Malaysia, Kementerian Pengajian Tinggi, Perbadanan Insurans Deposit Malaysia, Kumpulan Wang Simpanan Pekerja, Agensi Kaunseling dan Pengurusan Kredit serta Permodalan Nasional Berhad. Pelbagai inisiatif dan program oleh ahli-ahli FEN akan diadakan sepanjang FLM 2020 sebagai usaha berterusan untuk meningkatkan tahap celik kewangan dalam kalangan rakyat Malaysia. Bulan Literasi Kewangan Oktober 2020 Bijak Wang Pilihan Saya “Berdasarkan Kaji Selidik Keupayaan dan Rangkuman Kewangan dari Sudut Permintaan 2018, 1 daripada 3 rakyat Malaysia mempunyai tahap keyakinan yang rendah dalam pengetahuan dan perancangan kewangan mereka,....” 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Dr. Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Maizatul Aqira Ishak Baskaran Sithamparam Nur Asyikin Aminuddin Ringgit merupakan penerbitan usaha sama antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan secara berkala sebanyak enam edisi mulai tahun 2019. Untuk muat turun Ringgit dalam format “PDF“, sila layari laman sesawang www.fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks: 03-7877 1076 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. FOMCA berpendapat pelancaran FLM 2020 ini adalah bertepatan dengan keadaan sekarang berikutan ramai pengguna yang terkesan kewangan mereka akibat daripada pandemik Covid-19. FOMCA berharap para pengguna dapat mengambil peluang yang ada untuk mengikuti program-program yang telah diatur dan diadakan sepanjang FLM 2020. Program-program ini merangkumi pengenalan kepada alat-alat kewangan kendiri, ceramah pendidikan kewangan, webinar, kuiz, pertandingan, perbincangan dan pameran secara maya. Program-program tersebut terbuka kepada orang ramai sepanjang Oktober 2020. Bersempena FLM 2020, FOMCA juga turut mengadakan aktiviti pendidikan kewangan bersasar bertujuan untuk memberi pendidikan kewangan khusus kepada golongan muda yang baru mula untuk bekerja supaya mereka lebih mengetahui cara-cara untuk menguruskan kewangan mereka dan lebih memahami persediaan untuk persaraan mereka. Pengguna boleh mendapatkan maklumat lanjut mengenai program yang dijalankan sepanjang FLM 2020, serta rakaman sebahagian daripada program terbabit dengan melayari https://www.fenetwork.my/. BULAN LITERASI KEWANGAN 2020 bil. 4/2020 | 3 Perkara Yang Perlu Diketahui Berkaitan Wang Tak Dituntut Bermula tahun 2020, pihak kerajaan melalui Jabatan Akauntan Negara Malaysia telah memperkenalkan portal yang membolehkan pengguna membuat semakan Wang Tak Dituntut (WTD) secara atas talian. Kini, pengguna hanya boleh menggunakan laman sesawang yang telah disediakan oleh pihak kerajaan untuk menyemak WTD. FOMCA juga telah menerima banyak panggilan daripada pengguna untuk mengetahui cara untuk menyemak WTD. WTD merupakan sejumlah wang milik mana-mana individu atau syarikat sama ada dalam bentuk akaun simpanan, dividen, tuntutan insurans, bank draf atau sebagainya, dan tidak dituntut oleh pemiliknya untuk satu tempoh yang telah ditetapkan. Sehingga 31 Oktober 2019 yang lalu, jumlah serahan WTD yang diterima oleh Jabatan Akauntan Negara Malaysia adalah sebanyak RM10.862 bilion. Apa itu Wang Tak Dituntut? Terdapat tiga (3) kategori WTD: 1. Wang yang perlu dibayar di sisi undang-undang kepada empunya tetapi tidak dibayar dalam satu tempoh masa tidak kurang dari satu (1) tahun. Contoh di bawah kategori ini ialah: • gaji, upahan, bonus, komisen dan wang lain yang kena dibayar kepada kakitangan • dividen • keuntungan yang diisytiharkan untuk dibahagikan • tuntutan insurans yang telah diluluskan untuk bayaran • draf bank, cashier’s order dan dokumen lain yang mempunyai fungsi yang serupa di mana tempoh sah lakunya telah luput • simpanan tetap (tanpa arahan pembaharuan automatik) yang telah matang • cagaran dan deposit apabila tujuan wang itu dikutip telah tercapai • pemiutang pelbagai atau penghutang pelbagai berbaki kredit 2. Wang dalam kredit sesuatu akaun yang telah tidak dikendalikan oleh empunya dengan apa cara sekalipun dalam satu tempoh masa tidak kurang dari tujuh (7) tahun. Contoh di bawah kategori ini ialah: • akaun simpanan • akaun semasa • simpanan tetap (yang mempunyai arahan pembaharuan automatik) 3. Wang dalam kredit sesuatu akaun dagangan yang telah tidak dikendalikan melalui apa-apa urus niaga dalam satu tempoh masa tidak kurang dari dua (2) tahun, seperti: • akaun pemiutang dagangan • akaun penghutang dagangan berbaki kredit Cara Membuat Semakan Wang Tak Dituntut Hanya individu dan syarikat/firma dibenarkan untuk membuat semakan WTD secara atas talian melalui nombor pengenalan diri dan nombor pendaftaran syarikat. 4 | RINGGIT Pemohon boleh membuat semakan WTD secara atas talian dengan mengikuti langkah-langkah seperti berikut: 1 Layari pautan portal https://egumis.anm.gov.my/ Buat pendaftaran pengguna secara atas talian. Pengguna akan terima emel menyatakan kata laluan sementara untuk log masuk ke portal. Log masuk portal menggunakan kata laluan sementara yang diemel. Pengguna perlu menukar kata laluan baharu. Kemaskini maklumat pengguna. Klik pada “KLIK DI SINI UNTUK CARIAN WANG TAK DITUNTUT” untuk membuat semakan WTD melalui nombor pengenalan diri dan cetak maklumat WTD tersebut (jika ada). 2 3 4 5 Sekiranya pengguna tidak log masuk ke portal Electronic Government Unclaimed Money Information System (eGUMIS) setelah menerima kata laluan sementara melebihi 30 hari, akaun pengguna tersebut akan dinyahaktifkan secara automatik. Semakan WTD atas talian boleh dibuat di portal rasmi eGUMIS di https://egumis.anm.gov.my/. Sistem tersebut boleh diakses terus di portal rasmi Jabatan Akauntan Negara Malaysia bermula 1 Januari 2020. Tempoh masa bagi akaun pengguna eGUMIS Tempoh aktif adalah 6 bulan sahaja daripada tarikh terakhir log masuk ke portal eGUMIS. Akaun pengguna akan dinyahaktif secara automatik dan pengguna perlu mendaftar sebagai pengguna baharu. “WTD merupakan sejumlah wang milik mana-mana individu atau syarikat sama ada dalam bentuk akaun simpanan, dividen, tuntutan insurans, bank draf atau sebagainya, dan tidak dituntut oleh pemiliknya untuk satu tempoh yang telah ditetapkan.” bil. 4/2020 | 5 Senarai semak dokumen yang diperlukan eGUMIS Bagi membuat permohonan tuntutan WTD, ada beberapa dokumen perlu dibawa bersama antaranya: • Borang UMA-7 yang lengkap diisi dan ditandatangani. • Salinan kad pengenalan (hadapan dan belakang) bagi warganegara/pasport pemohon yang disahkan oleh Notari Awam/Pegawai Konsulat Negara berkenaan bagi bukan warganegara. • Salinan cetakan carian WTD yang lengkap dengan nama dan nombor pengenalan empunya sama dengan maklumat pemohon daripada portal eGUMIS. • Dokumen asal (contoh: buku bank/sijil simpanan tetap dan lain-lain). • Surat pengesahan daripada syarikat yang membuat serahan WTD hendaklah disertakan jika dokumen asal tiada. • Salinan muka hadapan buku akaun/penyata bank pemohon yang aktif serta disahkan oleh pihak bank (bayaran akan dikreditkan terus ke dalam akaun) • Sekurang-kurangnya dua (2) daripada tiga (3) dokumen berikut:** i. Borang pembelian asal banker’s cheque/bank draf/ cashier’s order yang mempunyai cetakan bank yang jelas bagi maklumat transaksi tersebut. ii. Banker’s cheque/bank draft/cashier’s order yang asal. iii. Surat pengesahan daripada bank penyerah WTD kepada Pendaftar yang menyatakan maklumat pembeli dan penerima banker’s cheque/bank draft /cashier’s order mengikut format yang ditetapkan. ** Sekiranya individu yang ingin membuat permohonan tuntutan WTD bagi jenis Banker’s Cheque, Bank Draf, Demand Draf, Cashier’s Order. Nota: Akaun tabung haji/Akaun pelaburan/Akaun pinjaman tidak dibenarkan Di manakah pemohon boleh mengemukakan permohonan yang lengkap? Permohonan yang lengkap dengan cetakan maklumat wang tak dituntut dan dokumen sokongan boleh dikemukakan secara pos (digalakkan secara Pos Berdaftar) atau melalui kaunter di kaunter Pendaftar Wang Tak Dituntut atau di mana- mana Jabatan Akauntan Negara Malaysia (JANM) Negeri/ Cawangan seperti di pautan portal berikut: http://www. anm.gov.my/index.php/direktori-ag/direktori-janm-negeri- cawangan-bahagian-akaun-kementerian/maklumat-janm- negeri-dan-cawangan Pejabat Pendaftar WTD Jabatan Akauntan Negara Malaysia Bahagian Pengurusan Wang Tak Dituntut Aras 1, Perbendaharaan 2 Presint 2, 62594 Putrajaya, Wilayah Persekutuan Putrajaya Tel : 03-8000 8600 Waktu urusan : Isnin - Khamis: 9.00 pg - 3.00 ptg Jumaat : 9.00 pg - 12.30 tgh hari Tutup : Sabtu, Ahad & Cuti Umum Nota: Pendaftar mempunyai kuasa mutlak dan berhak meminta apa-apa dokumen tambahan walaupun pemohon telah menyertakan semua dokumen yang disenaraikan di atas bagi tujuan pembayaran balik WTD kepada pemohon. Tiada sebarang caj dikenakan ke atas permohonan bayaran WTD dan bayaran serahan WTD adalah melalui Online Banking. FOMCA ingin mengingatkan para pengguna bahawa Kementerian Kewangan Malaysia atau Pendaftar Wang Tak Dituntut tidak pernah melantik mana-mana individu/ firma/syarikat sebagai orang tengah atau ejen untuk urusan tuntutan bayaran balik WTD. Oleh itu, pastikan anda sentiasa berwaspada sekiranya terdapat mana-mana pihak yang cuba memanipulasi WTD dengan mengenakan sebarang caj tambahan kepada anda. Sumber: www.anm.gov.my “Permohonan yang lengkap dengan cetakan maklumat wang tak dituntut dan dokumen sokongan boleh dikemukakan secara pos ...” 6 | RINGGIT Inisiatif MDEC bantu usahawan mikro dan PKS Ketidaktentuan ekonomi yang sedang berlaku akibat pandemik Covid-19 telah membawa impak ketara terhadap kehidupan rakyat Malaysia khususnya usahawan Perusahaan Kecil dan Sederhana (PKS), usahawan mikro dan pekerja di sektor tidak formal. Majoriti terdiri daripada golongan berpendapatan rendah (B40) yang mempunyai kemampuan ekonomi yang terhad boleh mengakibatkan golongan ini tergelincir dalam kumpulan rentan kewangan dengan mudah. Bagi membantu usahawan mikro dan PKS, Malaysia Digital Economy Corporation (MDEC), sebuah agensi kerajaan di bawah Kementerian Komunikasi dan Multimedia Malaysia (KKMM) telah memperkenalkan program eBerkat. Ianya merupakan inisiatif untuk membantu rakyat Malaysia meningkatkan kesedaran dan ilmu pengetahuan tentang perkhidmatan kewangan digital. Inisiatif ini diharap dapat membantu untuk meningkatkan keupayaan mereka dalam mengawal situasi kewangan melalui platform digital sekaligus melahirkan komuniti yang lebih berkemampuan bagi membentuk masa depan. Bagi tujuan ini, MDEC telah bekerjasama dengan beberapa syarikat teknologi kewangan (Fintech) dan penyedia perkhidmatan industri kewangan yang diiktiraf kerajaan menggunakan strategi SLIP iaitu Savings (simpanan), Lending (pembiayaan), Investment (pelaburan) dan Payment (pembayaran). Strategi SLIP memberikan tumpuan kepada prinsip mudah, mampu dan pantas serta produk patuh syariah. MDEC juga menyediakan platform eBerkat untuk meningkatkan kesedaran dan memberikan pendedahan kepada masyarakat tentang perkhidmatan kewangan digital yang disediakan. Untuk maklumat lanjut layari https://mdec.my/eberkat/ i. Maklumat tentang pembiayaan modal melalui saluran alternatif • eBerkat memberikan pendedahan kepada usahawan mikro terhadap pembiayaan kecil, serendah RM1,000 yang boleh dipohon untuk membiayai kos seperti modal pusingan, membeli mesin dan peralatan bagi tujuan pembuatan, kos pemasaran dan sebagainya. • Usahawan kecil mungkin sukar mendapatkan pembiayaan sebegini melalui institusi kewangan tradisional. • Produk pembiayaan alternatif mungkin lebih sesuai dan usahawan boleh terus ke pautan melalui platform eBerkat untuk membuat permohonan secara atas talian kepada syarikat teknologi kewangan (Fintech) yang telah menjalinkan kerjasama dengan MDEC. • Pelbagai saluran disediakan seperti platform Peer-to- peer (P2P), pembiayaan terus (direct financing) dan pembiayaan invois (invoice financing). ii. Pendedahan kepada perlindungan insurans mikro • Melalui e-Berkat, MDEC memberi kesedaran tentang risiko terhadap usahawan mikro dan PKS, seperti kemalangan diri dan kecederaan semasa mencari rezeki, kerosakan aset perniagaan seperti food truck, mesin pemprosesan dan sebagainya. • Produk insurans mikro dapat membantu memberikan jaminan perlindungan sekiranya berlaku sebarang perkara yang tidak diingini ketika bertugas. • Seperti pembiayaan, platform eBerkat menyediakan pautan kepada pengguna untuk mendapatkan sebut harga dan melanggani perlindungan insurans mikro secara atas talian. • Produk sebegini amat sesuai untuk usahawan mikro mahupun pekerja ekonomi Gig yang memerlukan perlindungan dalam jumlah yang kecil dan tempoh yang singkat. iii. Pelaburan pintar untuk masa hadapan • eBerkat juga menyediakan maklumat dan pautan bagi pengguna untuk melabur secara mudah dan selamat. • Pengguna boleh pergi ke pautan yang disediakan untuk membuat pelaburan secara atas talian bermula dengan hanya RM1, tanpa halangan tradisional pelaburan seperti akaun minimum pembrokeran atau jumlah pelaburan minimum yang besar. • Peluang pelaburan melalui platform eBerkat adalah antara perkhidmatan yang ditawarkan sekiranya ada yang ingin melabur secara digital. • Menurut dokumen Strategi Literasi Kewangan Kebangsaan 2019-2023, 6 daripada 10 rakyat dewasa di Malaysia tidak dilindungi oleh sebarang sistem persaraan atau pencen yang formal, seperti skim pencen kerajaan ataupun Kumpulan Wang Simpanan Pekerja. Platform pelaburan ini sudah tentu dapat membantu usahawan mikro dan mereka yang bekerja di sektor informal untuk membuat simpanan hari tua secara berkala dan sistematik. Sumber: www.mdec.my bil. 4/2020 | 7 Menurut kajian terkini yang dilakukan oleh Universiti Utara Malaysia (UUM), individu yang mempunyai personaliti tertentu didapati lebih cenderung menjadi mangsa Skim Cepat Kaya. Hasil kajian yang dijalankan ini berdasarkan Model Lima Personaliti Utama [Personality Big Five Inventory (BFI) Model] mungkin boleh dijadikan sebagai panduan untuk kita lebih berhati-hati dan mengambil langkah yang sewajarnya dalam membendung diri sendiri serta rakan taulan daripada terjebak dengan Skim Cepat Kaya. Ciri-ciri personaliti mangsa Skim Cepat Kaya 1. Suka bergaul • Golongan yang berada dalam k a t e g o r i i n i b i a s a n y a bersikap mesra, penuh bertenaga d a n s e n t i a s a bersikap positif. • Walaupun sikap ini amat disenangi, ia juga membuka ruang kepada scammer untuk mendekati bagi mempromosi dan seterusnya memerangkap mangsa ke dalam Skim Cepat Kaya. 2. Kurang teliti • Golongan yang mudah te r j e j a s d e n ga n tekanan psikologi ( N e u r o t i s m e ) selalunya menjadi kurang teliti atau sering mengalah ke p a d a t e k a n a n scammer. • Apabila menghadapi tekanan, mereka akan membuat keputusan terburu-buru tanpa menyemak terlebih dahulu dengan pihak berkuasa mahupun rakan atau ahli keluarga yang lebih arif. 3. Cepat cemas • Seseorang yang cenderung untuk cepat cemas mudah dieksploitasi. S c a m m e r m u d a h m e n g a m b i l kesempatan dengan mendakwa peluang y a n g d i t a w a r k a n a d a l a h te r h a d d a n menjerumuskan mereka dalam Skim Cepat Kaya. Berhati-hatilah dengan Skim Cepat Kaya! Anda suka bergaul tetapi kurang teliti dan cepat cemas? 8 | RINGGIT Anda juga boleh mengikuti laman Facebook Amaran Scam untuk mendapat maklumat-maklumat t e r k i n i m e n g e n a i Skim Cepat Kaya dan penipuan kewangan lain agar dapat menghindar d i r i dan orang yang tersayang daripada menjadi m a n g s a ( h t t p s : / / w w w. facebook.com/amaranpenipuan/). Semak dengan pihak berkuasa ataupun rakan taulan yang lebih arif. Jangan buat keputusan terburu-buru atau secara impulsif. Jangan rasa bersalah untuk menolak pelawaan atau tawaran. Kenali personaliti anda Anda boleh memahami lebih lanjut personaliti anda dengan mengambil ujian personaliti BFI. Terdapat laman web percuma yang boleh anda layari untuk memahami lebih lanjut mengenai kecenderungan personaliti anda seperti https://bigfive-test.com/. Personaliti anda bukanlah penentu utama menyebabkan anda akan menjadi mangsa Skim Cepat Kaya. Namun, ia boleh dijadikan panduan untuk lebih berhati-hati daripada dieksploitasi oleh scammer Skim Cepat Kaya, terutamanya golongan yang mempunyai ciri-ciri personaliti bersifat sosial yang tinggi (Extraversion), tidak tahan tekanan secara psikologi dan emosi (Neuroticism) ataupun mudah cemas sekiranya dalam situasi yang tak terduga (Conscientiousness). 1 2 3 Apakah tip untuk mengelakkan diri daripada menjadi mangsa Skim Cepat Kaya? “Personaliti anda bukanlah penentu utama menyebabkan anda akan menjadi mangsa Skim Cepat Kaya. Namun, ia boleh dijadikan panduan untuk lebih berhati-hati daripada dieksploitasi oleh scammer Skim Cepat Kaya, ...” bil. 4/2020 | 9 Dunia k ian berkembang pesat termasuklah perkhidmatan pengangkutan awam yang kini jauh lebih baik jika dibandingkan dengan satu dekad yang lalu. Di Malaysia pihak kerajaan telah mengambil pelbagai tindakan untuk menambah baik mutu pengurusan pengangkutan awam. Namun demikian, FOMCA masih menerima pelbagai jenis aduan berkaitan dengan pengurusan sistem pengangkutan awam. Pada tahun 2019, aduan daripada pengguna meningkat daripada 1,110 kes (2018) kepada 1,210 kes. Jumlah anggaran kos kerugian yang dialami oleh pengguna dianggarkan sebanyak RM1.47 juta. Dengan kemajuan teknologi yang telah disediakan oleh syarikat-syarikat pengangkutan awam, ramai pengguna telah mula menggunakan kemudahan pembelian tiket atas talian untuk memudahkan urusan tempahan dan pembelian tiket perjalanan tanpa perlu beratur. Telefon mudah alih merupakan medium utama dalam urusan tempahan tiket. Walau bagaimanapun, aduan yang diterima daripada pengguna turut meningkat kerana pengendalian sistem atas talian yang diperkenalkan t idak begitu cekap. S e b a n y a k 2 8 . 0 2 % atau 339 aduan telah diterima berkaitan dengan tempahan tiket atas talian seperti pembelian tiket Tren Elektrik Ekspres (ETS), t i ket penerbangan dan tiket bas. Aduan y a n g d i ke t e n ga h ka n o leh peng guna ada lah kebanyakannya mengenai tiket yang telah ditempah atas talian didapati tidak sah dan tidak boleh digunakan setibanya pengguna di stesen pengangkutan awam. Oleh itu, mereka terpaksa membeli tiket yang baru untuk meneruskan perjalanan tersebut. Malahan terdapat kes tiket yang telah ditempah melalui atas talian, tidak dibayar balik oleh syarikat tersebut. Selain itu, FOMCA juga menerima aduan berkaitan penggunaan kad “Touch ‘n Go” di lebuh raya, di mana pengguna jalan raya seringkali mengadu mereka terpaksa membayar dua kali kerana apabila mereka menambah nilai dalam kad mereka di kaunter yang dibenarkan, nilai yang dibayar tidak ditambah ke dalam kad mereka. Ini menyebabkan perjalanan mereka sering kali mengalami masalah. FOMCA berpendapat bahawa pihak pengurusan dan pihak berkuasa perlu mengkaji semula keseluruhan sistem pengurusan pembayaran eletronik yang menimbulkan pelbagai masalah kepada para pengguna. Apa gunanya menggalakkan para pengguna menggunakan sistem pembayaran eletronik tetapi ianya masih tidak cekap dan menimbulkan pelbagai kesukaran dan kerugian. Para pengguna lain juga turut terkesan apabila tersekat di laluan tol yang boleh mengakibatkan kesesakan lalu lintas terutamanya ketika waktu puncak. Suara Pengguna: Aduan Pengurusan Sistem Pengangkutan Awam 10 | RINGGIT Di samping i tu , kua l i t i perkhidmatan pengangkutan awam mencatatkan jumlah aduan kedua tertinggi. Jumlah aduan yang diterima adalah sebanyak 22.89% atau 277 aduan. Antara aduan yang diterima adalah berkaitan pengguna t i d a k m e n d a p a t maklumat yang tepat dan terkini. Terdapat j u g a a d u a n y a n g diterima berkenaan pengangkutan awam yang tidak menggunakan laluan yang sepatutnya untuk mengambi l dan menurunkan penumpang. Keadaan bas dan teksi yang kotor serta dipenuhi serangga turut diketengahkan oleh pengguna. Kelewatan dan penjadualan semula perjalanan turut disuarakan oleh pengguna kepada FOMCA iaitu sebanyak 215 aduan atau 17.77%. Kelewatan penjadualan semula dan pembatalan perjalanan pada tarikh yang telah ditetapkan akan menimbulkan pelbagai masalah kepada penumpang khususnya kepada mereka yang berulang alik ke tempat kerja atau mempunyai urusan keluarga yang penting. Kadar kemalangan yang melibatkan kenderaan pengangkutan awam juga turut membimbangkan kerana ianya melibatkan nyawa para pengguna. Sebanyak 15.87% daripada j u m l a h k e s e l u r u h a n aduan adalah mengenai isu keselamatan para penumpang. FOMCA berpendapat bahawa Agensi Pengangkutan Darat (APAD) dan Kementerian Pengangkutan Malaysia harus memantau semua kenderaan pengangkutan awam secara berkala mahu pun membuat pemeriksaan mengejut atau ‘spot check’ untuk memastikan ianya selamat dan sesuai digunakan untuk membawa penumpang. Di samping itu, mereka juga perlu memastikan syarikat- syarikat yang menyediakan perkhidmatan pengangkutan awam mematuhi semua peraturan demi keselamatan dan keselesaan para penumpang. Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) bil. 4/2020 | 11 FENE.*:"i‘:f:Z-:-‘~‘ ifiVeSt® S m 3 rt Bij a k Wa ng Pi I i han Saya Malaysia A Securities Commission Malaysia Initiative PELABUR YANG DILINDUNGI ADALAH PELABUR YANG BERMAKLUMAT Pelabur yang bermaklumat mahupun kesilapan dalam pelaburan \i\_ I Keputusan Perancangan Pengumpulan Kesedaran pelaburan kewangan kekayaan yang mengenai hak dan berdasarkan dan persaraan Iebih mampan tanggungjawab maklumat yang Iebih baik pelabur Pendidikan pelaburan ,. ' Layari laman merupakan strategi utama sesawang |nvestSmart® dalam meningkatkan keyakinan di www.investsmartsc.my dan pemerkasaan pelabur ' untuk maklumat Ianjut Sumber: Jaringan Pendidikan Kewangan & |nvestSmart® Infografik Bernama BULAN LITERASI KEWANGAN I OKTOBER 2020 . BULAN LITERASI KEWANGAN 2020 FINANCIAL EDUCATION . NETWORK Dianjurkan oleh: IA .. M *@.13‘ {SW/-¥ ?AKPK PNB pufl -- - KEMENYERA "' W‘ *‘9e"5i'<a“"5e"“9<?a" """""""""""""""""" ‘ Pengurusan Kredit BANK NEGARA MALAYSIA I N PENDIDIKAN MALAVSIA KEMENTERIAN PENGAJIAN TINGGI CEMYRAL BANK or MALAVSM miaysia

Public Notice

14 Okt 2020

Laporan Tinjauan Kestabilan Kewangan Separuh Pertama 2020

https://www.bnm.gov.my/-/laporan-tinjauan-kestabilan-kewangan-separuh-pertama-2020-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/laporan-tinjauan-kestabilan-kewangan-separuh-pertama-2020-1&languageId=ms_MY

Reading: Laporan Tinjauan Kestabilan Kewangan Separuh Pertama 2020 Share: Laporan Tinjauan Kestabilan Kewangan Separuh Pertama 2020 Tarikh Siaran: 14 Okt 2020 Bank menerbitkan Tinjauan Kestabilan Kewangan untuk separuh pertama tahun 2020. Laporan tersebut boleh diakses di pautan berikut:  Laporan Tinjauan Kestabilan Kewangan Separuh Pertama 2020 © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

12 Okt 2020

Kemudahan Pemesanan, Pembayaran dan Penghantaran Dalam Talian untuk Penjualan Mata Wang Peringatan yang Dikeluarkan oleh Bank Negara Malaysia

https://www.bnm.gov.my/-/kemudahan-pemesanan-pembayaran-dan-penghantaran-dalam-talian-untuk-penjualan-mata-wang-peringatan-yang-dikeluarkan-oleh-bank-negara-malaysia

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/kemudahan-pemesanan-pembayaran-dan-penghantaran-dalam-talian-untuk-penjualan-mata-wang-peringatan-yang-dikeluarkan-oleh-bank-negara-malaysia&languageId=ms_MY

Reading: Kemudahan Pemesanan, Pembayaran dan Penghantaran Dalam Talian untuk Penjualan Mata Wang Peringatan yang Dikeluarkan oleh Bank Negara Malaysia Share: Kemudahan Pemesanan, Pembayaran dan Penghantaran Dalam Talian untuk Penjualan Mata Wang Peringatan yang Dikeluarkan oleh Bank Negara Malaysia Tarikh Siaran: 12 Okt 2020 BNM ingin mengumumkan penyediaan kemudahan tempahan, pembayaran dan penghantaran dalam talian untuk penjualan wang syiling peringatan yang dikeluarkan sempena Ulang Tahun Universiti Kebangsaan Malaysia Ke-50 (UKM50) dan Ulang Tahun Penubuhan Putrajaya Ke-25 (Putrajaya25). Orang ramai boleh membuat tempahan mereka melalui laman sesawang https://duit.bnm.gov.my mulai hari Isnin, 12 Oktober 2020 (9.00 pagi) hingga hari Jumaat, 30 Oktober 2020 (11.00 malam). Sekiranya terdapat tempahan yang berlebihan, cabutan bagi menentukan tempahan yang berjaya akan dibuat. Orang ramai dinasihati supaya membuat tempahan melalui sistem dalam talian Bank Negara Malaysia sahaja dan bukannya melalui mana-mana pihak lain atau kemudahan tempahan lain yang tidak sah. Semua tempahan akan dipertimbangkan dengan sewajarnya dan tiada keutamaan akan diberikan kepada tempahan berdasarkan tarikh dan masa tempahan. Maklumat mengenai pembayaran, pengumuman keputusan tempahan dan kemudahan pengiriman akan dimaklumkan melalui laman sesawang tempahan. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

01 Okt 2020

Exposure Draft on Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions

https://www.bnm.gov.my/-/exposure-draft-on-transitional-arrangements-for-regulatory-capital-treatment-of-accounting-provisions-1

28 Sep 2020

Exposure Draft on Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions

https://www.bnm.gov.my/-/exposure-draft-on-transitional-arrangements-for-regulatory-capital-treatment-of-accounting-provisions

Reading: Exposure Draft on Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions Share: Exposure Draft on Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions Release Date: 28 Sep 2020 This Exposure Draft sets out the Bank’s proposals on the transitional arrangements for regulatory capital treatment of accounting provisions. Banking institutions which elect to apply the transitional arrangements are allowed to add back a portion of the Stage 1 and Stage 2 provisions for expected credit losses (ECL) to Common Equity Tier 1 Capital over a four-year period from financial year beginning 2020 or a three-year period from financial year beginning 2021. The proposals are consistent with the guidance issued by the Basel Committee of Banking Supervision on “Regulatory treatment of accounting provisions – interim approach and transitional arrangement” (March 2017) and “Measures to reflect the impact of Covid-19” (April 2020). The Bank invites written feedback on the proposals in this Exposure Draft, including suggestions on areas to be clarified and alternative proposals that the Bank should consider. The written feedback should be supported with clear rationale, including accompanying evidence or illustration where appropriate, to facilitate an effective consultation process. Responses must be submitted to the Bank by 23 October 2020. See more: Transitional Arrangements for Regulatory Capital Treatment of Accounting Provisions Exposure Draft Attachment 1: Impact analysis template © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

18 Sep 2020

Financial Consumer Alert: List of unauthorised companies and websites has been updated

https://www.bnm.gov.my/-/financial-consumer-alert-list-of-unauthorised-companies-and-websites-has-been-updated-4

Reading: Financial Consumer Alert: List of unauthorised companies and websites has been updated Share: 5 Financial Consumer Alert: List of unauthorised companies and websites has been updated Release Date: 18 Sep 2020 The Bank has updated the Financial Consumer Alert list. The list consists of companies and websites which are neither authorised nor approved under the relevant laws and regulations administered by BNM. Please take note that the list is not exhaustive and only serves as a guide to members of the public based on information and queries received by BNM. The following company was added to the list: Fincorp; Mesra Capital Group; and World Trade Center Investment Ltd. The list will be updated regularly for public's reference.  To view the updated list, click on this link. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

09 Sep 2020

BNM mempelawa maklum balas daripada pemohon bantuan pembayaran balik pinjaman bersasar

https://www.bnm.gov.my/-/bnm-mempelawa-maklum-balas-daripada-pemohon-bantuan-pembayaran-balik-pinjaman-bersasar

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/bnm-mempelawa-maklum-balas-daripada-pemohon-bantuan-pembayaran-balik-pinjaman-bersasar&languageId=ms_MY

Reading: BNM mempelawa maklum balas daripada pemohon bantuan pembayaran balik pinjaman bersasar Share: BNM mempelawa maklum balas daripada pemohon bantuan pembayaran balik pinjaman bersasar Tarikh Siaran: 09 Sep 2020 Bank Negara Malaysia sedang menjalankan kaji selidik dalam talian terhadap pemohon bantuan pembayaran balik pinjaman bersasar. Dapatan kaji selidik ini akan digunakan untuk meningkatkan pemahaman tentang pengalaman pengguna perkhidmatan perbankan dalam membincangkan bantuan yang diperlukan pada waktu yang mencabar ini. Kaji selidik ini hanya mengambil masa tidak lebih daripada 10 minit. Semua jawapan akan disimpan secara sulit oleh Bank Negara Malaysia. Maklumat dan jawapan tidak akan dikongsi dengan mana-mana pihak termasuk institusi perbankan, tanpa keizinan anda. Hal ini adalah seperti yang diperuntukkan di bawah Akta Perlindungan Data Peribadi 2010. Kaji selidik ini boleh dijawab oleh individu atau PKS, melalui pautan yang disediakan di bawah. Individual: https://forms.gle/DBjms9g9wyYK5QYT9 SMEs: https://forms.gle/WkpHjCqKAnyfa9L69 © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

01 Sep 2020

Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) for Designated Non-Financial Businesses and Professions (DNFBPs) & Non-Bank Financial Institutions (NBFIs) - FAQs and Guidances

https://www.bnm.gov.my/-/anti-money-laundering-countering-financing-of-terrorism-and-targeted-financial-sanctions-aml/cft-and-tfs-for-designated-non-financial-businesses-and-professions-dnfbps-non-bank-financial-institutions-nbfis-faqs-and-guidances

Reading: Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) for Designated Non-Financial Businesses and Professions (DNFBPs) & Non-Bank Financial Institutions (NBFIs) - FAQs and Guidances Share: Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) for Designated Non-Financial Businesses and Professions (DNFBPs) & Non-Bank Financial Institutions (NBFIs) - FAQs and Guidances Release Date: 01 Sep 2020 Bank Negara Malaysia today issued the following FAQs and Guidances to provide further clarification on the requirements in the revised Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) Policy Document that was issued on 31 December 2019 and came into force on 1 January 2020. FAQs on AML/CFT and TFS for Designated Non-Financial Businesses and Professions & Non-Bank Financial Institutions Guidance on Verification of Individual Customers for Customer Due Diligence Guidance on Beneficial Ownership © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

01 Sep 2020

Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) for Financial Institutions - Frequently Asked Questions (FAQs) and Guidances

https://www.bnm.gov.my/-/amlcft-tfs-faqs-guidedances-bm

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/amlcft-tfs-faqs-guidedances-bm&languageId=ms_MY

Reading: Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) for Financial Institutions - Frequently Asked Questions (FAQs) and Guidances Share: Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (AML/CFT and TFS) for Financial Institutions - Frequently Asked Questions (FAQs) and Guidances Tarikh Siaran: 01 Sep 2020       Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.       © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

01 Sep 2020

Buletin RINGGIT (Keluaran Bil. 3/2020) kini boleh dimuat turun

https://www.bnm.gov.my/-/ringgit-bil-3-2020-bm

https://www.bnm.gov.my/documents/20124/947994/Ringgit+Ed113+2020-03+Final.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/ringgit-bil-3-2020-bm&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Bil. 3/2020) kini boleh dimuat turun Share: Buletin RINGGIT (Keluaran Bil. 3/2020) kini boleh dimuat turun Tarikh Siaran: 01 Sep 2020 Artikel utama pada keluaran ini ialah Lanjutan Moratorium dan Bantuan Bank Bersasar Antara topik lain yang menarik termasuk : Urus hutang secara aktif, berbincanglah dengan institusi perbankan anda Intipati PENJANA Pelan Jana Semula Ekonomi Negara Perkara Yang Perlu Diketahui Mengenai Kedai Pajak Gadai Pelancongan dan Percutian 3 panduan berguna dalam mengurus pelan bayaran balik pinjaman RINGGIT merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA dan ia diterbitkan dua bulan sekali bermula 2019. Buletin ini diterbitkan di dalam Bahasa Malaysia sahaja. Klik pada pautan di bawah untuk muat turun : Isu - Bil. 3/2020 [PDF] © 2024 Bank Negara Malaysia. All rights reserved.

R A K A N K E W A N G A N A N D A B I L . 3/2020 Perkara yang perlu diketahui mengenai kedai pajak gadai Intipati Pelan Jana Semula Ekonomi Negara (PENJANA) PERCUMA | PP 16897/05/2013 (032581) Urus hutang secara aktif, berbincanglah dengan institusi perbankan anda Adakah anda mempunyai sebarang komen mengenai RINGGIT? Sila imbas kod QR untuk tinjauan bagi Majalah Ringgit. Lanjutan Moratorium dan Bantuan Bank Bersasar Institusi perbankan telah memberikan penangguhan kepada pembayaran balik pinjaman / pembiayaan (moratorium) selama 6 bulan iaitu bermula 1 April 2020 sehingga 30 September 2020. Menurut laporan Unit Pelaksanaan dan Koordinasi Stimulus Ekonomi Antara Agensi Nasional (LAKSANA) di Kementerian Kewangan Malaysia yang memantau pelaksanaan Pakej Rangsangan Ekonomi Prihatin Rakyat (PRIHATIN), sehingga 14 Ogos 2020, jumlah moratorium bayaran balik pinjaman institusi kewangan yang dimanfaatkan oleh rakyat adalah RM48.3 bilion, manakala RM26.0 bilion lagi dimanfaatkan oleh sektor perniagaan. Ini menjadikan jumlah keseluruhan moratorium berada pada paras RM74.3 bilion. Sememangnya, skim moratorium ini memberi ruang kelegaan sementara terutamanya kepada golongan yang teruk terjejas dan kehilangan punca pendapatan akibat wabak COVID-19. Dengan pembukaan semula aktiviti ekonomi yang semakin meluas kini, situasi ekonomi rakyat juga dijangka akan pulih secara berperingkat dan peminjam bolehlah mula menunaikan komitmen pembayaran semula hutang. Bagi mereka yang masih terkesan, kerajaan telah mengumumkan lanjutan moratorium dan bantuan bank bersasar. Pelanjutan ini terpakai kepada individu yang hilang pekerjaan pada tahun 2020 dan masih belum mendapat pekerjaan yang baru, serta individu yang masih bekerja, tetapi gaji mereka terjejas atau berkurangan akibat COVID-19. Di samping itu, institusi kewangan juga telah memberikan komitmen untuk membantu Perusahaan Kecil dan Sederhana (PKS), baik peniaga, penjaja atau mereka yang bekerja sendiri yang turut terkesan akibat COVID-19. Bagi mereka yang berada dalam kategori di atas, dan menjangkakan cabaran untuk memenuhi komitmen hutang menjelang tamatnya moratorium pada September 2020, dapatkan bantuan awal dengan menghubungi bank anda. Panduan persediaan menyambung semula komitmen pembayaran balik pinjaman: 1) Jangan tunggu saat akhir Buat perancangan awal kewangan anda sebelum penangguhan Lanjutan Moratorium dan Bantuan Bank Bersasar pembayaran balik pinjaman berakhir, sebaiknya mula dari sekarang. Hubungi institusi perbankan pinjaman anda untuk berbincang mengenai pinjaman anda. 2) Kaji semula bajet bulanan • Menurut laporan yang dikeluarkan oleh Jaringan Pendidikan Kewangan, h a n y a 1 d a r i p a d a 1 0 ra k yat M a l ays i a mempercayai bahawa mereka tidak berdisiplin d a l a m m e n g u r u s kewangan mereka. • Pengurusan kewangan perlu dilakukan dengan l eb ih cermat , te l i t i dan mengambil kira kemungkinan yang berlaku seperti pemotongan elaun, gaji dan mungkin juga pemberhentian kerja. • Dahulukan perbelanjaan penting seperti pembayaran hutang, bil, sewa rumah dan lain-lain. • Tangguhkan perbelanjaan yang tidak penting seperti makan di luar dan hiburan. “Pengurusan kewangan perlu dilakukan dengan lebih cermat, teliti dan mengambil kira segala kemungkinan yang berlaku ... 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Dr. Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Maizatul Aqira Ishak Baskaran Sithamparam Nur Asyikin Aminuddin Ringgit merupakan penerbitan usaha sama antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan secara berkala sebanyak enam edisi mulai tahun 2019. Untuk muat turun Ringgit dalam format “PDF“, sila layari laman sesawang www.fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks: 03-7877 1076 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. 3) Jangan terjebak dengan skim penipuan kewangan Elakkan daripada menambah hutang sedia ada walaupun diberikan diskaun untuk pembelian dalam talian dan sebagainya. Kebiasaannya apabila pendapatan tidak mencukupi, terdapat sesetengah pengguna yang mengambil keputusan untuk membuat pinjaman daripada Ah Long dan ada juga terjerat dalam penipuan seperti mangsa keldai akaun. Berfikirlah secara rasional sebelum mengambil tindakan yang boleh menjerumuskan kita kepada masalah kewangan yang lebih kompleks. Sekiranya anda berasa tidak puas hati dengan keputusan selepas perbincangan dengan institusi kewangan, anda boleh merujuk perkara berkenaan di talian 1-300-88-5465 dan emel aduan anda kepada [email protected] atau melalui borang maklumat di pautan https://telelink.bnm.gov.my/ Selain itu, anda juga boleh rujuk AKPK di talian khidmat pelanggan 03-2616 7766 atau melalui laman web www.akpk.org.my serta pautan http://bit.ly/AKPKdmp2020 untuk mendapatkan khidmat kaunseling kewangan. Mereka akan memberi nasihat bagaimana anda boleh merancang pembayaran balik pinjaman dan juga cara untuk mengurus dan menyelesaikan semula hutang anda. Sumber: www.fomca.org.my / www.bnm.gov.my / www.akpk.org.my bil. 3/2020 | 3 Urus hutang secara aktif, berbincanglah dengan institusi perbankan anda “Bagi mendapatkan penyelesaian yang komprehensif untuk jangka masa panjang, penstrukturan semula mungkin merupakan jalan terbaik dan lebih efisien.” Pengurusan hutang secara aktif kerap dilakukan, sama ada secara sedar atau tidak. Anda mungkin pernah dengar seseorang itu mengambil satu hutang yang baru untuk membayar beberapa hutang lain yang lebih kecil. Langkah ini mungkin dapat mengurangkan bayaran bulanan, tetapi tempohnya mungkin akan menjadi lebih panjang. Ada juga yang beralih kepada hutang yang kadar faedahnya adalah lebih tinggi, seperti kad kredit, atau mungkin juga hutang ceti kepada hutang peribadi. Langkah sebegini, sekiranya diuruskan dengan betul dapat membantu pengguna untuk menguruskan aliran tunai secara efisien dan mampu memberikan lebihan wang kepada pengguna. Namun, kajian rambang oleh Jaringan Pendidikan Kewangan (dengan kerjasama Bernama) pada bulan Julai 2020 mendapati 76% rakyat Malaysia tidak menyedari yang peminjam individu mahupun perniagaan boleh mendapatkan khidmat nasihat profesional daripada institusi perbankan untuk mengatur semula hutang. Institusi perbankan merupakan pakar dalam menasihati pelanggan mereka untuk menguruskan hutang secara aktif bagi individu mahupun perniagaan. Secara umumnya, terdapat tiga cara untuk mengatur semula hutang anda iaitu: Kelonggaran (Flexibility) Kebenaran daripada pihak institusi perbankan untuk memberi keringanan dalam pembayaran balik pinjaman. Moratorium adalah contoh keringanan yang terpakai kepada semua peminjam. Penjadualan semula (Reschedule) Memanjangkan tempoh bayaran tanpa mengubah struktur pinjaman. Terdapat persetujuan antara anda dan institusi perbankan untuk menjadual semula pinjaman anda, hasil daripada perundingan antara kedua belah pihak. Kebiasaannya, masih dalam kerangka perjanjian pinjaman sedia ada. 4 | RINGGIT Penstrukturan semula (Restructure) Perubahan pada struktur pinjaman secara menyeluruh berdasarkan situasi kewangan spesifik peminjam. Melibatkan perubahan terhadap perjanjian pinjaman asal kepada perjanjian baru yang lebih selesa, mengikut keperluan peminjam secara lebih komprehensif. Contohnya, kemudahan overderaf ditukar kepada pinjaman bertempoh, jumlah dan tempoh pinjaman serta jumlah bayaran bulanan mungkin juga boleh dikurangkan berdasarkan kadar yang lebih rendah, produk yang kadar faedahnya rendah, mahupun tempoh yang lebih tinggi. Penstrukturan semula banyak membantu dalam pelan jangka panjang peminjam individu mahupun sesebuah perniagaan. Ianya membantu aliran tunai ketika masa sukar dan menyumbang kepada pengurusan kewangan harian secara lebih efisien. Bagi syarikat-syarikat besar pula, mereka mampu untuk mengambil penasihat kewangan bagi tujuan ini. Selagi hutang peminjam tidak bermasalah, proses pengurusan hutang sebegini tidak akan menjejaskan rekod kredit peminjam, malahan akan menjadikan rekod peminjam lebih kukuh untuk jangka panjang. Institusi perbankan juga menyedari ramai rakyat Malaysia yang terkesan akibat Perintah Kawalan Pergerakan (PKP), ada yang hilang pekerjaan, perniagaan terjejas mahupun punca pendapatan menjadi berkurangan. Hal ini sedikit sebanyak akan menjejaskan kemampuan untuk membayar balik pinjaman apabila tempoh pengecualian pembayaran pinjaman berakhir September ini. Bagi mendapatkan penyelesaian yang komprehensif untuk jangka masa panjang, penstrukturan semula mungkin merupakan jalan terbaik dan lebih efisien. Walau bagaimanapun, proses penstrukturan semula memakan masa yang lebih panjang kerana pihak bank perlu menilai kemampuan peminjam berdasarkan terma yang baru. Antara dokumen yang diperlukan untuk memohon termasuklah: • Penyata bank • Slip gaji • Akaun perniagaan • ‘Aging list’ iaitu unjuran mudah tunai lampau dan lain- lain. Penstrukturan semula juga mungkin melibatkan perjanjian pinjaman baru. Oleh itu, pengguna dinasihatkan agar menghubungi terus institusi perbankan dengan segera dan berbincang mengenai keperluan menstruktur semula pinjaman mereka. Elakkan daripada menggunakan perkhidmatan pihak ketiga dalam proses ini untuk mengelakkan anda daripada ditipu. Sebarang kelewatan mungkin menyebabkan peminjam berasa tertekan, memandangkan mereka perlu menyambung komitmen kewangan lama dalam senario punca pendapatan yang terjejas. Ini boleh mengganggu emosi, kerjaya, perkembangan perniagaan dan juga aliran tunai. Pengguna perlu mula merancang dari sekarang berkenaan pinjaman yang perlu dibayar sebelum pengecualian pembayaran balik pinjaman berakhir. Jangan hanya tunggu dan lihat. Sehubungan itu juga, FOMCA menyarankan agar pengguna menilai semula kedudukan kewangan anda. Sekiranya pengguna menjangkakan akan menghadapi masalah pembayaran balik pinjaman, pengguna perlu menghubungi institusi kewangan masing-masing secepat mungkin untuk berunding. Pengguna yang mempunyai pinjaman lebih dari satu bank, boleh juga menghubungi Agensi Kaunseling dan Pengurusan Kredit (AKPK) untuk mendapatkan nasihat secara percuma kerana agensi berkenaan akan memberikan kaunseling atau membantu menstruktur semula pinjaman, jika diperlukan. Sumber: www.bnm.gov.my “Sebarang kelewatan mungkin menyebabkan peminjam berasa tertekan, memandangkan mereka perlu menyambung komitmen kewangan lama dalam senario punca pendapatan yang terjejas.” bil. 3/2020 | 5 Intipati Pelan Jana Semula Ekonomi Negara Pada 5 Jun 2020, YAB Tan Sri Muhyiddin Yassin, Perdana Menteri Malaysia, telah memperkenalkan Pelan Jana Semula Ekonomi Negara yang dikenali sebagai PENJANA dan bertemakan ‘Bersama Menjana Ekonomi’ untuk meneruskan kesinambungan daripada pakej PRIHATIN sebelum ini. Pelan ini bertujuan adalah untuk memperkukuhkan ekonomi negara yang terjejas akibat wabak COVID-19 yang melanda sejak awal tahun 2020. Fasa pemulihan yang dilalui negara ketika ini adalah tempoh paling sesuai untuk rakyat bangun semula selepas melalui pelbagai kesan krisis wabak COVID-19. PENJANA memberi fokus terhadap tiga teras utama iaitu Memperkasa Rakyat, Melonjakkan Perniagaan dan Merangsang Ekonomi. Terdapat beberapa manfaat yang boleh dinikmati oleh rakyat Malaysia melalui inisiatif ini. i. Teras Pertama: Memperkasa Rakyat Kerajaan berusaha untuk mengambil langkah-langkah bagi melindungi pekerjaan dan meningkatkan kemahiran pekerja dalam mengatasi masalah pengangguran di Malaysia. Di samping itu, terdapat beberapa inisiatif diperkenalkan untuk membantu rakyat mengekal atau meningkatkan kemahiran mereka dalam memanfaatkan peluang semasa ekonomi sedang beransur pulih. a. Program Subsidi Upah Menggalakkan pengekalan pekerja dan mengurangkan kehilangan pekerjaan melalui penambahbaikan program subsidi upah sedia ada. Dilanjutkan selama 3 bulan bagi majikan yang layak dengan kadar RM600 sebulan untuk setiap pekerja sehingga maksima 200 pekerja bagi setiap syarikat. Kelonggaran kepada majikan yang membenarkan pekerja mengambil cuti tanpa gaji, dengan syarat pekerja tersebut menerima subsidi upah secara langsung (khas untuk sektor pelancongan dan sektor yang tersenarai dalam aktiviti yang dilarang sepanjang tempoh Perintah Kawalan Pergerakan Bersyarat (PKPB) seperti pekerja di pusat refleksologi, pusat hiburan dan taman tema yang melibatkan perhimpunan awam). b. Program Insentif Pengambilan Pekerja selama 6 bulan sehingga Disember 2020 Membantu syarikat dengan memberikan insentif kewangan untuk memberi pekerjaan kepada penganggur dan belia melalui insentif yang diperkenalkan: » Golongan belia: Program perantis bagi graduan dan lepasan sekolah dengan pemberian elaun latihan sebanyak RM600 sebulan selama 6 bulan. » Golongan penganggur: Menggaji golongan penganggur dengan elaun sebanyak RM800 sebulan selama 6 bulan (bawah umur 40 tahun), manakala RM1000 sebulan selama 6 bulan bagi penganggur berumur 40 tahun dan ke atas dan golongan Orang Kurang Upaya (OKU). c. Program Peningkatan Kemahiran (Upskilling) Meningkatkan kebolehpasaran golongan penganggur melalui program latihan untuk mendapatkan kemahiran dan meningkatkan kemahiran yang sedia ada. Bagi meningkatkan kemahiran untuk golongan pengganggur, kerajaan melaksanakan program seperti menggalakkan penganggur melanjutkan pelajaran terutamanya dalam kursus jangka pendek di universiti tempatan, memperkasakan latihan keusahawanan dan juga mewujudkan skim latihan wakil pemasaran sehingga RM800 seorang dengan mendaftar di Perbadanan Pembangunan Industri Sekuriti (SIDC). d. Program subsidi pengangkutan awam MY30 Meringankan beban kos pengangkutan awam yang perlu ditanggung oleh pengguna. Pengguna hanya perlu membayar RM30 sahaja sebulan selama 6 bulan untuk menikmati pas perjalanan tanpa had bagi penggunaan perkhidmatan awam seperti perkhidmatan rel (MRT, LRT, Monorel), BRT, bas RapidKL dan juga bas pengantara MRT di lembah Klang. Program ini terbuka kepada semua warganegara dan berkuatkuasa pertengahan bulan Jun sehingga Disember 2020. ii. Teras Kedua: Melonjakkan Perniagaan Kebanyakan sektor ekonomi ditutup selama hampir dua bulan berikutan dengan Perintah Kawalan Pergerakan (PKP) yang diarahkan oleh kerajaan. Perniagaan tidak dapat beroperasi sepenuhnya secara tidak langsung memberi impak kepada pendapatan dan sumber kewangan kebanyakan perniagaan, terutamanya Perusahaan Kecil dan Sederhana (PKS) dan juga perusahaan mikro. Oleh itu, beberapa inisiatif telah diperkenalkan 6 | RINGGIT di bawah inisiatif PENJANA bagi sektor perniagaan yang telah dibuka semula pada bulan Mei termasuklah: a. Kempen “Shop Malaysia Online” bagi Penggunaan Dalam Talian Menggalakkan rakyat berbelanja secara dalam talian, di mana kod promosi dan pelbagai baucar diskaun akan diberikan melalui platform e-dagang. b. Pusat Sehenti MyAssist SME Memberi bimbingan dan membantu proses pemulihan perniagaan bagi PKS dalam meningkatkan akses kepada SMEHub yang sedia ada. Perkhidmatan yang ditawarkan termasuklah bimbingan untuk: Kemudahan pembiayaan Kemudahan perdagangan Penjenamaan dan promosi Sokongan teknologi Perundangan c. Menawarkan Pembiayaan Mudah Bumiputera Memastikan kelangsungan usahawan Bumiputera melalui sokongan kewangan RM200 juta khas untuk perniagaan milik Bumiputera. d. Sokongan untuk Meringankan Beban Kewangan Perniagaan Meringankan tekanan kewangan terhadap perniagaan melalui penghapusan penalti yang berkaitan dengan pembayaran cukai lewat. Remisi penalti sebanyak 50% akan diberikan kepada syarikat atau pengilang berdaftar yang lewat membuat pembayaran cukai jualan atau cukai perkhidmatan bermula 1 Julai 2020 hingga 30 September 2020. Pelanjutan potongan cukai khas bersamaan 30% bagi pengurangan sewa premis perniagaan sehingga 30 September 2020. iii. Teras Ketiga: Merangsang Ekonomi Usaha kerajaan perlu ditingkatkan untuk menambahbaik dan merangsang ekonomi, serta membolehkannya pulih menjelang tahun 2021 dan seterusnya. PENJANA ini juga akan membolehkan ekonomi Malaysia melalui kalibrasi semula, dan melonjak ke arah pemulihan negara. Antara inisiatif untuk merangsang semula ekonomi negara adalah: a. Mengadakan Kempen Beli Barangan Buatan Malaysia Menggalakkan penggunaan barangan dan perkhidmatan tempatan melalui: Kempen “Beli Malaysia” oleh kerajaan dan agensi berkaitan. Mewajibkan penandaan barang buatan tempatan bagi rangkaian pasaraya. Mewujudkan saluran khusus untuk produk Malaysia di platform e-dagang utama. b. Memperkenalkan ePENJANA Menggalakkan penggunaan e-dompet dalam kalangan pengguna yang memudahcara penjarakan sosial untuk menjaga keselamatan pengguna di samping menggalakkan perbelanjaan pengguna melalui: Kredit e-dompet bernilai RM50. Tawaran tambahan oleh pembekal perkhidmatan e-dompet sebanyak RM50 melalui baucar diskaun dan kredit tambahan melalui cashback. Kredit hanya boleh digunakan untuk pembelian secara fizikal di kedai dan bukan perkhidmatan dalam talian. Manfaat ini boleh dinikmati oleh semua rakyat Malaysia berumur 18 tahun ke atas yang berpendapatan kurang daripada RM100,000 setahun. c. Kempen Pemilikan Rumah atau Home Ownership Campaign (HOC) Merancakkan semula pasaran hartanah melalui: Pengecualian duti setem akan diberikan ke atas surat cara pindah milik dan perjanjian pinjaman bagi pembelian rumah kediaman yang bernilai antara RM300,000 hingga RM2.5 juta. Pengecualian Cukai Keuntungan Harta Tanah (CKHT) diberikan kepada individu warganegara Malaysia ke atas pelupusan rumah kediaman yang dibuat mulai 1 Jun 2020 sehingga 31 Disember 2021. Pengecualian ini dihadkan bagi pelupusan tiga unit rumah kediaman sahaja untuk setiap individu. d. Insentif Cukai untuk Pembelian Kereta Dengan adanya insentif seperti ini, beban kewangan pengguna dapat dikurangkan malahan mampu merancakkan semula industri automotif negara. Pengecualian cukai jualan sebanyak 100% ke atas penjualan kereta penumpang pemasangan tempatan dan 50% bagi kereta penumpang import. e. Sokongan Sektor Pelancongan Membantu sektor pelancongan yang terjejas akibat COVID-19 melalui insentif cukai seperti: Pengecualian cukai pelancongan mulai 1 Julai 2020 hingga 30 Jun 2021. Lanjutan pengecualian cukai perkhidmatan untuk hotel sehingga 30 Jun 2021. Lanjutan pelepasan cukai pendapatan individu sehingga RM1,000 ke atas perbelanjaan melancong dalam negara sehingga 31 Disember 2021. Lanjutan penangguhan bayaran ansuran ke atas anggaran cukai sehingga 31 Disember 2020. Secara kesimpulannya, melihat kepada senario ekonomi semasa dan trend pengangguran dan pembuangan pekerja yang terus meningkat, inisiatif PENJANA sedikit sebanyak dapat membantu golongan yang terjejas akibat penularan wabak COVID-19. Begitu juga, ianya dapat membantu untuk merancakkan semula ekonomi negara untuk berkembang lebih maju selepas Perintah Kawalan Pergerakan (PKP) ditamatkan. Justeru itu, FOMCA berharap rakyat Malaysia dapat menggunakan manfaat yang sedia ada dan juga yang telah ditambah baik mengikut situasi semasa negara dengan sebaik mungkin. Sumber: www.penjana.treasury.gov.my bil. 3/2020 | 7 Perkara Yang Perlu Diketahui Mengenai Kedai Pemegang Pajak Gadai Berlesen di Malaysia atau lebih dikenali sebagai Kedai Pajak telah berada di Malaysia sejak tahun 1871. Kini, terdapat lebih kurang 571 Kedai Pemegang Pajak Gadai Berlesen di Malaysia. – Bahagian Kawalan Kredit Komuniti, Kementerian Perumahan dan Kerajaan Tempatan 1 Kedai Pajak Gadai Pajak gadai menyediakan akses kepada pengguna untuk mendapatkan pinjaman dengan mudah, sekiranya mempunyai barangan berharga untuk dipajakkan. Memandangkan ramai yang menggunakan perkhidmatan Kedai Pajak, maklumat berikut perlu diambil tahu: Pada tahun 2018, terdapat 4 juta pelanggan pajak gadai dengan jumlah pajak RM8.532 juta. – Berita Harian, 20 Jun 2019 Faedah maksima yang dibenarkan ialah 2% sebulan atau 24% setahun. Jika kedai pajak gadai mengenakan kadar faedah yang terlalu tinggi (lebih 2% sebulan) ke atas sesuatu pinjaman, anda boleh membawa perkara ini kepada pejabat Ketua Setiausaha Kementerian Perumahan dan Kerajaan Tempatan. 2 Tempoh gadaian ialah selama enam bulan, tetapi gadaian juga boleh ditebus pada bila-bila masa. Sekiranya tidak dapat menebus gadaian sebelum tamat tempoh, pemajak gadai boleh memberitahu kepada pemegang pajak gadai untuk melanjutkan tempoh masa tidak kurang daripada tiga bulan. Semak tarikh luput. Anda tidak boleh menuntut barang selepas tarikh luput, kecuali kedai pajak g a d a i b e r s e t u j u m e m a n j a n g k a n tempoh berkenaan. Selepas tarikh luput, semua barangan yang digadai yang nilainya kurang daripada RM200 akan menjadi kepunyaan ke d a i p a j a k g a d a i berkenaan dan bukan kepunyaan anda lagi. J i k a a n d a m e r a s a bahawa gadaian anda berkurang nilai atau jika kedai pajak gadai enggan menyerahkan gadaian a n d a , k e m u k a k a n aduan kepada majistret. Majistret mempunyai kuasa untuk memerintah kedai pajak gadai untuk membayar gantirugi yang munasabah. S e t i a p b u t i r l a n j u ta n hendaklah dibuat dalam buku pemegang pajak gadai juga dalam surat pajak gadai. Pemegang pajak gadai perlu menghantar notis berdaftar kepada pemajak gadai mengenai tindakan untuk melelong barangan. Notis ini perlu diterima oleh pemajak gadai tujuh hari sebelum urusan pelelongan. Kedai pajak gadai bertanggungjawab atas kehilangan atau kemusnahan akibat kecurian atau kebakaran. Sentiasa mendapatkan res i t set iap ka l i anda membuat pembayaran. Jika anda kehilangan resit / tiket gadaian anda berhak mendapatkan salinannya secara percuma. Pastikan kedai pajak gadai yang anda berurusan mempunyai lesen yang sah. Sila hubungi Bahagian Kawalan Kredit Komuniti, Kementerian Perumahan dan Kerajaan Tempatan untuk membuat semakan. Semak buku catatan kedai pajak gadai untuk memastikan bahawa kandungannya adalah sama dengan surat pajak gadai yang anda terima. 3 4 5 6 7 8 9 10 8 | RINGGIT Sumber: www.fomca.org.my Sebarang pertanyaan, sila berhubung dengan Bahagian Kawalan Kredit Komuniti, Kementerian Perumahan dan Kerajaan Tempatan melalui nombor 03-8000 8000 atau e-mel di alamat [email protected] Kelemahan Pajak Gadai • Kadar faedah tinggi i a i tu 2% sebu lan atau 24% setahun, jauh melebihi kadar pasaran. • Barang kemas yang digadai, samada cincin, gelang atau rantai biasanya tidak ditimbang atau diukur. Banyak aduan diterima di Pusat Khidmat Aduan Pengguna Nasional (NCCC) di mana barang kemas yang digadai itu lebih ringgan atau pendek apabila ditebus. Terdapat aduan yang peniaga pajak gadai sudah kikis sedikit emas daripada barang itu. FOMCA mencadangkan agar pemajak meminta pemegang pajak untuk merekodkan barangan yang digadai contohnya sebentuk cincin, seutas rantai dan yang paling penting menimbang berat dan mengukur panjang rantai emas tersebut dan meminta butir-butir tersebut dituliskan di atas resit sebelum memberikan barangan tersebut. • Andai peminjam gagal menebus dalam tempoh y a n g d i t e t a p k a n , pemegang pajak gadai boleh memil ik i ni lai gadaian yang kurang daripada RM200, tanpa m e l a n t i k p e l e l o n g berlesen. Akta Pajak Gadai 1972 juga tidak memperuntukkan barang gadaian dipamerkan sewaktu lelongan awam dilakukan. Perbezaan Pajak Emas di Kedai Pajak Gadai dan Institusi Perbankan Terdapat juga inst itusi p e r b a n k a n y a n g menyediakan perkhidmatan pa jak gada i . Memajak d i inst i tus i perbankan m e m p u nya i ke l e b i h a n berbanding di kedai pajak, memandangkan institusi perbankan disyaratkan untuk mengguna pakai prosedur yang ketat dalam penawaran produk dan perkhidmatan bagi melindungi pengguna. Di samping itu, keselamatan barangan yang dipajak juga lebih terjamin kerana premis institusi perbankan, lazimnya lebih selamat. Sekiranya sesuatu perkara yang tidak diingini berlaku seperti rompakan ataupun kebakaran, nilai barangan kemas tersebut akan dipulangkan semula oleh pihak bank berbanding dengan kedai pajak gadai yang hanya bertanggungjawab untuk memulangkan lebihan pinjaman sebanyak 25% sahaja. Pajak Gadai Islam (Ar-Rahnu) Terdapat juga perkhidmatan pajak gadai yang dijalankan menggunakan konsep patuh syariah, juga dikenali sebagai Ar-Rahnu. Melalui sistem ini, perjanjian dikaitkan dengan sesuatu ganjaran dan tidak dikenakan faedah terhadap pinjaman. Menurut konsep ini juga, penerima gadaian akan memberi nilai gadaian yang sepatutnya dengan barang gadaian yang digadai oleh penggadai. bil. 3/2020 | 9 Pada tahun 2019, industri pelancongan merupakan penyumbang ketiga terbesar kepada ekonomi Malaysia dan guna tenaga industri pelancongan dianggarkan seramai 3.2 juta pekerja. Tidak hairanlah, kerajaan menawarkan Skim Pembiayaan Sektor Pelancongan PENJANA bernilai RM1 bilion pada awal bulan Jun 2020 bagi membantu Perusahaan Kecil dan Sederhana (PKS) dan perusahaan mikro tempatan memulihkan sektor pelancongan yang terjejas teruk berikutan penularan COVID-19, terutama dalam sektor yang dikategorikan sebagai teras, seperti berikut: 1. Premis penginapan pelancongan (hotel bajet, inap desa berdaftar, chalet dan rumah peranginan) 2. Agensi pelancongan dan pengusaha pelancongan 3. Pengangkutan untuk pelancong (pengusaha bas, bot dan kereta sewa) Skim pembiayaan ini harus dimanfaatkan sebaiknya oleh pengusaha sektor pelancongan bagi meningkatkan kualiti perkhidmatan pelancongan, mengukuhkan keupayaan mereka membuat penyesuaian serta meningkatkan daya saing selepas negara pulih daripada COVID-19 nanti. Aduan yang diterima oleh Pusat Khidmat Aduan Pengguna Nasional (NCCC) pada 2018 (4,411 aduan), b o l e h l a h d i g u n a k a n sebagai panduan dalam memperbaiki kualiti perkhidmatan sektor pelancongan. Sebanyak 2 7 . 9 3 % d a r i p a d a jumlah aduan adalah mengenai penipuan oleh agensi pelancongan yang tidak berdaftar dengan Kementer ian Pelancongan, Seni dan Budaya Malaysia (MOTAC). Ramai pengguna yang terpedaya dengan tipu helah ‘ejen’ yang menjanjikan percutian atau pelancongan yang jauh lebih murah daripada harga pasaran. Kebiasaannya agensi pelancongan ini akan mendesak pengguna membayar secara ansuran 6 hingga 8 bulan sebelum tarikh percutian sebenar. Namun apabila para pengguna cuba menghubungi agensi t e r s e b u t s e b e l u m tarikh percutian, baru mereka sedar bahawa agensi tersebut telah melarikan diri dengan wang pengguna. Aduan kedua yang tertinggi yang diterima adalah tuntutan balik atau refund yang merangkumi 13.97% daripada jumlah keseluruhan aduan. Punca para pengguna membuat tuntutan ini adalah kerana pembatalan percutian, pembayaran sebanyak dua kali kerana transaksi kali pertama tidak berjaya atau perkhidmatan yang ditawarkan adalah tidak memuaskan. Namun apabila para pengguna membuat tuntutan balik daripada agensi pelancongan, ianya mengambil masa yang sangat lama. Jawapan yang diberikan pula tidak memuaskan. Malah, ada agensi yang mengherdik para pengguna dengan kata-kata yang kesat serta memberi janji kosong dengan tidak membayar balik tuntutan. Aduan mengenai kualiti perkhidmatan yang disediakan oleh pihak agensi pelancongan ini berada pada kedudukan ketiga dengan 7.98% daripada jumlah keseluruhan. Antara aduan yang diterima adalah tentang kebersihan bilik penginapan percutian yang diberikan oleh agensi pelancongan mahu pun hotel-hotel yang dipilih sendiri oleh para pengguna. Malah ada pengguna yang mengadu mereka dijangkiti penyakit kulit gara-gara katil yang tidak bersih serta digigit oleh pepijat dan terpaksa mendapat rawatan pakar perubatan. Pihak hotel pula tidak mahu melayan permintaan pengguna apabila pengguna meminta pampasan daripada pihak hotel. Terdapat juga kes-kes layanan yang tidak mesra diberikan oleh para pekerja di tempat penginapan. Ada kalanya, para pekerja bersikap kasar dan memberi maklumat yang salah Pelancongan dan Percutian 10 | RINGGIT kepada tetamu di tempat penginapan. Selain daripada itu, layanan yang diberikan oleh pekerja sektor pengangkutan awam seperti bas, teksi dan pemandu e-hailing juga ada yang kurang sempurna. Pekerja di lapangan ini merupakan tunjang kepada peningkatan sektor pelancongan dan adalah penting untuk mereka mendokong hasrat kerajaan untuk memajukan industri pelancongan di negara kita. Selain daripada itu, industri penerbangan juga turut menerima aduan sebanyak 19.74%. Aduan yang diterima merangkumi masalah tempahan (6.73%), perubahan jadual penerbangan (4.24%), masalah bagasi (3.99%), pertikaian tambang penerbangan (2.99%) dan pembatalan penerbangan (1.79%). Industri penerbangan sepatutnya memberi perkhidmatan yang cemerlang untuk menggalakkan lebih ramai pelancong tempatan dan asing untuk berkunjung ke negara kita. Namun perkhidmatan yang disediakan oleh industri penerbangan ini perlu diperbaiki. Misalnya, bila pelanggan membuat tempahan tiket penerbangan atas talian, ada kalanya sistem tersebut tidak memberi maklum balas menyebabkan pengguna terpaksa membuat tempahan semua. Akhirnya pengguna terpaksa membayar dua kali dan urusan menuntut kembali wang tersebut amat sukar sekali. Ada kalanya industri tersebut tidak mengembalikan wang dan kalau adapun, akan mengambil masa yang sangat lama. Di samping itu, 6.23% aduan diterima mengenai representasi palsu dalam sektor perhotelan mahupun pelancongan. Contohnya, pelancong dijanjikan bilik yang menghadap laut dengan pandangan panoramik, tetapi ianya tidak ditunaikan. Begitu juga dengan agensi pelancongan yang menjanjikan makanan di hotel yang ternama, tetapi pada hakikat, ianya tidak dikotakan. Hotel-hotel juga turut menerima 407 aduan daripada pengguna sepanjang 2018. Aduan ini merangkumi pelbagai isu seperti tempahan hotel (3.31%), kebersihan hotel dan pembatalan bilik hotel atas talian masing-masing pada 2.49% dan kaunter daftar masuk (2.38%). Walaupun isu-isu ini mungkin menunjukkan peratusan yang sedikit, tetapi kesannya adalah besar kepada industri pelancongan di negara kita. Bila pengguna diberi layanan yang buruk semasa mendaftar, ianya akan memberikan pandangan yang negatif terhadap hotel tersebut. FOMCA ingin menyeru agar Skim Pembiayaan Sektor Pelancongan yang baru dilancarkan ini dapat digunakan bukan sahaja untuk memberikan nafas baru kepada sektor pelancongan yang terjejas teruk akibat COVID-19, tetapi juga dijadikan pemangkin kepada tahap kualiti perkhidmatan yang lebih baik dalam kalangan pengusaha sektor pelancongan. Pengguna boleh memainkan peranan dalam meningkatkan kualiti perkhidmatan dengan melaporkan ketidakpuasan hati terhadap perkhidmatan pelancongan kepada MOTAC atau NCCC. Selain itu, pengguna juga dinasihatkan untuk mendapatkan insurans perjalanan untuk melindungi diri dan/ atau keluarga terhadap kemalangan, kerugian dan gangguan semasa melancong. Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) bil. 3/2020 | 11 3 panduan berguna dalam mengurus pelan bayaran balik pinjaman BANK NEGARA MALAYSIA CENTRAL BANK OF MALAYSIA HUBUNGI TERUS BANK ANDA Hubungi terus bank untuk mendapatkan maklumat yang lebih jelas dan khidmat nasihat berkenaan pelan bayaran balik pinjaman JANGAN BERURUSAN DENGAN PIHAK KETIGA Berurusan secara langsung dengan bank tanpa pihak ketiga atau ejen untuk mengelak daripada ditipu 1-300-88-5465 https://telelink.bnm.gov.my/ DAPATKAN BANTUAN LANJUT Hubungi pihak Bank Negara Malaysia (BNM) untuk mendapatkan bantuan lanjut. Sila hubungi BNMLINK: PERINGATAN ! Bank tidak pernah melantik mana-mana pihak ketiga atau ejen untuk tujuan memproses permohonan pinjaman Cari #pinjamanmudah #cepat #PKS #ajenbank Like Comment Senah pm Mr.X ajen bank 2j 15 Komen300 Wahab pm Jamal Pm AJEN LOAN CEPAT DAPAT CTOS , CCRIS layak memohonAWAS 3 panduan berguna dalam mengurus pelan bayaran balik pinjaman BANK NEGARA MALAYSIA CENTRAL BANK OF MALAYSIA HUBUNGI TERUS BANK ANDA Hubungi terus bank untuk mendapatkan maklumat yang lebih jelas dan khidmat nasihat berkenaan pelan bayaran balik pinjaman JANGAN BERURUSAN DENGAN PIHAK KETIGA Berurusan secara langsung dengan bank tanpa pihak ketiga atau ejen untuk mengelak daripada ditipu 1-300-88-5465 https://telelink.bnm.gov.my/ DAPATKAN BANTUAN LANJUT Hubungi pihak Bank Negara Malaysia (BNM) untuk mendapatkan bantuan lanjut. Sila hubungi BNMLINK: PERINGATAN ! Bank tidak pernah melantik mana-mana pihak ketiga atau ejen untuk tujuan memproses permohonan pinjaman Cari #pinjamanmudah #cepat #PKS #ajenbank Like Comment Senah pm Mr.X ajen bank 2j 15 Komen300 Wahab pm Jamal Pm AJEN LOAN CEPAT DAPAT CTOS , CCRIS layak memohonAWAS 3 panduan berguna dalam mengurus pelan bayaran balik pinjaman BANK NEGARA MALAYSIA CENTRAL BANK OF MALAYSIA HUBUNGI TERUS BANK ANDA Hubungi terus bank untuk mendapatkan maklumat yang lebih jelas dan khidmat nasihat berkenaan pelan bayaran balik pinjaman JANGAN BERURUSAN DENGAN PIHAK KETIGA Berurusan secara langsung dengan bank tanpa pihak ketiga atau ejen untuk mengelak daripada ditipu 1-300-88-5465 https://telelink.bnm.gov.my/ DAPATKAN BANTUAN LANJUT Hubungi pihak Bank Negara Malaysia (BNM) untuk mendapatkan bantuan lanjut. Sila hubungi BNMLINK: PERINGATAN ! Bank tidak pernah melantik mana-mana pihak ketiga atau ejen untuk tujuan memproses permohonan pinjaman Cari #pinjamanmudah #cepat #PKS #ajenbank Like Comment Senah pm Mr.X ajen bank 2j 15 Komen300 Wahab pm Jamal Pm AJEN LOAN CEPAT DAPAT CTOS , CCRIS layak memohonAWAS 3 panduan berguna dalam mengurus pelan bayaran balik pinjaman BANK NEGARA MALAYSIA CENTRAL BANK OF MALAYSIA HUBUNGI TERUS BANK ANDA Hubungi terus bank untuk mendapatkan maklumat yang lebih jelas dan khidmat nasihat berkenaan pelan bayaran balik pinjaman JANGAN BERURUSAN DENGAN PIHAK KETIGA Berurusan secara langsung dengan bank tanpa pihak ketiga atau ejen untuk mengelak daripada ditipu 1-300-88-5465 https://telelink.bnm.gov.my/ DAPATKAN BANTUAN LANJUT Hubungi pihak Bank Negara Malaysia (BNM) untuk mendapatkan bantuan lanjut. Sila hubungi BNMLINK: PERINGATAN ! Bank tidak pernah melantik mana-mana pihak ketiga atau ejen untuk tujuan memproses permohonan pinjaman Cari #pinjamanmudah #cepat #PKS #ajenbank Like Comment Senah pm Mr.X ajen bank 2j 15 Komen300 Wahab pm Jamal Pm AJEN LOAN CEPAT DAPAT CTOS , CCRIS layak memohonAWAS 3 panduan berguna dalam mengurus pelan bayaran balik pinjaman BANK NEGARA MALAYSIA CENTRAL BANK OF MALAYSIA HUBUNGI TERUS BANK ANDA Hubungi terus bank untuk mendapatkan maklumat yang lebih jelas dan khidmat nasihat berkenaan pelan bayaran balik pinjaman JANGAN BERURUSAN DENGAN PIHAK KETIGA Berurusan secara langsung dengan bank tanpa pihak ketiga atau ejen untuk mengelak daripada ditipu 1-300-88-5465 https://telelink.bnm.gov.my/ DAPATKAN BANTUAN LANJUT Hubungi pihak Bank Negara Malaysia (BNM) untuk mendapatkan bantuan lanjut. Sila hubungi BNMLINK: PERINGATAN ! Bank tidak pernah melantik mana-mana pihak ketiga atau ejen untuk tujuan memproses permohonan pinjaman Cari #pinjamanmudah #cepat #PKS #ajenbank Like Comment Senah pm Mr.X ajen bank 2j 15 Komen300 Wahab pm Jamal Pm AJEN LOAN CEPAT DAPAT CTOS , CCRIS layak memohonAWAS 3 panduan berguna dalam mengurus pelan bayaran balik pinjaman BANK NEGARA MALAYSIA CENTRAL BANK OF MALAYSIA HUBUNGI TERUS BANK ANDA Hubungi terus bank untuk mendapatkan maklumat yang lebih jelas dan khidmat nasihat berkenaan pelan bayaran balik pinjaman JANGAN BERURUSAN DENGAN PIHAK KETIGA Berurusan secara langsung dengan bank tanpa pihak ketiga atau ejen untuk mengelak daripada ditipu 1-300-88-5465 https://telelink.bnm.gov.my/ DAPATKAN BANTUAN LANJUT Hubungi pihak Bank Negara Malaysia (BNM) untuk mendapatkan bantuan lanjut. Sila hubungi BNMLINK: PERINGATAN ! Bank tidak pernah melantik mana-mana pihak ketiga atau ejen untuk tujuan memproses permohonan pinjaman Cari #pinjamanmudah #cepat #PKS #ajenbank Like Comment Senah pm Mr.X ajen bank 2j 15 Komen300 Wahab pm Jamal Pm AJEN LOAN CEPAT DAPAT CTOS , CCRIS layak memohonAWAS

Public Notice

10 Ogos 2020

Keputusan Mesyuarat Khas Majlis Penasihat Shariah (MPS) ke-30

https://www.bnm.gov.my/-/keputusan-mesyuarat-khas-majlis-penasihat-shariah-mps-ke-30

https://www.bnm.gov.my/documents/20124/914558/SAC+Statement+30th+SAC+Special+meeting_BM.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/keputusan-mesyuarat-khas-majlis-penasihat-shariah-mps-ke-30&languageId=ms_MY

Reading: Keputusan Mesyuarat Khas Majlis Penasihat Shariah (MPS) ke-30 Share: Keputusan Mesyuarat Khas Majlis Penasihat Shariah (MPS) ke-30 Tarikh Siaran: 10 Ogos 2020 Majlis Penasihat Shariah (MPS) Bank Negara Malaysia pada mesyuarat khas ke-30 bertarikh 14 Julai 2020 telah memutuskan tatacara berhubung penstrukturan semula pembiayaan secara Islam sewaktu krisis COVID-19. Penstrukturan semula pembiayaan secara Islam berasaskan kontrak Syariah asal Penstrukturan semula pembiayaan secara Islam berasaskan kontrak Syariah asal boleh dilakukan dengan memeterai perjanjian tambahan (supplementary agreement) yang dirujuk silang dengan terma dan syarat perjanjian asal dan tidak memerlukan perjanjian baharu. Ini bertujuan untuk mengurangkan kos dan kesulitan kepada pelanggan, serta beban operasi bagi institusi kewangan Islam (IKI). Perjanjian baharu diperlukan sekiranya penstrukturan semula melibatkan – penggunaan kontrak Syariah yang berbeza – contohnya pembiayaan asal perumahan berasaskan musyarakah mutanaqisah (perkongsian berkurangan) distruktur semula menggunakan ijarah; atau penggabungan beberapa pembiayaan berasaskan pelbagai kontrak Syariah menjadi satu kontrak Syariah baharu sebagai sebahagian daripada rasionalisasi hutang.   Penstrukturan semula pembiayaan secara Islam kepada pinjaman konvensional atau sebaliknya IKI dibenarkan untuk menstruktur semula pinjaman konvensional kepada pembiayaan secara Islam. Walau bagaimanapun, penstrukturan semula pembiayaan secara Islam kepada pinjaman konvensional adalah tidak dibenarkan. Namun, sekiranya pelanggan tetap memilih untuk menstruktur semula pembiayaan secara Islam mereka kepada pinjaman konvensional, ia adalah prerogatif dan pilihan pelanggan untuk berbuat demikian. Dalam hal ini, pilihan pelanggan tersebut adalah di luar tanggungjawab dan kawalan IKI.         Keuntungan berkompaun bagi penstrukturan semula IKI tidak dibenarkan untuk memasuk dan mengambilkira keuntungan terakru bagi pembiayaan asal sebagai amaun prinsipal yang baharu bagi penstrukturan semula. Amalan sedemikian bertujuan mengelakkan berlakunya keuntungan berganda ke atas hutang (keuntungan berkompaun). Oleh itu, dalam melaksanakan penstrukturan semula: amaun prinsipal baharu bagi pembiayaan yang distruktur semula adalah bersamaan dengan baki prinsipal pembiayaan asal sekiranya tiada pembiayaan tambahan; IKI dibenar mengenakan kadar keuntungan baharu bagi amaun prinsipal baharu tersebut; dan jumlah keuntungan terakru dan caj lewat bayar (jika terpakai) bagi pembiayaan asal boleh dibawa ke hadapan dan ditambah ke dalam obligasi keseluruhan pembayaran hutang tetapi jumlah ini tidak boleh diambilkira dalam pengiraan keuntungan yang baharu (cannot be capitalised). Sila lihat lampiran di sini  untuk maklumat lanjut.   © 2024 Bank Negara Malaysia. All rights reserved.

Mesyuarat MPS ke-179 Mesyuarat Khas MPS ke-30 2020 1 Keputusan Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Penstrukturan Semula Pembiayaan Secara Islam Sewaktu Krisis COVID-19 Mesyuarat Khas MPS ke-30 bertarikh 14 Julai 2020 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009, MPS telah memutuskan tatacara berhubung penstrukturan semula pembiayaan secara Islam sewaktu krisis COVID-19. 1. Penstrukturan semula pembiayaan secara Islam berasaskan kontrak Syariah asal Penstrukturan semula pembiayaan secara Islam berasaskan kontrak Syariah asal boleh dilakukan dengan memeterai perjanjian tambahan (supplementary agreement) yang dirujuk silang dengan terma dan syarat perjanjian asal dan tidak memerlukan perjanjian baharu. Ini bertujuan untuk mengurangkan kos dan kesulitan kepada pelanggan, serta beban operasi bagi institusi kewangan Islam (IKI). Perjanjian baharu diperlukan sekiranya penstrukturan semula melibatkan – i. penggunaan kontrak Syariah yang berbeza – contohnya pembiayaan asal perumahan berasaskan musyarakah mutanaqisah (perkongsian berkurangan) distruktur semula menggunakan ijarah; atau ii. penggabungan beberapa pembiayaan berasaskan pelbagai kontrak Syariah menjadi satu kontrak Syariah baharu sebagai sebahagian daripada rasionalisasi hutang. 2. Penstrukturan semula pembiayaan secara Islam kepada pinjaman konvensional atau sebaliknya IKI dibenarkan untuk menstruktur semula pinjaman konvensional kepada pembiayaan secara Islam. Walau bagaimanapun, penstrukturan semula pembiayaan secara Islam kepada pinjaman konvensional adalah tidak dibenarkan. Namun, sekiranya pelanggan tetap memilih untuk menstruktur semula pembiayaan secara Islam mereka kepada pinjaman konvensional, ia adalah prerogatif dan pilihan pelanggan untuk berbuat demikian. Dalam hal ini, pilihan pelanggan tersebut adalah di luar tanggungjawab dan kawalan IKI. 3. Keuntungan berkompaun bagi penstrukturan semula IKI tidak dibenarkan untuk memasuk dan mengambilkira keuntungan terakru bagi pembiayaan asal sebagai amaun prinsipal yang baharu bagi penstrukturan semula. Amalan sedemikian bertujuan mengelakkan berlakunya keuntungan berganda ke atas hutang (keuntungan berkompaun). Oleh itu, dalam melaksanakan penstrukturan semula: i. amaun prinsipal baharu bagi pembiayaan yang distruktur semula adalah bersamaan dengan baki prinsipal pembiayaan asal sekiranya tiada pembiayaan tambahan; ii. IKI dibenar mengenakan kadar keuntungan baharu bagi amaun prinsipal baharu tersebut; dan Mesyuarat Khas MPS ke-30 2020 2 iii. jumlah keuntungan terakru dan caj lewat bayar (jika terpakai) bagi pembiayaan asal boleh dibawa ke hadapan dan ditambah ke dalam obligasi keseluruhan pembayaran hutang tetapi jumlah ini tidak boleh diambilkira dalam pengiraan keuntungan yang baharu (cannot be capitalised). Keputusan ini berkuat kuasa serta merta pada tarikh penerbitannya dalam laman sesawang Bank Negara Malaysia pada 10 Ogos 2020 dan terpakai ke atas IKI berikut: (a) orang berlesen menurut Akta Perkhidmatan Kewangan Islam 2013 (APKI); (b) bank berlesen dan bank pelaburan berlesen yang diluluskan di bawah seksyen 15(1) Akta Perkhidmatan Kewangan 2013 (APK) untuk menjalankan perniagaan kewangan Islam; dan (c) institusi yang ditetapkan yang diluluskan di bawah seksyen 33B(1) Akta Institusi Kewangan Pembangunan 2002 (DFIA) untuk menjalankan perniagaan kewangan Islam. Selaras dengan seksyen 28(1) dan (2) APKI atau seksyen 33D (1) dan (2) DFIA, mengikut mana- mana yang berkenaan, IKI dikehendaki mematuhi keputusan ini kerana pematuhan dengan apa- apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan pengendalian perniagaan, hal ehwal atau aktiviti IKI tersebut adalah disifatkan sebagai pematuhan kepada Syariah. Bahagian II: Latar Belakang  Pandemik COVID-19 dan Perintah Kawalan Pergerakan (PKP) yang bertujuan mengekang penularan wabak ini telah memberi kesan buruk kepada ekonomi Malaysia. Penularan wabak COVID-19 yang turut menjejaskan penawaran dan permintaan di peringkat global memburukkan lagi kesan krisis kesihatan ini ke atas ekonomi negara. Bagi suku tahunan pertama 2020, keluaran dalam negara kasar (KDNK) berkembang pada kadar 0.7% dan dijangka menguncup bagi suku tahunan kedua sebelum beransur-ansur pulih.  Akibatnya, sebahagian besar sektor perniagaan terkesan terutamanya dari segi kewangan dan aliran tunai, dan tidak mampu bertahan sehingga terpaksa mengambil langkah mengurangkan kos antara lainnya dengan mengecilkan saiz tenaga kerja, mengurangkan waktu bekerja dan ada juga yang terpaksa menghentikan operasi perniagaan. Kesannya, ramai rakyat yang hilang pekerjaan (kadar pengangguran melonjak ke paras 5.3% pada bulan Mei 2020 berbanding 3.3% pada bulan Mei 2019) atau berhadapan dengan situasi pendapatan bulanan yang berkurangan. Bagi meringankan sedikit beban kewangan rakyat dan perusahaan kecil dan sederhana, pelbagai bentuk bantuan telah dilaksanakan termasuk memberi penangguhan sementara ke atas bayaran ansuran bulanan pembiayaan (moratorium).  Cabaran dan kesukaran yang melanda sebahagian besar masyarakat dan perniagaan ini dijangkakan bersifat sementara disebabkan suasana semasa. Kedudukan kewangan dan aliran tunai orang ramai dan perniagaan berkenaan dijangka beransur pulih sejajar dengan pemulihan ekonomi negara. Namun, isu ini perlu diatasi segera bagi mengelakkan peningkatan kemungkiran yang mendadak dan ketara yang boleh menjurus kepada kebankrapan dan insolvensi serta kesan jangka panjang yang negatif kepada masyarakat dan ekonomi. Hal ini juga boleh menjejaskan kekukuhan institusi perbankan.  Dalam suasana semasa, penjadualan dan penstrukturan semula pembiayaan asal membolehkan perniagaan dan orang ramai menyusun semula obligasi kewangan bersesuaian dengan keadaan kewangan semasa mereka. Oleh itu, proses penjadualan dan penstrukturan semula haruslah dapat dilaksanakan secara efisien, lancar dan fleksibel dalam suasana Mesyuarat Khas MPS ke-30 2020 3 semasa agar mereka yang terkesan dapat menumpukan perhatian terhadap usaha mencari pekerjaan baharu atau pendapatan tambahan, atau memulihkan perniagaan mereka.  Penstrukturan semula kemudahan pembiayaan secara Islam boleh dilaksanakan menggunakan pelbagai kaedah, antara lainnya, dengan menggunakan kontrak Syariah yang sama atau berbeza atau menggabungkan beberapa pembiayaan berasaskan pelbagai kontrak Syariah menjadi satu kontrak pembiayaan baharu. Sebagai contoh: Pelanggan Penstrukturan semula Kontrak Syariah asal Kontrak Syariah baharu A Menstruktur semula pembiayaan sedia ada menggunakan kontrak Syariah yang berbeza Musyarakah Mutanaqisah Ijarah B Menggabungkan beberapa pembiayaan berasaskan pelbagai kontrak Syariah Pembiayaan peribadi (tawarruq), pembiayaan kenderaan (ijarah) and kad kredit (qard and ujrah) Tawarruq  Terdapat juga kemungkinan yang mana pelanggan memilih untuk menstruktur semula pinjaman konvensional kepada pembiayaan secara Islam (atau sebaliknya) atau menggabungkan kedua-dua kemudahan pembiayaan Islam dan pinjaman konvensional kepada satu kemudahan sama ada pembiayaan secara Islam atau pinjaman konvensional.  Terdapat perbezaan dalam amalan semasa IKI berhubung semakan harga ke atas kontrak bagi penstrukturan semula – ada yang mengenakan kadar keuntungan baharu ke atas keseluruhan jumlah hutang pembiayaan asal (merangkumi amaun baki prinsipal dan keuntungan terakru); manakala terdapat juga amalan di mana pengenaan kadar keuntungan baharu hanya dikenakan ke atas amaun baki prinsipal sahaja dengan mengasingkan keuntungan terakru tanpa sebarang elemen kompaun. Isu Syariah Adakah Syariah membenarkan - i. penstrukturan semula pembiayaan secara Islam dengan menggunakan perjanjian yang asal? ii. penstrukturan semula kemudahan pembiayaan secara Islam kepada pinjaman konvensional (atau sebaliknya)? iii. keuntungan berkompaun bagi penstrukturan semula? Mesyuarat Khas MPS ke-30 2020 4 Bahagian III: Perbincangan Utama Perubahan pada harga memerlukan akad baharu  Dalam penstrukturan semula pembiayaan secara Islam yang melibatkan perubahan pada harga asal serta terma dan syarat, akad baharu perlu dimeterai oleh pihak-pihak yang berkontrak. Ini bertujuan memastikan kontrak adalah sah berdasarkan persetujuan bersama pihak-pihak yang berkontrak.  Berdasarkan keadaan semasa dan jangkaan bilangan individu dan perniagaan yang memerlukan penstrukturan semula yang tinggi, pemeteraian kontrak baharu akan membebankan kedua-dua pihak iaitu pelanggan dan IKI dari segi kos yang perlu ditanggung, proses dan masa yang diperlukan. Bagi mengurangkan bebanan tersebut, pihak-pihak yang berkontrak boleh membuat perjanjian tambahan untuk menstruktur semula pembiayaan. Terma dan syarat perjanjian asal boleh diubah dalam perjanjian tambahan tanpa memeterai perjanjian perundangan yang baharu. Perjanjian tambahan boleh dirujuk silang dengan perjanjian asal dalam penstrukturan semula pembiayaan secara Islam.  Akad baharu yang memenuhi keperluan pemeteraian kontrak yang sah dari segi Syariah adalah diperlukan bagi penstrukturan semula pembiayaan Islam, dan ia boleh didokumenkan dalam perjanjian tambahan. Persetujuan bersama pihak-pihak yang berkontrak berhubung perubahan terma dan syarat perlulah diperoleh untuk mengelakkan salah faham dan pertikaian kelak. Prinsip ta`awun (saling membantu) adalah kunci dalam memastikan kepatuhan Syariah  Sebagai pengantara kewangan Islam, IKI hendaklah mengambil langkah yang perlu untuk memastikan pematuhan Syariah sepanjang masa. Ini termasuklah membantu pelanggan untuk beralih daripada transaksi kewangan yang tidak patuh Syariah kepada transaksi patuh Syariah. Dalam hal ini, IKI seharusnya bertindak sebagai pemudahcara dalam menyantuni permintaan pelanggan untuk menstruktur semula pinjaman konvensional kepada pembiayaan secara Islam.  Manakala penstrukturan semula pembiayaan secara Islam kepada pinjaman konvensional, secara prinsipnya adalah tidak dibenarkan Syarak. Namun demikian, pelanggan mempunyai hak dan kebebasan untuk memilih. Sekiranya pelanggan membuat keputusan menstruktur semula pembiayaan secara Islam mereka kepada pembiayaan konvensional, ianya dianggap di luar tanggungjawab dan kawalan IKI. Keuntungan berkompaun bagi pembiayaan secara Islam  Dalam isu keuntungan berkompaun bagi pembiayaan secara Islam yang distruktur semula, IKI dianggap mengambil kesempatan ke atas pelanggan yang berada dalam keadaan terdesak tanpa menanggung sebarang tanggungjawab atau risiko. Larangan keuntungan berkompaun adalah bertujuan menjaga maqasid keadilan dalam transaksi dan mengelakkan kezaliman yang menyerupai riba jahiliyyah dalam sebahagian amalan qalb al-dayn yang diharamkan.  Walau bagaimanapun, IKI dan pelanggan boleh bersetuju dengan terma dan syarat yang baharu termasuklah kaedah pengiraan kadar keuntungan baharu yang lebih mencerminkan risiko yang ditanggung oleh IKI. Mesyuarat Khas MPS ke-30 2020 5  Contoh ilustrasi kaedah pengiraan tanpa melibatkan keuntungan berkompaun adalah seperti berikut: Pembiayaan sedia ada (sebelum penstrukturan semula) Pembiayaan baharu (selepas penstrukturan semula) Baki prinsipal (a) (Baki harga jualan – keuntungan belum terakru) RM50,000 Baki prinsipal terdahulu RM50,000 Keuntungan terakru RM475 Keuntungan baharu (baki prinsipal (a) x kadar keuntungan tahunan 3% x tempoh pembiayaan) RM6,000 Keuntungan terakru RM475 Jumlah hutang RM50,475 Jumlah hutang baharu (baki prinsipal terdahulu + keuntungan baharu + keuntungan terakru) RM56,475 Bahagian IV: Asas Pertimbangan Penstrukturan semula berdasarkan kontrak Syariah yang asal  Perubahan terhadap terma dan syarat perjanjian asal melalui perjanjian tambahan dibenarkan dengan syarat ia telah dipersetujui dan dimaklumkan dengan jelas kepada pihak-pihak berkontrak. Ini sejajar dengan kaedah fiqh berikut: األصل يف العقود رضا املتعاقدين وموجبها هو ما أوجباه على نفسيهما ابلتعاقد1 “Hukum asal dalam akad adalah reda (persetujuan) kedua-dua pihak yang berkontrak dan kesan kontrak adalah berdasarkan kepada hak dan tanggungjawab yang telah mereka persetujui dalam akad.”  Merujuk silang terma dan syarat dalam perjanjian tambahan kepada perjanjian asal adalah dibenarkan berdasarkan maslahah iaitu memastikan proses penstrukturan semula yang efisien dan menjimatkan kos khususnya dalam keadaan semasa yang sukar disebabkan oleh COVID- 19. Ini sejajar dengan hadis dan kaedah fiqh berikut: املشقة جتلب التيسري2 “Kesukaran membawa kepada keringanan.”  Syariah tidak menghalang untuk menstruktur semula pembiayaan menggunakan kontrak Syariah yang berbeza daripada kontrak asal dan penstrukturan semula yang melibatkan penggabungan pembiayaan berasaskan pelbagai kontrak Syariah menjadi satu kontrak Syariah. Ini sesuai dengan hadis berikut: املسلمون على شروطهم إال شرطا أحل حراما أو حرم حالال3 1 Muhammad Mustafa Al-Zuhayli (2006), Al-Qawa`id al-Fiqhiyyah wa Tatbiqatuha fi al-Mazahib al-`Arba`ah. Damsyik: Dar al-Fikr, j. 2, h. 818. 2 Al-Suyuti, (1403), Al-Asybah wa al-Naza’ir, Beirut: Dar al-Kutub al-`Ilmiyyah, h. 76-77. 3 Abu Daud (1999), Sunan Abi Daud, Bait al-Afkar al-Dawliyyah, h. 398, no. hadis 3594. Mesyuarat Khas MPS ke-30 2020 6 “(Urusan) orang Islam adalah berasaskan kepada syarat-syarat yang (dipersetujui) oleh mereka, kecuali syarat yang menghalalkan apa yang haram atau mengharamkan apa yang halal.”  Namun begitu, perjanjian perundangan baharu diperlukan untuk menstruktur semula pembiayaan menggunakan kontrak Syariah yang berbeza dari kontrak asal dan penggabungan beberapa kontrak Syariah yang berlainan kepada satu kontrak Syariah yang baharu. Ini adalah untuk memastikan kontrak Syariah diaplikasikan secara bersesuaian sejajar dengan keperluan dan tujuan kontrak kerana setiap kontrak Syariah mempunyai ciri dan keperluan yang berbeza. Penstrukturan semula kemudahan pembiayaan Islam kepada pinjaman konvensional (atau sebaliknya)  Syariah membenarkan penstrukturan semula pinjaman konvensional kepada pembiayaan Islam atas dasar membantu masyarakat/pelanggan untuk keluar daripada perkara yang dilarang Syariah. Ini sejajar dengan konsep ta`awun (saling membantu) kepada kebaikan. Walau bagaimanapun, IKI tidak sewajarnya menggalak/membantu pelanggan menstruktur semula pembiayaan Islam kepada pinjaman konvensional. Pilihan pelanggan untuk menstruktur semula pembiayaan Islam kepada pinjaman konvensional adalah di luar tanggungjawab dan bidang kuasa IKI. Perkara ini sejajar dengan ayat al-Quran berikut: “...dan hendaklah kamu bertolong-tolongan untuk membuat kebajikan dan bertaqwa, dan janganlah kamu bertolong-tolongan pada melakukan dosa (maksiat) dan permusuhan...”4 Keuntungan berkompaun perlu dielakkan  IKI dilarang untuk mengambilkira keuntungan terakru bagi pembiayaan asal dalam pengiraan keuntungan yang baharu bagi mengelakkan keuntungan berkompaun kepada pelanggan dalam pembiayaan yang distrukturkan semula memandangkan keuntungan berkompaun membebankan pelanggan dan kesannya menyerupai riba yang diharamkan secara umumnya dan riba jahiliyyah dalam sebahagian amalan qalb al-dayn. Dalam situasi krisis, pengenaan keuntungan berkompaun dilihat seolah-olah IKI mengambil kesempatan atas musibah dan kesulitan yang dialami oleh pelanggan di mana keuntungan tersebut bukanlah untuk menampung kos atau risiko yang ditanggung oleh IKI.  Terdapat keperluan untuk pihak pengawal selia menetapkan larangan keuntungan berkompaun ke atas keuntungan terakru dan caj lewat bayar (jika terpakai) bagi penstrukturan semula kerana wujud elemen kezaliman terhadap pelanggan dalam menanggung kos yang lebih tinggi. Di samping itu, keuntungan berkompaun tersebut tidak berkadaran dengan risiko dan liabiliti tambahan yang selari dengan kehendak Syariah. 4 Surah al-Ma’idah:2 Mesyuarat Khas MPS ke-30 2020 7 Bahagian V: Implikasi Keputusan MPS  Keputusan MPS bertujuan memastikan proses penstrukturan semula yang efisien, lancar dan fleksibel untuk memenuhi keperluan dan keadaan yang berbeza bagi kumpulan yang terjejas khususnya individu berpendapatan rendah dan peniaga kecil dalam suasana semasa.  Keputusan berhubung keuntungan berkompaun adalah tidak bersifat retrospektif dengan mengambil kira praktis penstrukturan semula terdahulu yang mungkin melibatkan keuntungan berkompaun. Ini berdasarkan pertimbangan maslahah dan peningkatan kesukaran (raf` al- haraj), terutama dalam penularan wabak COVID-19 dan kesan PKP.

Public Notice

06 Ogos 2020

Base Rates, BLR and Indicative Effective Lending Rates of Financial Institutions as at 6 August 2020

https://www.bnm.gov.my/-/base-rates-blr-and-indicative-effective-lending-rates-of-financial-institutions-as-at-6-august-2020

05 Ogos 2020

Call for Papers : 7th Malaysia Statistics Conference (MyStats 2020) "Census Shapes Nation's Future"

https://www.bnm.gov.my/-/call-for-paper-7th-mystats2020-bm

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/call-for-paper-7th-mystats2020-bm&languageId=ms_MY

Reading: Call for Papers : 7th Malaysia Statistics Conference (MyStats 2020) "Census Shapes Nation's Future" Share: Call for Papers : 7th Malaysia Statistics Conference (MyStats 2020) "Census Shapes Nation's Future" Tarikh Siaran: 05 Ogos 2020       Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.       © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

05 Ogos 2020

Genneva Malaysia Sdn Bhd termasuk Lapan Individu dan Dua Syarikat Lain Didapati Bersalah bagi Tuduhan Mengambil Deposit Secara Haram dan Pengubahan Wang Haram

https://www.bnm.gov.my/-/genneva-malaysia-sdn-bhd-termasuk-lapan-individu-dan-dua-syarikat-lain-didapati-bersalah-bagi-tuduhan-mengambil-deposit-secara-haram-dan-pengubahan-wang-haram-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/genneva-malaysia-sdn-bhd-termasuk-lapan-individu-dan-dua-syarikat-lain-didapati-bersalah-bagi-tuduhan-mengambil-deposit-secara-haram-dan-pengubahan-wang-haram-1&languageId=ms_MY

Reading: Genneva Malaysia Sdn Bhd termasuk Lapan Individu dan Dua Syarikat Lain Didapati Bersalah bagi Tuduhan Mengambil Deposit Secara Haram dan Pengubahan Wang Haram Share: Genneva Malaysia Sdn Bhd termasuk Lapan Individu dan Dua Syarikat Lain Didapati Bersalah bagi Tuduhan Mengambil Deposit Secara Haram dan Pengubahan Wang Haram Tarikh Siaran: 05 Ogos 2020 Pada 4 Ogos 2020, Genneva Malaysia Sdn Bhd (GMSB) bersama-sama dengan mantan pengarah, pengurus besar, individu lain yang berkaitan termasuk penasihat perniagaan syarikat dan dua (2) syarikat lain yang berkaitan telah dikenakan tuduhan di bawah seksyen 25(1) Akta Perbankan dan Institusi Kewangan 1989 (Banking and Financial Institution Act 1989, BAFIA) dan/atau seksyen 4(1) Akta Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Hasil daripada Aktiviti Haram 2001 (Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, AMLA). Kesemua mereka didapati bersalah di Mahkamah Tinggi Kuala Lumpur atas tuduhan menerima wang daripada pendeposit tanpa memiliki lesen yang sah di bawah seksyen 25(1) BAFIA dan terlibat dalam aktiviti pengubahan wang haram. Hakim Mahkamah Tinggi menjatuhkan hukuman yang berikut: A) Pertuduhan di bawah seksyen 25(1) BAFIA dan seksyen 4(1) AMLA: GMSB – Denda RM450 juta Tan Liang Keat – Sembilan (9) tahun penjara dan denda RM230 juta Lim Kah Heng – Sembilan (9) tahun penjara dan denda RM48 juta Philip Lim Jit Meng – Sembilan (9) tahun penjara dan denda RM272 juta Ng Poh Weng – Empat (4) tahun penjara dan denda RM159 juta  B) Pertuduhan di bawah seksyen 25(1) BAFIA sahaja: Ahmad Khairuddin IIias – Enam (6) tahun penjara dan denda RM4 juta  C) Pertuduhan di bawah seksyen 4(1) AMLA Sahaja: Marcus Yee Yuen Seng – Tiga (3) tahun penjara dan denda RM17 juta Chiew Soo Ling – Tiga (3) tahun penjara dan denda RM48 juta Yao Kee Boon – Tiga (3) tahun penjara dan denda RM2 juta Success Attitude Sdn Bhd – Denda RM 8 juta Ng Advantage Sdn Bhd – Denda RM101 juta Mahkamah Tinggi memerintahkan bahawa kegagalan pesalah membuat pembayaran bagi setiap denda BAFIA dan AMLA boleh dipenjara dua (2) tahun. Hukuman penjara di bawah BAFIA dan AMLA akan dijalankan secara berturut-turut. Orang ramai diingatkan supaya tidak menyimpan wang atau deposit dengan institusi yang tidak berlesen atau terlibat dengan sebarang bentuk skim cepat kaya bagi mengelak kehilangan wang mereka. Senarai institusi yang dilesenkan di bawah undang-undang yang ditadbir oleh Bank Negara Malaysia untuk menerima deposit boleh didapati di laman sesawang Bank Negara Malaysia di www.bnm.gov.my. Orang ramai juga boleh mendapatkan maklumat berhubung dengan skim kewangan haram dan tindakan penguatkuasaan yang dilaksanakan oleh Bank Negara Malaysia di Laman Sesawang Amaran Penipuan Kewangan (http://fraudalert.bnm.gov.my). Untuk maklumat lanjut, orang ramai boleh menghubungi Bank Negara Malaysia di pusat hubungan yang berikut: Telefon: 1-300-88-5465 (BNMTELELINK) E-mel: [email protected] © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

30 Jul 2020

Policy Document on Standing Facilities

https://www.bnm.gov.my/-/policy-document-on-standing-facilities

Reading: Policy Document on Standing Facilities Share: Policy Document on Standing Facilities Release Date: 30 Jul 2020 Bank Negara Malaysia introduced the standing facilities to ensure that overnight interbank rates trade within a corridor around the overnight policy rate by providing a lending/funding facility and a deposit/acceptance facility at the upper (ceiling rate) and lower limit (floor rate) of the corridor, respectively. This policy document sets out the operational procedures relevant to the eligible collateral to ensure the efficiency of the standing facilities operations. Revision of the policy document is to expand the eligible collateral for standing facilities operations to include corporate bonds and sukuk with minimum domestic rating of A3 by RAM or A- by MARC. Further details can be found in the following document: Policy Document on Standing Facilities © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

17 Jul 2020

Exposure Draft on Merchant Acquiring Services

https://www.bnm.gov.my/-/exposure-draft-on-merchant-acquiring-services-1

Reading: Exposure Draft on Merchant Acquiring Services Share: Exposure Draft on Merchant Acquiring Services Release Date: 17 Jul 2020 Bank Negara Malaysia (the Bank) today issued the exposure draft on Merchant Acquiring Services. The exposure draft sets out the Bank’s proposed requirements and expectations on merchant acquirers registered pursuant to section 18(1) of the Financial Services Act 2013, pertaining to governance, risk management, outsourcing and IT security. The Bank invites written feedback on the proposed requirements, including suggestions on areas to be clarified and alternative proposals that the Bank should consider. The written feedback should be supported with clear rationale, accompanying evidence or illustrations, as appropriate to facilitate effective review of this exposure draft. Responses must be submitted by 1 September 2020. See also: Merchant Acquiring Services Exposure Draft © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

23 Jun 2020

Financial Consumer Alert: List of unauthorised companies and websites has been updated

https://www.bnm.gov.my/-/financial-consumer-alert-list-of-unauthorised-companies-and-websites-has-been-updated-3

Reading: Financial Consumer Alert: List of unauthorised companies and websites has been updated Share: Financial Consumer Alert: List of unauthorised companies and websites has been updated Release Date: 23 Jun 2020 The Bank has updated the Financial Consumer Alert list. The list consists of companies and websites which are neither authorised nor approved under the relevant laws and regulations administered by BNM. Please take note that the list is not exhaustive and only serves as a guide to members of the public based on information and queries received by BNM. The latest list consists of 445 companies/entities. The following company was added to the list: Amal Trust (002848059-U; Lindale Ventures (003041846 - U); i-Rakyat Trade; i-RakyaTrader; and i-Rakya Trader. The list will be updated regularly for public's reference.  To view the updated list, click on this link. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

16 Jun 2020

BNMLINK Terus Menawarkan Khidmat Nasihat

https://www.bnm.gov.my/-/bnmlink-terus-menawarkan-khidmat-nasihat

https://www.bnm.gov.my/documents/20124/51340/CCRIS+Request+Application+and+eCCRIS+Registration+Form.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/bnmlink-terus-menawarkan-khidmat-nasihat&languageId=ms_MY

Reading: BNMLINK Terus Menawarkan Khidmat Nasihat Share: 15 BNMLINK Terus Menawarkan Khidmat Nasihat Tarikh Siaran: 16 Jun 2020 Mulai bulan Julai 2023, BNMTELELINK kini dikenali sebagai BNMLINK. Orang ramai boleh terus menghubungi BNMLINK menerusi borang dalam laman sesawang di bnmlink.bnm.gov.my atau hubungi 1-300-88-5465 untuk pertanyaan umum atau aduan. BNM ingin memaklumkan bahawa platform kami untuk berhubung dengan orang ramai dan perniagaan kecil, iaitu BNMLINK terus menawarkan khidmat nasihat. Pertanyaan Umum Orang ramai boleh mendapatkan khidmat nasihat BNM dengan menghantar pertanyaan atau aduan melalui eLINK (borang dalam laman sesawang) di https://telelink.bnm.gov.my/ Mereka juga boleh menghubungi BNMLINK di talian 1-300-88-5465 dari hari Isnin hingga Jumaat (9.00 pagi hingga 5.00 petang). Pusat khidmat pelanggan hanya menerima pelawat bagi kunjungan ke premis melalui janji temu. Orang ramai boleh membuat janji temu melalui eLINK atau BNMTELELINK. Laporan CCRIS Orang ramai boleh mendapatkan laporan kredit menerusi Sistem Maklumat Rujukan Kredit Berpusat (Central Credit Reference Information System, CCRIS) atau daripada mana-mana Agensi Pelaporan Kredit. Untuk CCRIS Bagi pengguna eCCRIS berdaftar, anda boleh menyemak laporan CCRIS anda secara dalam talian di sini Bagi pengguna kali pertama, sila ikut langkah-langkah di bawah untuk membuat pendaftaran. Anda perlu: Memuat turun borang permohonan CCRIS/eCCRIS di sini Lengkapkan borang permohonan dengan maklumat yang diperlukan Sediakan dokumen sokongan yang diperlukan seperti yang terdapat dalam senarai semak pada halaman 1 dan 2 dalam borang permohonan Hantar borang permohonan bersama-sama dengan dokumen sokongan ke eLINK Jika anda tidak mahu mendaftar sebagai pengguna eCCRIS tetapi masih mahu mendapatkan laporan CCRIS, anda perlu: Memuat turun borang permohonan CCRIS/eCCRIS di sini Lengkapkan borang permohonan dengan maklumat yang diperlukan Sediakan dokumen sokongan yang diperlukan seperti yang terdapat dalam senarai semak pada halaman 1 dan 2 dalam borang permohonan Hantar borang permohonan bersama-sama dengan dokumen sokongan ke eLINK Untuk laporan kredit daripada Agensi Pelaporan Kredit lain, anda boleh mendapatkan maklumat lanjut untuk mendapatkan laporan kredit daripada pautan yang berikut: Credit Bureau Malaysia Sdn Bhd at https://creditbureau.com.my CTOS Data Systems Sdn Bhd at https://ctoscredit.com.my Experian Information Services (Malaysia) Sdn Bhd at https://www.mycreditinfo.com.my Pertukaran wang kertas dan syiling rosak Orang ramai boleh membuat pertukaran wang kertas dan syiling rosak di mana-mana institusi kewangan. Orang ramai yang memerlukan khidmat nasihat selanjutnya boleh menghubungi Pejabat-pejabat BNM seperti yang berikut: Pejabat BNM Pulau Pinang +604-258 7588 Pejabat BNM Johor Bahru +607-225 7888 Pejabat BNM Kuching +6082-224-200 Pejabat BNM Kota Kinabalu  +6088-522-310 Waktu urusan: Isnin hingga Jumaat, 9.00 pagi hingga 5.00 petang Pejabat BNM Kuala Terengganu +609-638-2001 Waktu urusan: Ahad hingga Khamis, 9.00 pagi hingga 5.00 petang © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

09 Jun 2020

Buletin RINGGIT (Keluaran Bil. 2/2020) kini boleh dimuat turun

https://www.bnm.gov.my/-/ringgit-bil-2-2020-bm

https://www.bnm.gov.my/documents/20124/947994/Ringgit+Ed112+2020-02+F.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/ringgit-bil-2-2020-bm&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Bil. 2/2020) kini boleh dimuat turun Share: Buletin RINGGIT (Keluaran Bil. 2/2020) kini boleh dimuat turun Tarikh Siaran: 09 Jun 2020 Artikel utama pada keluaran ini ialah Prihatin - Pakej Rangsangan Ekonomi Prihatin Rakyat Antara topik lain yang menarik termasuk : Penangguhan Pembayaran Balik Pinjaman Penangguhan Bayaran Premium/Sumbangan untuk Insurans Hayat/Takaful Keluarga Akaun Keldai Taktik Terkini Akaun Keldai : Jangan Tertipu Perkhidmatan Kesihatan dan Perubatan Hospital Swasta RINGGIT merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA dan ia diterbitkan dua bulan sekali bermula 2019. Buletin ini diterbitkan di dalam Bahasa Malaysia sahaja. Klik pada pautan di bawah untuk muat turun : Isu - Bil. 2/2020 [PDF] © 2024 Bank Negara Malaysia. All rights reserved.

. R A K A N K E W A N G A N A N D A B I L . 2/2020 Akaun KeldaiPenangguhan Bayaran Premium/Sumbangan untuk Insurans Hayat/ Takaful Keluarga PERCUMA | PP 16897/05/2013 (032581) Penangguhan Pembayaran Balik Pinjaman Adakah anda mempunyai sebarang komen mengenai RINGGIT? Sila imbas kod QR untuk tinjauan bagi Majalah Ringgit. Pakej Rangsangan Ekonomi Prihatin Rakyat Pada 27 Mac 2020, YAB Tan Sri Muhyiddin Yassin, Perdana Menteri Malaysia, telah mengumumkan Pakej Rangsangan Ekonomi Prihatin Rakyat bernilai RM250 bilion yang akan memberi manfaat kepada keseluruhan rakyat Malaysia. Pakej ini disusuli pula dengan Langkah Tambahan Bagi Pakej Rangsangan Ekonomi Prihatin Rakyat atau “Prihatin Tambahan” sebanyak RM10 bilion untuk membantu meringankan beban kewangan Perusahaan Kecil dan Sederhana (PKS). Pakej rangsangan oleh pihak kerajaan ini amat dialu-alukan untuk membantu rakyat menangani kekangan kewangan akibat wabak COVID-19. Walaupun ramai pengguna terjejas dan tidak dapat menjalankan urusan kerja untuk menjana pendapatan, namun langkah yang diambil oleh pihak kerajaan dapat membantu mereka meneruskan kehidupan seharian. Di samping itu, pakej rangsangan ini juga dapat menggerakkan ekonomi rakyat yang terjejas berikutan penguncupan aktiviti ekonomi berikutan wabak COVID-19 ini. Pakej Rangsangan Ekonomi Prihatin Rakyat “Walaupun pengguna tidak dapat menjalankan urusan kerja untuk menjana pendapatan, namun langkah yang diambil oleh pihak kerajaan dapat membantu mereka menjalani kehidupan seharian. “ Antara manfaat yang diterima oleh rakyat adalah seperti berikut: Bantuan PRIHATIN NASIONAL RM1,600 kepada isi rumah yang berpendapatan bulanan kurang daripada RM4,000. RM1,000 kepada isi rumah yang berpendapatan bulanan RM4,001 hingga RM8,000. RM800 kepada individu bujang berusia 21 tahun ke atas dan berpendapatan bulanan RM2,000 dan ke bawah. RM500 kepada individu bujang berusia 21 tahun ke atas dan berpendapatan bulanan lebih RM2,000 hingga RM4,000. Baki pemberian tunai di bawah program Bantuan Sara Hidup (BSH) dibayar pada bulan Julai 2020 RM200 bayaran one-off kepada pelajar institusi pengajian tinggi. Bantuan RM500 secara one-off kepada penjawat awam termasuk yang berstatus kontrak, pesara kerajaan dan pemandu e-hailing. 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Dr. Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Maizatul Aqira Ishak Baskaran Sithamparam Nur Asyikin Aminuddin Ringgit merupakan penerbitan usaha sama antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan secara berkala sebanyak enam edisi mulai tahun 2019. Untuk muat turun Ringgit dalam format “PDF“, sila layari laman sesawang www.fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks: 03-7877 1076 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. “Walaupun pengguna tidak dapat menjalankan urusan kerja untuk menjana pendapatan, namun langkah yang diambil oleh pihak kerajaan dapat membantu mereka menjalani kehidupan seharian. “ RM25 juta bantuan makanan, penjagaan kesihatan dan tempat perlindungan untuk rumah perlindungan, pusat bantuan dan gelandangan melalui kerjasama NGO dan usahawan sosial. Pengeluaran pra-persaraan daripada akaun B Skim Persaraan Swasta sehingga jumlah RM1,500 bagi setiap ahli tanpa sebarang penalti cukai dalam tempoh April hingga Disember 2020. Pengecualian pembayaran sewa selama 6 bulan bagi Projek Perumahan Rakyat dan Perumahan Awam, unit-unit sewa untuk milik (RTO) dan premis milik Kerajaan Persekutuan seperti kantin sekolah, taska, kafeteria, kedai serbaneka dan lain-lain. Diskaun bil elektrik berperingkat antara 15% hingga 50% selama 6 bulan mulai 1 April 2020. bil. 2/2020 | 3 Pengguna haruslah menggunakan wang yang diterima dengan bijak. Mereka perlu berhemat dalam berbelanja dan dapat membezakan antara keperluan dengan kehendak. Pengguna juga dinasihatkan berbelanja dengan bijak. Perubahan corak perbelanjaan dapat membantu mengharungi kehidupan anda sekeluarga dalam menghadapi cabaran kewangan. Jangan risau dan rancanglah kewangan anda sekeluarga. Sumber: www.pmo.gov.my “Dalam tempoh Perintah Kawalan Pergerakkan (PKP), punca pendapatan orang ramai kebanyakannya terjejas. Bantuan Prihatin yang diberikan oleh kerajaan haruslah dihargai. Anda perlu menggunakan bantuan ini dalam menjalani kehidupan sepanjang tempoh PKP ini. Pengguna haruslah bijak dalam merancang perbelanjaan mereka. Keutamaan diberikan kepada perbelanjaan untuk barangan keperluan seharian. Di samping itu, mereka harus menyimpan wang mereka untuk hal-hal kecemasan. Keinginan dan kehendak harus diketepikan buat sementara waktu. Dalam erti kata lain, pengguna harus menguruskan kewangan mereka dengan bijak untuk mengharungi kehidupan dalam keadaan yang selamat.” – Dato’ Dr. Paul Selva Raj, KETUA PEGAWAI EKSEKUTIF FOMCA Pastikan kesinambungan hidup – gunakan simpanan kecemasan, manfaatkan kemudahan penangguhan pembayaran balik pinjaman/ pembiayaan. Hubungi Agensi Kaunseling dan Pengurusan Kredit (AKPK), bank atau syarikat insurans/ pengendali takaful anda untuk dapatkan nasihat dan bantuan segera, sebelum masalah kewangan menjadi tidak terbendung. kepada semua pelanggan telekomunikasi bermula 1 April 2020 sehingga tempoh pelaksanaan Perintah Kawalan Pergerakan (PKP) tamat. Dana khas RM100,000 - RM200,000 untuk setiap Pertubuhan Peladang Kawasan (PPK) dan Pertubuhan Nelayan Kawasan (PNK). Subsidi upah sebanyak RM600 sebulan selama 3 bulan untuk pekerja berpendapatan RM4,000 ke bawah (tiada pemberhentian tenaga kerja). Penangguhan pembayaran balik pinjaman selama 6 bulan, penukaran baki kad kredit kepada pinjaman berjangka dan penstrukturan semula pinjaman korporat. Penangguhan mulai 1 April 2020 ini termasuklah pinjaman yang diberikan melalui TEKUN, MARA dan koperasi serta agensi kerajaan yang memberikan pinjaman kepada PKS. Penangguhan pembayaran premium atau sumbangan ditawarkan oleh syarikat insurans dan pengendali takaful keluarga untuk tiga bulan bagi pencarum yang sumber pendapatan mereka terjejas akibat wabak COVID-19. Internet percuma Utamakan perbelanjaan untuk memenuhi keperluan terlebih dahulu. Ubah gaya hidup, jika perlu. Kaji semula matlamat kewangan anda, termasuklah strategi pelaburan, rancangan percutian mahupun hasrat untuk membeli kereta baru. Sebolehnya, elakkan kompromi perlindungan insurans/takaful anda sekeluarga. Manfaatkan penangguhan pembayaran premium insurans. 4 | RINGGIT Penangguhan Pembayaran Balik Pinjaman “Penangguhan pembayaran balik pinjaman ini memberi kesan yang positif kepada para pengguna. Ianya membolehkan mereka merancang dengan wang yang mereka ada ....” Apakah maksud penangguhan pembayaran balik pinjaman? Merupakan penangguhan atau penggantungan sementara obligasi pembayaran balik pinjaman, termasuklah pembiayaan oleh bank- bank Islam selama enam bulan (pokok dan faedah/keuntungan) untuk membantu aliran tunai individu dan Perusahaan Kecil dan Sederhana (PKS) yang berkemungkinan terjejas akibat COVID-19. Kriteria kelayakan penangguhan pembayaran balik pinjaman Jenis pinjaman yang ditawarkan penangguhan pembayaran balik pinjaman Pinjaman perumahan Pinjaman kenderaan Pinjaman peribadi Pinjaman perniagaan Penangguhan ini tidak diberikan kepada kemudahan kad kredit. Pinjaman TIDAK TERTUNGGAK melebihi 90 hari pada 1 April 2020 Pinjaman dalam denominasi Ringgit Malaysia bil. 2/2020 | 5 Apakah yang perlu peminjam lakukan selepas tempoh 6 bulan tersebut? Perkara Yang Perlu Diketahui Jika TIdAK MAHU PENANGGUHAN, peminjam perlu maklumkan kepada bank dan bayar balik pinjaman seperti biasa. Pinjaman yang tertunggak lebih daripada 90 HARI TIDAK LAYAK mendapat penangguhan ini. Tempoh penangguhan: 1 APRIl 2020 SEHINGGA 30 SEPTEMBER 2020. TIAdA fAEdAH ATAU CAJ lEwAT BAyAR ke atas pembayaran lewat. TIAdA CAJ fAEdAH TAMBAHAN jika mengambil penangguhan pembayaran balik pinjaman sewa beli (konvensional dan Syariah), jumlah ansuran bulanan yang dibayar oleh peminjam akan kekal sama sepanjang tempoh keseluruhan pinjaman. Peminjam TIDAK AKAN dimasukkan di bawah CCRIS bagi penangguhan pembayaran balik pinjaman. SElEPAS TEMPoH 6 BUlAN INI, pinjaman perlu dibayar semula. membolehkan mereka merancang wang yang mereka ada untuk membeli barangan keperluan dan menyimpan untuk tujuan kecemasan. Namun demikian, para pengguna juga dinasihatkan supaya jangan berbelanja dengan sewenang-wenangnya kerana pada hakikatnya mereka perlu membayar balik pinjaman tersebut selepas enam bulan. Sebagai pengguna, anda perlu ingat penangguhan yang diberikan adalah untuk meringankan beban pengguna yang mungkin terjejas sumber pendapatan akibat wabak yang melanda sekarang ini. Oleh itu, bantuan yang diberikan tidak harus dipandang enteng dan dijadikan alasan untuk tidak berhati-hati dalam perbelanjaan. Dalam situasi sebegini, pengguna perlu berhemat dalam perbelanjaan dan meningkatkan simpanan atau tabungan untuk mengharungi cabaran kewangan mendatang. Jadilah pengguna yang bijak. Sumber: www.bnm.gov.my Teruskan pembayaran balik pinjaman mengikut jumlah dan tempoh yang baharu. Bank akan memberitahu peminjam berkaitan maklumat pembayaran balik pinjaman. Jika perlu, peminjam boleh memohon untuk membayar balik pada jumlah yang lebih rendah dan tempoh yang lebih panjang. *Pemegang kad kredit yang menghadapi kekangan kewangan boleh memilih untuk menukar baki kad kredit kepada pinjaman ber jangka. F leks ib i l i t i penangguhan pembayaran balik kad kredit ini boleh dimanfaatkan oleh pemegang kad dari 1 April 2020 sehingga 31 Disember 2020. *Baki kad kredit boleh ditukar kepada pinjaman bertempoh tidak melebihi 3 tahun pada kadar faedah tidak melebihi 13% setahun. Penangguhan pembayaran balik pinjaman ini memberi kesan yang positif kepada para pengguna. Ianya 6 | RINGGIT Penangguhan Bayaran Premium/ Sumbangan untuk Insurans Hayat/Takaful Keluarga wabak COVID-19 yang melanda dunia awal tahun ini memberikan kesan besar kepada kesihatan rakyat dan ekonomi negara. Isi rumah di Malaysia juga tidak terkecuali daripada terkesan dengan wabak ini. Institut Penyelidikan Ekonomi Malaysia menganggarkan Perintah Kawalan Pergerakan (PKP) akan menjejaskan 2.4 juta pekerjaan atau 15.7 peratus jumlah pekerjaan di Malaysia. Manakala, dapatan kajian khas kesan COVID-19 terhadap individu dan ekonomi oleh Jabatan Perangkaan Malaysia pula mendapati hampir separuh atau sebanyak 46.6 peratus responden yang bekerja sendiri mengakui kehilangan sumber pendapatan kesan daripada wabak ini. Kaji selidik itu disertai seramai 168,182 responden yang berumur 15 tahun ke atas secara dalam talian bermula 23 hingga 31 Mac 2020. Pengendali insurans hayat dan takaful menawarkan kelonggaran Perubahan corak perbelanjaan dapat membantu mengharungi cabaran kewangan di saat-saat sebegini. Bagi meringankan beban kewangan isi rumah di Malaysia, 25 syarikat insurans hayat dan pengendali takaful keluarga telah memberikan kelonggaran kepada pemegang polisi/sijil yang terjejas akibat penularan COVID-19 untuk menangguhkan bayaran premium/sumbangan serta fleksibiliti yang berkaitan. Langkah bantuan ini telah diumumkan oleh Persatuan Insurans Hayat Malaysia (LIAM) dan Persatuan Takaful Malaysia (MTA) pada 27 Mac 2020. Walau bagaimanapun, elakkan daripada membatalkan perlindungan insurans/takaful anda sekeluarga yang sudah sedia ada. Kelayakan untuk penangguhan bayaran premium/sumbangan • Pemegang polisi/pemegang sijil yang terjejas* secara langsung akibat COVID-19 akan diberikan penangguhan bayaran premium/sumbangan selama tiga bulan (90 hari); dan • Hanya untuk premium/sumbangan yang perlu dibayar antara 18 Mac 2020 sehingga 31 disember 2020. *Merujuk kepada individu yang telah dijangkiti, dikenakan kuarantin mandatori di rumah atau mengalami kehilangan pendapatan; dan pemilik Perusahaan Kecil dan Sederhana (PKS) yang mengalami kehilangan pendapatan perniagaan, akibat daripada kesan ekonomi yang terhasil akibat wabak COVID-19. Permohonan penangguhan pembayaran Pemegang polisi/sijil yang terjejas boleh membuat permohonan penangguhan daripada syarikat insurans hayat atau pengendali takaful keluarga bermula 1 April 2020 hingga 31 Disember 2020. Tempoh penangguhan bayaran Penangguhan bayaran premium/sumbangan 90 hari akan diberikan dari tarikh akhir premium/sumbangan perlu dibayar setelah mendapat kelulusan dan ianya tertakluk kepada terma dan syarat-syarat syarikat insurans atau pengendali takaful. Pemegang polisi perlu membayar balik semua premium/sumbangan yang ditangguhkan selepas tamat tempoh penangguhan bayaran 3 bulan premium/sumbangan. Fleksibiliti lain untuk mengekalkan atau menghidupkan semula perlindungan Selain itu, syarikat insurans hayat dan pengendali takaful keluarga juga menyediakan bantuan berikut kepada pemegang polisi/sijil yang terjejas sehingga 31 Disember 2020: • Melanjutkan tempoh yang membolehkan pemegang polisi/ sijil menghidupkan semula polisi/sijil yang telah luput; • Memberikan pilihan supaya pemegang polisi/sijil boleh terus membuat bayaran premium/sumbangan dan mengekalkan polisi/sijil mereka. Pilihan ini boleh merangkumi perubahan pada jumlah perlindungan, perubahan pada struktur premium/sumbangan dan pertukaran kepada polisi berbayar (paid up policy); • Memberikan pengecualian fi dan caj yang dikenakan untuk mengubah polisi/sijil; dan • Memberikan pengecualian apa-apa penalti/akibat daripada kelewatan pembayaran premium/sumbangan, terutamanya jika pemegang polisi/sijil tidak dapat mengakses saluran pembayaran elektronik semasa PKP. Hubungi syarikat insurans dan pengendali takaful anda Anda dinasihatkan untuk menghubungi syarikat insurans hayat dan pengendali takaful keluarga untuk memahami maklumat yang lebih lanjut berkaitan: • Manfaat dan terma serta syarat polisi insurans hayat dan sijil takaful keluarga anda; • Nasihat berhubung dengan pilihan bayaran balik premium/ sumbangan yang ditangguhkan; dan • Kelonggaran/bantuan lain yang ditawarkan oleh syarikat insurans hayat dan pengendali takaful keluarga dan impak ke atas perlindungan insurans dan takaful anda. Sumber: www.liam.org.my dan www.bnm.gov.my bil. 2/2020 | 7 Akaun Keldai Seorang gadis mendakwa menjadi mangsa ‘akaun keldai’ yang membabitkan transaksi wang lebih RM100,000. “Aqila (bukan nama sebenar), 21, mencari iklan kerja melalui Facebook dan tertarik dengan satu iklan jawatan kosong. Beliau menghubungi nombor telefon yang tertera dalam iklan itu dan diterima bekerja. Beliau diminta untuk memberikan semua butiran peribadi termasuk nombor akaun bank dan dimaklumkan bahawa gajinya dikira sebanyak RM50 setiap kali membuat pemindahan wang secara online. Ratusan transaksi masuk ke akaunnya dalam pelbagai jumlah (RM10,000, RM7,000, RM16,000 dan RM22,879), sehinggalah namanya tular di media sosial kerana menipu sebagai penjual topeng muka. Beliau akhirnya tersedar segala butiran peribadinya digunakan untuk tujuan penipuan oleh pihak yang tidak bertanggungjawab.” Kisah Aqila ini boleh dijadikan sebagai pengajaran kepada pengguna supaya sentiasa berhati-hati dan tidak mudah tertipu. Apa itu Akaun Keldai Akaun bank yang digunakan oleh orang lain tanpa disedari ataupun secara sukarela oleh pemilik akaun tersebut bagi mendapatkan habuan mahupun dengan cara penipuan untuk transaksi kewangan yang tidak sah atau menyalahi undang-undang. Kumpulan sasaran Sindiket biasanya mendapatkan akaun keldai (juga dikenali sebagai akaun tumpang) ini dengan memperdaya golongan yang memerlukan pendapatan lebihan serta mempunyai tahap celik kewangan yang rendah. Antara golongan yang sering menjadi mangsa termasuklah: • Suri rumah • Penganggur • Pelajar • Warga emas Bagaimanakah orang terpedaya? • Tawaran upah lumayan mencecah ribuan ringgit untuk membuka atau menyerahkan akaun bank bagi kegunaan pihak ketiga. • Modus operandi yang menggunakan tawaran peluang pekerjaan sebagai cara bagi mendapatkan akses kepada akaun bank mangsa. Mangsa dikehendaki menyerahkan butiran akaun bank termasuklah nombor PIN kad ATM sebagai syarat diterima bekerja dengan pihak sindiket akaun keldai. “ ....amatlah penting untuk orang ramai mengelakkan diri daripada membiarkan pihak sindiket menggunakan akaun bank mereka sebagai akaun keldai.” 8 | RINGGIT • Terdapat juga syarikat peminjam wang tidak berlesen yang memperdaya peminjam untuk menyerahkan akaun bank mereka sebagai cagaran pinjaman tersebut. Namun pada hakikatnya, pihak sindiket menggunakan akaun bank sebagai akaun keldai. Tanggungjawab sebagai pemegang akaun bank Setiap pemegang akaun bank bertanggungjawab sepenuhnya ke atas apa jua transaksi dan maklumat perbankan peribadi mereka. Pemegang akaun tidak sepatutnya mendedahkan atau berkongsi apa jua maklumat perbankan peribadi dengan orang lain. Juga, pemegang akaun tidak seharusnya memberi maklumat perbankan peribadi mereka sewenang-wenangnya untuk apa-apa tujuan sekalipun, walaupun untuk tujuan permohonan pekerjaan mahupun pinjaman dengan mana-mana pihak. Selidik terlebih dahulu latar belakang dengan siapa kita berinteraksi. Cara-cara mengelakkan salah guna akaun bank • Jangan serah kad debit/ATM kepada pihak ketiga. • Jangan dedah maklumat perbankan peribadi, nombor akaun, nombor PIN atau kata laluan kepada pihak ketiga. • Laporkan kehilangan kad ATM kepada pihak bank dan polis dengan segera. • Sentiasa berwaspada terhadap mana-mana individu yang tidak dikenali dalam membuat pemindahan wang, kerana ianya boleh didakwa bersubahat melakukan jenayah kewangan bersama suspek. • Laporkan segera kepada pihak polis atau bank sekiranya mendapati wang di dalam akaun bukan milik anda. 1 2 3 3 Tips elak jadi mangsa akaun keldai Lindung: Lindungi kad ATM dan maklumat perbankan peribadi anda dengan tidak berkongsi maklumat tersebut dengan mana-mana pihak. Lapor: Laporkan kepada pihak bank atau polis sekiranya mendapati kehilangan kad ATM atau penyalahgunaan akaun bank anda. Lepas: Lepaskan diri anda dari bersekongkol dengan pihak yang mengkehendaki anda melakukan aktiviti yang mencurigakan seperti membuat pindahan wang kepada orang yang tidak dikenali. Implikasi terhadap pemegang akaun keldai Sekiranya seseorang terjebak menjadi pemegang akaun keldai, individu tersebut boleh disekat daripada menggunakan akaun bank tersebut dan akaun berkenaan boleh ditutup oleh pihak bank. Individu tersebut akan mengalamai kesukaran berurusan dengan bank di masa hadapan. Malah, pemegang akaun keldai boleh disabitkan dengan kesalahan jenayah sekira terbukti dengan sengaja menjadikan diri alat untuk melakukan transaksi menyokong aktiviti yang menyalahi undang-undang. Antara implikasi lain termasuklah: • Kesukaran untuk menerima pendapatan seperti gaji bulanan melalui akaun bank. • Kemungkinan kehilangan pekerjaan yang sedia ada atau sukar mendapat peluang pekerjaan lain. • Kesukaran untuk menjalankan perniagaan memandangkan reputasi telah tercemar. Justeru itu, amatlah penting untuk orang ramai mengelakkan diri daripada membiarkan pihak sindiket menggunakan akaun bank mereka sebagai akaun keldai. Pesanlah kepada rakan taulan dan sanak saudara supaya kita tidak terjebak dengan akaun keldai ini sama sekali. Sekiranya ada sebarang pertanyaan, sila hubungi Bank Negara Malaysia melalui: Telefon: 1-300-88-5465 (BNMTElElINK) Webform: https://telelink.bnm.gov.my/ Sumber: www.bnm.gov.my bil. 2/2020 | 9 RM RM XXXXXX AQILA Pusat Khidmat Aduan Pengguna Nasional (NCCC) telah menerima sebanyak 594 aduan berhubung perkhidmatan kesihatan dan perubatan swasta sepanjang tahun 2018. Daripada jumlah ini, 198 aduan atau 3 3 % a d a l a h m e n g e n a i k u a l i t i p e r k h i d m a t a n yang t idak memuaskan. K e b a n y a k a n p e n g g u n a mengadu perkhidmatan yang diberikan tidak beretika dan tidak profesional khususnya dalam mendapatkan penjelasan pertanyaan atau tentang sesuatu perkara serta mengambil masa yang lama untuk mendapatkan maklum balas. Selain itu, terdapat juga banyak rungutan yang mendakwa rawatan yang diterima tidak sempurna, tersalah diagnosis dan juga pemberian ubat yang tidak sesuai. Ketiga-tiga jenis aduan ini merangkumi hampir 265 daripada jumlah aduan. Kebelakangan ini, banyak isu yang diketengahkan oleh para pengguna, yang tidak berpuas hati mengenai para pengamal perubatan dan ejen insurans seperti yang dilaporkan dalam akhbar- akhbar tempatan. Masing-masing ingin menegakkan pandangan mereka. Para pengguna menuding jari kepada pihak insurans yang meminta pemegang kad kesihatan membuat pembayaran dahulu dan Perkhidmatan Kesihatan dan Perubatan Hospital Swasta menuntutnya kemudian. Pemegang kad merungut mereka membayar premium setiap tahun, namun terpaksa membayar dahulu selepas mendapat rawatan. Persoalan yang dikemukakan oleh para pemegang kad adalah, bagaimana mereka hendak menyediakan sejumlah wang yang besar bagi kos perubatan yang tinggi sedangkan mereka sudah membayar premium setiap tahun? Pihak insurans pula mempersoalkan bayaran yang dikenakan oleh pihak hospital terlalu tinggi dan berbeza antara satu hospital swasta dengan yang lain. Ini menyebabkan syarikat insurans meminta para pemegang kad membayar dahulu dengan harapan kos yang akan dikenakan pihak hospital adalah lebih rendah berbanding dengan bayaran yang dikenakan kepada pihak insurans. Persatuan Insurans Am Malays ia (PIAM), Persatuan Insurans Hayat Malaysia (LIAM), semua hospital swasta di Malaysia, Kementerian Kesihatan Malaysia, Kementerian Kewangan serta Bank Negara Malaysia perlu meningkatkan kerjasama untuk mencari jalan penyelesaian dalam mengatasi masalah ini. Situasi sekarang ini bak kata pepatah, “Gajah sama gajah berjuang, pelanduk mati di tengah-tengah”. Itulah situasi sebenar pemegang kad kesihatan dan jangan jadikan pemegang kad kesihatan mangsa dalam hal ini. Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) bil. 2/2020 | 11 Adv-(new) Iklan macau scam belakang OL (bleed).pdf 1 26/2/2020 5:46:50 PM

Public Notice

19 Mei 2020

Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-201 dan Mesyuarat Khas MPS ke-26

https://www.bnm.gov.my/-/keputusan-mesyuarat-majlis-penasihat-shariah-mps-ke-201-dan-mesyuarat-khas-mps-ke-26

https://www.bnm.gov.my/documents/20124/914558/03_SAC201_Statement_eMoney_bm.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/keputusan-mesyuarat-majlis-penasihat-shariah-mps-ke-201-dan-mesyuarat-khas-mps-ke-26&languageId=ms_MY

Reading: Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-201 dan Mesyuarat Khas MPS ke-26 Share: Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-201 dan Mesyuarat Khas MPS ke-26 Tarikh Siaran: 19 Mei 2020 Majlis Penasihat Shariah (MPS) Bank Negara Malaysia pada mesyuarat ke-201 dan mesyuarat khas ke-26 bertarikh 29 Januari dan 30 Januari 2020  telah memutuskan bahawa wang elektronik (e-wang) merupakan instrumen pembayaran yang diharuskan oleh Syariah dengan syarat struktur e-wang tersebut hendaklah berasaskan kontrak Syariah yang bersesuaian bagi menjaga hak dan tanggungjawab setiap pihak yang berkontrak. Salah satu kontrak yang boleh diterima pakai bagi e-wang ialah kontrak perwakilan (wakalah). Melalui konsep ini, pengeluar yang diluluskan bertindak sebagai wakil kepada pengguna dalam membuat pembayaran (wakil bi ad-daf`i) kepada penjual (merchant). Sehubungan itu, dana yang diterima daripada pengguna mesti disimpan dalam akaun amanah (trust account) atau akaun deposit khusus (dedicated deposit account) patuh Syariah sepertimana tertakluk di bawah seksyen 137 Akta Perkhidmatan Kewangan Islam 2013 (APKI). Pengeluar yang diluluskan perlu mematuhi Garis Panduan Wang Elektronik (Garis Panduan) yang diterbitkan oleh Bank Negara Malaysia (Bank) pada 31 Julai 2008 (termasuk pindaan dari masa ke masa). Ini termasuk kebenaran kepada pengeluar yang diluluskan untuk menggunakan dana dalam akaun pengguna bagi tujuan pelaburan dan apa-apa pulangan adalah milik pengeluar yang diluluskan, tertakluk kepada syarat-syarat dalam Garis Panduan. Berlandaskan pendekatan ini, dana tersebut boleh dianggap sebagai satu bentuk pinjaman (qard) daripada pengguna kepada pengeluar yang diluluskan. Memandangkan pengeluar yang diluluskan hanya bertindak sebagai wakil pembayaran bagi pihak pengguna kepada penjual, adalah menjadi tanggungjawab pengguna untuk memastikan e-wang digunakan bagi tujuan patuh Syariah. Sila lihat lampiran di sini  untuk maklumat lanjut. © 2024 Bank Negara Malaysia. All rights reserved.

Mesyuarat MPS ke-201 dan Mesyuarat Khas MPS ke-26 2020 1   Keputusan Mesyuarat Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Wang Elektronik Sebagai Instrumen Pembayaran Patuh Syariah Mesyuarat MPS ke-201 dan Mesyuarat Khas MPS ke-26 bertarikh 29 dan 30 Januari 2020 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009, MPS telah memutuskan bahawa: Wang elektronik (e-wang) merupakan instrumen pembayaran yang diharuskan oleh Syariah dengan syarat struktur e-wang tersebut hendaklah berasaskan kontrak Syariah yang bersesuaian bagi menjaga hak dan kewajipan setiap pihak yang berkontrak. Salah satu kontrak yang boleh diterima pakai bagi e-wang ialah kontrak perwakilan (wakalah). Melalui konsep ini, pengeluar yang diluluskan bertindak sebagai wakil kepada pengguna dalam membuat pembayaran (wakil bi ad-daf`i) kepada penjual (merchant). Sehubungan itu, dana yang diterima daripada pengguna mesti disimpan dalam akaun amanah (trust account) atau akaun deposit khusus (dedicated deposit account) patuh Syariah sepertimana tertakluk di bawah seksyen 137 Akta Perkhidmatan Kewangan Islam 2013 (APKI). Pengeluar yang diluluskan perlu mematuhi Garis Panduan Wang Elektronik (Garis Panduan) yang diterbitkan oleh Bank Negara Malaysia (Bank) pada 31 Julai 2008 (termasuk pindaan dari masa ke masa). Ini termasuk kebenaran kepada pengeluar yang diluluskan untuk menggunakan dana dalam akaun pengguna bagi tujuan pelaburan dan apa-apa pulangan adalah milik pengeluar yang diluluskan,1 tertakluk kepada syarat- syarat dalam Garis Panduan. Berlandaskan pendekatan ini, dana tersebut boleh dianggap sebagai satu bentuk pinjaman (qard) daripada pengguna kepada pengeluar yang diluluskan. Memandangkan pengeluar yang diluluskan hanya bertindak sebagai wakil pembayaran bagi pihak pengguna kepada penjual, adalah menjadi tanggungjawab pengguna untuk memastikan e-wang digunakan bagi tujuan patuh Syariah. Keputusan ini berkuat kuasa dengan penerbitannya dalam laman sesawang Bank pada 19 Mei 2020 dan terpakai kepada: (a) pengeluar e-wang patuh Syariah yang diluluskan di bawah APKI; dan (b) pengeluar e-wang yang diluluskan di bawah Akta Perkhidmatan Kewangan 2013 (APK) diluluskan di bawah Seksyen 15(1)(e) APK untuk mengeluarkan e-wang patuh Syariah (dikenali bersama sebagai “pengeluar yang diluluskan”).   Selaras dengan seksyen 28(1) dan (2) APKI, bagi tujuan pengeluaran e-wang patuh Syariah, pengeluar yang diluluskan dikehendaki mematuhi keputusan ini kerana pematuhan dengan apa-apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan pengendalian, perniagaan, hal ehwal atau aktiviti pengeluar yang diluluskan tersebut adalah disifatkan sebagai pematuhan kepada Syariah selagi mana ia berkaitan dengan perniagaan sedemikian.                                                              1 Perenggan 10.2, Garis Panduan Wang Elektronik. Mesyuarat MPS ke-201 dan Mesyuarat Khas MPS ke-26 2020 2   Bahagian II: Latar Belakang E-wang merupakan salah satu daripada instrumen pembayaran di bawah APK dan APKI. E-wang membolehkan pembayaran yang cekap tanpa tunai berlaku melalui kad prabayar atau aplikasi dompet elektronik (e-dompet). Penggunaan instrumen ini yang semakin diterima ramai telah menimbulkan persoalan berkenaan sejauh manakah pengoperasian e-wang mematuhi prinsip Syariah. Secara ringkasnya, struktur operasi e-wang sedia ada ialah seperti berikut: Ilustrasi: Struktur Operasi E-Wang Secara Ringkas 1. Pengguna yang berdaftar meletakkan dana dalam akaun e-wang mereka. 2. Pengguna membuat transaksi dengan penjual. 3. Pengeluar yang diluluskan membuat penyelesaian kepada penjual bagi pihak pengguna. 4. Pengeluar yang diluluskan mengenakan fi kepada penjual berdasarkan kontrak yang dipersetujui antara pengeluar yang diluluskan dengan penjual. Isu Syariah Berdasarkan struktur operasi di atas, terdapat beberapa isu yang dibincangkan oleh MPS: 1. Apakah kontrak Syariah yang mendasari hubungan antara pihak-pihak berkontrak? 2. Bagaimanakah pengeluar yang diluluskan menguruskan dana yang diterima daripada pengguna? Adakah dana tersebut boleh digunakan oleh pengeluar yang diluluskan? 3. Adakah pengeluar yang diluluskan boleh memberi ganjaran kepada pengguna? 4. Apakah status pembayaran bagi transaksi barangan atau produk tidak patuh Syariah? Perbincangan MPS berhubung perkara ini berpandukan kepada mandat dan objektif instrumen e-wang yang berbeza daripada mandat institusi kewangan yang menawarkan pelbagai perkhidmatan kewangan. Mesyuarat MPS ke-201 dan Mesyuarat Khas MPS ke-26 2020 3   Bahagian III: Perbincangan Utama Isu 1: Kontrak Syariah antara pihak-pihak berkontrak 1(a). Kontrak antara pengguna dengan pengeluar yang diluluskan  Dalam menentukan aplikasi kontrak Syariah yang bersesuaian bagi isu 1(a), MPS telah mengambil kira perkara-perkara berikut: o peranan pengeluar yang diluluskan sebagai perantara pembayaran bagi pihak pengguna kepada penjual; o peletakan dana oleh pengguna adalah bagi tujuan pembayaran. Dana tersebut dimasukkan ke dalam akaun amanah/akaun deposit khusus dan diuruskan oleh pengeluar yang diluluskan; dan o peruntukan Garis Panduan hanya membenarkan pengeluar yang diluluskan untuk:  mengeluarkan e-wang sebagai instrumen pembayaran; dan  melaburkan dana yang diletakkan dalam akaun amanah/akaun deposit khusus dan mengambil keuntungan daripada pelaburan tersebut.  Berdasarkan pertimbangan di atas, MPS berpendapat bahawa kontrak wakalah merupakan salah satu kontrak Syariah yang menepati hak dan kewajipan pihak berkontrak dalam transaksi e-wang. MPS memutuskan bahawa penstrukturan e-wang berdasarkan kontrak wakalah boleh dilaksanakan seperti berikut: o pengeluar yang diluluskan  menawarkan khidmat wakalah kepada pengguna untuk membuat pembayaran bagi pihak pengguna kepada penjual; o pengguna meletakkan dana dalam akaun e-wang yang berdaftar dengan pengeluar yang diluluskan; dan o pengeluar yang diluluskan membuka akaun amanah/akaun deposit khusus bagi dana yang diletakkan oleh pengguna dan dana tersebut perlu digunakan untuk menyelesaikan pembayaran kepada penjual atau dipulangkan kepada pengguna. 1(b). Kontrak Syariah antara pengeluar yang diluluskan dengan penjual  MPS memutuskan bahawa kontrak upah atas perkhidmatan (ijarah al-khadamat) atau kontrak pemberian insentif atas perkhidmatan (ju`alah) boleh menjadi penyesuaian fiqah (takyif fiqhi) bagi transaksi antara pengeluar yang diluluskan dan penjual. Isu 2: Pengurusan dana oleh pengeluar yang diluluskan  Bagi e-wang patuh Syariah, MPS memutuskan bahawa pengeluar yang diluluskan mesti meletakkan dana yang diterima daripada pengguna ke dalam akaun amanah/akaun deposit khusus patuh Syariah.  Berdasarkan peruntukan dalam Garis Panduan, pengeluar yang diluluskan bertanggungjawab untuk menguruskan dana yang diterima daripada pengguna secara berhemah. Pengeluar yang diluluskan juga dibenarkan untuk melaburkan dana tersebut dan mengambil keuntungan daripada pelaburan tersebut. Oleh itu, dana yang diterima tersebut boleh disifatkan sebagai qard daripada pengguna kepada pengeluar yang diluluskan. Mesyuarat MPS ke-201 dan Mesyuarat Khas MPS ke-26 2020 4   Isu 3: Isu berbangkit mengenai qard jarra naf`an dalam amalan pemberian ganjaran  Pengeluar yang diluluskan menawarkan ganjaran atas beberapa faktor seperti pendaftaran kepada perkhidmatan e-wang, tambah nilai terhadap baki, atau penggunaan e-wang untuk membuat pembayaran kepada penjual. Memandangkan dana yang diterima daripada pengguna boleh dianggap sebagai satu bentuk qard daripada pengguna kepada pengeluar yang diluluskan, terdapat persoalan sama ada pemberian ganjaran tersebut bertentangan dengan prinsip Syariah yang melarang pinjaman yang memberikan manfaat kepada pemberi pinjaman (qard jarra naf`an).  MPS memutuskan bahawa tiada isu qard jarra naf`an bagi amalan pemberian ganjaran kepada pengguna berdasarkan pertimbangan berikut: o kontrak qard dalam penggunaan e-wang bersifat sampingan sahaja, berbeza dengan kontrak qard dalam akaun deposit yang ditawarkan oleh institusi perbankan; o tiada keberkaitan antara dana yang diletakkan oleh pengguna dengan ganjaran yang diberikan oleh pengeluar yang diluluskan; o ganjaran yang diberikan kepada pengguna oleh pengeluar yang diluluskan bukanlah ganjaran kepada amaun dana yang diletakkan oleh pengguna, sebaliknya ia bertujuan sebagai strategi pemasaran bagi memperluaskan lagi penyertaan pelanggan; o peruntukan Garis Panduan secara jelas tidak membenarkan bagi pengeluar yang diluluskan untuk mengeluarkan e-wang dengan nilai yang lebih besar daripada nilai yang diterima daripada pengguna;2 dan   o perbezaan amalan (`urf) bagi penggunaan dana oleh pengeluar yang diluluskan dengan amalan perniagaan perbankan biasa menjadikan kontrak qard tersebut sebagai kontrak sampingan sahaja. Isu 4: Penggunaan e-wang bagi pembayaran kepada penjual tidak patuh Syariah  MPS membincangkan permasalahan tersebut dalam dua konteks:  o e-wang sebagai instrumen pembayaran patuh Syariah; atau o pengeluar yang diluluskan yang ingin menjadi pengeluar patuh Syariah yang diluluskan.  Status e-wang sebagai instrumen patuh Syariah tidak terjejas dengan penggunaan bagi tujuan pembayaran transaksi tidak patuh Syariah berdasarkan pertimbangan berikut:  o e-wang adalah neutral dan mempunyai sifat yang sama dengan wang tunai, kecuali ia disimpan dalam bentuk elektronik; dan o adalah menjadi tanggungjawab pengguna untuk memastikan e-wang digunakan bagi tujuan transaksi patuh Syariah.      Walau bagaimanapun, mana-mana pengeluar yang diluluskan sebagai pengeluar e-wang patuh Syariah di bawah APKI perlu mematuhi perkara-perkara berikut:  o tiada urus niaga yang melibatkan penjual tidak patuh Syariah. MPS memutuskan bahawa sekiranya terdapat pengecualian yang ditetapkan oleh penasihat Syariah berkelayakan bagi pengeluar yang diluluskan, pengeluar yang diluluskan tersebut perlu mematuhi syarat- syarat yang ditentukan oleh penasihat Syariah berkelayakan berkenaan; dan  o tiada penawaran bersama (bundling) atau menjual silang (cross-selling) dengan produk tidak patuh Syariah.                                                               2 Perenggan 13.1, Garis Panduan Wang Elektronik. Mesyuarat MPS ke-201 dan Mesyuarat Khas MPS ke-26 2020 5   Bahagian IV: Asas Pertimbangan Keharusan penggunaan teknologi sebagai pemudah cara  Secara umumnya, teknologi merupakan inovasi yang bertujuan antara lainnya untuk memudahkan transaksi dan urusan sesama manusia bagi mencapai tujuan masing-masing. Pandangan ini selaras dengan pandangan Majma` Fiqh al-Islami yang mengharuskan penyempurnaan akad antara dua pihak berkontrak menggunakan alat komunikasi moden bagi memudahkan urusan transaksi muamalat.3 Hal ini kerana teknologi adalah neutral di sisi Syariah dan sah untuk digunakan, selaras dengan kaedah fiqah berikut: “Asal (sesuatu itu) adalah sah.”4 Keharusan penggabungan kontrak-kontrak Syariah  Himpunan beberapa kontrak dalam satu produk5 adalah harus dengan syarat setiap kontrak adalah dibenarkan dan tiada dalil Syarak yang menegahnya.6 Walau bagaimanapun, keharusan himpunan ini mesti menepati garis panduan Syariah yang berikut: i. Tiada larangan Syarak yang jelas berkenaan penggabungan kontrak-kontrak Syariah tersebut, seperti larangan himpunan kontrak jual beli dan kontrak pinjaman (bai` wa salaf) atau bukan jalan ke arah riba (zari`ah ila riba) seperti himpunan dua kontrak jual beli (bai` `inah); dan ii. Tidak terdapat percanggahan antara akad-akad tersebut dari segi hukum, seperti himpunan antara hibah sesuatu barang kepada penerima hibah dengan penjualannya kepada penerima yang sama.  Himpunan kontrak dalam satu produk bertujuan memenuhi objektif dan keperluan pihak-pihak berkontrak di samping mencerminkan mekanisme operasi sesuatu produk secara tepat. Ia dianggap sebagai akad-akad yang tidak disebut dalam teks klasikal (`uqud ghair musamma)7 yang telah memberi ruang kepada pelbagai inovasi dalam sektor kewangan Islam. Ini selaras dengan kaedah umum fiqah iaitu: “Hukum asal mualamat adalah harus, kecuali ada dalil yang mengharamkannya.”8                                                              3 Qarar Majma` al-Fiqh al-Islami, Muktamar ke-6, 14-20 Mac 1990, Jeddah. 4 Al-Ansari, Asna al-Matalib fi Syarh Rawd al-Talib, Dar al-Kutub al-`Ilmiyyah, 2000, j. 2, h. 2154. 5 Pandangan ini selaras dengan keputusan MPS pada mesyuarat ke-140 bertarikh 28 Oktober 2013 dan mesyuarat ke- 166 bertarikh 23 Februari 2016 yang memutuskan keharusan penggabungan beberapa kontrak dalam satu perjanjian induk. 6 Hasan Ali al-Syazili, Ijtima` al-`Uqud al-Mukhtalifah fi `Aqd Wahid, dalam A`maal al-Nadwah al-Fiqhiyyah al-Khamisah li Bait Tamwil al-Kuwaiti, Bait al-Tamwil al-Kuwaiti, 1998, h. 506. 7 Mustafa al-Zarqa’, al-Madkhal al-Fiqhi al-`Am, Dar al-Qalam, Damascus, 2004, h. 569-570. 8 Ibnu Uthaimin, Al-Syarh al-Mumti` `ala Zad al-Mustaqni`, Dar Ibni al-Jauzi, j. 8, h. 241. Mesyuarat MPS ke-201 dan Mesyuarat Khas MPS ke-26 2020 6    Kesan penggunaan kontrak Syariah tertentu bergantung kepada terma dan syarat yang dipersetujui dalam sesuatu kontrak selagi ia tidak bercanggah dengan kaedah umum Syarak. Ini selaras dengan kaedah fiqah berikut: “Hukum asal dalam akad ialah redha atau persetujuan kedua-dua pihak yang berkontrak dan kesan kontrak ialah berdasarkan (hak dan tanggungjawab) yang telah mereka persetujui dalam akad.”9 Bahagian V: Implikasi Keputusan MPS  Keputusan ini merupakan panduan kepada mana-mana pengeluar yang diluluskan yang ingin menawarkan e-wang patuh Syariah. Pengeluar yang diluluskan digalakkan untuk memberi kefahaman yang sewajarnya berhubung produk e-wang patuh Syariah bagi mengelakkan salah faham terhadap keputusan ini.                                                              9 Ahmad al-Zarqa, Syarh al-Qawa`id al-Fiqhiyyah, Dar al-Qalam, 1989, h. 482.

Public Notice

19 Mei 2020

Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-199

https://www.bnm.gov.my/-/keputusan-mesyuarat-majlis-penasihat-shariah-mps-ke-199

https://www.bnm.gov.my/documents/20124/914558/02_SAC199_Draft+SAC+Statement_STP_bm.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/keputusan-mesyuarat-majlis-penasihat-shariah-mps-ke-199&languageId=ms_MY

Reading: Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-199 Share: Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-199 Tarikh Siaran: 19 Mei 2020 Majlis Penasihat Shariah (MPS) Bank Negara Malaysia pada mesyuarat ke-199 bertarikh 26 November 2019 telah telah memutuskan bahawa cadangan untuk melaksanakan tawarruq secara Straight-Through Processing (STP) adalah dibenarkan tertakluk kepada syarat-syarat berikut: Kontrak jual beli dalam tawarruq hendaklah dilaksanakan mengikut turutan yang betul  dan disokong dengan bukti yang jelas; Aset yang diurusniagakan mestilah boleh dikenal pasti dan ditentukan secara spesifik (mu`ayyan bi al-zat) dari sudut lokasi, kuantiti dan kualiti bagi memenuhi ciri-ciri urus niaga sebenar; Pelaksanaan dwi-agensi hendaklah mematuhi keperluan yang ditetapkan dalam dokumen polisi Tawarruq yang merangkumi, tetapi tidak terhad kepada, perkara-perkara berikut: peranan dan tanggungjawab pihak berkontrak, penentuan harga, tempoh matang dan spesifikasi aset, hendaklah dipersetujui oleh pihak-pihak berkontrak; dan mestilah terdapat pengasingan yang jelas berkenaan peranan dan tugas yang akan dilaksanakan oleh wakil. Pemilikan terhadap aset yang diurusniagakan dari sudut Syariah dan perundangan serta risiko berkaitan pemilikan hendaklah wujud dan dapat dibuktikan melalui dokumentasi atau rekod yang bersesuaian; dan Pembeli mesti mempunyai hak untuk menerima penyerahan (take delivery) terhadap aset yang diurusniagakan pada setiap kontrak jual beli dalam tawarruq. Bagi pelaksanaan tawarruq melalui STP, pilihan untuk menerima penyerahan hendaklah dizahirkan kepada pelanggan secara jelas sebelum pelaksanaan tawarruq atau selepas transaksi jualan aset kepada pelanggan dilaksanakan. Sila lihat lampiran di sini untuk maklumat lanjut.   © 2024 Bank Negara Malaysia. All rights reserved.

Mesyuarat MPS ke-199 2019 1    Keputusan Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Pelaksanaan Tawarruq Secara Straight-Through Processing (STP) Mesyuarat MPS Ke-199 bertarikh 26 November 2019 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009, MPS telah memutuskan bahawa cadangan untuk melaksanakan tawarruq secara STP adalah dibenarkan tertakluk kepada syarat-syarat berikut: i. Kontrak jual beli dalam tawarruq hendaklah dilaksanakan mengikut turutan yang betul1 dan disokong dengan bukti yang jelas2; ii. Aset yang diurusniagakan mestilah boleh dikenal pasti dan ditentukan secara spesifik (mu`ayyan bi al-zat) dari sudut lokasi, kuantiti dan kualiti bagi memenuhi ciri-ciri urus niaga sebenar; iii. Pelaksanaan dwi-agensi hendaklah mematuhi keperluan yang ditetapkan dalam dokumen polisi Tawarruq (DP Tawarruq) yang merangkumi, tetapi tidak terhad kepada, perkara-perkara berikut: a) peranan dan tanggungjawab pihak berkontrak, penentuan harga, tempoh matang dan spesifikasi aset, hendaklah dipersetujui oleh pihak-pihak berkontrak; dan b) mestilah terdapat pengasingan yang jelas berkenaan peranan dan tugas yang akan dilaksanakan oleh wakil. iv. Pemilikan terhadap aset yang diurusniagakan dari sudut Syariah dan perundangan serta risiko berkaitan pemilikan hendaklah wujud dan dapat dibuktikan melalui dokumentasi atau rekod yang bersesuaian;3 dan v. Pembeli mesti mempunyai hak untuk menerima penyerahan (take delivery) terhadap aset yang diurusniagakan pada setiap kontrak jual beli dalam tawarruq. Bagi pelaksanaan tawarruq melalui STP, pilihan untuk menerima penyerahan hendaklah dizahirkan kepada pelanggan secara jelas sebelum pelaksanaan tawarruq atau selepas transaksi jualan aset kepada pelanggan dilaksanakan.4 Keputusan ini berkuat kuasa dengan penerbitannya dalam laman sesawang Bank Negara Malaysia (Bank)5 pada 19 Mei 2020 dan terpakai kepada institusi kewangan Islam (IKI) berikut: (a) orang berlesen menurut Akta Perkhidmatan Kewangan Islam 2013 (APKI); (b) bank berlesen atau bank pelaburan berlesen yang diluluskan di bawah seksyen 15(1) Akta Perkhidmatan Kewangan 2013 (APK) untuk menjalankan perniagaan kewangan Islam; dan (c) institusi yang ditetapkan yang diluluskan di bawah seksyen 33B(1) Akta Institusi Kewangan Pembangunan 2002 (DFIA) untuk menjalankan perniagaan kewangan Islam.                                                              1 Perenggan 12.3 DP Tawarruq. 2 Perenggan 15.3 DP Tawarruq. 3 Perenggan 13.7 hingga 13.10 DP Tawarruq. 4 Penzahiran tersebut hendaklah dibuat berdasarkan kaedah yang diiktiraf oleh amalan perniagaan (`urf tijari) dan bertepatan dengan Syariah. 5 Bank telah memaklumkan kepada institusi kewangan Islam yang berkenaan berhubung keputusan ini pada 28 November 2019 selepas mesyuarat MPS ke-199.  Mesyuarat MPS ke-199 2019 2    Selaras dengan seksyen 28(1) dan (2) APKI atau seksyen 33D (1) dan (2) DFIA, mengikut mana- mana yang berkenaan, IKI dikehendaki mematuhi keputusan ini kerana pematuhan dengan apa-apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan pengendalian, perniagaan, hal ehwal atau aktiviti IKI tersebut adalah disifatkan sebagai pematuhan kepada Syariah. Bahagian II: Latar Belakang  Beberapa IKI telah mengemukakan cadangan kepada Bank berhubung pelaksanaan tawarruq secara STP bagi produk pembiayaan dan deposit. Melalui STP, kontrak jual beli dalam tawarruq akan dilaksanakan secara automatik apabila satu set data urus niaga yang mengandungi semua maklumat pembelian aset dihantar kepada pelayan (server) penyedia platform perdagangan komoditi.  Pelaksanaan tawarruq secara STP merupakan suatu penambahbaikan kepada kaedah pelaksanaan tawarruq sedia ada. Sistem STP dapat meningkatkan kecekapan pelaksanaan tawarruq dan lebih praktikal bagi menampung jumlah urus niaga yang tinggi pada satu-satu masa. Oleh itu, STP dijangka dapat menangani isu-isu operasi yang berpotensi membawa kepada insiden ketidakpatuhan Syariah.  Terdapat dua (2) cadangan kaedah pelaksanaan STP iaitu: (a) Pelaksanaan STP secara arahan langkah demi langkah (step-by-step instruction):  Setiap kontrak jual beli dalam tawarruq akan dilaksanakan setelah sistem STP menerima arahan langkah demi langkah daripada IKI untuk melaksanakan setiap kontrak jual beli yang selaras dengan turutan yang telah ditetapkan oleh DP Tawarruq.  Sama seperti pelaksanaan tawarruq sedia ada, IKI akan bertindak selaku wakil bagi pihak pelanggan untuk melaksanakan kontrak jual beli.        Bagi setiap kontrak jual beli, terdapat suatu sela masa yang membolehkan pembeli membuat pilihan untuk menerima penyerahan aset yang diurusniagakan. (b) Pelaksanaan STP secara arahan menyeluruh (blanket instruction):  Arahan untuk melaksanakan ketiga-tiga kontrak jual beli dalam tawarruq akan dimasukkan oleh IKI ke dalam sistem STP pada peringkat permulaan iaitu sebelum kontrak jual beli dalam tawarruq dilaksanakan.  IKI akan bertindak selaku wakil kepada pelanggan bagi menyempurnakan kontrak jual beli kedua (mewakili pelanggan untuk menerima penjualan daripada IKI) dan kontrak jual beli ketiga (mewakili pelanggan untuk menjual kepada penyedia platform perdagangan komoditi).  Pilihan kepada pelanggan untuk menerima penyerahan aset hanya dizahirkan sebelum kontrak jual beli dalam tawarruq dilaksanakan. Pelanggan tidak mempunyai pilihan untuk menerima penyerahan aset semasa proses jual beli sedang berlangsung.  Semua kontrak jual beli dalam tawarruq akan diselesaikan oleh sistem STP dengan sangat efisien (dalam beberapa milisaat atau nanosaat). Mesyuarat MPS ke-199 2019 3    Isu Syariah Sama ada pelaksanaan tawarruq secara STP mematuhi keperluan Syariah? Ilustrasi pelaksanaan pembiayaan berasaskan tawarruq melalui STP Bahagian III: Perbincangan Utama Sama ada pelanggan mempunyai pilihan untuk menerima penyerahan aset  Dalam pelaksanaan tawarruq secara STP, penzahiran kepada pelanggan berkenaan pilihan untuk menerima penyerahan aset akan dibuat seperti berikut: Arahan langkah demi langkah Sebelum memasuki tawarruq atau selepas aset dijual kepada pelanggan. Arahan menyeluruh Sebelum memasuki tawarruq.  Pelaksanaan tawarruq secara STP dengan arahan menyeluruh secara tidak langsung menyebabkan pelanggan tidak mempunyai pilihan untuk menerima penyerahan aset semasa kontrak jual beli dalam tawarruq sedang dilaksanakan. Walau bagaimanapun, menerusi aturan dwi-agensi iaitu dengan pelantikan IKI selaku wakil pelanggan untuk melaksanakan semua proses jual beli, pelanggan sekaligus telah bersetuju untuk melepaskan haknya untuk menerima penyerahan aset pada peringkat awal kontrak.  Sijil elektronik yang dikeluarkan oleh platform perdagangan komoditi memperincikan butiran aset dan membuktikan pelaksanaan jual beli serta penyempurnaan pemindahan hak milik. Sama ada terdapat pengasingan yang jelas berkenaan peranan dan tugas wakil dalam aturan dwi-agensi  DP Tawarruq6 menetapkan bahawa IKI perlu mewujudkan pengasingan yang jelas berkenaan peranan dan tugas yang akan dilaksanakan dalam aturan dwi-agensi seperti menetapkan kakitangan yang berbeza untuk menjalankan setiap peranan atau menggunakan sistem yang bersesuaian bagi melaksanakan peranan dwi-agensi secara berasingan seperti sistem pesanan ringkas (SMS) atau panggilan telefon.                                                              6 Perenggan 26.2(d)(ii) DP Tawarruq. Mesyuarat MPS ke-199 2019 4     Antara tujuan keperluan ini adalah bagi memastikan jual beli dalam tawarruq dilaksanakan dalam turutan yang betul.  Sistem STP dibangunkan bagi membolehkan kontrak jual beli dalam tawarruq dilaksanakan mengikut turutan yang betul. Oleh itu, wakil yang dilantik akan bertindak mengikut turutan yang betul dalam melaksanakan kontrak jual beli. Perkara ini membuktikan bahawa peranan wakil dalam aturan dwi-agensi ini adalah dilaksanakan secara berasingan pada setiap proses jual beli.  Penetapan kakitangan yang berbeza bagi menjalankan tugas wakil hanyalah salah satu contoh pengoperasian aturan dwi-agensi yang sejajar dengan keperluan Syariah. Bahagian IV: Asas Pertimbangan Pelaksanaan dwi-agensi mematuhi keperluan yang ditetapkan dalam DP Tawarruq  DP Tawarruq7 menetapkan bahawa pelaksanaan kontrak jual beli antara prinsipal dan wakil dalam aturan dwi-agensi hendaklah mematuhi syarat-syarat berikut: (a) sebarang kriteria atau spesifikasi penting bagi melaksanakan tugas yang dipertanggungjawabkan seperti penentuan harga, tempoh matang dan spesifikasi aset, hendaklah dipersetujui oleh pihak-pihak berkontrak; dan (b) urus niaga tersebut hendaklah mengikut turutan yang betul seperti yang diperuntukkan dalam DP Tawarruq8 dan disokong oleh bukti yang jelas dan nyata.  Pelaksanaan tawarruq secara STP yang dicadangkan mematuhi keperluan di atas kerana pihak- pihak yang terlibat dalam pelaksanaan tawarruq telah bersetuju dengan terma dan syarat pada peringkat awal kontrak dan seterusnya kontrak jual beli dilaksanakan mengikut turutan yang betul. Kontrak jual beli dilaksanakan mengikut turutan yang betul  DP Tawarruq9 menetapkan bahawa penawaran dan penerimaan bagi kontrak jual beli dalam tawarruq hendaklah dilaksanakan mengikut turutan berikut: (a) penjual menjual aset kepada pembeli dengan memeterai kontrak jual beli; dan (b) seterusnya, pembeli bagi kontrak jual beli yang pertama memeterai kontrak jual beli yang lain untuk menjual aset yang sama kepada pihak ketiga.  Sistem STP telah ditetapkan untuk melaksanakan setiap kontrak jual beli mengikut turutan yang betul seperti yang dikehendaki oleh DP Tawarruq. Sistem STP tidak akan membenarkan kontrak kedua berlaku sebelum kontrak pertama selesai. Pelaksanaan kontrak jual beli dalam tawarruq dibuktikan dengan pengeluaran sijil elektronik yang boleh diaudit setelah sempurna setiap kontrak. Pelanggan mempunyai pilihan untuk menerima penyerahan aset yang diurusniagakan  DP Tawarruq10 menetapkan keperluan bagi pembeli dalam setiap kontrak jual beli untuk mempunyai hak menerima penyerahan aset dan larangan bagi sebarang terma dan syarat yang menghalang penyerahan tersebut.  Bagi pelaksanaan tawarruq secara STP, pelanggan mempunyai pilihan untuk menerima penyerahan aset dan pilihan ini mestilah dizahirkan sewaktu memasuki tawarruq. Bagi pelaksanaan tawarruq secara arahan menyeluruh, keputusan pelanggan melepaskan haknya untuk menerima penyerahan aset tidak membatalkan kontrak jual beli.                                                              7 Perenggan 17.3 DP Tawarruq. 8 Perenggan 17.2 DP Tawarruq. 9 Perenggan 12.3 DP Tawarruq.  10 Perenggan 15.4 dan 15.5 DP Tawarruq. Mesyuarat MPS ke-199 2019 5    Bahagian V: Implikasi Keputusan MPS  Tawarruq dapat dilaksanakan secara teratur, pantas dan efisien kerana proses jual beli aset dapat diselesaikan dalam tempoh yang singkat melalui suatu sistem yang terkawal.  Keputusan ini memperlihatkan bahawa Syariah bukan suatu penghalang kepada penerapan kemajuan teknologi dalam produk yang ditawarkan oleh perbankan Islam, malah menjadi pemangkin kepada inovasi dalam produk dan perkhidmatan yang ditawarkan IKI.   

Public Notice

19 Mei 2020

Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-198 dan ke-199

https://www.bnm.gov.my/-/keputusan-mesyuarat-majlis-penasihat-shariah-mps-ke-198-dan-ke-199-1

https://www.bnm.gov.my/documents/20124/914558/01_SAC198_Draft+SAC+Statement_Rahnu_bm.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/keputusan-mesyuarat-majlis-penasihat-shariah-mps-ke-198-dan-ke-199-1&languageId=ms_MY

Reading: Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-198 dan ke-199 Share: Keputusan Mesyuarat Majlis Penasihat Shariah (MPS) ke-198 dan ke-199 Tarikh Siaran: 19 Mei 2020 Majlis Penasihat Shariah (MPS) Bank Negara Malaysia pada mesyuarat ke-198 dan ke-199 bertarikh 29 Oktober 2019 dan 26 November 2019  telah memutuskan bahawa penstrukturan produk ar-rahnu berasaskan tawarruq dan rahn adalah dibenarkan tertakluk kepada syarat-syarat berikut: Bagi struktur yang melibatkan pembelian komoditi secara pukal pada awal hari perniagaan, penyesuaian fiqah (takyif fiqhi)  berkenaan pembatalan pembelian komoditi daripada penyedia platform perdagangan komoditi pada akhir hari perniagaan hendaklah jelas; Dalam situasi kemungkiran oleh pelanggan, kebenaran daripada pelanggan perlu diperoleh sebelum proses penjualan (pencairan) aset cagaran dilaksanakan; Terma dan syarat produk ar-rahnu hendaklah menyatakan dengan jelas layanan-layanan berikut dalam situasi kemungkiran oleh pelanggan yang membawa kepada pencairan aset cagaran: jika hasil daripada pencairan aset cagaran melebihi liabiliti pelanggan, lebihan tersebut hendaklah dikembalikan kepada pelanggan; dan jika hasil daripada pencairan aset cagaran adalah kurang daripada liabiliti atau obligasi pelanggan, pihak institusi kewangan Islam (IKI) berhak untuk mendapatkan amaun tersebut daripada pelanggan. Pelanggan hendaklah dimaklumkan berhubung spesifikasi dan ciri-ciri komoditi yang dijual beli termasuklah lokasi, jenis, kualiti, dan kuantiti serta kaedah pengiraannya bagi mengelakkan elemen ketidakpastian (gharar) dan pertikaian oleh pihak-pihak yang berkontrak; dan Semua keperluan yang ditetapkan oleh Bank Negara Malaysia dalam dokumen polisi Tawarruq dan Rahn hendaklah dipatuhi. Keputusan ini hendaklah dibaca bersama keputusan MPS berhubung pelaksanaan aturan tawarruq secara straight-through processing (STP) bertarikh 26 November 2019. Sila lihat lampiran disini untuk maklumat lanjut. © 2024 Bank Negara Malaysia. All rights reserved.

Mesyuarat MPS ke-198 dan ke-199 2019 1   Keputusan Mesyuarat Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Cadangan Produk Ar-Rahnu Berasaskan Tawarruq Mesyuarat MPS ke-198 dan ke-199 bertarikh 29 Oktober 2019 dan 26 November 2019 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009, MPS telah memutuskan bahawa penstrukturan produk ar-rahnu berasaskan tawarruq dan rahn adalah dibenarkan tertakluk kepada syarat-syarat berikut: i. Bagi struktur yang melibatkan pembelian komoditi secara pukal pada awal hari perniagaan, penyesuaian fiqah (takyif fiqhi)1 berkenaan pembatalan pembelian komoditi daripada penyedia platform perdagangan komoditi pada akhir hari perniagaan hendaklah jelas; ii. Dalam situasi kemungkiran oleh pelanggan, kebenaran daripada pelanggan perlu diperoleh sebelum proses penjualan (pencairan) aset cagaran dilaksanakan; iii. Terma dan syarat produk ar-rahnu hendaklah menyatakan dengan jelas layanan-layanan berikut dalam situasi kemungkiran oleh pelanggan yang membawa kepada pencairan aset cagaran: (a) jika hasil daripada pencairan aset cagaran melebihi liabiliti pelanggan, lebihan tersebut hendaklah dikembalikan kepada pelanggan; dan (b) jika hasil daripada pencairan aset cagaran adalah kurang daripada liabiliti atau obligasi pelanggan, pihak institusi kewangan Islam (IKI) berhak untuk mendapatkan amaun tersebut daripada pelanggan. iv. Pelanggan hendaklah dimaklumkan2 berhubung spesifikasi dan ciri-ciri komoditi yang dijual beli termasuklah lokasi, jenis, kualiti, dan kuantiti serta kaedah pengiraannya bagi mengelakkan elemen ketidakpastian (gharar) dan pertikaian oleh pihak-pihak yang berkontrak; dan v. Semua keperluan yang ditetapkan oleh Bank Negara Malaysia dalam dokumen polisi Tawarruq dan Rahn hendaklah dipatuhi. Keputusan ini hendaklah dibaca bersama keputusan MPS berhubung pelaksanaan aturan tawarruq secara straight-through processing (STP) bertarikh 26 November 2019. Keputusan ini berkuat kuasa pada 1 Februari 20203 dan terpakai ke atas IKI berikut: (a) orang berlesen menurut Akta Perkhidmatan Kewangan Islam 2013 (APKI); (b) bank berlesen dan bank pelaburan berlesen yang diluluskan di bawah seksyen 15(1) Akta Perkhidmatan Kewangan 2013 (APK) untuk menjalankan perniagaan kewangan Islam; dan (c) institusi yang ditetapkan yang diluluskan di bawah seksyen 33B(1) Akta Institusi Kewangan Pembangunan 2002 (DFIA) untuk menjalankan perniagaan kewangan Islam.                                                              1 Penyesuaian fiqah atau takyif fiqhi merujuk kepada proses mendapatkan asas, prinsip atau konsep Syariah bagi suatu perkara baharu atau yang sedang muncul atau keadaan yang mana tidak mempunyai duluan. 2 Berdasarkan kaedah yang diiktiraf oleh amalan perniagaan (`urf tijari) dan bertepatan dengan Syariah. 3 Bank telah memaklumkan kepada IKI yang berkenaan berhubung keputusan ini pada 7 dan 28 November 2019 selepas mesyuarat MPS ke-198 dan ke-199. Mesyuarat MPS ke-198 dan ke-199 2019 2   Selaras dengan seksyen 28(1) dan (2) APKI atau seksyen 33D (1) dan (2) DFIA, mengikut mana- mana yang berkenaan, IKI dikehendaki mematuhi keputusan ini kerana pematuhan dengan apa-apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan pengendalian perniagaan, hal ehwal atau aktiviti IKI tersebut adalah disifatkan sebagai pematuhan kepada Syariah. Bahagian II: Latar Belakang  Bank telah menerima cadangan daripada beberapa IKI untuk menawarkan produk ar-rahnu berasaskan tawarruq dan rahn lanjutan daripada ketidakharusan struktur produk ar-rahnu sedia ada berasaskan kontrak qard dan rahn.  Dalam struktur cadangan ini, tawarruq merupakan kontrak pendasar bagi mewujudkan keberhutangan antara pelanggan dengan IKI. Seperti struktur ar-rahnu sedia ada, pelanggan akan mencagarkan emas kepada IKI. Namun, tiada yuran penyimpanan emas dikenakan kepada pelanggan. IKI akan memperoleh keuntungan hasil daripada urus niaga murabahah dalam aturan tawarruq yang dilaksanakan. Isu Syariah Adakah struktur ar-rahnu berasaskan tawarruq dan rahn seperti yang dicadangkan memenuhi keperluan Syariah? Ilustrasi umum struktur produk ar-rahnu berasaskan tawarrruq 1. Pelanggan datang ke IKI untuk memohon pembiayaan ar-rahnu dengan membawa emas sebagai cagaran. 2. IKI akan membuat penilaian terhadap emas yang akan dicagarkan untuk menentukan jumlah pembiayaan yang layak dimohon oleh pelanggan. 3. Pelaksanaan tawarruq*: a) IKI membeli komoditi daripada pembekal komoditi melalui penyedia platform perdagangan komoditi; b) IKI seterusnya menjual komoditi kepada pelanggan berdasarkan jumlah pembiayaan yang telah diluluskan dan jumlah keuntungan yang ditetapkan oleh IKI dengan pembayaran secara tangguh. IKI selaku ejen akan menerima pembelian bagi pihak pelanggan; dan c) Pelanggan kemudian menjual komoditi kepada penyedia platform perdagangan komoditi secara tunai (IKI selaku ejen jualan bagi pihak pelanggan). Mesyuarat MPS ke-198 dan ke-199 2019 3   4. Hasil jualan akan diserahkan kepada pelanggan setelah aturan tawarruq selesai. 5. Pelanggan akan membayar kepada IKI amaun keuntungan pada setiap 6 bulan dan amaun prinsipal akan dibayar semasa tempoh matang pembiayaan. Dalam situasi kemungkiran pembayaran, IKI berhak untuk melelong aset cagaran bagi tujuan melangsaikan jumlah pembiayaan. * Nota: Terdapat pelbagai variasi pelaksanaan tawarruq yang dicadangkan, antaranya: (i) Pembelian komoditi secara pukal oleh IKI pada awal hari perniagaan berdasarkan anggaran jumlah keseluruhan pembiayaan yang akan dimohon pelanggan. Penjualan komoditi kepada pelanggan akan dibuat berdasarkan jumlah pembiayaan yang dimohon oleh setiap indvidu. Komoditi akan dijual semula kepada penyedia platform perdagangan komoditi sama ada secara berkelompok (batches) pada masa tertentu sepanjang hari perniagaan atau secara pukal pada akhir hari perniagaan. (ii) Pelaksanaan tawarruq secara straight-through processing (STP) berdasarkan jumlah pembiayaan yang dimohon pelanggan (Sila rujuk keputusan MPS ke-199 berkenaan keharusan pelaksanaan tawarruq secara STP). Bahagian III: Perbincangan Utama Sama ada cadangan struktur ar-rahnu berasaskan tawarruq dan rahn menepati keperluan Syariah  MPS telah membincangkan sama ada keuntungan yang dijana melalui struktur ar-rahnu berdasarkan konsep tawarruq dan rahn bertepatan dengan prinsip Syariah.  MPS telah memutuskan bahawa gabungan kedua-dua kontrak tersebut tidak membawa kepada perkara yang dilarang Syarak seperti riba, gabungan jual beli dengan hutang (bai` wa salaf) dan hutang yang menjana keuntungan kepada pemberi pinjaman (qard jarra naf`an).  Oleh itu, MPS memutuskan bahawa penggunaan kontrak tawarruq dan rahn bagi produk ar-rahnu menepati keperluan Syariah dan aplikasi konsep cagaran dalam kontrak pembiayaan diharuskan daripada sudut Syariah bagi memelihara kepentingan pihak yang memberi pembiayaan dalam situasi kemungkiran. Bahagian IV: Asas Pertimbangan Keharusan tawarruq  Pelaksanaan tawarruq diharuskan berdasarkan nas al-Quran yang menunjukkan keharusan kontrak jual beli secara umum termasuklah tawarruq: “...padahal Allah SWT telah menghalalkan jual beli dan mengharamkan riba”.4                                                              4 Surah al-Baqarah, ayat 275 (Tafsir Pimpinan Ar-Rahman). Mesyuarat MPS ke-198 dan ke-199 2019 4   Keharusan rahn  Kontrak rahn diharuskan berdasarkan nas al-Quran berikut: “Dan jika kamu berada dalam musafir (lalu kamu berhutang atau memberi hutang yang bertempoh), sedang kamu tidak mendapati jurutulis, maka hendaklah diadakan barang gadaian untuk dipegang (oleh orang yang memberi hutang). Kemudian sekiranya yang memberi hutang percaya kepada yang berhutang (dengan tidak perlu bersurat, saksi dan barang gadaian), maka hendaklah orang (yang berhutang) yang dipercayai itu menyempurnakan bayaran hutang yang diamanahkan kepadanya, dan hendaklah ia bertakwa kepada Allah Tuhannya. Dan janganlah kamu (wahai orang-orang yang menjadi saksi) menyembunyikan perkara yang dipersaksikan itu. Dan barangsiapa yang menyembunyikannya, maka sesungguhnya ia adalah orang yang berdosa hatinya. Dan (ingatlah), Allah sentiasa mengetahui akan apa yang kamu kerjakan”.5  Hadis berikut menunjukkan keharusan kontrak rahn: Daripada Aisyah RA, bahawa Nabi SAW pernah membeli makanan dari seorang Yahudi secara bertangguh dan Baginda SAW menggadaikan baju besinya kepada orang Yahudi tersebut.6 Keharusan penggabungan beberapa kontrak dalam suatu struktur produk  Secara umumnya, penggabungan beberapa kontrak dalam perjanjian induk diharuskan berdasarkan kaedah fiqah: Hukum asal muamalat adalah harus, kecuali terdapat dalil yang mengharamkannya.7  Pergantungan antara kontrak-kontrak yang digabungkan adalah dibenarkan sekiranya objektif setiap kontrak boleh dipenuhi dan ia dapat menyokong antara satu kontrak dengan kontrak yang lain bagi mencapai tujuan utama penggabungan tersebut. 8                                                              5 Surah al-Baqarah, ayat 283 (Tafsir Pimpinan Ar-Rahman).  6 Al-Bukhari, Sahih al-Bukhari, Dar Tawwaq al-Najah, Lebanon, j.3, h. 56, hadis no. 2068. 7 Ibn Uthaimin, Al-Syarh al-Mumti` `ala Zad al-Mustaqni`, Dar Ibni al-Jauzi, j. 8, h. 241. 8 MPS dalam mesyuarat ke-140 bertarikh 28 Oktober 2013 dan mesyuarat ke-166 bertarikh 23 Februari 2016 telah memutuskan bahawa penggabungan yang melibatkan pergantungan antara kontrak-kontrak adalah diharuskan. Keharusan ini adalah tertakluk kepada syarat-syarat berikut: i. Tidak membawa kepada unsur riba, gharar dan maysir; ii. Tidak melibatkan pertentangan antara muqtada al-`aqd bagi setiap kontrak yang digabungkan; dan Mesyuarat MPS ke-198 dan ke-199 2019 5   Bahagian V: Implikasi Keputusan MPS  Cadangan struktur ini merupakan produk patuh Syariah yang bertujuan untuk menggantikan produk ar-rahnu sedia ada berasaskan kontrak qard dan rahn sebagai kontrak pendasar.                                                              iii. Tidak membawa kepada perkara yang diharamkan oleh syarak. 

Public Notice

15 Mei 2020

Policy Document on Statutory Reserve Requirement

https://www.bnm.gov.my/-/policy-document-on-statutory-reserve-requirement-3

12 Mei 2020

BNMLINK di Ibu Pejabat dan Pejabat-pejabat BNM terus ditutup sepanjang PKPB

https://www.bnm.gov.my/-/bnmlink-di-ibu-pejabat-dan-pejabat-pejabat-bnm-terus-ditutup-sepanjang-pkpb

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/bnmlink-di-ibu-pejabat-dan-pejabat-pejabat-bnm-terus-ditutup-sepanjang-pkpb&languageId=ms_MY

Reading: BNMLINK di Ibu Pejabat dan Pejabat-pejabat BNM terus ditutup sepanjang PKPB Share: BNMLINK di Ibu Pejabat dan Pejabat-pejabat BNM terus ditutup sepanjang PKPB Tarikh Siaran: 12 Mei 2020 Perkhidmatan BNMLINK (khidmat nasihat secara bersemuka, kunjungan ke premis dan pertukaran wang kertas dan syiling rosak) tidak dapat disediakan kepada orang ramai sehingga Perintah Kawalan Pergerakan Bersyarat (PKPB) ditamatkan.   © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

01 Mei 2020

Soalan Lazim Mengenai Pengendalian Moratorium bagi Pinjaman Sewa Beli dan Pembiayaan Islam Berkadar Tetap

https://www.bnm.gov.my/-/soalan-lazim-mengenai-pengendalian-moratorium-bagi-pinjaman-sewa-beli-dan-pembiayaan-islam-berkadar-tetap

https://www.bnm.gov.my/documents/20124/914558/Soalan+Lazim_HP+dan+Produk+Pembiayaan+Islam+Berkadar+Tetap_070520.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/soalan-lazim-mengenai-pengendalian-moratorium-bagi-pinjaman-sewa-beli-dan-pembiayaan-islam-berkadar-tetap&languageId=ms_MY

Reading: Soalan Lazim Mengenai Pengendalian Moratorium bagi Pinjaman Sewa Beli dan Pembiayaan Islam Berkadar Tetap Share: Soalan Lazim Mengenai Pengendalian Moratorium bagi Pinjaman Sewa Beli dan Pembiayaan Islam Berkadar Tetap Tarikh Siaran: 01 Mei 2020 Bank telah menerbitkan satu set Soalan Lazim Mengenai Pengendalian Moratorium bagi Pinjaman Sewa Beli dan Pembiayaan Islam Berkadar Tetap. Klik di sini untuk melihat Soalan Lazim tersebut.   © 2024 Bank Negara Malaysia. All rights reserved.

2020 Dikeluarkan pada 7 Mei 2020 1 Soalan Lazim Mengenai Sewa Beli dan Produk Pembiayaan Islam Berkadar Tetap ** Sila lihat penjelasan tambahan dalam jawapan kepada Soalan 6 (tulisan berwarna merah) No. Soalan Jawapan 1. Sebelum ini telah diumumkan bahawa penangguhan pembayaran 6 bulan bagi Sewa Beli (Hire-Purchase) dan pembiayaan Islam berkadar tetap adalah secara automatik. Adakah keputusan ini telah bertukar? Tidak. Penangguhan pembayaran masih secara automatik untuk Sewa Beli dan pembiayaan Islam berkadar tetap. Apa yang diperlukan sekarang adalah langkah tambahan bagi mematuhi keperluan prosedur di bawah Akta Sewa Beli 1967 (Akta Sewa Beli) dan keperluan Syariah. Langkah tambahan ini tidak dapat dielakkan dan perubahan pada jadual dan/atau jumlah pembayaran perlu dimasukkan dalam perjanjian pinjaman/pembiayaan. Perubahan ini adalah disebabkan oleh penangguhan pembayaran selama enam bulan. 2. Mengapakah pinjaman/pembiayaan lain (contohnya gadai janji, pinjaman peribadi, pinjaman perniagaan dan sebagainya) tidak terkesan sama? Pinjaman/pembiayaan lain tidak tertakluk pada Akta Sewa Beli atau keperluan Syariah. Walau bagaimanapun, faedah/keuntungan untuk pinjaman/pembiayaan ini juga akan terakru (yakni diambil kira) bagi tempoh penangguhan dan juga perlu dibayar balik sebaik sahaja pembayaran disambung selepas tempoh penangguhan. 3. Adakah terdapat perubahan untuk peminjam/ pelanggan supaya layak mendapat penangguhan pembayaran bagi Sewa Beli dan pembiayaan Islam berkadar tetap? Kriteria kelayakan tidak berubah. 4. Memandangkan sekarang ini kita sudah berada pada awal bulan Mei, adakah tempoh penangguhan pembayaran bagi kemudahan pembiayaan ini berubah? Tidak ada perubahan pada tempoh penangguhan pembayaran, iaitu, tempoh ini masih berkuat kuasa untuk selama 6 bulan bermula 1 April 2020 sehingga 30 September 2020. Dikeluarkan pada 7 Mei 2020 2 No. Soalan Jawapan 5. Bagi pembiayaan Islam berkadar tetap, adakah terdapat apa-apa yuran guaman tambahan sekiranya perjanjian baharu diperlukan? Bagi kes-kes seperti itu, institusi kewangan tidak boleh mengenakan apa-apa caj tambahan, termasuk yuran guaman, ke atas peminjam/pelanggan. 6. Bagaimanakah bayaran ansuran bulanan Sewa Beli atau pembiayaan Islam berkadar tetap saya akan berubah selepas tempoh penangguhan ini? ** Ilustrasi ini tidak lagi relevan susulan pengumuman oleh YBM Menteri Kewangan pada 6 Mei 2020. Sila dapatkan maklumat lanjut daripada bank anda. Institusi kewangan akan memaklumkan kepada setiap peminjam/pelanggan mengenai perubahan pada jadual pembayaran dan jumlah ansuran pinjaman Sewa Beli atau pembiayaan Islam berkadar tetap masing-masing. Peminjam/pelanggan perlu membuat pertimbangan sendiri mengenai kelebihan dan kekurangan penangguhan pembayaran, serta memberi perhatian khusus kepada kemampuan mereka untuk membuat pembayaran tersebut selepas moratorium. Anda perlu menelefon atau menghantar e-mel kepada institusi kewangan anda jika memerlukan maklumat lanjut, atau jika anda perlu berbincang mengenai pengaturan pembayaran alternatif. Di bawah ini diberikan contoh bagi membantu anda untuk lebih memahami kesan kewangan selepas penangguhan. Ilustrasi ini adalah berkaitan dengan pinjaman Sewa Beli berjumlah RM50,000 dan mempunyai baki tempoh selama lima tahun lagi serta mempunyai kadar faedah tetap pada kadar tetap 2.71% (atau kadar efektif sebanyak 5.36%) setahun: Sebelum Penangguhan Selepas Penangguhan Ansuran bulanan RM712 RM731 Penambahan dalam ansuran bulanan RM19 Penambahan dalam jumlah faedah RM1,130 Dikeluarkan pada 7 Mei 2020 3 No. Soalan Jawapan ** Ilustrasi ini tidak lagi relevan susulan pengumuman oleh YBM Menteri Kewangan pada 6 Mei 2020. Sila dapatkan maklumat lanjut daripada bank anda. Dalam contoh ini, jumlah ansuran bertambah sebanyak 2%, atau RM19 sebulan. Contoh di atas menggunakan andaian bahawa peminjam telah memilih untuk membayar balik jumlah ansuran yang ditangguhkan secara berperingkat dalam tempoh masa bayaran balik pinjaman yang telah dilanjutkan, apabila pembayaran balik bulanan disambung semula pada bulan Oktober 2020. Walau bagaimanapun, ada bank yang mungkin memberikan pilihan kepada peminjam/pelanggan mereka untuk membayar balik jumlah ansuran yang ditangguhkan (termasuk faedah/keuntungan) secara sekali gus pada bayaran ansuran bulanan pinjaman/pembiayaan yang terakhir. Dalam hal ini, jumlah ansuran bulanan yang perlu dibayar oleh peminjam/pelanggan tidak akan berubah apabila pembayaran balik bulanan disambung semula pada bulan Oktober 2020. Bank anda akan menghantar pemberitahuan/notis mulai 1 Mei 2020 mengenai butiran lanjut berhubung dengan pilihan pembayaran balik yang ditawarkan. 7. Adakah saya masih boleh memilih untuk tidak menyertai (opt out) penangguhan bayaran sekarang jika saya belum berbuat demikian sebelum ini? Ya. Anda masih boleh berbuat demikian pada masa ini dengan memberitahu institusi kewangan bahawa anda ingin membuat bayaran balik bulanan pinjaman/pembiayaan seperti biasa. Lihat juga jawapan bagi Soalan 8 di bawah. 8. Saya tidak membuat apa-apa bayaran pinjaman pada bulan April 2020 memandangkan pada mulanya saya menyertai moratorium (tidak “opt out” daripada penangguhan). Jika saya mengambil keputusan untuk tidak menyertai moratorium sekarang, Tidak, institusi kewangan tidak akan mengenakan apa-apa caj bayaran lewat kepada peminjam/pelanggan yang mengambil keputusan untuk tidak menyertai moratorium sekarang. Institusi kewangan anda akan memaklumkan tempoh masa yang diberikan untuk membayar ansuran yang ditangguhkan sejak 1 April 2020. Rekod CCRIS anda juga tidak akan terjejas asalkan anda menjelaskan jumlah Dikeluarkan pada 7 Mei 2020 4 No. Soalan Jawapan adakah saya akan dikenakan penalti bayaran lewat? Apa akan terjadi pada rekod CCRIS saya? bayaran tersebut dalam tempoh masa pembayaran balik yang dimaklumkan oleh institusi kewangan anda. Jika anda perlukan lebih banyak masa untuk menjelaskan pembayaran, hubungi institusi kewangan anda bagi membincangkan tempoh masa pembayaran balik yang baharu. 9. Adakah peminjam/pelanggan ada pilihan untuk melanjutkan tempoh pembiayaan atau menambah jumlah bayaran ansuran bulanan selepas tempoh penangguhan? Institusi kewangan akan memberikan maklumat lanjut kepada peminjam/pelanggan berhubung dengan penyambungan semula pembayaran selepas tempoh penangguhan. Antara pilihan yang diberikan termasuklah melanjutkan tempoh bayaran balik atau menambah jumlah bayaran ansuran bulanan. Peminjam/pelanggan dinasihati supaya berbincang dengan institusi kewangan mereka jika perlu mengubah jadual pembayaran balik pinjaman/pembiayaan disebabkan oleh keadaan kewangan mereka sekarang. Dikeluarkan pada 7 Mei 2020 5 No. Soalan Jawapan 10. Susulan pengumuman oleh BNM, saya rasa terpedaya. Saya ingatkan syarat pembayaran balik HP dan pembiayaan Islam berkadar tetap selepas tempoh penangguhan bayaran berakhir tidak sepatutnya berubah. Adakah saya tidak mendapat apa- apa manfaat daripada tempoh tidak perlu membayar selama enam bulan ini? Pihak BNM berasa kesal atas sebarang kekeliruan dan kebimbangan yang timbul ekoran pengumuman yang dibuat. Penangguhan bayaran balik pinjaman/pembiayaan sebenarnya bertujuan membantu aliran tunai peminjam/pelanggan yang terjejas akibat pandemik COVID-19. Tujuan ini masih tidak berubah. Kekeliruan yang timbul adalah disebabkan oleh salah tanggapan bahawa jumlah bayaran balik sesuatu pinjaman Sewa Beli tidak boleh diubah. Salah tanggapan ini juga sedikit sebanyak mungkin disebabkan oleh ilustrasi pengiraan yang kami tunjukkan dalam versi awal soalan lazim (FAQ) ini, yang menggunakan beberapa andaian dan kaveat. Kami kemudiannya mengeluarkan contoh pengiraan tersebut daripada FAQ ini apabila Institusi Kewangan menyediakan contoh pengiraan mereka masing- masing. Ilustrasi yang kami tunjukkan bukan bertujuan untuk ‘menghilangkan’ caj kadar faedah terakru (yang diambil kira) kepada pinjaman yang diberikan penangguhan bayaran balik. Peminjam/pelanggan yang akaun pinjaman Sewa Beli dan pembiayaan Islam berkadar tetap mereka menunjukkan penangguhan bayaran balik secara automatik sejak 1 April 2020, akan terus mendapat penangguhan itu sehingga 30 September 2020. Peminjam/pelanggan dengan Sewa Beli dan pembiayaan Islam berkadar tetap yang pada mulanya menerima moratorium ini tetapi kemudiannya menukar fikiran (yakni tidak mahu penangguhan dan ingin membuat bayaran balik seperti biasa) masih boleh berbuat demikian. Lihat juga jawapan bagi Soalan 7 dan 8 di atas. Bank Negara Malaysia 7 Mei 2020

Public Notice

30 Apr 2020

Ulangan Kenyataan BNM mengenai Moratorium

https://www.bnm.gov.my/-/ulangan-kenyataan-bnm-mengenai-moratorium

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/ulangan-kenyataan-bnm-mengenai-moratorium&languageId=ms_MY

Reading: Ulangan Kenyataan BNM mengenai Moratorium Share: Ulangan Kenyataan BNM mengenai Moratorium Tarikh Siaran: 30 Apr 2020 Kami merujuk kepada kenyataan akhbar yang dikeluarkan pada 25 Mac 2020 mengenai langkah moratorium  dan kenyataan yang kami keluarkan berhubung dengan langkah tambahan untuk mengendalikan moratorium bagi Pinjaman Sewa Beli dan Pembiayaan Islam Berkadar Tetap. Kenyataan akhbar hari ini bertujuan untuk menangani isu-isu prosedur yang mempunyai kesan undang-undang kepada moratorium yang dilaksanakan sebagai memenuhi keperluan di bawah Akta Sewa Beli 1967 dan keperluan Syariah.   Pihak Bank Negara Malaysia ingin menegaskan di sini bahawa peminjam tidak perlu memohon untuk mendapatkan moratorium ini.  Sebaliknya, peminjam hanya perlu melengkapkan dokumen untuk memberikan kebenaran yang sah bagi moratorium ini dilaksanakan.  Selepas itu, pihak bank akan menghubungi peminjam mengenai langkah mudah selanjutnya. Moratorium ini diberikan untuk membantu aliran tunai peminjam yang terjejas oleh pandemik COVID-19. Seperti dinyatakan dalam pengumuman BNM pada 25 Mac 2020 yang lalu, peminjam telah dimaklumkan bahawa kadar faedah/keuntungan akan terus diakru (yakni diambil kira) atas pembayaran yang ditangguhkan dan peminjam hendaklah mempertimbangkan perkara ini apabila membuat keputusan sama ada ingin mengambil moratorium ini.    Petikan kenyataan akhbar pada 25 Mac 2020 adalah seperti yang berikut: "Perkara penting yang perlu diambil perhatian ialah faedah/keuntungan akan terus terakru (yakni diambil kira) atas pembayaran balik pinjaman/pembiayaan yang tertangguh dan peminjam perlu meneruskan pembayaran balik pinjaman/pembiayaan yang tertangguh pada masa hadapan. Oleh yang demikian, peminjam perlu memahami perkara ini dan berbincang dengan institusi perbankan masing-masing tentang pilihan yang ada apabila menyambung semula jadual pembayaran balik pinjaman/pembiayaan mereka selepas tempoh penangguhan."   Pelanggan yang tidak berhasrat untuk mengambil moratorium ini boleh berbuat demikian dengan menghubungi bank mereka masing-masing. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

30 Apr 2020

Foreign Exchange Notices

https://www.bnm.gov.my/-/foreign-exchange-notices

Reading: Foreign Exchange Notices Share: 4 Foreign Exchange Notices Release Date: 30 Apr 2020 The Foreign Exchange Notices set out-- (a) approvals of the Bank for transactions which otherwise are prohibited under section 214(2) read together with Schedule 14 of the FSA and section 225(2) read together with Schedule 14 of the IFSA; (b) requirements, restrictions and conditions of the approvals; and (c) directions of the Bank. A person shall obtain a written approval of the Bank to undertake or engage in any transaction listed in Schedule 14 of the FSA or IFSA that is not approved by the Bank under the FE Notices. This Foreign Exchange Notices will supersede: (a) Notices on Foreign Exchange Administration Rules [BNM/RH/CIR 000-2] issued by the Bank on 28 June 2013 and effective on 30 June 2013; (b) Supplementary Notice on Foreign Exchange Administration Rules – Measures to Promote the Development of Malaysian Financial Market dated 2 December 2016; (c) Supplementary Notice (No. 2) on Foreign Exchange Administration Rules and Amendment to the Definitions of the Notices on Foreign Exchange Administration Rules – Measures to Promote Development of Malaysian Financial Market dated 2 May 2017; (d) Supplementary Notice (No. 3) on Foreign Exchange Administration Rules – Measures to Promote Development of Malaysian Financial Market dated 8 September 2017; (e) Supplementary Notice (No. 4) on Foreign Exchange Administration Rules dated 17 August 2018; (f) Supplementary Notice (No. 5) on Foreign Exchange Administration Rules dated 27 March 2019; and (g) Supplementary Notice (No. 6) on Foreign Exchange Administration Rules and Amendment to the Definitions of the Notices on Foreign Exchange Administration Rules dated 30 August 2019. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

24 Apr 2020

Tarikh Baharu untuk Siaran Perangkaan Mac 2020

https://www.bnm.gov.my/-/new-release-date-for-march-2020-statistical-highlights

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/new-release-date-for-march-2020-statistical-highlights&languageId=ms_MY

Reading: Tarikh Baharu untuk Siaran Perangkaan Mac 2020 Share: Tarikh Baharu untuk Siaran Perangkaan Mac 2020 Tarikh Siaran: 24 Apr 2020 Sorotan dan Perangkaan bagi bulan Mac 2020 akan disiarkan dalam laman web Bank selewat-lewatnya pada 6 Mei 2020. Tarikh baharu ini disebabkan lanjutan tarikh akhir pelaporan statistik yang diberi Bank kepada institusi kewangan berikutan langkah Perintah Kawalan Pergerakan dan penjarakan sosial akibat pandemik COVID-19. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

21 Mac 2020

Soalan Lazim Mengenai Akses kepada Perkhidmatan Kewangan yang Penting Semasa Perintah Kawalan Pergerakan (Movement Control Order, MCO)

https://www.bnm.gov.my/-/faqs-on-access-to-essential-financial-services-during-movement-control-order-mco-1

https://www.bnm.gov.my/documents/20124/914558/FAQ_Essential+Financial+Services+MCO_BM+%281%29.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/faqs-on-access-to-essential-financial-services-during-movement-control-order-mco-1&languageId=ms_MY

Reading: Soalan Lazim Mengenai Akses kepada Perkhidmatan Kewangan yang Penting Semasa Perintah Kawalan Pergerakan (Movement Control Order, MCO) Share: Soalan Lazim Mengenai Akses kepada Perkhidmatan Kewangan yang Penting Semasa Perintah Kawalan Pergerakan (Movement Control Order, MCO) Tarikh Siaran: 21 Mac 2020 Bank telah menerbitkan satu set Soalan-soalan Lazim berkenaan perkhidmatan kewangan yang penting semasa Perintah Kawalan Pergerakan. Klik di sini untuk melihat Soalan Lazim. © 2024 Bank Negara Malaysia. All rights reserved.

FAQ_Essential Financial Services MCO_21032020_BM 1 Soalan Lazim Mengenai Akses kepada Perkhidmatan Kewangan yang Penting Semasa Perintah Kawalan Pergerakan (Movement Control Order, MCO) Bil. Soalan Jawapan 1. Apakah perkhidmatan kewangan yang penting? Perkhidmatan kewangan yang penting semasa tempoh perintah kawalan pergerakan (MCO) ini adalah seperti yang berikut: � Terminal layan diri, contohnya ATM, Mesin-mesin Deposit Tunai, Cek dan Duit Syiling, akan beroperasi sepenuhnya di lokasi yang mudah diakses, iaitu di premis dan lokasi yang tidak terjejas oleh MCO. Walau bagaimanapun, waktu operasi harian bagi semua Terminal Layan Diri termasuk ATM akan dihadkan dari pukul 7.00 pagi hingga 10.00 malam sepanjang tempoh MCO ini. � Perbankan dalam talian, iaitu perbankan elektronik; perbankan mudah alih; perkhidmatan kad pembayaran dan perkhidmatan pemprosesan cek beroperasi sepenuhnya � Perkhidmatan pengurupan dan kiriman wang masih disediakan di cawangan bank � Pemprosesan dan pengendalian tuntutan insurans dan takaful, pengeluaran surat jaminan dan pembaharuan polisi insurans dan sijil takaful tahunan. Penyedia perkhidmatan e-pembayaran juga dalam perkhidmatan penting kerana mereka termasuk dalam kategori e-dagang yang diluluskan oleh Majlis Keselamatan Negara sebagai perkhidmatan penting di bawah MCO. Walaupun kesemua penyedia perkhidmatan penting ini dibenarkan memberikan perkhidmatan di kaunter secara terhad sepanjang tempoh MCO, Bank Negara Malaysia (BNM) amat menggalakkan penggunaan saluran elektronik. Jika tidak benar-benar perlu, elakkan pergi ke cawangan dan premis penyedia perkhidmatan ini demi keselamatan dan kesihatan anda. 2. Adakah semua penyedia perkhidmatan kewangan ditutup, atau adakah semua urusan berjalan seperti biasa? Urusan tidak dijalankan seperti biasa dalam tempoh MCO ini untuk memastikan langkah penjarakan sosial (social distancing) dipatuhi untuk keselamatan dan kesihatan pelanggan serta kakitangan penyedia perkhidmatan kewangan. Penyedia perkhidmatan kewangan penting yang dibenarkan beroperasi sepanjang tempoh ini ialah bank, institusi kewangan pembangunan, syarikat insurans dan syarikat takaful. Namun, anda mungkin perlu menghadapi sedikit gangguan dan kelewatan dalam operasi biasa cawangan bagi memastikan Papa Rozaidi 8:00 am — 8:00 pm� Papa Rozaidi Papa Rozaidi kemaskini 19/4䰍 Papa Rozaidi 2 Bil. Soalan Jawapan kawalan terhadap pelanggan yang datang adalah berkesan. Sesetengah cawangan mungkin ditutup. Cawangan yang dibuka diberi kelonggaran menyediakan perkhidmatan kaunter yang terhad atau memendekkan waktu urusan. Walau bagaimanapun, semua transaksi perbankan yang biasa masih boleh dilakukan secara dalam talian atau melalui peranti mudah alih. Jika anda tidak mempunyai akaun dalam talian, anda masih boleh mengeluarkan dan menyimpan wang tunai, serta memindahkan wang dan membayar bil di terminal layan diri, iaitu ATM dan mesin deposit tunai. Jika anda masih perlu pergi ke bank atau syarikat insurans, sila semak laman sesawang bank/syarikat insurans berkenaan terlebih dahulu untuk mengetahui cawangan mana yang dibuka, atau hubungi talian khidmat pelanggan bank/syarikat insurans berkenaan. 3. Adakah saya masih boleh mengakses akaun bank saya? Ya, anda masih boleh terus mengakses akaun bank anda seperti biasa melalui perbankan mudah alih atau dalam talian dan terminal layan diri. Perkhidmatan kaunter disediakan tetapi jumlahnya terhad. Bagi orang ramai yang memerlukan perkhidmatan kaunter, sila semak laman sesawang atau hubungi talian khidmat pelanggan bank anda untuk mengetahui cawangan mana yang dibuka dan perkhidmatan apa yang disediakan. 4. Adakah ATM akan kehabisan wang? Adakah waktu operasi ATM akan berubah? Bank Negara Malaysia dan semua bank telah menyediakan infrastruktur yang diperlukan bagi memastikan ATM di seluruh negara ada bekalan wang tunai yang mencukupi untuk memenuhi keperluan semua isi rumah dan perniagaan semasa tempoh MCO ini. Sila maklum bahawa waktu operasi ATM adalah antara pukul 7.00 pagi hingga 10.00 malam sahaja dalam tempoh MCO ini. 5. Adakah saya masih boleh menggunakan e-dompet dan e- akaun saya? Ya, semua penyedia e-pembayaran masih beroperasi semasa tempoh MCO ini. Tiada sekatan terhadap transaksi atau perkhidmatan penerimaan e- pembayaran dalam tempoh ini. Sila lihat juga jawapan Soalan 1 di atas. 6. Saya seorang peniaga. Adakah perkhidmatan penerimaan e- pembayaran, contohnya terminal semasa jualan (POS terminal), pembayaran kod QR, 3 Bil. Soalan Jawapan pembayaran e-dagang, akan terus beroperasi? 7. Saya perlu mengirim wang kepada anak saya yang belajar di luar negara, tetapi semua pengurup wang dan penyedia perkhidmatan kiriman wang ditutup. Apa yang boleh saya buat? Sila semak laman sesawang atau hubungi talian khidmat pelanggan bank untuk mengetahui cawangan bank yang menawarkan perkhidmatan pengurup wang dan pengiriman wang semasa tempoh MCO. Walaupun pengurup wang dan penyedia perkhidmatan kiriman wang bukan bank tidak dibenarkan beroperasi atau membuka kaunter pada masa ini, ada sesetengah penyedia perkhidmatan ini yang menawarkan perkhidmatan dalam talian yang beroperasi sepenuhnya semasa tempoh MCO ini. Sila rujuk kepada laman sesawang BNM https://www.bnm.gov.my/msb, aplikasi MSB Advisor atau laman sesawang penyedia perkhidmatan berkenaan untuk maklumat lanjut. 8. Cawangan bank saya ditutup. Apa yang perlu saya buat? Sila semak laman sesawang atau hubungi talian khidmat pelanggan bank anda untuk mengetahui cawangan mana yang dibuka semasa tempoh ini. Sila rujuk juga jawapan Soalan 2 dan 3 di atas. 9. Saya sedang mengalami masalah kewangan yang besar. Saya bimbang tidak dapat membayar ansuran bulanan kad kredit dan pinjaman saya. Apa yang perlu saya buat? Semua bank dan institusi kewangan pembangunan bersedia untuk memberikan kemudahan penstrukturan dan penjadualan semula kepada peminjam yang menghadapi masalah kewangan kesan daripada wabak COVID-19. Hubungi pegawai bank anda melalui telefon atau e- mel untuk membincangkan cara mereka boleh membantu anda menstrukturkan atau menjadualkan semula pinjaman anda sepanjang tempoh yang sukar ini. 10. Saya ada insurans perubatan dan memerlukan rawatan perubatan segera. Bagaimana saya boleh mendapatkan surat jaminan? Adakah syarikat pengendali insurans dan takaful dibuka semasa tempoh MCO? Sila rujuk jawapan Soalan 1 dan 2 di atas. 11. Saya terlibat dalam kemalangan kereta. Adakah bengkel kenderaan masih dibuka? Siapa yang perlu saya hubungi untuk membuat Sila rujuk jawapan Soalan 1 dan 2 di atas. Untuk makluman tambahan, Majlis Keselamatan Negara telah meluluskan khidmat tunda kenderaan dan bengkel membaiki kenderaan untuk dilaksanakan sebagai perkhidmatan tidak penting (non-essential 4 Bil. Soalan Jawapan tuntutan insurans kenderaan saya? services) yang dibenarkan untuk beroperasi semasa tempoh MCO ini. 12. Saya pekerja bank/syarikat insurans. Adakah saya masih perlu datang ke tempat kerja semasa tempoh MCO ini? Selaras dengan peraturan dan saranan yang dikeluarkan oleh Kerajaan Persekutuan, kakitangan yang perlu datang bekerja ialah kakitangan yang terlibat dalam perkhidmatan kewangan penting atau dalam operasi kritikal yang diperlukan untuk menyediakan perkhidmatan kewangan penting tersebut. Keperluan ini terutamanya jika tempat kerja anda tidak mempunyai keupayaan capaian kerja jarak jauh (remote access work capabilities). Semua kakitangan yang terlibat dalam fungsi tidak kritikal perlu bekerja dari rumah. Kakitangan yang terlibat dalam fungsi kritikal juga digalakkan bekerja dari rumah sekiranya majikan mempunyai keupayaan capaian kerja jarak jauh. 13. Adakah BNM beroperasi semasa tempoh MCO? Bagaimana caranya untuk saya berhubung dengan pegawai BNM? Ya, BNM masih beroperasi semasa tempoh MCO. Walau bagaimanapun, selaras dengan keperluan MCO, semua perkhidmatan barisan hadapan termasuk BNMLINK untuk pengunjung ditutup sementara mulai 18 Mac hingga 31 Mac 2020. Selaras dengan Pelan Kesinambungan Urusan BNM, semua jabatan yang kritikal telah membahagi- bahagikan operasi kakitangan mereka (split operation), manakala kakitangan jabatan yang tidak kritikal bekerja dari rumah. Langkah ini adalah untuk memastikan supaya tiada gangguan terhadap fungsi teras BNM sepanjang tempoh MCO ini. Orang ramai boleh menghubungi BNM melalui saluran yang berikut atau merujuk laman sesawang BNM www.bnm.gov.my untuk perkembangan terkini: � eLINK (https://telelink.bnm.gov.my); atau � BNMTELELINK (Tel.: 1-300-88-5465) antara Isnin hingga Jumaat (9.00 pagi hingga 5.00 petang) Bank Negara Malaysia 21 Mac 2020

Public Notice

20 Mac 2020

Policy Document on Statutory Reserve Requirement

https://www.bnm.gov.my/-/policy-document-on-statutory-reserve-requirement-2

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/policy-document-on-statutory-reserve-requirement-2&languageId=ms_MY

Reading: Policy Document on Statutory Reserve Requirement Share: Policy Document on Statutory Reserve Requirement Tarikh Siaran: 20 Mac 2020         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

19 Mac 2020

Penutupan Sementara BNMLINK di Ibu Pejabat dan Pejabat-pejabat BNM

https://www.bnm.gov.my/-/temporary-closure-of-bnmlink-hq-and-bnm-offices-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/temporary-closure-of-bnmlink-hq-and-bnm-offices-1&languageId=ms_MY

Reading: Penutupan Sementara BNMLINK di Ibu Pejabat dan Pejabat-pejabat BNM Share: Penutupan Sementara BNMLINK di Ibu Pejabat dan Pejabat-pejabat BNM Tarikh Siaran: 19 Mac 2020 Perkhidmatan BNMLINK (khidmat nasihat secara bersemuka, kunjungan ke premis dan pertukaran wang kertas dan syiling rosak) tidak dapat disediakan kepada orang ramai sehingga Perintah Kawalan Pergerakan ditamatkan.     © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

19 Mac 2020

Penutupan Sementara Perkhidmatan di Pejabat BNM Johor Bahru

https://www.bnm.gov.my/-/temporary-suspension-of-services-at-pejabat-bnm-johor-bahru-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/temporary-suspension-of-services-at-pejabat-bnm-johor-bahru-1&languageId=ms_MY

Reading: Penutupan Sementara Perkhidmatan di Pejabat BNM Johor Bahru Share: Penutupan Sementara Perkhidmatan di Pejabat BNM Johor Bahru Tarikh Siaran: 19 Mac 2020 Bank Negara Malaysia (BNM) ingin memaklumkan bahawa salah seorang kakitangannya di Pejabat BNM Johor Bahru telah disahkan positif jangkitan virus COVID-19. Kakitangan tersebut kini sedang menerima rawatan di hospital kerajaan dan telah tidak berada di pejabat sejak 12 Mac 2020. Proses disinfeksi telah dibuat di pejabat BNM Johor Bahru tersebut dengan mengikut garis panduan Kementerian Kesihatan Malaysia (KKM). BNM dan KKM kini sedang membuat pengesanan kontak (contact tracing) terperinci kakitangan tersebut untuk mengenal pasti pihak-pihak yang berkemungkinan merupakan kontak rapat kakitangan tersebut. Pejabat BNM Johor Bahru telah ditutup mulai 18 Mac hingga 31 Mac 2020 selaras dengan Perintah Kawalan Pergerakan Kerajaan Malaysia. Semua pejabat BNM yang menjalankan urusan dengan orang ramai telah melaksanakan langkah penjarakan sosial (social distancing) sejauh satu meter dan interaksi bersemuka tidak lebih daripada 10 minit semasa berurusan dengan mereka yang berkunjung ke pejabat BNM. BNM akan terus memantau rapi situasi ini bagi memastikan kesejahteraan semua kakitangan dan orang ramai terus terpelihara. © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

28 Feb 2020

Buletin RINGGIT (Keluaran Bil. 1/2020) kini boleh dimuat turun

https://www.bnm.gov.my/-/ringgit-newsletter-bil-1/2020-issue-is-now-available-for-download-1

https://www.bnm.gov.my/documents/20124/914558/Ringgit+Ed111+2020-01+v5.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/ringgit-newsletter-bil-1/2020-issue-is-now-available-for-download-1&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Bil. 1/2020) kini boleh dimuat turun Share: Buletin RINGGIT (Keluaran Bil. 1/2020) kini boleh dimuat turun Tarikh Siaran: 28 Feb 2020 The highlight for this issuance is Langkah-Langkah Pengendalian Mata Wang Malaysia Other topics of interest include : Membantu Menangani Isu Dan Aduan Berkaitan Institusi Kewangan, Insurans Dan Takaful 7 Prinsip Perlindungan Data Peribadi Yang Perlu Anda Ketahui Ringkasan Intipati Belanjawan 2020 Institusi Kewangan Bukan Bank RINGGIT is a joint-effort publication between Bank Negara Malaysia and FOMCA and it is a bi-monthly publication starting from year 2019. This publication is published in Bahasa Malaysia only. Click on the link below to get the latest issue : Issue - Bil 1/2020 [PDF] © 2024 Bank Negara Malaysia. All rights reserved.

. R A K A N K E W A N G A N A N D A B I L . 1/2020 Intipati Belanjawan 20207 Prinsip Perlindungan Data Peribadi Yang Perlu Anda Ketahui PERCUMA | PP 16897/05/2013 (032581) BNMLINK Membantu Menangani Isu Dan Aduan Berkaitan Institusi Kewangan, Insurans Dan Takaful Adakah anda mempunyai sebarang komen mengenai RINGGIT? Sila imbas kod QR untuk tinjauan bagi Majalah Ringgit. Langkah-Langkah Pengendalian Mata Wang Malaysia C O N T O H C O N T O H Pengenalan Bank Negara Malaysia (BNM) komited dalam usaha memelihara alam sekitar dan melestarikan sumber asli untuk kepentingan dan manfaat generasi akan datang. Menyedari akan keperluan ini, BNM sentiasa memastikan wang kertas dan duit syiling Malaysia yang digunakan oleh orang ramai mempunyai tahap integriti yang tinggi, iaitu mempunyai ciri-ciri keselamatan yang moden dan terkini; menepati standard kualiti yang ditetapkan dengan menggabungkan pelbagai inovasi dan ciri keselamatan yang lebih canggih dari segi teknologi berbanding dengan siri wang kertas dan duit syiling keluaran terdahulu; serta dijaga dengan betul dan baik bagi memastikan jangka hayatnya dalam edaran lebih lama. Kita mempunyai tanggungjawab bersama untuk memastikan tempoh penggunaan mata wang negara adalah lebih lama supaya sumber alam sekitar dapat dipelihara dan dimanfaatkan dengan sebaik-baiknya. Bagi mencapai matlamat ini, penting bagi kita sebagai pengguna untuk memastikan wang kertas dan duit syiling Malaysia dalam edaran berada dalam keadaan yang baik serta mudah dipastikan ketulenannya. Dua denominasi wang kertas yang sering digunakan ialah RM1 dan RM5 yang diperbuat daripada substrat polimer. Antara manfaat wang polimer adalah seperti yang berikut: a) Tahan lebih lama, b) Boleh dikitar semula, c) Tidak menyerap cecair, d) Lebih bersih, dan e) Sukar dikoyakkan. Bagi memastikan wang kertas RM1 dan RM5 dapat digunakan untuk jangka masa yang lebih panjang, langkah-langkah pengendalian berikut perlu dilakukan: a) Jangan ikat wang polimer dengan getah. Sebaliknya, gunakan pembalut kertas. b) Jangan lipat wang polimer. Sebaliknya, simpan wang ini secara menegak. c) Bersihkan wang polimer dengan air jika terdapat kekotoran. A. Standard Kualiti Mata Wang Dalam Edaran Wang kertas Malaysia diterima untuk pembayaran dan sesuai diedarkan semula apabila memenuhi semua kriteria yang berikut: a) Tulen dan bukan palsu; b) Tidak berlubang, koyak, bertampal atau hilang beberapa bahagian daripadanya; c) Bersih secara keseluruhan dan tidak terlalu kotor; d) Tidak luntur, terutamanya pada potret SPB Yang di- Pertuan Agong; dan e) Tidak berconteng. Wang kertas dan duit syiling yang tidak lagi sesuai digunakan untuk pembayaran mahupun edaran semula boleh ditukar di mana-mana bank perdagangan, Ibu Pejabat BNM di Kuala Lumpur atau Pejabat BNM di Pulau Pinang, Johor Bahru, Kuala Terengganu, Kota Kinabalu dan Kuching. Wang kertas tidak lagi sesuai untuk edaran semula sekiranya: a) Terbakar, b) Renyuk, c) Berlubang, d) Luntur warna, e) Mengecut, atau f) Diubah suai (termasuk contengan) Langkah-langkah Pengendalian Mata Wang Malaysia C O N T O H 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Dr. Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Mandeep Singh Shabana Naseer Ahmad Maizatul Aqira Ishak Ringgit merupakan penerbitan usaha sama antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan secara berkala sebanyak enam edisi mulai tahun 2019. Untuk muat turun Ringgit dalam format “PDF“, sila layari laman sesawang www.fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks: 03-7877 1076 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. Gantian nilai bagi wang kertas yang tidak sesuai untuk edaran semula tertakluk kepada garis panduan seperti yang berikut: a) Saiz wang kertas • Nilai penuh - Lebih 2/3 daripada saiz asal wang kertas • Nilai separuh - Lebih 1/2 tetapi kurang 2/3 daripada saiz asal wang kertas • Tiada nilai - Kurang 1/2 daripada saiz asal wang kertas b) Wang kertas yang berconteng • Nilai penuh - Contengan yang sedikit • Tiada nilai - Contengan yang ketara, contengan tanda pada potret SPB Yang di-Pertuan Agong atau contengan berunsurkan politik, agama atau perkauman. Gantian nilai bagi duit syiling yang tidak sesuai untuk edaran pula adalah seperti yang berikut: • Nilai penuh - Kemik, terhakis tetapi paparan denominasi masih kelihatan, terbakar, kotor, kecacatan pengilangan • Tiada nilai - Berlubang, dipotong, terbelah Sila imbas kod QR di bawah atau rujuk laman sesawang BNM melalui http://www.bnm.gov.my/handlingbanknotes/ untuk maklumat lanjut mengenai cara penjagaan mata wang polimer serta gantian nilai bagi mata wang yang tidak sesuai untuk edaran kerana rosak, terkoyak atau sebagainya. C O N T O H bil. 1/2020 | 3 Rasa kualiti substrat wang kertas: Kertas yang kesat dengan cetakan timbul pada bahagian potret SPB Yang di-Pertuan Agong yang pertama dan teks. Wang polimer diperbuat daripada plastik khas dengan cetakan timbul pada potret SPB Yang Di-Pertuan Agong yang pertama dan teks. 1) Ciri Braille Ciri braille dalam bentuk berlian (diamond) dengan cetakan timbul 2) Potret Tanda Bayang Potret 3-Dimensi SPB Yang di- Pertuan Agong yang pertama dengan angka ‘50’ 3) Tanda Pandang Telus Bentuk lengkap motif Songket akan kelihatan 4) Imej Pendam Pelbagai Warna Angka ‘50’ akan dapat dilihat berubah warna apabila wang kertas dipusingkan B. Ciri-ciri Keselamatan Mata Wang Dalam Edaran Dalam laman sesawang BNM, anda boleh melihat panduan mudah untuk mengenal pasti ciri-ciri keselamatan pada wang kertas melalui kaedah rasa, lihat dan sendeng. Maklumat lanjut adalah seperti yang berikut: Lihat wang kertas berlatarbelakangkan cahaya: Potret tanda bayang 3 - D i m e n s i , ta n d a pandang telus dan tingkap pandang telus akan kelihatan. Garisan lurus benang kese lamatan akan kelihatan. Sebagai contoh, berikut adalah ciri keselamatan wang kertas denominasi RM50: 5) Cetakan Timbul Rasa kesan cetakan timbul pada bahagian potret SPB Yang di- Pertuan Agong yang pertama dan teks 6) Jalur Holografik Angka ‘50’ dan motif Bunga Raya dengan ciri belau (pumping and matt-structure effect) 7) Benang Keselamatan Dengan Ciri Warna Berubah Benang keselamatan yang d i te n u n b e r u b a h wa r n a daripada merah kepada hijau Garisan lurus gelap dengan teks mikro ‘BNM50’ 4 | RINGGIT Sila imbas kod QR di bawah atau rujuk laman sesawang BNM melalui http:// www.bnm.gov.my/securityfeatures untuk panduan bergambar yang menerangkan cir i -c ir i keselamatan bagi set iap denominasi wang kertas. Selain itu, BNM turut mengeluarkan aplikasi mudah alih MyRinggit bagi memudahkan orang ramai mempelajari serta memeriksa ciri-ciri keselamatan mata wang Malaysia bagi set iap denominasi. Aplikasi MyRinggit kini boleh didapati di Apple Store dan juga Google Play. Muat turun sekarang. C. Perkara Yang Perlu Dilakukan Sekiranya Mendapat / Menerima Wang Palsu Wang kertas palsu tidak mempunyai nilai. Jika anda ragu-ragu mengenai ketulenan wang kertas ketika melakukan transaksi, ikuti langkah-langkah mudah yang berikut: a) Minimumkan sentuhan terhadap wang kertas yang disyaki palsu, b) Jangan tulis, conteng, potong atau ubah paparan wang kertas yang disyaki palsu, c) Jangan edar semula wang kertas yang disyaki palsu, d) Simpan wang kertas yang disyaki palsu dalam sampul surat atau sampul plastik, e) Catat maklumat tentang cara anda menerima wang kertas yang disyaki palsu dalam kertas yang berasingan, dan f) Laporkan segera kepada pihak polis sekiranya mendapat atau menemui wang kertas yang disyaki palsu. Sumber: www.bnm.gov.my 8-10) Unsur Cahaya Pendarfluor Dua Warna Motif kijang dan segi empat tepat dengan teks ‘BNM50’ Serat berwarna merah, kuning dan biru kelihatan bertaburan Imej kombinasi biomolekul dan angka ‘50’ dalam warna merah dan kuning 11-13) Teks Mikro Tu l i s a n t e k s bersaiz mikro akan kelihatan jelas Berikut ialah ciri-ciri keselamatan duit syiling: 1) Imej Pendam Angka “50” dan huruf “SEN” kelihatan apabila duit syiling disendengkan (untuk duit syiling 50 sen sahaja) 2) Garisan Mikro Kesan timbul garisan halus (untuk duit syiling 50 sen sahaja) 3) Reka Bentuk Sisi Jarak lekuk dan gerigi pada sisi adalah sekata Pegang wang kertas menegak dan sendengkan: Lihat pada pergerakan imej dan perubahan warna pada benang keselamatan dan petak kilat berwarna. Lihat wang kertas berlatarbelakangkan cahaya: Potret tanda bayang 3 - D i m e n s i , ta n d a pandang telus dan tingkap pandang telus akan kelihatan. Garisan lurus benang kese lamatan akan kelihatan. bil. 1/2020 | 5 Laman Informasi Nasihat dan Khidmat Bank Negara Malaysia (BNMLINK) bertujuan untuk membantu serta memudahkan orang ramai dalam menangani isu dan aduan mengenai hal di bawah bidang kuasa Bank Negara Malaysia (BNM). Orang ramai yang ingin mendapatkan maklumat atau bantuan penyelesaian tentang perbankan Islam dan konvensional, insurans dan takaful, khidmat nasihat bagi perusahaan kecil dan sederhana, pentadbiran pertukaran asing dan perkara lain di bawah bidang kuasa Bank Negara Malaysia, boleh menghubungi BNMLINK dan BNMTELELINK. Menurut Datin Arlina Ariff, Pengarah Jabatan LINK dan Pejabat BNM, pada masa ini BNMLINK menerima 2,500 pertanyaan setiap hari berkaitan perkhidmatan institusi kewangan, insurans serta takaful. Isu yang sering dihadapi oleh orang ramai ialah masalah kegagalan mereka melunaskan bayaran ansuran bulanan mengikut tarikh yang ditetapkan. Dalam hal ini, Datin Arlina menambah, peminjam yang membiarkan masalah pembayaran balik pinjaman atau pembiayaan mereka berlarutan bakal berhadapan dengan beberapa implikasi, seperti faedah pinjaman atau pembiayaan mereka akan dinaikkan; menanggung segala kos dan caj bagi tindakan undang-undang yang diambil oleh pihak bank dan risiko aset boleh dilelong. Selain itu, bayaran tertunggak akan tertera dalam laporan Sistem Maklumat Rujukan Kredit Pusat (CCRIS), yang sering menjadi rujukan institusi kewangan. Hal ini boleh menyebabkan peminjam menghadapi kesukaran untuk memohon pinjaman / pembiayaan kewangan pada masa hadapan. Bank Negara Malaysia (BNM) menasihatkan bahawa peminjam yang menghadapi kesukaran membayar balik pinjaman atau pembiayaan supaya segera merujuk kepada pihak bank mereka bagi mengelak berdepan keadaan yang lebih sukar pada masa depan. Tindakan segera merujuk kepada bank membolehkan peminjam berunding dengan pihak bank bagi membincangkan pilihan dan pembayaran balik seperti penstrukturan atau penyusunan semula pembiayaan mereka. Beliau juga menasihatkan peminjam yang menghadapi masalah itu supaya jangan menunggu sehingga pihak bank mengambil tindakan undang-undang kerana ia akan merumitkan lagi keadaan. Hal ini disebabkan oleh peminjam boleh diisytihar bankrap jika jumlah baki pembiayaan melebihi RM50,000. “Jangan berlengah dan mengelak daripada pihak bank. Bertindak segera merujuk kepada pihak bank anda. Bincangkan jalan terbaik bagi membantu anda untuk terus membayar hutang sama ada melalui penjadualan atau penyusunan semula pinjaman atau pembiayaan,” demikian nasihat Datin Arlina. “Sekiranya tiada jalan penyelesaian yang boleh diambil, pelanggan boleh merujuk perkara ini kepada Agensi Kaunseling & Pengurusan Kredit (AKPK) bagi mendapatkan kaunseling serta menyertai program pengurusan hutang oleh AKPK,” katanya pada taklimat media mengenai khidmat nasihat yang disediakan Pusat Perhubungan Pelanggan Bank Negara Malaysia. Beliau berkata, pelanggan bank yang tidak berpuas hati dengan keputusan institusi kewangan boleh merujuk perkara berkenaan di talian 1-300-88-5465, e-mel [email protected] atau melalui borang maklumat di pautan https://telelink.bnm.gov.my/. Sumber: www.fomca.org.my Membantu Menangani Isu Dan Aduan Berkaitan Institusi Kewangan, Insurans Dan Takaful 6 | RINGGIT Data peribadi bermaksud sebarang maklumat yang digunakan di dalam transaksi komersial yang berhubungan secara langsung atau tidak langsung dengan seseorang yang dikenal pasti daripada maklumat tersebut. Data tersebut boleh direkodkan sama ada secara manual atau elektronik meliputi perkara-perkara objektif dan juga subjektif tanpa mengira sumber maklumat itu diperolehi meliputi maklumat asas. Antara contoh ‘data peribadi’ adalah seperti: • Nama dan alamat • Nombor kad pengenalan • Nombor pasport • Maklumat kesihatan • E-mel • Gambar • Imej dalam rakaman litar tertutup (CCTV) • Maklumat dalam fail peribadi • Butiran akaun bank • Butiran kad kredit • Maklumat kesihatan (sensitif) contohnya, penjenisan darah, rekod atau huraian kesihatan sehinggalah ke maklumat-maklumat sensitif seperti kepercayaan politik, kepercayaan agama, keadaaan fizikal atau mental atau apa-apa informasi lain yang ditetapkan oleh Menteri di bawah Akta Perlindungan Data Peribadi (APDP) dari semasa ke semasa. Berikut adalah Prinsip Perlindungan Data Peribadi yang wajib dipatuhi di bawah seksyen 5 (1) demi menjaga keutuhan data peribadi: 1) Prinsip Am Anda harus memberi persetujuan untuk menggunakan data peribadi anda. Seseorang pengguna atau organisasi tidak dibenarkan memproses data peribadi seseorang yang lain tanpa kebenarannya. Pengertian proses di sini bermaksud mengendalikan data melalui cara atau kaedah automatis atau pengkomputeran atau apa-apa proses lain. Prinsip Perlindungan Data Peribadi Yang Perlu Anda Ketahui 2) Prinsip Notis Dan Pilihan Anda harus dimaklumkan akan tujuan beserta had penggunaan data peribadi yang telah diberikan. 3) Prinsip Penzahiran Ketahui bahawa syarikat tidak boleh menggunakan data anda bagi tujuan lain selain daripada yang dibenarkan sahaja. 4) Prinsip Keselamatan Organisasi harus memastikan data peribadi disimpan dalam keadaan selamat dan terjamin. 5) Prinsip Penyimpanan Sesuatu data peribadi itu tidak dibenarkan disimpan di dalam sesuatu pemprosesan lebih daripada had masa yang diperlukan. 6) Prinsip Integriti Data Organisasi bertanggungjawab dalam memastikan data peribadi tersebut betul dan tepat. bil. 1/2020 | 7 Butir-butir yang diperlukan semasa membuat aduan: Anda hanya perlu menulis surat atau e-melkan kepada Jabatan Perlindungan Data Peribadi untuk menjelaskan kes anda. Dalam surat atau e-mel, anda perlu menyatakan perkara- perkara yang berikut: i) Nama organisasi atau individu yang anda ingin adukan; ii) Menerangkan sebab kebimbangan anda; iii) Memberikan butir-butir tindak balas yang anda telah terima daripada organisasi yang disyaki punca kebocoran maklumat; iv) Menyediakan salinan apa-apa surat atau e-mel mengenai perbincangan anda dengan organisasi atau individu berkenaan. Aduan Awam [email protected] Sistem iSPAAA KPKK http://kkmm.bpa.jpm.my/eApps/system/index.do Sumber: www.kkmm.gov.my “Seseorang pengguna atau organisasi tidak dibenarkan memproses data peribadi seseorang yang lain tanpa kebenarannya.” “Sekiranya pengadu masih tidak berpuas hati dengan jawapan dan tindakan yang diambil oleh organisasi berkenaan, maka pengadu bolehlah terus membuat aduan ....” 7) Prinsip Akses Individu hendaklah diberikan hak untuk mengakses data peribadinya dan dibenarkan untuk mengemas kini datanya. Orang ramai boleh mengemukakan sebarang aduan yang berkaitan Akta Perlindungan Data Peribadi 2010 (Seksyen 709) sekiranya mengesyaki sebuah organisasi atau seseorang telah melanggar salah satu daripada 7 Prinsip Perlindungan Data Peribadi. Berikut adalah amalan yang disarankan kepada pengadu, iaitu apabila Akta ini telah berkuat kuasa: i) Pengadu perlu membuat aduan dan memohon penjelasan daripada organisasi yang terlibat terlebih dahulu; ii) Sekiranya pengadu masih tidak berpuas hati dengan jawapan dan tindakan yang diambil oleh organisasi berkenaan, maka pengadu bolehlah terus membuat aduan kepada pihak Jabatan Perlindungan Data Peribadi (JPDP) melalui alamat aduan yang disertakan bagi membolehkan penyiasatan dijalankan; iii) Sekiranya pengadu masih terkilan dengan keputusan Pesuruhjaya berhubung perkara tersebut, maka pengadu bolehlah merayu kepada Tribunal Rayuan dengan memfailkan suatu notis rayuan dengan Tribunal Rayuan. 8 | RINGGIT Ringkasan Intipati Belanjawan 2020 Tema Belanjawan 2020 – Memacu Pertumbuhan Dan Keberhasilan Saksama Ke Arah Kemakmuran Bersama. Empat teras yang menunjangi Belanjawan 2020 adalah: 1 2 3 4Memacu Pertumbuhan Ekonomi dalam Ekonomi Baharu dan Era Digital Pelaburan Ke Atas Rakyat: Meningkatkan Keupayaan Modal Insan Mewujudkan Masyarakat yang Bersatu, Inklusif dan Saksama Memulihkan Institusi dan Kewangan Awam Diskaun 18% di semua lebuh raya milik PLUS. Caj kesesakan pada waktu sekitar puncak dan waktu biasa diturunkan sehingga 30% berbanding dengan kadar tol semasa serta percuma semasa waktu bukan puncak. Tol / Lebuh Raya BSH akan diteruskan dengan p e r u n t u ka n s e b a nya k RM5 bilion individu bujang berusia lebih 40 tahun yang berpendapatan kurang daripada RM2,000 sebulan. Individu bujang berusia lebih 40 tahun dan golongan OKU layak menerima RM300 dan secara automatik menjadi penerima Skim Takaful mySalam secara percuma. Bantuan Sara Hidup (BSH) 2020 Soroton Belanjawan 2020 MySalam: 1) Penerima Bantuan Sara Hidup (BSH):- • Individu berumur antara 18 hingga 65 tahun dan pasangan; • Individu bujang berumur antara 40 hingga 65 tahun dan berpendapatan kurang daripada RM24,000 setahun; • Individu OKU berumur antara 18 hingga 65 tahun dan berpendapatan kurang daripada RM24,000 setahun. 2. Bukan Penerima Bantuan Sara Hidup (BSH) / Golongan M40:- • Individu berumur antara 18 hingga 65 tahun dan berpendapatan sehingga RM100,000 setahun. Perlu mendaftar di web www.mysalam.com.my Manfaat yang diterima: 1) Penerima Bantuan Sara Hidup (BSH): Penyakit kritikal RM8,000 + hospitalisasi RM50 untuk maksimum 14 hari. 2) Manfaat Bukan Penerima Bantuan Sara Hidup (BSH): Penyakit kritikal RM4,000 + hospitalisasi RM50 untuk maksimum 14 hari. Skim Peduli Kesihatan (PeKa B40) telah dilancarkan untuk menyediakan pemeriksaan dan intervensi awal bagi mengesan penyakit tidak berjangkit seperti kesihatan mental dan kanser untuk mereka yang berusia antara 50 tahun hingga 60 tahun. Perluasan mySalam & PeKa B40: bil. 1/2020 | 9 MalaysiaKerja (Malaysians@ Work) telah diperkenalkan b e r t u j u a n m e w u j u d k a n peluang pekerjaan yang lebih baik untuk belia dan wanita sekali gus mengurangkan kebergantungan terhadap pekerja asing berkemahiran rendah. Insentif tersebut adalah seperti yang berikut: ________________________________________ #GraduanKerja (pengambilan graduan menganggur lebih 12 bulan): Graduan yang menerima tawaran kerja akan menerima insentif gaji selama dua tahun sebanyak RM500 sebulan sebagai tambahan kepada gaji yang diterima. Manakala majikan pula akan menerima insentif pengambilan pekerja sebanyak RM300 sebulan juga bagi tempoh yang sama. ________________________________________ #WanitaKerja: Mewujudkan 33 ribu peluang pekerjaan setahun untuk wanita berusia di antara 30 hingga 50 tahun yang telah berhenti bekerja selama setahun atau lebih. Insentif gaji selama dua tahun sebanyak RM500 sebulan, manakala majikan pula akan diberi insentif pengambilan pekerja sebanyak RM300 sebulan bagi tempoh yang sama. ________________________________________ # Wa t a n K e r j a : P r o g r a m k e s a m a r a t a a n k o s pengambilan pekerja yang b e r t u j u a n m e n g a l i h k a n kebergantungan terhadap pekerja asing berkemahiran rendah. Warganegara yang menggantikan pekerja asing akan diberikan insentif gaji selama dua tahun sebanyak RM350 atau RM500 sebulan mengikut sektor. Manakala, majikan pula akan menerima insentif pengambilan sebanyak RM250 sebulan dalam tempoh yang sama. ________________________________________ Nota: Inisiatif #MalaysiaKerja akan disediakan oleh Kerajaan dan diuruskan oleh Kumpulan Wang Simpanan Pekerja (KWSP), iaitu insentif gaji tersebut akan dikreditkan ke dalam akaun KWSP Peluang Pekerjaan Gaji minimum ditingkatkan pada kadar RM1,200 sebulan hanya di wilayah bandar- bandar utama. Bajet Pekerjaan Kadar bantuan sara hidup (COLA) ditingkatkan sebanyak RM50 sebulan bagi kumpulan pelaksana penjawat awam. Saraan Penjawat Awam #Dana Rumah Mampu Milik oleh Bank Negara Malaysia (BNM) bagi membantu pembeli rumah golongan berpendapatan rendah untuk membeli rumah pertama. #Kempen Pemilikan Rumah iaitu pemaju menawarkan sekurang-kurangnya diskaun 10 peratus untuk hartanah yang layak dan akan dipadankan dengan pengecualian duti setem. #Skim Rent To Own: Jaminan 30% atau RM3 Bilion untuk pembelian rumah pertama bernilai sehingga RM500 ribu. #Skim Perumahan Belia BSN dilanjutkan mulai 1 Januari 2020 sehingga 31 Disember 2021 Skim Rumah Mampu Milik Sumber: www1.treasury.gov.my Rakyat berumur 18 tahun ke atas yang berpendapatan RM100,000 ke bawah setahun akan menerima RM30 dalam e-dompet bermula 1 Januari 2020 untuk kali pertama bagi merangsang penggunaan dompet tanpa tunai. Bajet Ekonomi Digital 10 | RINGGIT Pada tahun 2018, Pusat Khidmat Aduan Pengguna Nasional (NCCC) telah menerima sebanyak 935 aduan mengenai institusi kewangan bukan bank. Lebih daripada 41% aduan adalah mengenai pinjaman wang berlesen, skim pelaburan dan pajak kedai. Isu berkaitan pinjaman wang berlesen merupakan antara yang amat membimbangkan. Sekiranya pengguna ingin melangsaikan wang yang dipinjam dalam masa yang lebih singkat dari tempoh yang sebenar, pengguna tidak diberi rebat yang sewajarnya seperti yang diberikan oleh bank perdagangan yang berada di bawah pengawasan Bank Negara Malaysia (BNM). Kadar faedah pinjaman mereka juga adalah sangat tinggi dan tidak diawasi oleh BNM kerana syarikat sedemikian bukan di bawah pengawasan BNM. Syarikat pinjaman wang berlesen ini berada di bawah bidang kuasa Kementerian Perumahan dan Kerajaan Tempatan (KPKT) dikawal selia oleh Bahagian Kawalan Kredit. Ramai pengguna yang meluahkan perasaan marah dan sedih kerana mendapati kadar faedah terlalu tinggi. Mereka meminta pihak NCCC untuk menjadi pengantara dengan pihak pinjaman wang berlesen ini untuk mengurangkan kadar faedah serta menyelesaikan masalah mereka. Terdapat juga segelintir syarikat pinjaman wang berlesen ini meminta sejumlah wang sebagai pendahuluan sebelum pinjaman mereka diluluskan. Setelah pinjaman Institusi Kewangan Bukan Bank diluluskan, pengguna diminta membuat pembayaran lagi. Apabila pengguna membuat keputusan untuk menamatkan kontrak pinjaman dan meminta semula wang pendahuluan, permintaan pengguna tidak dilayan malah syarikat pinjaman menghilangkan diri. Skim pelaburan yang dibawa oleh insititusi kewangan bukan bank juga telah memerangkap ramai pengguna yang leka. Kebanyakan aduan adalah mengenai wang pelaburan mereka yang tidak membuahkan sebarang hasil seperti yang dijanjikan. Ramai penggguna yang sedar akan tipu helah ini dan cuba membatalkan perjanjian dan meminta bayaran balik wang pelaburan mereka. Malangnya pengguna tidak boleh membatalkan perjanjian ini melainkan pengguna perlu membayar sejumlah wang kepada syarikat tersebut. Malah ada juga yang melabur dalam syarikat kewangan yang tidak mempunyai sebarang lesen dan melarikan diri sebaik sahaja menerima wang pelaburan daripada pengguna yang naif. Aduan juga diterima daripada para penguna mengenai pemilik pajak gadai yang menjual atau melelong barangan gadaian mereka tanpa memaklumkan kepada para penguna. Sepatutnya pemilik pajak gadai wajib memaklumkan kepada para pengguna apabila mereka hendak menjual atau melelong barangan gadaian pengguna tersebut. Malahan, ada segelintir pemilik pajak gadai yang mengambil kesempatan masalah kewangan yang dihadapi oleh pengguna dengan menjual barangan gadaian dengan harga yang lebih tinggi untuk mengaut keuntungan yang besar. Para pemilik pajak gadai yang tidak beretika ini memaksa pengguna membayar lebih untuk mendapatkan kembali barangan gadaian mereka. Pihak berkuasa perlu memainkan peranan yang penting dalam mengawal selia syarikat kewangan yang berlesen ini dan memastikan syarikat-syarikat ini menjalankan urusan perniagaan mereka dengan lebih beretika. Walaupun syarikat kewangan berlesen tidak sama dengan bank perdagangan, namun pihak kerajaan melalui agensinya seperti Kementerian Perumahan dan Kerajaan Tempatan (KPKT), Suruhanjaya Koperasi Malaysia (SKM) dan Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna (KPDNHEP) perlu mengawasi kegiatan syarikat wang berlesen ini. Aduan Awam: 04-15, 4TH Floor, WISMA PJ5 SOHO, No 4.B, Jalan SS5D/6, Kelana Jaya 47301 Petaling Jaya Selangor Sistem E-Aduan: http://www.nccc.org.my/v2/index.php/ ingin-membuat-aduan-e-aduan Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) C O N T O H C O N T O H bil. 1/2020 | 11 TERIMA PANGGILAN PENYAMAR RM Jangan panik menerima panggilan telefon macau scam 1 Kad kredit anda telah digunakan oleh pihak ketiga MANGSA CEMAS2 Tak, saya tak pernah ada kad kredit! Bukan saya! PENYAMARAN SEBAGAI PEGAWAI3 Pemanggil menyamar sebagai pegawai Bank Negara Malaysia/ PDRM/agensi penguatkuasa yang lain dan meminta maklumat DUIT LEBUR6 Mangsa hanya sedar telah ditipu setelah transaksi selesai MENURUT ARAHAN5 Mangsa melakukan pemindahan wang atas arahan pegawai tersebut MANGSA PERCAYA4 Bagi menyekat penyalahgunaan kad kredit/identiti, mangsa diarahkan memindahkan wang ke akaun kononnya pemegang amanah yang dilantik JANGAN PANIK DEDAHKAN MAKLUMAT PERBANKAN ANDA PINDAHKAN WANG ATAS ARAHAN SESIAPA ! Langkah-langkah keselamatan bnm.official1-300-88-5465 https://telelink.bnm.gov.my Inisiatif literasi kewangan oleh: BANK NEGARA MALAYSIA CENTRAL BANK OF MALAYSIA

Public Notice

18 Feb 2020

Maklumat Penting untuk Orang Ramai yang Berkunjung ke BNMLINK

https://www.bnm.gov.my/-/makluman-penting-untuk-orang-ramai-yang-berkunjung-ke-bnm-link

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/makluman-penting-untuk-orang-ramai-yang-berkunjung-ke-bnm-link&languageId=ms_MY

Reading: Maklumat Penting untuk Orang Ramai yang Berkunjung ke BNMLINK Share: Maklumat Penting untuk Orang Ramai yang Berkunjung ke BNMLINK Tarikh Siaran: 18 Feb 2020 Mulai bulan Julai 2023, BNMTELELINK telah dijenama semula sebagai BNMLINK. Orang ramai boleh terus menghubungi BNMLINK menerusi telefon 1-300-88-5465 atau atas talian menerusi bnmlink.bnm.gov.my Berikutan kekhuatiran masyarakat berhubung dengan keadaan kesihatan awam yang sedang berlaku, orang ramai boleh mengemukakan pertanyaan dan aduan melalui: eLINK (Borang Web)           Lengkapkan borang web di https://telelink.bnm.gov.my/ Orang ramai juga boleh menghubungi: BNMTELELINK (Pusat Hubungan) Tel: 1-300-88-5465 (1-300-88-LINK) Luar Negara: + 603-21741717 Waktu operasi: 9.00 pagi - 5.00 petang (Isnin hingga Jumaat) Untuk Soalan Lazim mengenai perkara yang berkaitan dengan CCRIS, sila layari http://creditbureau.bnm.gov.my/BMfaqs.html Orang ramai juga dinasihati supaya mengambil langkah berjaga-jaga dan mengurangkan interaksi secara bersemuka. Terima kasih © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

11 Feb 2020

Financial Consumer Alert: List of unauthorised companies and websites has been updated

https://www.bnm.gov.my/-/financial-consumer-alert-list-of-unauthorised-companies-and-websites-has-been-updated-2

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/financial-consumer-alert-list-of-unauthorised-companies-and-websites-has-been-updated-2&languageId=ms_MY

Reading: Financial Consumer Alert: List of unauthorised companies and websites has been updated Share: 52 Financial Consumer Alert: List of unauthorised companies and websites has been updated Tarikh Siaran: 11 Feb 2020         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

31 Jan 2020

Response to Feedback on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) Exposure Draft

https://www.bnm.gov.my/-/response-to-feedback-on-anti-money-laundering-countering-financing-of-terrorism-and-targeted-financial-sanctions-for-financial-institutions-aml/cft-and-tfs-for-fis-exposure-draft-1

Reading: Response to Feedback on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) Exposure Draft Share: Response to Feedback on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) Exposure Draft Release Date: 31 Jan 2020 The Exposure Draft on AML/CFT and TFS for FIs was issued on 19 September 2019. This response to feedback received summarises the key issues covering feedback received during the consultation period which ended on 25 October 2019. The revised policy document on AML/CFT and TFS for FIs was issued on 31 December 2019 and came into force on 1 January 2020. Find out more : Response to Feedback on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) Exposure Draft © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

20 Jan 2020

Exposure Draft on Corporate Strategic Plan

https://www.bnm.gov.my/-/exposure-draft-on-corporate-strategic-plan

Reading: Exposure Draft on Corporate Strategic Plan Share: Exposure Draft on Corporate Strategic Plan Release Date: 20 Jan 2020 Bank Negara Malaysia has issued the exposure draft (ED) on Corporate Strategic Plan on 16 January 2020 which sets out the expectations for DFIs in establishing its respective institution’s business plans and funding requirements. This ED is a consolidation of two existing policy requirements, namely the strategic corporate intent and annual funding requirements, where it requires more comprehensive submission on the overall corporate strategies moving forward, in ensuring that the DFIs remain focus in pursuing greater developmental outcomes. The Bank invites written feedback on the proposed regulatory requirements, including suggestions on areas to be clarified and alternative proposals that the Bank should consider. The written feedback should be supported with clear rationale, accompanying evidence or illustrations, as appropriate to facilitate effective review of this exposure draft. Responses must be submitted to the Bank by 16 March 2020. Find out more: Exposure Draft on Corporate Strategic Plan © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

17 Jan 2020

Exposure Draft on Recovery Planning

https://www.bnm.gov.my/-/exposure-draft-on-recovery-planning

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/exposure-draft-on-recovery-planning&languageId=ms_MY

Reading: Exposure Draft on Recovery Planning Share: Exposure Draft on Recovery Planning Tarikh Siaran: 17 Jan 2020         Artikel ini cuma terdapat dalam Bahasa Inggeris buat masa sekarang.         © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

31 Dis 2021

Wholesale Market Conduct Practices Guidance Document

https://www.bnm.gov.my/-/wholesale-market-conduct-practices-guidance

https://www.bnm.gov.my/documents/20124/938039/WMC_Guide.pdf

Wholesale Market Conduct Practices Guidance Document Part A: Overview 1. Introduction ................................................................................................1 2. Objective ....................................................................................................1 3. Applicability ................................................................................................2 4. Legal Provisions ........................................................................................2 5. Effective Date ............................................................................................2 6. Related Legal Instruments and Policy Documents ....................................2 7. Documents Superseded ............................................................................2 8. Interpretation .............................................................................................3 Part B: Risk Identification and Surveillance 9. Risk Identification and Assessment ......................................................6 10. Surveillance ..............................................................................................9 Trade Surveillance .................................................................................9 Threshold and Parameter Setting ........................................................10 Communications Surveillance ..............................................................12 Analysis / Investigation ........................................................................14 Personnel and Training ........................................................................15 11. Monitoring for and Investigating Misconduct .....................................16 Wash Trading .......................................................................................17 Position Parking ................................................................................... 20 Front Running ...................................................................................... 22 Off Market Rates ..................................................................................24 Insider Dealing .....................................................................................26 Part C: Internal Controls and Culture 12. Control Environment in Managing Conduct Risks .............................29 Governance and Reporting .....................................................................30 Front-Middle-Back Office Controls ..........................................................32 i. Entertainment and Gifts ..................................................................33 ii. Broker / Counterparty Relationships ..............................................34 iii. Mandatory Leave ............................................................................35 iv. Off-Premise and After-Hours Dealing .............................................36 v. Business Norms .............................................................................38 vi. Trade Capture, Cancellations and Amendments ............................38 vii. Access to Dealing Room and Systems ..........................................39 Handling of Inside Information .................................................................40 i. Chinese Wall ..................................................................................41 ii. Personal Account Dealing ..............................................................42 Conflicts of Interest ..................................................................................44 Compliance Function ...............................................................................46 Internal Audit ............................................................................................48 13. The Role of Culture in Promoting Good Conduct ...............................49 Remuneration and Key Performance Indicators ......................................49 Consequence Management ....................................................................50 Training .................................................................................................... 51 Appendix & References Appendix 1 ......................................................................................................52 Appendix 2 ......................................................................................................54 References .....................................................................................................55 Contents 1Overview Wholesale Market Conduct Practices Part A: Overview 1. Introduction 1.1 Integrity and professionalism by market participants in the conduct of their business, affairs and activities are key elements in maintaining efficiency and public confidence in Malaysia’s wholesale financial markets. Financial institutions are responsible in their capacity as market participants to maintain adequate oversight of employees’ conduct in the course of their market activities. 1.2 Market misconduct can be perpetrated through various methods and is commonly intended to create false impressions that mislead other market participants, allow market participants to profit from inside information, or circumvent internal controls, amongst others. 1.3 This document makes a general distinction between two categories of market misconduct: a. Market abuse • Actions or trading with the intent of manipulating market volumes, prices and order books in order to benefit from the resulting market reaction. • Attempts to influence benchmark rates, trade ahead of client orders, or take actions based on inside information. b. Unauthorised trading • Also commonly referred to as rogue trading. The financial institution’s governance and controls may be deliberately circumvented to support risk-taking beyond authorised limits in search of greater profits. • Includes actions in trading which in effect violate the financial institution’s internal policies (e.g. those pertaining to securities’ aged inventory policy or allowable trading book holding period). 1.4 Financial institutions should have mechanisms in place to detect and deter market misconduct. In this regard, an effective surveillance programme is necessary to detect misconduct, while a strong internal control environment serves to deter or prevent misconduct. 2. Objective 2.1 The Bank takes a holistic view in its supervisory expectations and assessment of controls that financial institutions should have in place to manage conduct risks arising from their market activities across all financial products, and conducts supervisory reviews focused on this area. 2.2 Based on the Bank’s supervisory findings and observations of banking institutions’ practices in Malaysia, this document seeks to provide guidance on managing conduct risks arising from activities in wholesale financial markets, in particular on the following areas: (a) setting up and operating effective trade and communications surveillance programmes over the activities of dealers, as well as typical examples of misconduct that should be in the scope of surveillance; and (b) forming a strong conduct control environment, which includes elements such as conduct risk oversight and reporting, alignment of risk to rewards, segregation of controls and maintenance of information barriers, amongst others. 2.3 In the course of the Bank’s supervisory reviews, this document will serve as a guide on the wholesale market conduct practices and controls which should be adopted by financial institutions where appropriate. Financial institutions should give consideration to the size and complexity of their operations in determining the design and scope of controls, where higher expectations are generally placed on financial institutions with larger and more complex operations. Practices or controls which deviate from the guidance in this document should demonstrate equal or higher effectiveness in addressing market misconduct risks. Overview2 3. Applicability 3.1 The guidance in this document is contextualised and applicable to the business and operations of licensed banks, licensed investment banks, licensed islamic banks and prescribed development financial institutions. Other financial institutions such as licensed insurers, licensed Takaful operators and approved money-brokers as well as other market participants are also encouraged to consider adopting the guidance where relevant to their participation in wholesale financial markets. 3.2 In general, financial institutions that participate in, or offer services or products in the following financial markets are encouraged to adopt the guidance1 in this document: (a) Foreign exchange market; (b) Money market; (c) Capital market (bond and equity markets); (d) Derivatives market; and (e) Commodities market. 3.3 Financial groups are encouraged to adopt the guidance herein and address wholesale market conduct risks holistically across their subsidiaries, and seek to implement group-wide standards of control, adopting the higher local regulatory standards where applicable. 4. Legal Provisions 4.1 The guidance in this document is issued pursuant to section 266 of the FSA, section 277 of the IFSA, and section 126 of the DFIA. 5. Effective Date 5.1 This document comes into effect on 31 December 2021. 6. Related Legal Instruments, Policy Documents and Guidance 6.1 This document should be read together with other relevant legal instruments, policy documents and guidelines that have been issued by the Bank, in particular: (a) Code of Conduct for Malaysia Wholesale Financial Markets; (b) Principles for a Fair and Effective Financial Market for the Malaysian Financial Market; (c) KLIBOR Rate Setting; (d) Corporate Governance; (e) Risk Governance; (f) Employee Screening; and (g) Management of Customer Information and Permitted Disclosure. 6.2 This document should be read together with other locally issued guidance (e.g. by the Securities Commission Malaysia, Bursa Malaysia, etc.) as well as international best practices on wholesale market conduct. 7. Documents Superseded 7.1 This document supersedes the notification on Managing Unauthorised Trading and Market Manipulation issued on 20 November 2015. 1 The guidance in this document is intended to address institutions’ proprietary trading and facilitation of client deals to which the institution acts as principal. Discretion should be applied for parts of the document that are not applicable in specific contexts (e.g. equity trading, etc.) 3Overview Wholesale Market Conduct Practices 8. Interpretation 8.1 The terms and expressions used in this document shall have the same meaning assigned to them in the FSA, IFSA or DFIA, as the case may be, unless otherwise defined in this policy document. 8.2 For the purpose of this document: “DOs” refer to good practices observed among banking institutions in the course of the Bank’s supervisory reviews as well as some recommendations for good practice; “DON’Ts” refer to poor practices observed among banking institutions in the course of the Bank’s supervisory reviews as well as some practices to avoid; “brokers” refer to employees of approved money-brokers who arrange deals between market participants in the wholesale financial markets; “clients” refer to market participants entering into transactions and activities with or through a financial institution; “Code of Conduct” refers to the Code of Conduct for Malaysia Wholesale Financial Markets; “deals” or “trades” refer to transactions in wholesale financial markets; “dealers” refer to employees of financial institutions dealing in the wholesale financial markets and may include traders and sales persons of the treasury division of the institution; “DFIA” refers to the Development Financial Institutions Act 2002; “financial product” or “product” refers to a financial instrument that is traded in the market or transacted with clients and counterparties, including structured products offered by institutions; “financial institutions” refer to licensed banks, licensed Islamic banks, licensed investment banks, prescribed development financial institutions, licensed insurers, licensed takaful operators and approved money-brokers; “FSA” refers to the Financial Services Act 2013; “IFSA” refers to the Islamic Financial Services Act 2013; “sales dealer” refers to sales persons of the treasury division of a financial institution; and “senior management” refers to the Chief Executive Officer and senior officers of market participants; and “wholesale financial markets” refer generally to markets involving transactions between institutions and do not involve retail transactions (e.g. transaction with an individual customer). RISK IDENTIFICATION AND SURVEILLANCE Risk Identification and Surveillance6 Part B: Risk Identification and Surveillance 9. Risk Identification and Assessment 9.1 The first step for institutions in managing conduct risk is to prepare a market conduct risk assessment. This assessment represents a systematic method of identifying financial products traded by the institution and assessing their susceptibility to different types of misconduct, as well as documenting mitigating actions or controls. 9.2 The market conduct risk assessment is intended to assist the institution in: (a) understanding the market and operational environment for its wholesale market activities; (b) identifying the types of market misconduct applicable to a particular product, and the corresponding level of risk; (c) prioritising the rollout of surveillance of market misconduct where the potential exposure is assessed to be of higher risk; (d) calibrating parameters and thresholds used in surveillance; and (e) ensuring all its traded products have been considered in refining the coverage of surveillance. 9.3 The market conduct risk assessment is intended to serve as an input in managing market conduct risk through means of surveillance and other controls. It is not intended to provide an overall assessment of the institution’s net market conduct risk exposure. As such, moderating down the assessed risk exposure because of surveillance and controls in place can provide a false sense of comfort. 9.4 Factors that institutions can consider in assessing the respective level of risk include, but are not limited to: (a) whether the product is traded on an exchange2 or in over-the-counter (OTC) markets; (b) overall traded volume and number of transactions; (c) distribution of individual transaction sizes (e.g. percentile analysis); (d) changes in (b) and (c) across time periods; (e) market liquidity of the product; (f) operational aspects (e.g. client order handling, mode of settlement) which increase or reduce the susceptibility of a product to certain types of market abuse; and (g) how items (a) to (f) connect to the underlying motives for misconduct. 9.5 While business units can provide meaningful inputs on the facets of wholesale financial markets and its products, the market conduct risk assessment should be prepared typically by an internal control function (e.g. Surveillance function, Compliance or Risk Management) given the outcomes outlined in paragraph 9.2 and 9.3. 9.6 The market conduct risk assessment must be discussed at the relevant senior management and board committees for better appreciation of the institution’s wholesale market conduct risks. 9.7 From the Bank’s supervisory observations to date, banking institutions are generally lagging in having a properly documented risk assessment on their exposure to market conduct risks, despite already having some surveillance mechanisms in place. 2 Exchange-traded products (e.g. Bursa stocks, futures) have greater market visibility of price, volume and order queue information that are common vectors for perpetrating market abuse. 7Risk Identification and Surveillance Wholesale Market Conduct Practices Q&A Segment 3 Work published by the UK FICC Markets Standards Board (FMSB) such as ‘Behavioural Cluster Analysis - Misconduct Patterns in Financial Markets’ (July 2018) provide a source of reference. Q: What should a market conduct risk assessment look like? A: A complete inventory of the institution’s traded products would be mapped against the various known types of market misconduct3, which are then individually assessed for applicability and susceptibility. This is followed by identifying corresponding controls or surveillance mechanisms to detect and/or deter that type of misconduct. An example of a market conduct risk assessment is shown in Appendix 1. Q: Is the market conduct risk assessment a static document? A: No. The market conduct risk assessment must be periodically reviewed, at least annually, to ensure it remains current. Q: The average transaction size for my institution’s foreign exchange (FX) deals is small (e.g. RM1,000-RM3,000). Can I interpret that to mean the risk of misconduct is low? • While relevant, average transaction size is generally of limited value as an indicator of conduct risk. ➡ For FX in particular, low averages are the norm when the scope of analysis includes numerous small customer transactions that typically originate from the institution’s branches and do not directly impact the market. • The potential for specific market abuses, such as front running, may need to be measured using different indicators. ➡ For front running, having a grasp of how big transactions can get and how frequently large transactions occur (i.e. via percentile analysis) is more meaningful. ➡ Non-empirical inputs like operational norms also have a role, for example, requests for market quotes from the trading desk when handling large client orders inherently provides opportunities for front running. • Institutions are recommended to consider a range of factors as listed in paragraph 9.4 in assessing their susceptibility to different types of market misconduct. A: Risk Identification and Surveillance8 Q: Instead of coming up with a separate risk assessment, will it suffice if conduct risk is already identified and documented in my institution’s Risk Control Self Assessment (RCSA)? A: The Bank has observed that conduct risks documented in RCSAs are typically high level and lack the granularity required to inform and benefit the surveillance process. This is in view of RCSAs generally being oriented to serve the purpose of facilitating an aggregated view of the institution’s operational risks and corresponding mitigating controls. Q: Can institutions perform surveillance without a market conduct risk assessment? A: Having a market conduct risk assessment is necessary to inform an effective surveillance programme and support on-going oversight of a financial institution’s management of misconduct risks, both of which are expected elements in the Bank’s supervisory assessments. Such assessments should serve to prioritise surveillance scenarios for some types of market misconduct, as well as threshold and parameter setting. Q: For global banking groups, would it suffice for the Malaysian entity to rely on a regional market conduct risk assessment? A: Regional assessments are predominantly based on combined data or profile of trading activities of multiple countries, which may not adequately capture the local environment perspective that is key to adapting surveillance thresholds to different locations. Such assessments are also not presented to the respective local senior management and board committees for their oversight. 9Risk Identification and Surveillance Wholesale Market Conduct Practices 10. Surveillance 10.1 Surveillance of dealers’ activities is the core pillar supporting an institution’s ability to detect market misconduct by its dealers. Such attempts at misconduct may occur despite having relevant policies and a dealers’ code of conduct in place. 10.2 Each institution should assess its potential exposure to conduct risks arising from its activities in wholesale financial markets, and incorporate that assessment to design and implement an effective surveillance programme covering both dealers’ trades and communications. 10.3 Surveillance should be performed independently from the business unit, with the function typically taken on by Compliance or Risk Management. A centralised or outsourcing model is common for banking groups, where a surveillance function or hub performs first-level conduct surveillance for entities within the group. 10.4 For institutions that choose to retain the setup of surveillance performed by a semi-independent party (e.g. business support unit which still reports to the treasurer), it is important to establish arrangements to preserve the independence of the function from the business unit. The following examples of governance and control practices can prevent undue business influence from hampering effective surveillance or skewing the findings and assessments of the surveillance team: (a) establishing a reporting line to an independent function such as Compliance, and reflecting this oversight and accountability through the setting and measurement of the surveillance function’s key performance indicators; (b) independent review of surveillance work; and (c) involvement of an independent party when following up on suspected misconduct or approving changes to surveillance parameters and thresholds. Trade Surveillance 10.5 Trade surveillance refers to the monitoring of dealers’ trading activities to detect patterns that are consistent with behaviours commonly associated with market misconduct, or otherwise sufficiently incongruent with past trading behaviour to warrant further scrutiny. System • The usage of surveillance systems or platforms in trade surveillance is generally encouraged, as such systems facilitate the following outcomes: ➡ Setting of parameters and threshold to flag out instances (alerts) where a single or group of trades exhibit behaviours indicative of market misconduct. ➡ Minimizing human or operational errors that may arise from processing large volumes of trade information. ➡ Tracking of timelines as well as documentation and record retention of analyses performed on surveillance alerts assigned to analysts (i.e. as a case management function). This will also enable quality assurance to be performed on the analysts’ work. • Institutions with substantial trade volume or market participation should have a surveillance system in place. Risk Identification and Surveillance10 4 Filtering criteria used to isolate records of interest (e.g. minimum transaction size; maximum allowable deviation from market price). 5 The value assigned to a parameter (e.g. RM5,000 minimum transaction size; 0.5% allowable deviation from market price). 6 Changes to thresholds in this case are primarily motivated by resource and personnel constraints (i.e. reducing alerts to a manageable level) at the expense of having gaps or reduced effectiveness in surveillance. System • Institutions without substantial trade volume may not necessarily need to implement surveillance through a system. ➡ In lieu of purchasing a surveillance system, opting for other means to facilitate surveillance (e.g. Microsoft Excel, in-house platform) may be considered equally effective provided the outcomes outlined above are achieved to the same standard. ➡ The need for a surveillance system should be re-evaluated annually based on the refreshed market conduct risk assessment. • Systems also allow for dynamic approaches to surveillance, for example applying differentiated thresholds across individual dealers which adjust according to their respective historical trading patterns. This can potentially help to identify anomalies and direct surveillance efforts more effectively. • Some systems feature ‘machine learning’ capabilities that may facilitate further efficiencies such as filtering surveillance alerts based on past surveillance experience (e.g. alerts which exhibit similar characteristics as those consistently found in past ‘false positive’ alerts may be filtered out from review). Threshold and Parameter Setting 10.6 Based on the assessed exposure to each type of market misconduct, a set of parameters4 and thresholds5 (i.e. surveillance scenario) should be implemented to detect trade patterns or behaviours associated with that misconduct. 10.7 In building surveillance capabilities, the number and breadth of surveillance scenarios implemented should be prioritised to address the institution’s core market conduct risk exposures (e.g. those deemed as higher risk). 10.8 Surveillance parameters may take on different dimensions (e.g. price, transaction size, time window) that correspond to behaviours indicative of market misconduct. 10.9 Arriving at the ‘right’ surveillance thresholds is acknowledged as a matter of some subjectivity, which nonetheless should be supported by documented assessments to reflect the decision-making process and reasonableness of thresholds used. These documented assessments could include but is not limited to consideration of the following: (a) the institution’s transaction profile in a particular product; (b) transaction size which would have appreciable market impact; (c) market liquidity of a particular product, stock or currency pair; and (d) nuances associated with the particular type of misconduct under surveillance. 10.10 Surveillance thresholds should be reviewed at least annually to ensure they remain relevant and effective in picking up market misconduct. Empirical approaches to calibration should be applied where possible, with careful emphasis to draw the line between reducing the number of false positives and ‘managing the number of alerts’6. Examples of calibration techniques that institutions may consider employing are listed in Appendix 2. 10.11 Surveillance thresholds for specific types of market misconduct are discussed further in section 11 of this document. 11Risk Identification and Surveillance Wholesale Market Conduct Practices Industry Practices DOs Business personnel are not privy to the inner workings of surveillance. Thresholds and parameters are approved independently of the business unit under surveillance. Review or calibration of surveillance thresholds addresses instances of having few or no alerts, as this may indicate ineffectiveness at detecting misconduct. Ensuring surveillance thresholds remain able to detect patterns similar to past cases or experience of potential misconduct (these may not have been actionable cases, but still involved highly suspicious circumstances). Global or regionally set surveillance thresholds are assessed and recalibrated utilising trading profiles and data of the Malaysian entity to ensure appropriateness and suitability vis-à-vis the Malaysian trading environment. DON’Ts Adopting off-the-shelf vendor surveillance scenarios and parameters without first assessing whether they are adequate for the institution. For institutions that benefit from global surveillance programmes or centralised group surveillance, there is little involvement by the relevant local teams (e.g. Risk management and Compliance to fully understand key aspects of surveillance that form an essential control to mitigate market abuse and conduct risks). Solely relying on verbal engagements with business experts or personnel for input on surveillance thresholds. Thresholds are not substantiated with empirical studies. Changing thresholds to ‘manage’ or drive down the number of alerts without consideration of whether the new thresholds have become disconnected from the market abuse under surveillance. Examples: ♦ Raising the minimum transaction size to RM50,000 even though sizes of RM40,000 would still be viable to perpetrate market abuse. ♦ New thresholds would no longer detect transactions with characteristics similar to those in past alerts where misconduct had been suspected. Setting overly rigid or an excessive number of parameters that must be met for an alert to be generated. This may reduce effectiveness at detecting potential misconduct, and will likely result in no alerts being generated at all. Risk Identification and Surveillance12 Communications Surveillance 10.12 Communications surveillance refers to the monitoring of dealers’ written and verbal exchanges on channels used to conclude trades or communicate with other market participants. These channels typically comprise of voice calls, electronic messaging7 and emails. 10.13 Surveillance of dealers’ communications complements trade surveillance, particularly in monitoring for certain types of market misconduct where trading patterns would provide little insight. For example: (a) collusion to influence or move a benchmark rate; (b) collusion to temporarily withhold market participation for prospective gain, based on possession of inside knowledge; or (c) disclosure of confidential information on the institution or clients, such as proprietary positions, as well as trades which have been concluded or are pending market execution. 10.14 Institutions must have infrastructure to facilitate the conclusion of deals on recorded devices (e.g. company- issued mobile devices or softphones on computers when such dealing takes place from alternate or off- premise sites). Communications on these devices must also be subjected to communication surveillance. 7 Includes messages on external platforms (e.g. Bloomberg, Reuters, etc) and internal company chat platforms. System • The usage of systems or tools is necessary for communications surveillance. • A single platform that consolidates and processes information from all text-based communication channels has been observed to be the most effective at facilitating the following outcomes: ➡ Setting of trigger keywords to flag out instances (alerts) where the language used may indicate potential attempt at misconduct. ➡ Tracking of timelines as well as documentation and record retention of analyses performed on surveillance alerts assigned to analysts (i.e. case management function), subsequently enabling quality assurance to be performed. • Usage of disparate platforms to monitor the respective communication channels can be a viable option for institutions with smaller trade volume and less complex products. However, given that such platforms typically lack case management functions, institutions should accord sufficient care to the recording and review of analysts’ justifications. • There should be a means of enabling quick retrieval and playback of voice-based communications. Correspondingly, there should be reasonable efforts to perform surveillance over voice-based communications (e.g. via adequate sampling of voice-based communications or using voice to text technology to perform surveillance over voice-based communications). 13Risk Identification and Surveillance Wholesale Market Conduct Practices Industry Practices DOs Business personnel are not privy to the inner workings of surveillance. There is no business influence on the choice of trigger keywords. Keywords used to trigger scrutiny are attuned to the local environment by incorporating non-English languages (e.g. Malay, Mandarin, Cantonese), words, phrases, short forms and colloquial norms. Employing a structured approach in formulating a dictionary of keywords. ➡ Identifying keywords that might be used in perpetrating each type of misconduct, and categorizing them accordingly for easier review. Periodic review (quarterly or annually) to support either maintaining or expanding the existing dictionary of keywords. Process improvements by exploring the use of technologies8 and past observations from surveillance to reduce the number of false positives. Use of voice to text technology to perform surveillance over all voice-based communications. Reviewing dealers’ communications with a particular focus. This is done in addition to reviewing communications with triggered keywords. Example: ♦ Reviewing the communications of benchmark rate submitters on a sampling basis to detect any collusion. DON’Ts Solely using off-the-shelf vendor keywords without first assessing whether they are adequate for the institution. Focusing resources on communications surveillance at the expense of trade surveillance. This comes with inherent limitations such as: ♦ Challenges in identifying every permutation of keywords that are indicative of misconduct. ♦ Some types of misconduct do not involve collusion, as they require only a single perpetrator. ♦ Arrangements for collusion or misconduct may be concluded on unrecorded channels. 8 As an example, Natural Language Processing can potentially be used to provide context-filtering i.e. ignoring instances where the surrounding text for a triggered keyword does not indicate misconduct (e.g. standard footnote to an email, meeting invitation, etc). The industry is also exploring other machine learning capabilities that may facilitate further filtering of surveillance alerts based on past surveillance experience. Risk Identification and Surveillance14 Analysis / Investigation 10.15 Personnel responsible for attending to surveillance alerts (i.e. surveillance analysts) should exercise adequate scrutiny when searching for signs of misconduct. 10.16 Steps taken and information examined during analysis of alerts should be comprehensive and correspond to the nature of the misconduct. In this regard, a particular alert may require scrutinising both trade data and dealers’ communications. 10.17 Standard procedures for analysing surveillance alerts should be documented to promote consistency across analysts and preserve the transfer of knowledge and expertise in the context of employee attrition or turnover. 10.18 Institutions should maintain sufficiently detailed documentation of analysts’ rationales and conclusions pertaining to both closure of surveillance alerts (i.e. alerts considered false positives) and investigation of alerts. 10.19 Specific to communications surveillance, the standards for documentation should generally be in line with paragraph 10.18. However, documentation can make reference to communications which, taken in their entirely, are self-explanatory, clearly absent of misconduct and does not trigger further probing. 10.20 Surveillance alerts should be closed within a reasonable timeframe, and there should be clear procedures for escalation to senior management once reasonable grounds are established to present a case for misconduct. Institutions should ensure the following: (a) no undue influence by business units to skew or otherwise ignore surveillance findings; (b) confirmation of findings by Risk Management and/or Compliance if surveillance function is being undertaken by a semi-independent party as described in paragraph 10.4; (c) involvement of one or more independent parties in the deliberation of consequence management actions to be taken against employees for misconduct; and (d) reporting of the occurrence of misconduct to the relevant board and senior management committees. 10.21 Pertinent questions that might assist analysis for specific types of market misconduct are discussed in section 11 of this document. 15Risk Identification and Surveillance Wholesale Market Conduct Practices Industry Practices DOs A standard checklist or operations manual provides step-by-step guidance to analysts for each surveillance scenario. Surveillance function understands the business nature and individual behaviours of the dealers under surveillance, and applies that knowledge in analysing alerts. Proper record keeping of analysts’ justifications and reasoning in closing alerts. Quality assurance (i.e. validation review) by the line manager or an independent party to ensure the adequacy of analysts’ justifications and reasoning. DON’Ts Automatically dismissing alerts that have commonly been flagged in the past on a particular dealer without exercising reasonable scrutiny each time. Examples of ineffective approaches observed in analysing alerts for specific surveillance scenarios: Front Running ♦ Mistakenly focusing scrutiny on the deal activity of the sales dealer who originated the large client order, instead of the activity of traders who are actually in the position to trade ahead or front run client orders in the market. Position Parking ♦ Analysis solely relies on searching for indicative keywords like ‘park’ and ‘place’ in the communications of the dealer under scrutiny. Subsequently, concluding that no misconduct had occurred simply from the absence of those words. ♦ Collusive arrangements may have been made outside of monitored communication channels. Personnel and Training 10.22 Surveillance analysts must receive adequate training to carry out their function effectively. This includes having working knowledge of common market practices, market conventions as well as market misconduct typologies, to assist in their analysis of alerts. 10.23 Former dealers or brokers can be a highly valuable resource within surveillance teams. This is owing to their knowledge of market norms and conventions (‘tricks of the trade’) and ability to provide a dealer’s perspective on how market misconduct might be perpetrated. Risk Identification and Surveillance16 11. Monitoring for and Investigating Misconduct 11.1 This section seeks to provide guidance on some types of misconduct that are commonly within the scope of banking institutions’ surveillance of wholesale market activities. The contents of this section are not intended to be exhaustive, and institutions should still conduct their own research and self-assessment on exposure to market misconduct. 11.2 Market misconduct can be wide in scope and exist in many forms, but commonly have the following underlying motives, objectives and vectors for perpetration: Motive / objective Vector Influencing market behaviour / benchmark rates • Transacted or closing market prices • Transacted market volume (circular trades) • Market order queue (e.g. exchange-traded products) • Benchmark rate submission Taking advantage of inside information • Trading ahead of client orders • Acting on material non-public information (e.g. from sell-side activities) Concealing positions / Hiding losses / Circumventing holding periods • Circular trades • Off-market trades 11.3 While industry terminologies have been established to provide classification to different types of misconduct, the landscape may continue to evolve based on changes in business models, processes and markets in general. 11.4 Institutions are encouraged to develop a holistic view in assessing how surveillance and other controls and checks come together to effectively address specific types of misconduct. 17Risk Identification and Surveillance Wholesale Market Conduct Practices Definition • Buying and selling the same financial product for (usually but not necessarily) the same amount and price, involving one or more counterparties, effectively having no change in beneficial ownership9. • Among the potential motives for this kind of misconduct are to: ➡ Misrepresent market liquidity of a particular stock or product by giving a false impression of high market activity intended to trigger a market reaction. ➡ Manipulate the market closing price of a stock or product. ➡ Defraud client accounts by generating unnecessary transaction fees. ➡ Ramp up the market price of a stock or product, when done at progressively increasing prices. ➡ Generate commissions to reward brokers for favours received or collusion in other areas. Applicable financial products • In principle, the potential for this kind of misconduct is present in most financial products given the array of possible motives. Nonetheless, those with the following characteristics are considered to be at ‘higher risk’: ➡ Traded in markets which provide market participants with intraday information on last done prices and executed market volumes. (e.g. products listed on an exchange). ➡ Executed market volume within a narrow time frame is used in the calculation of market benchmarks. ➡ Has a market price that is used for valuation purposes. Factors to consider when setting up surveillance • Wash trades are typically perpetrated by dealers whose role or actions can have a market impact. • Surveillance parameters should be able to identify clusters of potential wash trades including where there is slight variation to the executed prices and aggregated trade amount (i.e. does not offset perfectly). • Wash trades do not always occur in pairs. Examples of variations: ♦ A single transaction that is followed by two or more smaller offsetting transactions. (e.g. buy 20 lots followed by sell 10, 5, 5 lots). ♦ A number of smaller transactions in one direction (buy/sell) followed by one or more larger offsetting transaction. (e.g. buy 5, 2, 5 lots followed by sell 6, 6 lots). • The appropriate interval of time (or lookback period) used to identify potential wash trades should be based on factors such as the underlying motive (e.g. compensation trades may have a longer interval) and market liquidity of the product. • Filtering out irrelevant trade records, particularly typical transfers from the sales desk to the trading desk may help provide focus to surveillance. • One observed approach to parameter setting is to aggregate relevant trades within a specified time interval before and after each trade, and flag out instances where the aggregated trade amount within that time period is almost completely offsetting (i.e. nets close to zero). Wash Trading 9 Definition referenced from Behavioural Cluster Analysis – Misconduct Patterns in Financial Markets (2018). FICC Markets Standards Board. Risk Identification and Surveillance18 Analysing Potential Cases Trade patterns resembling wash trades may occur for reasons ranging from system-generated internal deals to genuine trading decisions. In establishing whether misconduct has actually occurred, analysis should focus on questions and indicators which support the motives behind wash trades. Price manipulation • Was the wash pattern within a very short time frame? ➡ This may warrant scrutiny on whether the motive was to influence the intraday market price, particularly if there were multiple repetitions and/or at increasing prices. Judgment should be exercised as the time frame may be longer for less liquid securities. • Did the wash pattern occur near the time of market close? ➡ This may indicate intent to manipulate the closing price for more favourable mark-to- market valuations. • Was there any avenue for the dealer under scrutiny to benefit from price manipulation? ➡ Having positions on book prior to the observed pattern of wash trades would establish a motive for manipulation that should be investigated further. • The degree of scrutiny for price manipulation should be greater for wash patterns in products where market participants have access to intraday information on last done prices and executed market volumes (vectors for manipulation). Market / trade volume • Does the dealer or institution’s traded volume constitute a sizeable portion of the overall market volume for the day? ➡ This would point towards an attempt to misrepresent market interest or the liquidity of a product, which is ultimately intended to have influence on market prices. • Deviations in the volume of trades compared to past norms or what is typical in the dealer’s trading behaviour deserve increased scrutiny. Market liquidity • Market abuse may be easier to achieve for illiquid securities, but the scope of potential gain from capitalizing on market reaction is more limited. Consideration of other possible motives such as seeking a more favourable book valuation can be explored for wash patterns involving illiquid securities. Number of counterparties • While a cluster of wash pattern trades with the same counterparty is a clearer indicator of potential misconduct, in instances where there are different counterparties, the same level of scrutiny should be placed if those counterparty names recur repeatedly. 19Risk Identification and Surveillance Wholesale Market Conduct Practices Operational aspects • Does the product being scrutinised for wash trades have any unique settlement norms? ➡ Wash trades with the intention of manipulating market prices or volumes may be less feasible for products settled on gross basis (instead of net) owing to some cost involved for the required scale. However, institutions should still assess whether these costs are insignificant relative to the potential gain before making conclusions Compensation trades • Wash pattern trades executed through the same broker may indicate an intent to generate commissions for the broker without clear benefit and at the expense of the institution. • Compensation can also be passed on through slightly different price or size between trades. • Reconciliation against brokerage statements may help assist in analysis here. Dummy / client accounts • Scrutiny should be placed on wash patterns between internal dummy accounts. • Client accounts can potentially be used by dealers or brokers to do wash trades (e.g. stockbroking client accounts). Risk Identification and Surveillance20 Definition • Position parking occurs when two or more market participants agree to conclude a deal that will be reversed on a future date with a view towards concealing dealing positions or transferring profits and losses. • Among the potential motives for this kind of misconduct are to: ➡ Circumvent penalties or forced selling associated with the institution’s aged inventory policy on securities. (e.g. trading book holding period). ➡ Conceal or postpone recognition of losses, allowing time for markets to potentially recover and reduce or reverse the initial loss amount. ➡ Conceal risk positions, possibly to temporarily take on additional risk without triggering internal risk limits. ➡ Avoid capital charge requirements. ➡ Conceal landed positions from securities underwriting. Applicable financial products • In principle, the potential for this kind of misconduct is present in financial products which have a specific stock code. (e.g. bonds, equities). Factors to consider when setting up surveillance • Surveillance for position parking should be on dealers who carry out the role of taking on or warehousing risk for the institution. • The modus operandi for position parking is similar to wash trading, albeit with a longer time interval potentially stretching up to a few weeks between the initial sale and subsequent buyback. • Position parking can happen at any time and is not necessarily limited to the period around month end or at the cut-off between financial reporting periods. This is in view of the following: ➡ Dealers’ profit and risk positions are tracked daily. ➡ Compliance with aged inventory policies on securities is typically tracked based on time lapsed from the date of initial acquisition. • Position parking can be executed in a circular flow involving different counterparties. • Surveillance parameters should flag out potential position parking in paired trades of matching size, although executed prices may differ slightly. • The motives behind position parking are more pronounced for less liquid securities. • Separate scrutiny or review of the institution’s transaction history in less liquid securities may help identify instances where position parking is performed through multiple trades rather than a single pair of trades. Position Parking 21Risk Identification and Surveillance Wholesale Market Conduct Practices Analysing Potential Cases Pairs of trades of matching size and price are unusual but may well be the result of genuine trading decisions. In establishing whether misconduct has actually occurred, analysis should focus on questions and indicators which support the motives behind position parking. Circumvent inventory / holding period policies • At the point of initial sale (i.e. first leg of position parking), were the securities nearing the end of the holding period specified in the institution’s trading book policy? ➡ This would strongly indicate a motive for using position parking to circumvent the holding period policy. Concealing positions • Does the timing of the trades coincide with significant valuation markers? (e.g. month-end, cut-off for performance measurement, etc). ➡ There may be a motive to temporarily conceal positions to improve performance measurement. • Would any risk or stop-loss limits have been breached if the amount of securities initially sold are retrospectively included in the calculation of risk exposure? ➡ If so, position parking may have been used to conceal positions and prevent breach of risk limits. • Were any of the trades concluded at off-market rates? ➡ This may indicate an attempt to conceal losses (e.g. transacting at a price more favourable than the market price in the first leg, followed by the same or slightly better price in the second leg). Market liquidity • Scrutiny for position parking should be greater for less liquid products as there may be difficulty in finding willing buyers at a favourable price, and larger spread or cost is incurred from the act of selling and repurchasing in the market. Number of counterparties • Patterns of position parking involving the same counterparty are a clearer indicator of potential misconduct. • However, trades that involve different counterparties should still be examined to address the possibility of a circular flow involving more than one counterparty. Risk Identification and Surveillance22 Definition • Taking a position in a financial product ahead of executing a large client order, and subsequently profiting by closing out the position once market prices have moved. The client may also potentially be disadvantaged by receiving a less favourable price as a result10. • Front running can be perpetrated by individuals who are either transacting for the institution or dealing for a personal account, depending on market access. • Collusion with other market participants to withhold bids or offers on the expectation of large incoming client flows during the day is also treated as a form of front running. Applicable financial products • In principle, the potential for this kind of misconduct is present in financial products where the institution is in the business of accepting and executing client orders. • For FX in particular, the spot leg of FX forwards transacted with clients may also be the target of front running. Institutions should consider including this perspective in the scope of surveillance. Factors to consider when setting up surveillance • Front running is made possible or more lucrative by large client orders that are able to move market prices. • Opportunities for front running are higher under the following business operating norms: ➡ Sales dealers practise taking client orders where the price is not agreed upfront and left to market forces (e.g. fixing order, limit order, etc), and details of these yet to be filled orders are visible to traders for the purpose of planning and risk management. ➡ Sales dealers regularly seek market quotes from traders when handling large client orders and the details on potential transaction size is communicated to traders. • Surveillance parameters should flag out instances of large client deals (i.e. sales deals). Analysis should focus on the activity of trading desk dealers (i.e. traders) in the time window between the receipt or communication of the large client order and conclusion or recording of the deal. • Setting an appropriate surveillance threshold that defines a ‘large’ order may incorporate the following steps: (1) Estimating the potential market impact for a range of trade sizes. (2) Examining the typical position-taking sizes for the trading desk. (3) Using (1) and (2) to reason out a threshold where the amount of financial gain from front running makes the misconduct worthwhile. • Collusion with other market participants to withhold market participation should be monitored via communications surveillance. • Institutions may consider having separate books, still managed collectively, that capture exposures derived from client flows and proprietary trading respectively. This would serve the purpose of providing clearer records to facilitate surveillance analysis. Front Running 10 Definition referenced from Behavioural Cluster Analysis – Misconduct Patterns in Financial Markets (2018). FICC Markets Standards Board. 23Risk Identification and Surveillance Wholesale Market Conduct Practices Analysing Potential Cases Scrutiny should be placed on the activity of traders, not sales dealers who do not have market access and do not warehouse risk. Establishing whether front running has occurred can be challenging from a record-keeping perspective, as analysts may have difficulty distinguishing between proprietary trades and trades intended to hedge or de-risk exposures from client deals. In establishing whether misconduct has actually occurred, analysis should focus on questions and indicators which support the motives behind front running. Market price movement • Was there a movement in market price after concluding or recording the client deal? (i.e. market price rose for a client buy, or declined for a client sell) ➡ The case for front running might be supported if traders had undertaken proprietary trades that benefitted from the market movement. ➡ In the case market movement was absent, or movement was in the opposite direction, this may indicate either absence of misconduct or a failed attempt. Other indicators need to be examined. Nature of trades within specified time window • Between the time the large client order was received up to the point of deal conclusion, were there any proprietary trades in the same direction as the large client order? ➡ Positions from such trades would likely result in financial gain when the client order enters the market, and is consistent with the motive for front running. • Shortly after the client deal was concluded or recorded, was a proprietary trade executed in opposite direction but of similar size to another proprietary trade executed earlier? ➡ May be an act of closing the earlier front running position. • If there are issues with identifying proprietary trades, some insight may be gained by netting exposures from all the trader or desk deals executed during the window. This to determine whether a sizeable net exposure was maintained which subsequently benefitted from market movement. Counterparties of interest • Brokered deals and direct deals with other market participants should be the focus of analysis. Risk Identification and Surveillance24 Definition • Off market rates refer to trades that are concluded at prices or rates that are away from where the market is trading at the time of execution. It can be a symptom of misconduct, as opposed to being a type of misconduct on its own. • Among the potential motives for transacting at off market rates are to: ➡ Conceal trading losses by transacting at above market price, or postpone gains by transacting at below market price (e.g. position parking arrangement may be used). ➡ Pass an immediately profitable trade to a counterparty in return for favours received but at the expense of the institution. Applicable financial products • In principle, off market rates can be perpetrated for all financial products, including money market deposits. • For clarity, off market rates do not refer to off market transactions in the context of equity instruments, where the exchange of shares does not involve the stock exchange. Factors to consider when setting up surveillance • Surveillance for off market rates typically involves selecting a reference price that is reflective of the market, setting a range around that reference price, and then scrutinising each trade which falls outside that range. • Ideally, the reference price used should correspond to the exact time that trade was executed. ➡ In the absence of data on intraday price points, institutions can consider alternatives such as daily market High-Lows, closing price, and other sources where valuations are derived. • Attention should be paid to products that may not have an updated or available daily or intraday reference price (e.g. illiquid or OTC). Such products should be identified and assigned a proxy reference price where feasible. • The surveillance threshold or range for deviations from the reference price should be reasonable and differentiated according to the market norms and characteristics of different products. Example: ♦ Applying a 2% threshold for products across asset classes or currencies is unlikely to be effective. If applied to the USD/MYR pair (Exchange rate: 4.00), a 2% threshold would translate to 800 pips, which is extremely far from usual market bid-ask spreads and typical daily market movement. • The approach to setting surveillance thresholds should differ according to the reference price used (e.g. daily closing price, intraday prices). ➡ If closing prices are used as reference, an analysis of daily movements in closing prices helps determine an appropriate threshold. ➡ If intraday prices are used as reference, a threshold based on historical bid-ask spreads around the mid-rate plus some allowance may be considered. Off Market Rates 25Risk Identification and Surveillance Wholesale Market Conduct Practices • Setting a high threshold that is intended to account for or prevent false positives from client deals is generally ineffective at identifying off market rates in the interbank trading markets. ➡ Due to sales spreads, client prices are typically much higher compared to prices that would be considered off market in interbank trading markets. • Surveillance thresholds for client deals may be differentiated from those applied to traders’ trades, and focus on compliance with the institution’s client spread or pricing policy. Analysing Potential Cases In scrutinising off-market rates, common practice is to request for an explanation from the dealer responsible. This is acceptable and unavoidable as dealers are closer to market developments and the reasons given may be genuine. However, steps should be taken to validate or independently confirm the reasons given by dealers where possible, and analysts’ documentation of conclusions should provide sufficient clarity where dealers’ explanations do not. As off-market rates are just a symptom of potential misconduct, institutions should consider potential motives. Forming linkages with other types of misconduct may be helpful. Communications surveillance may be helpful in uncovering misconduct should dealers give reasons which prove to be implausible. Risk Identification and Surveillance26 Definition • Taking part in or carrying out a transaction based on non-public information that would, or would tend to, have a material effect on the price or value of financial instruments. • Insider dealing can be perpetrated by individuals who are either transacting for the institution or dealing for a personal account, depending on market access. • The motive of such misconduct is to profit by buying a security when in possession of positive news, or avoid losses by selling the security or profit by short-selling when in possession of unfavourable news, prior to the information becoming public. • Inside information typically originates from business units involved in capital market activities or corporate banking (business team servicing a client that the information concerns). Additionally, other persons that are brought over information barriers to provide inputs like market insights (e.g. dealers) may also have access to inside information. Applicable financial products • In principle, insider dealing can be perpetrated for all financial products where the market price is linked to the performance and actions of a specific company (e.g. equity, bonds, derivatives). Factors to consider when setting up surveillance • Apart from surveillance, preventive controls such as Chinese Wall policies (discussed in section 12 of this document) play a crucial role. • In the context of institutions’ own trading, surveillance for insider dealing revolves around identifying instances where dealers were in possession of inside information and examining whether said information was acted upon. ➡ Identifying wall-crossed employees and companies that were the subject of wall-crossing. ➡ Scrutinising the trading activities of wall-crossed employees that involve securities of the companies in concern. ➡ Surveillance should cover the period from the date of wall-crossing up to the time when the information shared ceases to be inside information. • In general, abnormal profits coming from trading in securities issued by companies should be scrutinised when not attributed to broad market movements. • For equities in particular, licensed investment banks typically have parameters to flag out accounts which undertake significant and out of the norm trades just prior to a market announcement. • Mechanisms to prevent and detect insider dealing in an individual capacity are discussed in section 12 on Personal Account Dealing. Insider Dealing 27Risk Identification and Surveillance Wholesale Market Conduct Practices Analysing Potential Cases Establishing whether insider dealing has occurred requires time and diligence. Once there are reasonable grounds for suspicion, an explanation from the dealer should be sought. In establishing whether misconduct has actually occurred, analysis should focus on questions and indicators which support the motives behind insider dealing. Market price movement • Was there movement in the market price of the securities? ➡ Firstly, there does not need to be an immediate observable benefit to establish the occurrence of insider dealing. While the element of benefit would help support the case for misconduct, any action taken based on inside information is considered insider dealing. ➡ If positions in the security are taken just prior to a market announcement, and subsequently disposed of at a profit shortly after the announcement, this would be strong grounds to suspect insider dealing. Past trading behaviour • Are the trades under scrutiny typical of the dealer’s past trading profile or strategies? ➡ Further questions should be asked if the trades being scrutinised deviate in size (i.e. larger volumes traded compared to historical average volumes) and frequency from the dealer’s past trading behaviours. Risk Identification and Surveillance28 INTERNAL CONTROLS AND CULTURE 29Internal Controls and Culture Wholesale Market Conduct Practices Part C: Internal Controls and Culture 12. Control Environment in Managing Conduct Risks 12.1 Pre-emptive and structural measures such as detective and preventive controls and institutional culture to address conduct complement the surveillance programme in mitigating exposure to conduct risks. These measures typically seek to address business and operational practices that may increase susceptibility to market misconduct. 12.2 A strong internal control environment, in the context of wholesale market conduct, should exhibit the following characteristics: (a) clear governance structure which facilitates the reporting and escalation of conduct-related matters, which include breaches of conduct and those outlined in paragraph 12.8; (b) emplaced policies and procedures that can help deter misconduct, as well as reviews to provide assurance that those measures are working effectively; and (c) additional detective tools to complement trade and communications surveillance, which can take the form of back office reconciliations, review of brokerage charges, etc. 12.3 The internal control environment involves the three lines of defence, with roles played by the business unit, Risk Management, Compliance, and Internal Audit respectively. 12.4 This section seeks to provide guidance on areas which fall within the scope of the guidance outlined in paragraphs 12.1 and 12.2. Q&A Segment Q: How does the control environment link to surveillance? i. To provide assurance that processes and controls are working effectively, institutions should have surveillance in place over established forms of market misconduct. ii. Based on this assessment, institutions may decide on the scope and intensity of surveillance performed for that type of misconduct. Institutions may also decide to strengthen processes and controls. iii. Institutions should assess how existing business processes and controls affect their susceptibility to the various types of misconduct. A: Q: I believe my institution has sufficient policies, processes and checks to prevent misconduct in general. Does that lessen the importance of trade and communications surveillance? A strong control environment does not eliminate or reduce the need for surveillance.A: Internal Controls and Culture30 Governance and Reporting 12.5 Breaches of conduct can have a serious impact from financial, reputational and regulatory perspectives. The board and senior management are responsible to keep themselves regularly apprised of their institution’s conduct risks, and accord sufficient attention to the management of those risks. 12.6 Each institution must have designated persons and/or committees responsible for overseeing its conduct in wholesale markets. 12.7 Institutions must provide a holistic view of conduct risk via the reporting of key indicators and updates to their relevant board and management committees11, to a degree that is commensurate with the institution’s business transactions profile, significance of income contribution, as well as level of market participation and influence. 12.8 Areas that should be covered in the reporting include but are not limited to the following: Areas Examples Outcomes of trade and communications surveillance • Numbers and trends in surveillance alerts by scenario type, as well as reasons generally contributing to those numbers (e.g. trading strategies, internal record-keeping, etc). • Analysis summary of surveillance alerts which warranted deeper review of the underlying trades or communication. • Results of quality assurance performed on the work of the surveillance team. Indicators commonly associated with conduct • Numbers and trends in trade cancellations and amendments, supplemented with root causes. • Incidences of trading at off-market rates and whether these were justified reasonably. • Number of after-hours or off-premise trades, and reasons given to justify such instances. Others • Dealers’ compliance with mandatory or block leave requirements. • Instances of wall-crossing for the period under review, • Outcome of review on personal or proprietary dealing activity of wall- crossed employees. 12.9 The reporting in paragraph 12.7 must be on a periodic basis (at least quarterly) to provide assurance on the effectiveness of existing measures to manage conduct risk and enable decision-making. 12.10 Practices in the industry generally show fragmented reporting by the respective functions that dilute the importance and effectiveness of the controls performed. A single and consolidated reporting of outcomes from the various controls in place is recommended to provide senior management and the board with a holistic view of the institution’s management of conduct risks. 11 Management committees refer to senior management committees, with representation by senior leaders within the institution, particularly from the Risk and Compliance functions. 31Internal Controls and Culture Wholesale Market Conduct Practices Industry Practices DOs Establishment of a working level management committee to specifically oversee matters concerning dealers’ conduct. This offers a consolidated view of how conduct-related controls come together: ➡ The committee has representatives from all functions that are involved in administering controls related to dealers’ conduct (e.g. treasury front-back office, Risk Management, Compliance, etc), and typically chaired by persons like the Chief Risk Officer or Chief Compliance Officer. Frequency and depth of reporting to the board and senior management are proportionate with the level of risk as identified in the institution’s market conduct risk assessment (detailed in section 9). DON’Ts Business and/or control processes result in fragmented reporting on the outcome of conduct monitoring and controls. Example: ♦ Risk Management would report the outcomes of monitoring under its jurisdiction to the Risk Management Committee, while Compliance reports to the board via its monthly compliance packs. Practices in escalating and reporting information does not foster holistic oversight of conduct risk in the institution’s leadership. Examples: ♦ Reporting to senior management committees like the Operational Risk Management Committee, as well as board committees, only highlights significant issues or indicators and lacks important insights from surveillance activities. ♦ Conduct indicators and outcomes of surveillance are largely absent from reporting as they may be viewed as insufficiently material for escalation when viewed on a standalone basis, often only escalated up to the heads of the respective control functions. ♦ Centralised global or regional surveillance functions do not sufficiently produce or escalate country-level surveillance indicators to the Malaysian entity leadership for oversight and decision making. ♦ Perspectives given in reporting are quite process-driven, losing context of the importance of those monitoring processes over time. Internal Controls and Culture32 Q&A Segment Front-Middle-Back Office Controls 12.11 In the context of trading in financial markets, institutions typically have a number of controls across their front, middle and back offices which contribute to deterring or detecting misconduct. 12.12 This segment will discuss common controls observed in the industry (not exhaustive). Institutions are encouraged to think about and consider other controls as appropriate to their operations. 12.13 To address unauthorised trading, institutions are expected to establish critical controls in treasury operations, particularly in the effective implementation of segregation of duties between the risk-taking activities, risk management and control functions, as well as the trade capture and confirmation functions. 12.14 Each institution must have a well-documented policy governing all trading activities. The policy must include, among others, the appointment of dealers, authorisation process, risk limits, conduct of dealers and rate-setting activities. More importantly, the policy must define the nature of trading practices deemed as unauthorised trading or manipulation of market volumes, process and benchmark rates. 12.15 Valuation of positions based on market prices and internal models must be performed independently of the front office (risk-taking function). Where this process involves obtaining inputs from the front office, continuous efforts should be taken to validate their accuracy. 12.16 The middle office function (Risk Management) must periodically inspect trading book and banking book positions to identify deviations from approved strategies, trading book policy or trading norms. Any deviations must be investigated immediately and escalated to senior management. Q: What are examples of institutions that are expected to have minimal focus on wholesale market conduct risk reporting? Institutions which have minimal participation in markets. An example would be an institution that has money market placements as the primary treasury activity, with almost negligible client flows and no proprietary trading in bonds, FX and equities. A: Q: What are some indications relevant to reflect the business transactions profile, significance of income contribution, and level of market participation and influence mentioned in paragraph 12.7? i. Business transactions profile: trade volume and number of transactions, client flows, and frequency of large single client deals. ii. Income contribution: percentage of the institution’s income attributed to wholesale market activities; and contribution to treasury income from the trading desk relative to the sales desk. iii. Market participation and influence: trade volume relative to the industry; and capability to move markets that is enabled through large risk limits or management of intraday client flows. A: 33Internal Controls and Culture Wholesale Market Conduct Practices 12.17 Institutions must establish specific key risk indicators for treasury activities and appropriate risk tools to promptly alert and identify potential control failures. The monitoring of risk limits must be conducted on a daily basis and any breaches should be immediately escalated to senior management, outlining the root causes and actions taken to address such breaches. 12.18 The back office function should be responsible for the reconciliation of trades against the profit and loss (P&L) account as well as valuation of collateral linked to the institution’s trades. A granular P&L attribution analysis should be conducted to determine the nature of individual dealers’ P&L, with follow up on sudden swings or irregularities. 12.19 In approving new products, institutions must document their assessment of all risks associated with the offering or trading of new products, including updates to the institution’s market conduct risk assessment. 12.20 Each institution must update its Authorised Dealers List on a timely basis and such updated list should be notified to dealing counterparties and relevant parties within the institution. i. Entertainment and Gifts 12.21 Entertainment and gifts (E&G) associated with clients and counterparties should be subject to internal policies and guidelines. 12.22 Institutions should be vigilant of frequent or unwarranted amounts of E&G that are received or given by their employees, as these could be used to secure cooperation for potential misconduct or affect impartiality in decision-making. 12.23 Controls over E&G activity must give consideration to the following: (a) policy which specifies the forms and circumstances under which E&G can be given or received, including thresholds on monetary value; (b) procedures for dealers to declare E&G that are given or received in a central register; and (c) periodic review of the records under (a) and (b) to detect signs of irregularity. Internal Controls and Culture34 Industry Practices DOs Maintenance and review of the E&G register is centralised across business units, facilitated by a system, and under the purview of an independent function. For activities involving dealing in financial markets, review of E&G records is done with the following perspectives: ➡ Reconciliation against concentration of trades with a particular counterparty or broker. ➡ Significant increase or decrease in E&G disclosures for the period compared to the previous similar period. ➡ Lack of E&G disclosures (i.e. non-reporting). ➡ Reasonableness of declared monetary value and justifiability of individual items. E&G policies are designed to provide greater oversight with increasing levels of activity (e.g. dual approval by business head and independent functions (Risk Management or Compliance) for E&G above a certain amount and/or number of occurrence). Annual review of E&G policy, particularly to re-evaluate specified monetary value thresholds. For banking groups with multiple entities or branches, overall oversight on E&G is performed by a group governance committee to ensure consistency in implementation and monitoring. DON’Ts Stopping at obtaining declarations of E&G, with no further actions taken to scrutinise those records. Having insufficient details recorded on the nature of E&G received or given, which would otherwise assist in the review of those records. Setting a high threshold on the monetary value of E&G for which a declaration is required to be made. ii. Broker / Counterparty Relationships 12.24 Institutions must be cognizant of potential conflict situations arising from broker relationships, particularly if this affects their dealers’ decision-making and results in less optimal outcomes for the institution. Possible scenarios include: (a) dealers favouring a particular broker to reciprocate receiving E&G or even kickbacks, despite better fees and research offered by another broker; or (b) wash trades undertaken by dealers with the motive of generating brokerage fees as a favour. 12.25 Many institutions perform periodic reviews to examine concentration and trends in brokerage fees as well as E&G provided by brokers with regard to the institution’s dealers. 12.26 Similarly, institutions should be vigilant of counterparty concentrations as these may be potential indications of collusion. 35Internal Controls and Culture Wholesale Market Conduct Practices 12.27 Institutions may also consider reconciling the analysis performed during their review against the E&G register to help explain any irregularities or shifts in dealers’ trading patterns or behaviour that favour a particular broker or counterparty. Industry Practices DOs Broker used is recorded in front end systems at a transactional level, which facilitates identification of concentration to a particular broker as well as wash trades intended to generate brokerage fees. DON’Ts High-level examination of trends in brokerage fees paid by the institution, typically on aggregate amounts. This is unlikely to detect instances of misconduct that do not cause significant change to the total brokerage fees paid. ➡ Itemised statements furnished by brokers can be used to facilitate more in-depth review. iii. Mandatory Leave 12.28 Enforcing a continuous period of leave on employees is a means to detect potential misconduct, which may surface in their absence. In the context of financial market activities, this can uncover unauthorised trading by dealers, particularly attempts to conceal positions. 12.29 Institutions should have a policy that specifies the length of mandatory leave that applies to different job functions and this should be commensurate with the size and complexity of the institution. A mandatory leave of 5-10 business days for dealers is widely practised. 12.30 During this period, dealers must be barred from dealing and having access to the institution’s premises and systems. Work-related communications with and by these dealers must cease apart from under exceptional circumstances, which should be documented and subjected to appropriate governance. Industry Practices DOs Monitoring on dealers’ compliance with the mandatory leave policy is performed by both the business unit and Compliance. Monitoring of the dealer's trades for suspicious and/or unauthorised activity while on Mandatory Leave. DON’Ts Physical access to the dealing room and access to dealing systems are not blocked for dealers during their mandatory leave. In lieu of blocking, there are also no subsequent checks for any booking of trades under the respective dealers’ ID or trading book during the period. Internal Controls and Culture36 iv. Off-Premise and After-Hours Dealing 12.31 Trades concluded outside of the dealing room or after normal working hours can give rise to heightened risks in the following forms: (a) inability to resolve dispute over trade details when deals are concluded on unrecorded channels (e.g. personal phones); (b) complication in identifying potential breach of risk limits due to delayed capture of new exposures in the institution’s front end systems. This can be exacerbated by genuine oversight or purposeful intent by dealers; or (c) greater flexibility for dealers to collude while outside of the dealing room without prompting query in usual surroundings. 12.32 Institutions must put in place internal policies for authorised persons to deal after-hours or engage in off- premise dealings, which should cover prompt recording and reporting of dealings for timely risk capture and trade settlement. 12.33 Such trades should be treated as exceptions rather than the norm, tracked for frequency, and scrutinised for purpose. Industry Practices DOs Policy restricts off-premise or after-hours dealing to a few authorised persons, and in some cases the purpose of such deals is confined to the intent of lowering risk exposure. Enquiry is made into the purpose and nature of such deals, and supplemented by processes to detect and manage instances when such deals might go unrecorded in the institution’s systems. Off-premise and after-hours deals are tracked in a register and scrutinised for unusual patterns and frequency. Utilizing technology to facilitate oversight by supervisors (e.g. desk heads) on off- premise or after-hours dealing, for example via system prompts or alerts. Incorporating exposures from off-premise or after-hours deals in the previous day’s risk measurement to determine if any risk limits would otherwise have been breached. DON’Ts Overly lax policy criteria for off-premise and after-hours dealing. Addressing off-premise and after-hours deals from the solely operational standpoint of ensuring timely settlement, without further scrutiny on any unusual behaviours. 37Internal Controls and Culture Wholesale Market Conduct Practices • In light of Covid-19, institutions have allowed some dealers to work from home or implemented split operations between dealing room and Business Continuity Planning (BCP) sites. • Institutions should ensure that dealing from home or alternate sites is supported by infrastructure that enable the following: ➡ Timely input of deals into front end systems. Solutions such as Virtual Private Network (VPN) capabilities enable access to systems available at a dealing room workstation. ➡ Record retention of dealers’ work-related communications. This includes communications with clients and other market participants via company-issued phones or alternate communication platforms (e.g. softphones on computers). • To the extent that deals concluded from home are supported by the above infrastructure, institutions should determine whether the heightened risks associated with off-premise trades are sufficiently mitigated. • Institutions should avoid from allowing dealing to be conducted on personal phones. As a temporary measure, the practice of requiring subsequent confirmation in writing from the client or counterparty (e.g. via email) in such instances is inadequate to facilitate monitoring of dealers’ conduct, as the context of dealers’ conversations cannot be captured. • The risk of market misconduct is arguably greater as being away from the dealing room allows dealers to engage in collusive conversations (via personal phone calls or messages) without triggering scrutiny from their surroundings. • Institutions should revisit their market conduct risk assessment and operational risk assessment frameworks (e.g. RCSA to reflect the changes in risk under these operating arrangements). • Additional controls, reviews and oversight should be accorded over flexible working arrangements to detect irregularities in the trading activity or communications of dealers. These include, but not limited to: ➡ Enhancement to dealing room and conduct policies to provide greater guidance on execution of deals which uphold principles of good conduct when dealing in the financial markets. ➡ Establishment of work from home daily report checklists for front, middle and back-office staff to report operational incidences and share challenges, especially in cases where there are significant changes to processes. ➡ Reporting of key statistics to supervisors and management that can prompt improvement to processes to increase security, efficiency or to reduce risk levels (e.g. number of deals concluded as part of flexible working arrangement, details on minor and major operational incidences such as network disruptions and system downtimes). ➡ Increased communication and engagement with staff to instil organisational values. ➡ Trainings on lessons learnt from misconduct cases and highlight consequences to deter staff from misconduct. ➡ Encourage ‘over-reporting’ of incidences or ‘speak up’ culture. • Where institutions continue to implement flexible working arrangements on a permanent basis, institutions should also ensure their BCP plans are expanded to include disruptions when dealers are working from home/working remotely. Dealing under work from home / BCP arrangements Internal Controls and Culture38 v. Business Norms 12.34 Business norms refer to practices that exist outside of formal controls that are typical in the course of day-to- day business dealings, which can have an effect on the propensity for certain types of misconduct to occur. 12.35 For example, opportunities for front running may increase depending on how the institution handles client orders. Institutions should consider how their current business norms might have an effect on conduct risk. vi. Trade Capture, Cancellations and Amendments 12.36 Dealers should ideally be required to input or book their trades into front end systems as soon as each deal is concluded. In practice however, some institutions have been observed to tolerate some amount of delay where active traders are concerned, which can potentially derail surveillance efforts that are reliant on accurate time stamping to detect misconduct (e.g. wash trades, front running). 12.37 For the purpose of surveillance, where timely trade capture becomes an issue, institutions should consider maintaining a separate field that captures the time each deal is concluded instead of continuing to rely on the time of system booking. 12.38 On trade cancellations and amendments, frequent occurrences that are attributed to a particular dealer may signal an attempt at rogue trading. 12.39 Trade cancellations and amendments should be recorded in a central register and sufficient details should be documented on the reason for occurrence. The number and nature of cancellations and amendments should be analysed for trends that warrant further scrutiny. Client order handling and front running • Front running is predicated on the availability of advance knowledge of a client seeking to buy or sell large amounts in the market. Traders may have access to such information through the following ways: ➡ Practice by sales dealers to seek quotes from traders when handling clients looking to transact significant amounts. Regardless of whether the counterparty ultimately transacts with another institution, the trader is now aware of a trade that may potentially move the market. ➡ The details of yet to be filled client orders placed with the institution are visible to traders for the purpose of planning and risk management. Here the practice of pre- hedging is argued to deliver better outcomes for clients, but depending on the type of client order, also presents an avenue for front running. This includes undertaking trades to trigger conditions specified by the client for the order to be filled. • Institutions may consider measures to minimise the flow of information to traders on client orders that can be used to front run, and have surveillance in place to tackle residual risks. 39Internal Controls and Culture Wholesale Market Conduct Practices Industry Practices DOs Policies that require dealers to input deals into front end systems within a specified short time frame (e.g. 5-10 minutes to enable more accurate surveillance). Identifying irregularities and concentrations (e.g. to a particular dealer, product or reason) in the trend of cancellations and amendments. Validation of reasons given for cancellations and amendments where warranted. Utilizing technology to facilitate real-time supervision and efficient review. ➡ Underlying reasons (e.g. client-driven, product-driven) are used to generate risk scores that prompt desk heads or supervisors on risky behaviours (e.g. high frequency, no replacement of cancelled deal). DON’Ts Tracking cancellations and amendments for operational risk or regulatory reporting without understanding why it is a concern. This results in superficial analysis that would fail to detect misconduct. vii. Access to Dealing Room and Systems 12.40 Physical access to the dealing room must be limited to authorised persons. Dealers should not have access to the back office. 12.41 Access to systems should be functionally segregated. Dealers must not have administrative user rights to make changes to any combination of front, middle and back office systems. 12.42 Physical and system access logs should be retrievable for the purpose of audit trail. The list of authorised persons or users should be immediately updated to reflect any changes in personnel. 12.43 Dealers should not be given discretion to create new books, folders or accounts in the front-end system for the purpose of booking trades. Any such requests should be notified to Compliance, Risk Management and back office. Industry Practices DOs Physical and system accesses are blocked during dealer’s mandatory leave; or. Use of technology to enable real-time notification to supervisors on behaviours such as dealers accessing front end systems while on mandatory block leave or booking trades that are not part of their mandate. DON’Ts Absence of periodic review to ensure the physical and system access matrices are up to date. A common audit finding is that some former employees still remain as authorised users in the relevant systems. Internal Controls and Culture40 Handling of Inside Information 12.44 Inside information in the context of wholesale markets refers to material non-public information that can be acted upon to derive financial gain. Examples include knowledge of an impending market exercise or announcement as well as unreleased financial results. For banking institutions, such information typically originates from capital market advisory and corporate lending businesses, as well as research departments. 12.45 The risk of insider dealing, as discussed in section 11, can arise when dealers are consulted pursuant to the above activities. These dealers are deemed to have crossed the information barrier (i.e. Chinese Wall) intended to limit the number of persons in possession of inside information, and become ‘insiders’ themselves. 12.46 Institutions should have measures in place to prevent and detect insider dealing by employees trading in a personal capacity and/or on behalf of the institution (i.e. proprietary trading). 12.47 The steps necessary to properly handle inside information can be summarised into the following: (1) keeping track of insiders via Chinese Wall policies and procedures; (2) detecting insider dealing in the institution’s proprietary trading; and (3) monitoring the personal trades (i.e. personal account dealing) of insiders. 12.48 As detection of insider dealing in the context of institutions’ own trading has been discussed in section 11, Chinese Wall and personal account dealing policies, procedures and controls will be the focus here. Handling of Inside Information Personal Account Dealing • Identification of insiders • Maintenance of name lists for which trading is restricted • Physical segregation • Wall-crossing procedures • Policy and procedure • Implementation and monitoring Chinese Wall 41Internal Controls and Culture Wholesale Market Conduct Practices Industry Practices DOs Dual sign-off from Compliance and business heads is required when requesting for an employee to be wall crossed, with justification given on the duration and necessity. Wall-crossed employees are required to sign a declaration or letter of undertaking that they acknowledge and will abide by the requirements, responsibilities and restrictions when brought over the wall. Wall-crossed employees are subjected to surveillance whereby trades executed by the said employees in a professional (on behalf of the institution) or personal capacity are scrutinized against watch, grey or restricted lists for irregular activity. Employees who are deal team members or wall-crossed for a capital market deal are tagged as insiders with regard to the client. Individuals who are consistently privy to material non-public information are identified as ‘Permanent Insiders’, and the list is updated as required. Example: ♦ Members of the Corporate Banking division, Group Credit Committee and Group Investment Underwriting Committee are designated as ‘Permanent Insiders’. Maintenance of the respective insider and restricted name lists, as well as wall-crossing requests are facilitated via system and centrally managed by an independent Control Room function within Compliance. DON’Ts Insufficient physical segregation between public and private side employees. Example: ♦ Situated in close proximity, unsecured telephone lines, frequent sharing of unsecured common areas for discussion and meetings. i. Chinese Wall 12.49 Each institution, where applicable, should have a Chinese Wall policy which addresses the following: (a) identification of insiders; (b) wall-crossing procedures and treatment of new insiders; (c) identification and maintenance of a list of client names where the organisation may be in possession of non-public market-sensitive information (e.g. watch list, restricted list, etc); and (d) physical separation of work areas between insider departments and other departments. 12.50 Institutions should maintain complete records of employees’ wall-crossing, including those where the inside information originated from an affiliated institution. For example, a commercial bank should record instances where its employees were wall-crossed to provide consultation to its investment banking subsidiary. Internal Controls and Culture42 ii. Personal Account Dealing 12.51 Each institution should have measures to deter and prevent its employees from acting on inside information in their possession. Particular focus should be given to trading in equity, which is the most accessible product to individuals. 12.52 Many institutions with capital market business activities choose to institute pre-emptive controls over the personal trading of their employees at the pre-transaction stage, rather than adopt the more passive approach of conducting post-reviews of their employees’ trading. 12.53 Common elements pertaining to the pre-emptive controls include: (a) requirement for employees to request and obtain approval prior to executing any personal equity trades; (b) cross referencing against the designated lists (e.g. Watch List, Restricted List), and factoring in employees’ classification as an insider, prior to approving requests to conduct personal trades; and (c) having a platform or system to automate the approval process with regard to (a) and (b). 12.54 There should be clear procedures for escalation in the event employees are suspected of insider dealing for their own account. Institutions should consider factors like the direction of the trades involved relative to the nature of the inside information in making their assessment. Industry Practices DOs Approval of personal trades is centrally managed by an independent Control Room function typically residing within Compliance. Additional sign-off by immediate supervisor is incorporated into the approval process to address issues such as potential time lag between receipt of inside information and inclusion of the relevant counter in the institution’s designated lists. A ‘validity’ period is specified for employees to execute their trades once approval is granted. A reasonable benchmark is 48 hours. For institutions with an equity-brokerage arm, the following practices strengthen pre- emptive controls by addressing the issue of non-disclosure. ➡ Employees are required to close trading accounts at other institutions (i.e. only one trading account is maintained with the employer). ➡ All employee trades are executed by a designated dealer within the institution, who must sight evidence of approval beforehand. Employees do not have access to online trading. Obtaining Bursa CDS statements from employees to reconcile employees’ trading against disclosures made, to ensure compliance with the personal account dealing policy. Policy on personal account dealing may stipulate: ➡ A minimum holding period for equities purchased by employees. Some institutions also specify a daily limit on employees’ personal trading. ➡ Requirement for employees to disclose the trading activity of connected persons such as household members, those financially dependent on said employee or parties on behalf of whom the employee executes trades and/or makes key investment decisions. 43Internal Controls and Culture Wholesale Market Conduct Practices Industry Practices DOs Post-reviews on the trading activities of insiders to determine if pre-emptive controls continue to operate effectively. Scrutiny over the volume of personal account dealing requests and reporting can help to detect abnormalities. Low volumes may indicate employees are not consistently or fully making disclosures. Personal account dealing policy also addresses treatment for directors of the institution who were exposed to inside information. Owners of inside information (i.e. investment banks) take accountability and provide oversight on handling of inside information within their banking group. Example: ♦ Employees that are wall crossed from the commercial or Islamic bank are subjected to similar personal account dealing controls. DON’Ts Having no oversight on the personal account dealing of employees that are wall-crossed from other institutions within the banking group. Prematurely concluding a particular incident as free of insider dealing based on a relatively low transaction size. Institutions should remember that any action to trade based on inside information constitutes insider dealing. Lack of consequence management for breaches of personal account dealing policy (e.g. non-disclosure). Internal Controls and Culture44 Conflicts of Interest 12.55 A conflict of interest arises when an institution is placed in a situation of prioritising between competing interests and/or duties involving two or more parties, where choosing one may lead to detrimental outcomes for the other. If left unmanaged, conflicts of interest can become a precursor to misconduct. 12.56 Institutions will invariably find themselves inherently exposed to conflicts of interest in the normal course of business, and should seek to manage these situations by taking appropriate steps to identify and mitigate conflicts. 12.57 The following perspectives provide context to the different types of conflicts of interest that institutions should be aware of: Category / Type Examples Client vs client (in relation to services provided by the institution) • Prioritising between competing client orders for an asset, which can be in the context of brokerage, sales activities or book-building pursuant to a capital market issuance. Institution vs client • Holding a proprietary position in an asset while concurrently advising clients on the asset. Employee vs institution/client (personal conflicts) • Receiving E&G that could affect decision-making in pursuing the employer’s best interests. • Personal relationships (e.g. relative or spouse acting as counterparty at another institution or holding a high position in a company) that could impair the ability to make decisions or give advice objectively to the employer or clients. • Personal account dealing could similarly affect decision-making or incentivise taking advantage of knowledge of proprietary positions or client orders. Others • In pursuing the group agenda, safeguarding the interests of two entities within a banking group transacting with each other, where different stakeholders may have conflicting interests (i.e. depositors or shareholders). • Submission of benchmark rates by the institution while having significant holdings of financial products that derive their value from those rates. 45Internal Controls and Culture Wholesale Market Conduct Practices 12.58 This segment is intended to provide guidance on managing structural conflicts that are present in an institution’s business activities and processes. 12.59 A framework and a ‘conflicts register’ are useful tools for an institution to systematically identify and manage potential conflicts of interest from its wholesale market activities. Conflicts of Interest Framework • Addresses the identification, documentation, management, and escalation of conflicts of interest in the course of carrying out financial and capital market activities. • Provides guidance to business units on assessing the materiality and impact from identified conflicts, and deciding on mitigating actions. • Gives clear examples of conflict scenarios as a guide in making assessments. • Specifies actions that should be taken in the case of conflicts that cannot be satisfactorily mitigated via existing policies, procedures and controls (e.g. disclosure to clients, internal escalation, etc). Conflicts of Interest Register • Facilitates identification of potential conflicts by business units at specified intervals (e.g. annually or semi- annually, upon launching a new product or business activity, etc). • A central register should be maintained by the institution based on the consolidated inputs of respective business units. • Key fields in the register include a description of each conflict, the likelihood and potential impact to which parties, mitigating controls in place, materiality after taking into account the residual level of risk, as well as next action steps with accompanying justifications. Internal Controls and Culture46 Industry Practices DOs Conflict of interest is recognised as a critical aspect to manage, with relevant policies and procedures in place. Examples given on conflicts of interest scenarios are as comprehensive as possible, based on the scope of the institution’s business activities and nuances associated with each business line. Providing regular training and refreshers to employees to facilitate the identification of conflicts. Conflicts of interest receive sufficient senior management oversight by becoming a discussion agenda at specialised working group committees. Periodic engagement between the central controller of the institution’s conflicts register and respective business units, to ensure the completeness of conflicts identified as well as mitigating actions. DON’Ts Identification and management of conflicts is confined to personal conflicts. Management of conflicts is limited to submission of an annual declaration of potential conflicts of interest, or disclosures at the pre-deal or transactional level. There is no further action to follow up on and manage personal conflicts other than for record- keeping. Conflict of interest is solely documented and only broadly identified as a risk in business units’ RCSA tool. This is ineffective because: ➡ Conflicts can differ greatly in nature across scenarios and require mitigating actions specific to each, thus requiring separate documentation and scrutiny in order to be managed effectively. ➡ Risks identified via RCSA also tend to be filtered at the consolidated level, in favour of more common risks, potentially dropping from the institution’s radar. Compliance Function 12.60 The compliance function (referred to as “Compliance”) within an institution plays a significant role in administering checks and controls which contribute to managing wholesale market conduct. The following tasks are commonly under their purview: (a) trade and/or communications surveillance; (b) issuing policies on Chinese Wall and personal account dealing by employees and directors, as well as coordinating and overseeing processes stipulated in these policies; and (c) conducting periodic reviews on compliance with regulatory requirements and internal policy and procedures, or performing continuous monitoring where appropriate, such as for benchmark rate submissions or specific policy requirements. 12.61 Compliance may also take on responsibility as the coordinator in providing the board and senior management with a holistic view on wholesale market conduct, as outlined in paragraph 12.10. 47Internal Controls and Culture Wholesale Market Conduct Practices Industry Practices DOs Performing frequent and comprehensive reviews to establish that controls continue to work effectively in ensuring compliance with internal policies and regulatory requirements. Example: ♦ Compliance conducts periodic control testing with regard to internal conduct related policies as well as the Code of Conduct. ♦ In some institutions, a rigorous approach is taken when conducting reviews which include interviewing employees, sampling and validation of relevant documentation. This approach allows Compliance to assess the design of controls in place to conclude on their effectiveness. Control Room function acts as a central and independent point of reference for areas relating to handling of inside information. Conducting quality assurance (i.e. validation reviews) on the work performed by the trade and communications surveillance team. Holding training sessions for employees within the institution on regulatory requirements and internal policy and procedures. DON’Ts Local Compliance does not take on an active role in understanding the review approach and outcomes of conduct-related compliance reviews performed by group or regional functions. Thus, local Compliance is unable to assess whether further review procedures or institutional controls are necessary. Local Compliance predominantly acts as a point of contact for escalation or follow up on queries from global or regional hub without further assessing the adequacy of the surveillance programme vis-à-vis local trading profiles. Surface-level understanding of financial market mechanics (e.g. how financial products are traded) and how market misconduct works. This undermines the quality of assessments on exposure to market conduct-related risks and analysis of surveillance alerts, where applicable. Example: ♦ In some institutions, Compliance does not escalate outcome from reviews conducted at a regional or global level to the institution’s Board and Senior Management. In instances where these are escalated, there is no assessment of its adequacy. ♦ This may indicate a lack of ownership in managing local market abuse and misconduct risks. Internal Controls and Culture48 Internal Audit 12.62 In the context of wholesale market conduct, the internal audit function (referred to as “Internal Audit”) must validate the adequacy and implementation of policies and procedures established by business units and second line control functions to address conduct risks. 12.63 Internal Audit must incorporate market conduct risk in formulating its audit plan. The decision on frequency of review over auditable units should factor in indicators such as the size and complexity of the institution’s market activities. 12.64 Assessment of the institution’s effectiveness in managing conduct risks in wholesale markets must be incorporated in audit procedures and may involve cross-department thematic reviews where appropriate. Areas that should be covered include but are not limited to: (a) market conduct risk assessment; (b) trade and communications surveillance programme; (c) dealing room conduct control practices (e.g. compliance with mandatory block leave policy, maintenance of E&G registers, etc.); and (d) controls pertaining to handling of inside information and personal account dealing. 12.65 The market conduct risk assessment (section 9) can be a useful tool to assist audit planning and an audit assessment of the effectiveness of the institution’s surveillance programme and controls. Industry Practices DOs Checking for compliance with regulatory requirements stipulated in conduct-related policies (e.g. Code of Conduct). Audit coverage of trade surveillance includes governance and methodologies used to determine surveillance parameters and thresholds, as well as quality and consistency of analysis in reviewing surveillance alerts. DON’Ts Surface-level assessment of conduct controls (i.e. box-ticking) without assessing the effectiveness of implementation or whether there are any gaps that can be addressed by improving the design of existing policies and controls. 49Internal Controls and Culture Wholesale Market Conduct Practices 13. The Role of Culture in Promoting Good Conduct 13.1 Organisational or business culture plays a significant role in shaping employees’ behaviours, and is often cited as the root cause of misconduct within the financial services industry. Misaligned performance measures and remuneration practices are typical examples of factors which lead to excessive risk taking by wholesale market participants. 13.2 This section seeks to provide guidance on practices that can reduce the propensity for misconduct in the context of wholesale financial markets. Remuneration and Key Performance Indicators 13.3 Overly aggressive financial performance targets in Key Performance Indicators (KPI) can encourage excessive risk-taking or misconduct. This may be further exacerbated by remuneration structures that grant immediate and outsized rewards for exceeding performance targets. 13.4 Most institutions incorporate both financial and non-financial indicators (e.g. risk, compliance, conduct, etc) in employees’ KPIs, which promotes a more balanced measure of performance. 13.5 The following observed remuneration practices generally promote good conduct and accountability: (a) avoiding excessive variable compensation structures that reward meeting aggressive business targets; (b) staggered or deferred payout structures for variable compensation12; and (c) malus and clawback provisions. Industry Practices DOs Conscious effort to manage the amount of fixed vs. variable compensation paid to employees, with some institutions setting an appetite or policy on a ratio between the two. Reasonable structure for deferred payment of variable compensation. For example, equal instalments paid over a 3-year period. Bonus pools for dealers are allocated jointly between the Treasury Head and representatives from the Human Resource department, which enables better transparency and consistency in awarding variable compensation. All aspects of compliance (e.g. mandatory block leave, training, personal account dealing) and conduct are considered in determining performance and compensation. For some institutions, this process is facilitated by a system. Malus and clawback provisions apply to all employees, and not just certain individuals in material risk-taking positions. 12 For many institutions, this only applies to individuals in material risk-taking positions, who are identified based on an internal standard definition applied across business units. Based on this definition, most dealers are excluded from deferred compensation as they typically do not meet the threshold on variable compensation to be considered a ‘material risk taker’. In this regard, institutions may wish to consider and evaluate wider application of deferred compensation for their dealers given the comparatively greater financial impact their activities can have on the institution. Internal Controls and Culture50 Industry Practices DOs Disciplinary actions taken are considered in the pay out of variable compensation. Some institutions have established a matrix which specifies varying levels of cuts to compensation (e.g. ranging from 5% up to 100%) depending on the frequency and severity of the misconduct. A stand-alone consequence management framework caters to specific types of breaches and misconduct in treasury business. This typically supplements a bank-wide consequence management framework. DON’Ts Loosely defined consequence management framework with wide discretion in decision- making for breaches and misconduct. ➡ No guidance on how to treat relatively minor but repeated policy breaches in the context of treasury and trading activities. Example: ♦ Minor breaches are not tracked. (e.g. high count of trade cancellations and amendments due to dealers’ error; executing personal trades after the corresponding post-approval validity period has expired). ♦ These breaches are not considered when conducting performance appraisals, leading to minimal or no consequence for the employee. Industry Practices DON’Ts Low weightages (typically less than 10%) assigned to non-financial KPIs, with poor descriptions of non-financial KPI deliverables. This gives the impression that a good performance rating can still be achieved by solely focusing on profit-making at the expense of other areas. Sole discretion of Treasury Head to allocate bonus pools. Consequently, misconduct by some dealers may be overlooked in decision-making, inadvertently or otherwise. Deferred compensation structures feature short deferral periods. In some cases, most of the deferred sum is paid out within the following 6 months, which does not serve to hold employees accountable for their risk-taking as outcomes may materialise over a longer period. Consequence Management 13.6 Consequence management concerns how the institution should handle breaches of conduct by its employees. 13.7 Institutions are typically guided by an internal framework which stipulates possible disciplinary actions that can be taken. This ranges from letters of advice to outright dismissal. 51Internal Controls and Culture Wholesale Market Conduct Practices Training 13.8 Training has become increasingly important to reinforce good conduct amongst dealers. 13.9 Banking institutions have commonly been observed to provide limited training on wholesale market conduct for dealers as well as personnel in the second and third lines of defence (i.e. Compliance, Risk Management and Internal Audit). Training typically covers conduct topics such as anti-money laundering and anti-bribery and corruption, with little or no focus on market conduct. 13.10 Institutions must provide periodic training and refreshers on key conduct topics including, but not limited to: (a) understanding market abuse risks; (b) good dealing practices for various financial products and markets; (c) handling inside information (i.e. Chinese Wall and personal account dealing policy and procedures); and (d) identifying and managing conflicts of interest in daily functions. 13.11 Institutions must also provide dealers with training and awareness programmes in the area of compliance and risk management practices. These should be designed to instil awareness on treasury related risks, regulatory requirements, and the control environment that should be observed. 13.12 Surveillance analysts are typically trained on-the-job. However, institutions must improve the skillset and capabilities of surveillance analysts by providing frequent and targeted training on reviewing and investigating misconduct. 13.13 Training must also be extended to back office personnel to enable them to identify misconduct in the course of performing trade operations. Internal Controls and Culture52 Appendix 1 Example of Market Conduct Risk Assessment Financial Product Traded Trading Profile Exposure to Potential Market Misconduct E.g. Wash Trading Front Running Position Parking Spoofing Ramping Etc. FX Spot [Key trading profile indicators such as but not limited to Transaction Count, Percentile analysis of transactions, Transaction Volume, Transaction Size, Revenue Contribution etc.] (Insert risk level) e.g. Low-medium risk. – High trading volume / market share. (provide statistics) – Market benchmarks for the institution’s commonly traded currencies are not calculated based on market volumes within a short window. – Motive to mislead the market is unlikely as information on market volume is not available real-time or intraday. – Possible wash trades with the motive of generating brokerage fees. (Insert risk level) e.g. High risk. – In practice, FX dealers are consulted on the pricing for large client orders. – Only 1% of deals with clients are considered large, however there are a few hundred such deals in a year. (Insert risk level) e.g. Low risk – What is the possibility and motivation of FX traders colluding to conceal net open positions or forex losses to evade detection by middle office? (Insert risk level) – As this type of misconduct involves creating a false impression of market orders, are order queues visible to market participants for them to be misled? – Trading volume / market share? (Insert risk level) – As this type of misconduct involves creating a false impression of market price direction, is real-time data/charts on market prices visible to market participants for them to be misled? – Trading volume / market share? … Surveillance Decision • Should there be surveillance over this abuse scenario given the trading profile and susceptibility to market misconduct? • What parameters would best suit the type of market misconduct under surveillance and what thresholds would best suit the trading profile? • What is the result of back-testing and recalibration exercises that should result in changes to parameters or thresholds? √ Implement surveillance to address the possibility of compensation trades √ Parameters : √ Thresholds : price variation, size variation, lookback periods etc. √ Recalibration Input: √ Implement surveillance to detect front running. √ Parameters : Min. client order size, lookback periods etc. √ Threshold : Min. client order threshold is set at RM50m as xx% of client trades are <RM50m. … … 53Internal Controls and Culture Wholesale Market Conduct Practices Financial Product Traded Trading Profile Exposure to Potential Market Misconduct E.g. Wash Trading Front Running Position Parking Spoofing Ramping Etc. FX Forward … … … … … … … Surveillance Decision • Should there be surveillance over this abuse scenario given the trading profile and susceptibility to market misconduct? • What parameters would best suit the type of market misconduct under surveillance and what thresholds would best suit the trading profile? • What is the result of back-testing and recalibration exercises that should result in changes to parameters or thresholds? etc. … … … … … … … Government Securities (Insert risk level) – Can this method be used to influence benchmark/closing prices for less liquid bonds? – Is there available real-time data on market volumes? (Insert risk level) – Statistical distribution of client deals? – Ease/ viability of front running? (Insert risk level) – What is the level of trading book activity? (provide statistics) – How prevalent is trading in less liquid bonds? … … … Surveillance Decision • Should there be surveillance over this abuse scenario given the trading profile and susceptibility to market misconduct? • What parameters would best suit the type of market misconduct under surveillance and what thresholds would best suit the trading profile? • What is the result of back-testing and recalibration exercises that should result in changes to parameters or thresholds? √ … √ … √ … √ … √ … √ … Private Debt Securities Listed Equities … … … … … … Equity Derivatives … … … … … … etc. … … … … … … Internal Controls and Culture54 Appendix 2 Examples of Calibration Techniques for Setting/Reviewing Trade Surveillance Thresholds The following are examples of calibration techniques that have been observed being practised in the industry. Institutions should exercise judgment in applying these techniques to their own surveillance scenarios. Type of threshold Techniques Transaction value / quantity Typically concerns thresholds on the units/amount/value of a product that needs to be transacted for a surveillance alert to be triggered (e.g. an alert is generated if the minimum transaction size of RMx or x share units is met). • Percentile analysis of the institution’s past trades or contribution to market volume (e.g. arranging a counter’s trade quantity or trade value per trade/account sequentially for a given period, and sensitizing thresholds based on the trade quantity or value corresponding to the levels at 95%, 90% of that sequence). • Statistical distribution (e.g. mean, mode median) of a particular counter’s trades/ cancellations can also be useful to determine an appetite of what would be considered irregular. Number of price layers Typically concerns thresholds on the number of price levels that must be present in a set of trades/orders before being flagged as a surveillance alert (e.g. an alert is generated if a set of order cancellations involved x or more price levels). • Reconciling historical order book partial fills/cancellations against the corresponding number of price levels involved to determine what would be considered irregular (e.g. if 90% of orders that resulted in partial fills/cancellations involved 2 price levels, a more effective threshold may be higher than 2). Time interval / lookback period Typically concerns thresholds on the length of time within which a surveillance scenario will examine for specific misconduct behaviours (e.g. an alert is generated if a set of trades within a x minutes displays wash trade behaviours). • Volume analysis, which computes the average number of trades per day, per minute for a particular product. An appropriate time interval threshold can be inferred from the amount of time needed for a sizeable number of trades to conclude (e.g. if there are 10 trades per minute on average for one product vs 0.5 trades for another, differentiated thresholds such as 3 minutes for the former and 10 minutes for the latter may be considered). • Institutions may also work backwards by using time as a starting point and examining the distribution to determine what is irregular (e.g. if 90% of order cancellations occurred more than 10 minutes after the order was placed, the time to cancellation corresponding to the remaining 10% may be of greater interest). 55Internal Controls and Culture Wholesale Market Conduct Practices References Behavioural Cluster Analysis – Misconduct Patterns in Financial Markets (2018). FICC Markets Standards Board. MAS-SGX Trade Surveillance Practice Guide (2019). Monetary Authority of Singapore, Singapore Exchange Regulation. Wholesale Market Conduct Risk – Dear CEO Letter (2019). Central Bank of Ireland. FX Global Code (2021). Foreign Exchange Working Group. Conflicts of Interest Statement of Good Practice (2019). FICC Markets Standards Board. Strengthening Governance Frameworks to Mitigate Misconduct Risk: A Toolkit for Firms and Supervisors (2018). Financial Stability Board. Risk management and operational resilience in a remote working environment (2021). Monetary Authority of Singapore and the Association of Banks in Singapore. Spotlight Review: Hybrid Working in FICC Markets – Future Risk Management Frameworks (2021). FICC Markets Standards Board. Internal Controls and Culture56

31 Dis 2021

Dokumen Dasar Kod Tatakelakuan untuk Pasaran Kewangan Borong Malaysia

https://www.bnm.gov.my/-/pd-codeconduct-wholesalefinmkt-bm

https://www.bnm.gov.my/documents/20124/938039/PD_COC_WholesaleFinMkt.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/pd-codeconduct-wholesalefinmkt-bm&languageId=ms_MY

Reading: Dokumen Dasar Kod Tatakelakuan untuk Pasaran Kewangan Borong Malaysia Share: Dokumen Dasar Kod Tatakelakuan untuk Pasaran Kewangan Borong Malaysia Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 0900 pada Jumaat, 31 Disember 2021 31 Dis 2021 Dokumen dasar ini menggariskan prinsip yang perlu diamalkan oleh peserta pasaran dalam menegakkan integriti dan prinsip amalan pasaran yang adil, yang penting untuk menyokong keyakinan, memastikan pasaran kewangan borong berfungsi dengan teratur, dan mengekalkan kestabilan kewangan. Susulan penerbitan awal Kod Tatakelakuan untuk Pasaran Kewangan Borong Malaysia empat tahun dahulu, dokumen dasar ini adalah hasil kajian semula berterusan susulan maklum balas daripada industri dan peserta pasaran berkenaan hal ehwal amalan pasaran. Di samping mematuhi keperluan dalam dokumen dasar ini, peserta pasaran juga perlu mematuhi semua undang-undang, peraturan dan kawalseliaan yang terpakai dalam bidang kuasa di mana transaksi pasaran kewangan dilakukan. Baca: Dokumen Dasar Kod Tatakelakuan untuk Pasaran Kewangan Borong Malaysia Bank Negara Malaysia 31 Disember 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Code of Conduct for Malaysia Wholesale Financial Markets (Dec 2021 Policy Document) Issued on: 31 December 2021 BNM/RH/PD 028-43 Code of Conduct For Malaysia Wholesale Financial Markets Applicable to market participants in the wholesale financial markets, including: 1. Licensed banks 2. Licensed investment banks 3. Licensed Islamic banks 4. Prescribed development financial institutions 5. Licensed insurers 6. Licensed takaful operators 7. Approved money-brokers 8. Approved operators of electronic trading or broking platforms 9. Corporations 10. Investment institutions Code of Conduct For Malaysia Wholesale Financial Markets Issued on: 31 December 2021 TABLE OF CONTENTS PART A OVERVIEW ............................................................................................... 1 1 Introduction…………………………………………………………. ................ 1 2 Applicability………………………………………………………… ................. 2 3 Legal Provisions ........................................................................................ 3 4 Effective Date…………………………………………………………… .......... 3 5 Interpretation………………………………………………………… ............... 3 6 Related Legal Instruments and Policy Documents .................................... 5 7 Policy Document and Circular Superseded ............................................... 6 PART B DEALERS AND BROKERS ...................................................................... 7 8 Eligibility Requirements for Dealers and Brokers ...................................... 7 9 Execution of Deals .................................................................................... 8 10 Relationship between Dealers and Brokers .............................................. 8 11 Mandatory Leave ...................................................................................... 9 PART C PROHIBITED CONDUCT ........................................................................ 10 12 Prohibited Conduct under the FSA and IFSA .......................................... 10 13 Market Manipulation ................................................................................ 10 14 Misinformation and Rumour .................................................................... 10 15 Insider Dealing ........................................................................................ 11 16 Additional Requirements for Market Participants .................................... 11 17 Whistleblowing ........................................................................................ 12 PART D RESPONSIBILITY TO PRESERVE A REPUTABLE, ETHICAL AND HONEST MARKET PLACE ..................................................................................... 13 18 Treatment of Reference or Fixing Rate ................................................... 13 19 Offshore Dealings of Ringgit Currency Products ..................................... 13 20 Dealing at Non-Current Rates ................................................................. 13 21 Dealing for Personal Account .................................................................. 14 22 Dealing Quotation ................................................................................... 14 23 Entertainment and Gifts ........................................................................... 14 24 Anti-Money Laundering and Counter Financing of Terrorism .................. 15 25 Misconduct………………………………………………………….. .............. 15 PART E SHARING OF INFORMATION AND TRANSPARENT COMMUNICATIONS ................................................................................................ 16 26 Handling of Confidential Information ....................................................... 16 27 Conflict of Interest ................................................................................... 17 Code of Conduct For Malaysia Wholesale Financial Markets Issued on: 31 December 2021 PART F TRACEABILITY, AUDITING AND RECORD-KEEPING ......................... 18 28 Voice and Electronic Communication ...................................................... 18 29 Transaction Records ............................................................................... 18 PART G ROBUST AND CLEAR POLICIES, PROCEDURES AND ORGANISATIONAL STRUCTURE .......................................................................... 19 30 Segregation of Duties and Authorisation ................................................. 19 31 Confirmation of Dealings ......................................................................... 19 32 Security in Dealing Area .......................................................................... 19 33 After-Hours and Off-Premises Dealing .................................................... 19 PART H INTERNAL GOVERNANCE AND CONTROLS ...................................... 21 34 Role of Board and Management ............................................................. 21 35 Risk Management ................................................................................... 21 36 Compliance……………………………………………………………….. ...... 22 37 Internal Audit…………………………………………………………………...22 38 Reporting of Non-compliance and Audit Findings ................................... 22 39 Non-compliance by Dealers and Brokers ................................................ 23 40 Trade Surveillance .................................................................................. 23 41 Technical and Operational Capability ...................................................... 24 42 Training…………………………………………………………………… ...... 24 PART I USE OF TECHNOLOGY ......................................................................... 25 43 Use of Electronic Trading and Broking Platforms .................................... 25 44 Responsibilities of Approved Operators of Electronic Trading or Broking Platforms ................................................................................................. 25 Code of Conduct For Malaysia Wholesale Financial Markets 1 of 25 Issued on: 31 December 2021 PART A OVERVIEW 1 Introduction 1.1 An orderly functioning of the wholesale financial markets is essential to support confidence, ensure the integrity of financial markets and preserving financial stability. 1.2 As the wholesale financial markets continue to evolve, market conduct and practices should be reviewed and updated to maintain the highest standards of integrity. The objective of this policy document is to update and set out principles and standards to be observed by market participants in the wholesale financial markets i.e. money market and foreign exchange market, including over-the-counter derivatives market for interest rates or exchange rates. 1.3 This policy document is intended to apply to all market participants who act in the wholesale financial markets based on different capacity (whether as sell- side or buy-side entities) and across various money market and foreign exchange products. Transactions in the wholesale financial markets generally refer to transactions between institutions and do not involve retail transactions (e.g. transactions with an individual customer). 1.4 Market participants are required to uphold integrity and professionalism in the conduct of their business, affairs and activities, including all aspects of treasury operations and activities. In particular, market participants are required to observe the principles and standards in this policy document in their dealings in other markets, whether within or outside Malaysia. Furthermore, market participants involved in Islamic dealings are also required to ensure that these dealings are concluded based on Shariah compliant contracts that have been approved by the Shariah Advisory Council. 1.5 This policy document sets out the following: (a) eligibility requirements for dealers and brokers; (b) market conduct and internal control requirements to safeguard professionalism and integrity of the wholesale financial markets; and (c) role of industry associations in preserving market integrity. 1.6 FMAM shall adopt the standards in this policy document and observe industry developments in the wholesale financial markets on an ongoing basis, including the conduct and professionalism among market participants. FMAM is expected to self-police and investigate cases of financial market misconduct including breaches of this policy document involving its members. 1.7 The Bank expects FMAM to investigate and take action against its members for financial market misconduct, breaches of this policy document and contravention of section 141 of the FSA and section 153 of the IFSA and Code of Conduct For Malaysia Wholesale Financial Markets 2 of 25 Issued on: 31 December 2021 inform the Bank of any action taken. The Bank may share any relevant information with FMAM to assist FMAM in its investigation. FMAM may share information with financial institutions that employ or seek to employ an individual or with another professional body to give effect to the investigation and disciplinary process of its members who may also be members of such professional body. 1.8 In addition to the requirements in this policy document, market participants are expected to comply with applicable laws, rules and regulations in the jurisdiction in which financial market transactions are undertaken. 2 Applicability 2.1 This policy document is applicable to all market participants as defined in the FSA and IFSA, and may include: (a) licensed banks; (b) licensed investment banks; (c) licensed Islamic banks; (d) prescribed development financial institutions; (e) licensed insurers; (f) licensed takaful operators; (g) approved money-brokers; (h) approved operators of electronic trading or broking platforms; (i) corporations; and (j) investment institutions who deal in the wholesale financial markets, either acting in the capacity as a sell-side or buy-side entity. 2.2 For ease of reference, this policy document is applicable to the market participants referred in paragraph 2.1 in the following manner: Institutions Applicability Licensed banks The whole policy document Licensed investment banks Licensed Islamic banks Prescribed development financial institutions Licensed insurers Licensed takaful operators Approved money-brokers Approved operators of electronic trading or broking platforms Parts C, E, F and I Other market participants who deal in the wholesale financial markets, in particular corporations and investment institutions Parts C, D and E Code of Conduct For Malaysia Wholesale Financial Markets 3 of 25 Issued on: 31 December 2021 3 Legal Provisions 3.1 The requirements under Part B, D, E, F, G, I and paragraph 16.2 and 16.3 of this policy document are specified pursuant to section 140 of the FSA and section 152 of the IFSA. 3.2 The requirements under paragraph 16.1 and Part H of this policy document are specified pursuant to section 47 of the FSA, section 57 of the IFSA and section 41 of the DFIA. 3.3 The requirements to submit information to the Bank under paragraphs 38, 39 and 44 of this policy document are specified pursuant to section 143 of the FSA, section 155 of the IFSA and section 116 of the DFIA. 3.4 Except as otherwise provided under paragraph 3.5, the guidance in this policy document is issued pursuant to section 266 of the FSA, section 277 of the IFSA and section 126 of the DFIA. 3.5 The guidance under paragraphs 13.2, 14.2 and 15.2 in this policy document is issued pursuant to section 141 of the FSA and section 153 of the IFSA for the purpose of providing guidance on the descriptions of conduct which amount to conduct set out in section 141(1) of the FSA and section 153(1) of the IFSA. 4 Effective Date 4.1 This policy document comes into effect on 31 January 2022, except for paragraphs 8.1 to 8.3 and 28.2 to 28.4 which come into effect on 31 July 2022. 5 Interpretation 5.1 The terms and expressions used in this policy document shall have the same meaning assigned to them in the FSA, IFSA or DFIA, as the case may be, unless otherwise defined in this policy document. 5.2 For the purpose of this policy document: “S” denotes a standard, an obligation, a requirement, specification, direction, condition and any interpretative, supplemental and transitional provisions that must be complied with. Non-compliance may result in enforcement action; “G” except for paragraphs 13.2, 14.2 and 15.2, denotes guidance which may consist of statements or information intended to promote common understanding and advice or recommendations that are encouraged to be adopted. For paragraphs 13.2, 14.2 and 15.2, “G” denotes a guidance issued by the Bank to describe conduct which Code of Conduct For Malaysia Wholesale Financial Markets 4 of 25 Issued on: 31 December 2021 amounts to prohibited conduct in section 141 of the FSA and section 153 of the IFSA or clarify factors to be taken into account in determining whether a person has engaged in such prohibited conduct; “agent” refers to a market participant, generally an interbank institution or an approved money-broker, who executes deals on behalf of its clients pursuant to the clients’ mandate and without taking on market risk in connection with the deals; “AMLA” refers to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001; “approved operators of electronic trading or broking platforms” refer to operators of electronic trading or broking platforms as approved by the Bank under the Policy Document on the Framework for Electronic Trading Platforms; “Board” refers to the board of directors of a financial institution, including a committee of the Board where the responsibilities of the Board as set out in this policy document have been delegated to such a committee; “brokers” refer to employees of approved money-brokers who arrange deals between market participants in the wholesale financial markets; “clients” refer to market participants entering into transactions and activities with or through an interbank institution or an approved money-broker; “corporations” refer to body corporates formed in Malaysia (resident) or outside Malaysia (non-resident), which deal in the wholesale financial markets including non-resident banks and other development financial institutions that are not prescribed under the DFIA; “dealers” refer to employees of financial institutions dealing in the wholesale financial markets and may include traders and sales persons of the treasury division of the institution; “DFIA” refers to the Development Financial Institutions Act 2002; “financial institutions” refer to licensed banks, licensed investment banks, licensed Islamic banks, prescribed development financial institutions, licensed insurers, licensed takaful operators and approved money-brokers; Code of Conduct For Malaysia Wholesale Financial Markets 5 of 25 Issued on: 31 December 2021 “FMAM” refers to ACI – Financial Markets Association of Malaysia, an association of wholesale financial market professionals in Malaysia; “FSA” refers to the Financial Services Act 2013; “IFSA” refers to the Islamic Financial Services Act 2013; “interbank institutions” “investment institutions” refer to institutions which are approved by the Bank to deal in the interbank market, whether acting as principals or agents in the wholesale financial markets; refer to resident or non-resident institutions who deal in the wholesale financial markets such as fund management companies, sovereign wealth funds and pension funds; “licensed onshore bank (LOB)” refers to a licensed bank or a licensed investment bank under the FSA and a licensed Islamic bank under the IFSA; “management” refers to the Chief Executive Officer and senior officers of market participants; and “principal” refers to a market participant who transacts for its own account and not acting as an agent. 6 Related Legal Instruments and Policy Documents 6.1 This policy document must be read together with other relevant legal instruments and policy documents that have been issued by the Bank, in particular- (a) Policy Document on the Framework for Electronic Trading Platforms; (b) Policy Document on Outsourcing; (c) Policy Document on Employee Screening; (d) Principles for a Fair and Effective Financial Market for the Malaysian Financial Market; (e) Policy Document on Corporate Governance; and (f) Guidance Document on Wholesale Market Conduct Practices. Code of Conduct For Malaysia Wholesale Financial Markets 6 of 25 Issued on: 31 December 2021 7 Policy Document and Circular Superseded 7.1 This policy document supersedes the following documents on the corresponding dates shown below: Documents Date superseded Code of Conduct for Malaysia Wholesale Financial Markets issued on 22 April 2020 (except paragraphs 8.1 to 8.4 and 28.2) 31 January 2022 Paragraphs 8.1 to 8.4 and 28.2 of the Code of Conduct for Malaysia Wholesale Financial Markets issued on 22 April 2020 31 July 2022 Circular on Financial Market Integrity and Reporting Requirements issued on 25 January 2017. 31 January 2022 Code of Conduct For Malaysia Wholesale Financial Markets 7 of 25 Issued on: 31 December 2021 PART B DEALERS AND BROKERS 8 Eligibility Requirements for Dealers and Brokers S 8.1 Prior to undertaking dealing or broking activities (including negotiation and concluding of the deal) in the wholesale financial markets, dealers and brokers must be licensed members of FMAM and abide by membership rules of FMAM. S 8.2 Financial institutions must ensure the requirements in paragraph 8.1 as well as other professional requirements imposed by FMAM are met prior to appointing any person as a dealer or broker respectively. S 8.3 Financial institutions must have in place internal policies and controls on permissible activities for licensed and non-licensed personnel in the dealing area. S 8.4 Financial institutions must ensure any person who is, or is to be, employed as a dealer or broker: (a) must not have: (i) a judgment debt returned unsatisfied in whole or in part; (ii) committed an offence involving fraud or other dishonest act or violence, whether in or outside Malaysia; (iii) committed an offence, or subject to a pending proceeding which may lead to a conviction, whether in or outside Malaysia for breach of banking, securities or insurance laws; or (iv) committed a material breach of this policy document. (b) must not have been: (i) an undischarged bankrupt whether in or outside Malaysia; (ii) issued a prohibition order from dealing or broking in or outside Malaysia; (iii) engaged in a business practice appearing to the Bank and other supervisory authorities to be deceitful, oppressive or which otherwise reflect discredit on the person’s method of conducting business; or (iv) engaged in, or associated with, a business practice or otherwise conducted himself in such a way as to cast doubt on the person’s competence and soundness of judgement. S 8.5 Any person who is, or is to be employed, as a dealer or broker, must provide accurate and complete information, including any changes to the information subsequently, to allow a financial institution to make an assessment under paragraph 8.4. S 8.6 Dealers or brokers must declare compliance with this policy document to the financial institutions annually in the format specified by FMAM. Code of Conduct For Malaysia Wholesale Financial Markets 8 of 25 Issued on: 31 December 2021 S 8.7 Financial institutions must put in place procedures to ensure dealers or brokers provide the declaration as specified in paragraph 8.6. 9 Execution of Deals S 9.1 The management of an interbank institution or an approved money-broker must ensure that its dealer or broker executes client orders based on the ‘best execution’ principles. G 9.2 ‘Best execution’ principles may include: (a) prompt and fair execution of a client’s orders; (b) execute an order based on the specific instruction of a client; (c) requirements to be truthful and transparent when communicating with a client; and (d) the usage of clear language in communicating with a client. G 9.3 Depending on whether a dealer is acting in the capacity as a principal or an agent, a dealer is encouraged to disclose the following information in order to allow a client to make an informed decision on the transaction: (a) the prevailing liquidity and market conditions; (b) the associated risks of the transaction; (c) trading strategy of the dealer and how it would impact the execution of the transaction; and (d) fees and commissions applicable to the transaction. S 9.4 A dealer must neither accept a client’s order that may indicate an attempt of market manipulation nor enter into a dealing with an intention to disrupt the market. S 9.5 A broker (whether by way of voice-broking, broking through an electronic broking platform, an aggregation provider or otherwise) is only permitted to act as an intermediary or an arranger of deals. A broker must not act in the capacity of discretionary fund management. G 9.6 A broker should facilitate the conclusion of transactions between principals on terms that are agreed by the principals. G 9.7 A dealer is encouraged to reconfirm material details when concluding a deal through voice-broking to minimise the likelihood of a dispute. 10 Relationship between Dealers and Brokers S 10.1 The management of financial institutions and approved money-brokers must put in place internal policies to govern the dealer-broker relationship, the use of electronic trading or broking platforms and execution of deals. S 10.2 The management of financial institutions must ensure that they use services of an approved money-broker and that any operator of electronic trading or Code of Conduct For Malaysia Wholesale Financial Markets 9 of 25 Issued on: 31 December 2021 broking platforms used in the Malaysian wholesale financial markets are duly approved by the Bank under the Policy Document on the Framework for Electronic Trading Platforms as may be amended from time to time. 11 Mandatory Leave S 11.1 Financial institutions must strictly enforce an uninterrupted leave policy (mandatory leave) on its dealers and brokers annually. S S 11.2 Dealers and brokers must not, deal, physically access the dealing area, or, remotely access trading systems, while on mandatory leave. 11.3 The management of financial institutions must establish appropriate policy, procedure and controls to ensure dealers and brokers comply with paragraph 11.2 and to thoroughly examine their trades for unauthorised trading or suspicious transactions while they are on mandatory leave. Code of Conduct For Malaysia Wholesale Financial Markets 10 of 25 Issued on: 31 December 2021 PART C PROHIBITED CONDUCT 12 Prohibited Conduct under the FSA and IFSA G 12.1 The following conducts are prohibited under the FSA and IFSA: (a) market manipulation; (b) misinformation and rumour; and (c) insider dealing a contravention of which is an offence for which criminal, civil or administrative actions can be taken against the offender. 13 Market Manipulation G 13.1 Section 141 of the FSA and section 153 of the IFSA prohibit a person from: (a) taking part in or carrying out a transaction that has or is likely to have the effect of creating a rate which is an off-market rate which results in an artificial rate for dealing in financial instruments in the money market or foreign exchange market; and (b) creating or causing anything that creates a false or misleading appearance of active dealing in financial instruments in the money market or foreign exchange market. G 13.2 Without limiting the generality of the scope of the FSA and IFSA, the following is a market manipulation which constitutes offences under sections 141(1)(a) and 141(1)(b) of the FSA and sections 153(1)(b) and 153(1)(c) of the IFSA: (a) trading with an intent to benefit from influencing the closing price of a financial instrument; (b) interfering with the normal supply and demand factors in the market for a financial instrument, such as wash trades, squeezing, cornering or stop loss hunting; (c) dealing without a legitimate or genuine trading and commercial intention; (d) colluding or manipulating in the calculation of a benchmark fixing rate; (e) bidding or offering with an intent to cancel the bid or offer before execution, such as spoofing to mislead the market; and (f) manipulating the price on an electronic trading or broking platform by entering prices without intent to deal, such as price flashing, in order to create false impression of the market price or liquidity. 14 Misinformation and Rumour G 14.1 Section 141(1)(c) of the FSA and section 153(1)(d) of the IFSA prohibit a person from making a statement or disseminating information that is false Code of Conduct For Malaysia Wholesale Financial Markets 11 of 25 Issued on: 31 December 2021 or misleading in a material particular and is likely to induce another person to deal in financial instruments or is likely to have the effect of raising, lowering, maintaining or stabilising the market rate of such financial instruments in the money market or foreign exchange market and when the person makes the statement, or disseminates the information: (a) the person does not exercise due care whether the statement or information is true or false; or (b) the person knows, or ought reasonably to have known, the statement or information is false or is materially misleading. G 14.2 Without limiting the generality of the scope of the FSA and IFSA, the following amounts to making of statement or dissemination of information which is false or misleading in a material way and constitutes offences under section 141(1)(c) of the FSA and section 153(1)(d) of the IFSA: (a) start and spread rumours to move markets or to deceive other market participants; and (b) discuss with any other person without care, unsubstantiated information which is suspected to be false or materially misleading and damaging to third parties. 15 Insider Dealing G 15.1 Section 141(1)(d) of the FSA and section 153(1)(e) of the IFSA prohibits a person from taking part in or carrying out a transaction based on information that is not generally available to persons who regularly deal in the money market or foreign exchange market that would, or would tend to, have a material effect on the price or value of financial instruments. G 15.2 Without limiting the generality of the scope of the FSA and IFSA, the following amounts to insider dealing and constitutes offences under section 141(1)(d) of the FSA and section 153(1)(e) of the IFSA: (a) profit or seek to profit from insider’s information with intent or through negligence; and (b) provide any other person with such information to make a profit for their institutions, clients or third parties with intent or through negligence. S 15.3 Market participants, who possess insider’s information, must not disclose such information, except where the disclosure is required as a part of the course of employment, required by laws or relevant supervisory authorities. 16 Additional Requirements for Market Participants S 16.1 Financial institutions must comply with the requirements in this policy document in respect of all treasury operations and activities, such as Code of Conduct For Malaysia Wholesale Financial Markets 12 of 25 Issued on: 31 December 2021 dealings in the bond and sukuk market, and must at all times ensure they do not engage in any prohibited conduct as set out in securities laws. S 16.2 Market participants other than an LOB and prescribed development financial institution approved by the Bank must only transact with an LOB or approved prescribed development financial institution for money market or foreign exchange transactions. S 16.3 In line with the Bank’s Foreign Exchange rules, only LOBs can engage in market-making activities for foreign exchange transactions while other market participants can only leave orders or be price takers. G 16.4 The Bank will take into account the conducts set out in paragraphs 13.2, 14.2 and 15.2 in determining whether financial institutions have committed the prohibited conduct referred to in paragraph 16.1. 17 Whistleblowing G 17.1 Market participants may, pursuant to section 256 of the FSA and section 267 of the IFSA, whistleblow to the Bank in good faith if they have knowledge or information that a contravention of this policy document has been committed or is about to be committed. G 17.2 Market participants may refer to the Bank’s whistleblowing policy on its website for detailed guidance on the available channels and required details to be included when whistleblowing. Code of Conduct For Malaysia Wholesale Financial Markets 13 of 25 Issued on: 31 December 2021 PART D RESPONSIBILITY TO PRESERVE A REPUTABLE, ETHICAL AND HONEST MARKET PLACE 18 Treatment of Reference or Fixing Rate S 18.1 Market participants must not intentionally influence or attempt to influence a reference or fixing rate, either by way of collusion or inappropriate sharing of confidential information. S 18.2 Market participants engaged in a transaction executed against a reference or fixing rate must not undertake dealings in the market that are intended to move the reference or fixing rate in their favour and to the detriment of their clients. S 18.3 Interbank institutions engaging in transactions executed against a reference or fixing rate must: (a) ensure that prices are transparent to their clients in a manner which reflect the risk to be borne in accepting such transactions; and (b) establish and enforce internal policies and procedures for collecting and executing fixing orders. 19 Offshore Dealings of Ringgit Currency Products S 19.1 Market participants must not participate in offshore ringgit non-deliverable forwards (NDFs) or engage in any foreign exchange dealings that could be deemed as facilitating non-deliverable ringgit currency related dealings in the offshore market. G 19.2 Contravention of the Bank’s Foreign Exchange rules is an offence under the FSA and IFSA and market participants dealing in ringgit currency products are expected to abide by the Bank’s Foreign Exchange rules. 20 Dealing at Non-Current Rates G 20.1 Market participants should avoid dealing at non-current rates. Dealing at non-current rates occurs when the transacted rate deviates from an actual market rate at the time of execution and may result in: (a) concealment of a profit or loss; (b) perpetration of a fraud or tax evasion; (c) unauthorised extension of credit; or (d) disorderly market pricing. S 20.2 In cases where the use of non-current rates are necessary, the management must: (a) put in place proper controls with clear audit trails for monitoring and reporting of such dealings; and Code of Conduct For Malaysia Wholesale Financial Markets 14 of 25 Issued on: 31 December 2021 (b) establish internal thresholds for determination of non-current rates. 21 Dealing for Personal Account G 21.1 Personal account dealing refers to any activity in which dealers deal under their own name or by proxy, where dealers receive indirect benefits, has influence and/or control over such accounts (e.g. for their close relatives, and/or other connected parties). Dealing for personal accounts may give rise to conflict of interest, insider dealing and front-running. S 21.2 In cases where the management permits dealing for personal account, the management must ensure safeguards are in place to manage any potential conflict of interest and to prevent insider dealing and front- running. S 21.3 The safeguards referred in paragraph 21.2 must include the following: (a) maintain confidentiality with respect to non-public price sensitive information; (b) specify the instruments that dealers can deal for personal accounts; and (c) ensure dealers do not act in a way which might adversely affect the interests of employer, clients or counterparties. S 21.4 Dealers must not deal with dealers from other institutions who are dealing for their personal accounts instead of dealing for their employing institutions. 22 Dealing Quotation S 22.1 Dealers and brokers must make clear whether their price or rate is firm or merely indicative. S G 22.2 Dealers quoting a firm price or rate must deal at the price or rate in a marketable amount with an acceptable name. 22.3 The acceptable name referred in paragraph 22.2 may include a list of counterparties approved by the risk management unit of the institution. S 22.4 Dealers must not revise the firm price or rate when the name of the counterparty is disclosed. S 22.5 Dealers and brokers must not make frivolous quotes which they have no intention of honouring. 23 Entertainment and Gifts S 23.1 Market participants must not offer entertainment and gifts which can be perceived as inappropriate inducements to conduct business, nor solicit them from other market participants. Code of Conduct For Malaysia Wholesale Financial Markets 15 of 25 Issued on: 31 December 2021 S 23.2 The management must formulate and enforce a policy for offering and accepting entertainment and gifts, and ensure compliance of its employees to the policy. 24 Anti-Money Laundering and Counter Financing of Terrorism S 24.1 Whenever applicable, market participants listed in the First Schedule of the AMLA must comply with the provisions of the AMLA, subsidiary legislation and any other related policy documents issued by the Bank and other relevant supervisory authorities. 25 Misconduct S S 25.1 Market participants must not engage in or facilitate any misconduct involving behaviour or practices which undermine the reputation of their profession, institution or the integrity of the wholesale financial markets. 25.2 Without limiting the generality of paragraph 25.1, market participants must not engage in or facilitate the following misconduct: (a) circular trading activities such as position parking, money passes and/or compensation trades; (b) improper client order handling to derive profit, conceal losses or to circumvent controls such as front running, cherry picking, inappropriate partial filling of client orders, and/or intentionally triggering limit orders; and (c) trading without necessary authorisations such as rogue trading. Code of Conduct For Malaysia Wholesale Financial Markets 16 of 25 Issued on: 31 December 2021 PART E SHARING OF INFORMATION AND TRANSPARENT COMMUNICATIONS 26 Handling of Confidential Information S 26.1 Market participants must treat information relating to the deals transacted or being transacted as confidential and limit access to such information except for circumstances set out in paragraph 26.2. G 26.2 Subject to applicable laws and regulations, confidential information may be disclosed where the disclosure is: (a) with the explicit permission from the parties involved; or (b) required by laws, a court of law or relevant supervisory authorities. G 26.3 Particular care should be taken to ensure non-disclosure of confidential information, specifically when using telephone loudspeakers, other telecommunication systems and discussions in public domain including private chat channels. G 26.4 The management is encouraged to ensure that its employees are trained to identify and treat confidential information appropriately as well as deal with situations that require anonymity and discretion. S 26.5 In order to safeguard the confidential information: (a) a dealer or broker must not visit each other's dealing areas except with the explicit permission of the management of both parties; and (b) a dealer must not deal from a broker’s office. S 26.6 Market participants must not solicit confidential information from other market participants. G 26.7 In relation to paragraph 26.6, examples of solicitation of confidential information include the following circumstances: (a) a market participant pressures another market participant to divulge confidential information whether by way of inducement, threat or otherwise; (b) a dealer places an order with a broker to find out the name of the counterparty and other information in order to conclude the deal with such counterparty or any other person; or (c) a dealer coerces a broker to divulge confidential information on a dealing which is concluded by other counterparties. S 26.8 Brokers must not divulge the names of dealing counterparties prematurely until both sides confirm an intention to transact. Code of Conduct For Malaysia Wholesale Financial Markets 17 of 25 Issued on: 31 December 2021 S 26.9 Employees of institutions must not reveal confidential information even following termination of employment. 27 Conflict of Interest S 27.1 Market participants must identify and manage actual and potential conflict of interest that may compromise or be perceived to compromise ethical or professional judgement. S 27.2 To enable the client to make an informed decision regarding a transaction, the disclosure of conflict of interest by market participants must state the following in sufficient detail: (a) the general nature of the conflict; (b) the potential risks to the client due to the conflict; and (c) the mitigation actions that have been taken to manage the conflict. S 27.3 The management must put in place internal policies, controls and processes to identify, mitigate, escalate internally and document actual and potential conflict of interest in its business processes. Code of Conduct For Malaysia Wholesale Financial Markets 18 of 25 Issued on: 31 December 2021 PART F TRACEABILITY, AUDITING AND RECORD-KEEPING 28 Voice and Electronic Communication S 28.1 Market participants must communicate with other market participants through approved methods of communication, including tele-conversation devices and messaging applications, which allow for traceability, auditing, record- keeping and access control in accordance with the market participants’ internal standards of information security. S 28.2 The management must put in place internal policies to retain records of the communication: (a) for a minimum period of seven years; (b) for a period which reflects the terms and conditions of dealings that have been agreed; or (c) in a manner as to enable the records to be properly audited, whichever is longer. S 28.3 The management must subject all approved methods of communication to surveillance by an independent party in line with the size and complexity of wholesale financial market activities. G 28.4 The independent party referred in paragraph 28.3 may refer to a separate department, unit, individual or external party, separate from dealers or brokers and does not report to the head of treasury of the institution. S 28.5 The management must put in place controls on access to the records of the communication to prevent their contents from being tampered with. S 28.6 The management must put in place clear policies to ensure any communication device without a recording function, such as mobile phones, can only be used for dealing purpose during emergency, disaster recovery situation or other circumstances as approved by the management. S 28.7 For communication referred in paragraph 28.6, the management must put in place procedures to allow an end-to-end transaction audit trail. 29 Transaction Records S 29.1 Market participants must maintain complete and accurate records of all dealings, including the policies and procedures in relation to the dealings, for a minimum period of seven years post maturity date of the deals. G 29.2 For avoidance of any doubt, the transaction records under paragraph 29.1 exclude the records of communication referred in paragraph 28. Code of Conduct For Malaysia Wholesale Financial Markets 19 of 25 Issued on: 31 December 2021 PART G ROBUST AND CLEAR POLICIES, PROCEDURES AND ORGANISATIONAL STRUCTURE 30 Segregation of Duties and Authorisation S 30.1 The management must establish clear segregation of duties among front, middle and back offices whereby authorisations and responsibilities are reflected by separate reporting lines. S 30.2 Dealers must not take part in the settlement of dealings or have an influence over the back office operation. S 30.3 The process of confirming dealings shall only be carried out by the back office staff who must be independent and separated from the officers who executed the dealings. 31 Confirmation of Dealings S 31.1 The management must put in place adequate processes and appropriate resources in the back office for dealings confirmation. S 31.2 The management must put in place clear procedures to allow the back office to confirm dealings during normal and unexpected situations within the stipulated timeline. S 31.3 The back office staff must only send confirmations to the authorised persons of the counterparty. S 31.4 All dealings must be confirmed in writing. Confirmation can only be done verbally in circumstances where other methods to obtain written confirmation have been exhausted. In the event of a verbal confirmation, such confirmation must be recorded and accompanied with a written confirmation. 32 Security in Dealing Area S 32.1 The management must put in place security measures to safeguard the dealing area which cover the following: (a) controls over access to dealing equipment (including electronic trading or broking platforms); and (b) physical access to the dealing area, where applicable. S 32.2 The management must review the security measures referred in paragraph 32.1 as and when reasonably required. 33 After-Hours and Off-Premises Dealing S 33.1 The management must identify the staff who are authorised to deal after- hours or engage in off-premises dealings. Code of Conduct For Malaysia Wholesale Financial Markets 20 of 25 Issued on: 31 December 2021 S 33.2 The management must put in place internal policies for authorised persons referred in paragraph 33.1, which cover the following: (a) eligible counterparties; (b) types of dealings; (c) dealing limits; and (d) prompt recording and reporting of dealings. Code of Conduct For Malaysia Wholesale Financial Markets 21 of 25 Issued on: 31 December 2021 PART H INTERNAL GOVERNANCE AND CONTROLS 34 Role of Board and Management G 34.1 The Board and management play a critical role in ensuring good conduct culture is embedded at the core of the institution. This includes setting good governance structures that inculcate fair and ethical decision making at all levels of the institution in carrying out its dealings. S 34.2 The Board is responsible to provide oversight on the management of the institution’s wholesale market conduct risk. In doing so, the Board’s responsibilities shall include the following: (a) approve and oversee the implementation of conduct risk governance frameworks that are commensurate with the size, complexity, and nature of its treasury activities; (b) promote sound conduct cultures that reinforce ethical, prudent, and professional behaviour to uphold the integrity of wholesale financial markets; (c) put in place sufficient resources that possess the necessary knowledge and skills in managing wholesale market conduct risks; (d) ensure performance management, remuneration and consequence management structures in the institution appropriately align risk and rewards assumed by its dealers and brokers; and (e) at least annually, evaluate the effectiveness of the institution’s overall management of wholesale market conduct risks. S 34.3 The management is responsible for the implementation of wholesale market conduct frameworks that adequately identify and mitigate risks from its operations and outsourced functions1. In doing so, the management’s responsibilities shall include the following: (a) establish policy, procedures, and controls to manage conduct risks in relation to its wholesale market activities. (b) develop a market abuse and misconduct risk assessment framework that identifies financial products traded by the institution and its susceptibility to different types of market abuse and misconducts. This risk assessment must be conducted at minimum on an annual basis to ensure it remains relevant; and (c) implement sufficient reporting and escalation to the Board on wholesale market conduct matters to ensure effective oversight and decision making within the institution. 35 Risk Management S 35.1 The management must put in place internal risk management controls that: (a) are supported by robust management information systems that facilitate the timely and reliable reporting of risks and the integration of information across the institution; and 1 Refers to dealing, risk management, or control functions that are performed by regional or global units in relation to wholesale market activities e.g. surveillance. Code of Conduct For Malaysia Wholesale Financial Markets 22 of 25 Issued on: 31 December 2021 (b) keep pace with any changes in the institution’s risk profile (including its business growth and complexity) and the external risk environment. 36 Compliance S 36.1 The management must put in place internal systems and controls to ensure adherence of institution and its employees to this policy document. S 36.2 Financial institutions must conduct on-going internal assessments on compliance with the requirements of this policy document. Any findings or incidences of non-compliance with the policy document must be reported to the management immediately. S 36.3 Financial institutions must undertake any corrective measures to address incidences of non-compliance. S 36.4 Financial institutions must maintain a record of the internal assessments, non- compliance findings and corrective measures of all current and former employees throughout the period of employment, in line with the Policy Document on Employee Screening issued by the Bank as may be amended from time to time. 37 Internal Audit S 37.1 Financial institutions must integrate market conduct risk into their risk-based assessment when formulating the audit plan. S 37.2 Financial institutions must conduct periodic internal audit based on the audit risk methodology to validate the quality and relevance of risk management and compliance controls in paragraphs 35 and 36 respectively. S 37.3 Significant audit findings uncovered in the course of audit that would materially affect the institution’s treasury activities and financial condition must be promptly reported to the management with proposal on corrective measures. S 37.4 Financial institutions must maintain a record of the audit report for up to seven years. 38 Reporting of Non-compliance and Audit Findings S 38.1 Financial institutions must report to the Bank immediately: (a) non-compliance with this policy document; and (b) audit findings, which would materially affect the financial institutions’ treasury activities and financial condition. Code of Conduct For Malaysia Wholesale Financial Markets 23 of 25 Issued on: 31 December 2021 G 38.2 Financial institutions are advised to develop clear parameters governing the materiality of non-compliance and audit findings referred to in paragraph 38.1, taking into account factors such as the prevailing market conditions and regulatory priorities. 39 Non-compliance by Dealers and Brokers S 39.1 Financial institutions must initiate inquiry into a dealer or broker who is suspected of non-compliance with this policy document. S 39.2 Financial institutions must take appropriate actions on the dealers and brokers for non-compliance with this policy document. G 39.3 The actions that may be taken by the financial institutions under paragraph 39.2 should be proportionate to the severity of the non-compliance of the dealers or brokers and may include suspension, non-access by the dealers or brokers into the dealing area and restriction on dealing or broking activities. S 39.4 To assist FMAM in assessing the member eligibility of a dealer or broker, financial institutions must inform the Bank and FMAM in writing within a week of the following decisions: (a) initiation of an inquiry into a dealer or broker for suspected non- compliance with this policy document; and (b) conclusion of such inquiry, including any action taken against such dealer or broker regardless of whether the dealer or broker remains an employee of the financial institutions. G 39.5 In addition to paragraph 39.4, the financial institutions may lodge complaints with FMAM in accordance with the by-laws of FMAM if the financial institutions have reasons to believe that their existing or former dealers or brokers have contravened this policy document. S 39.6 Upon the receipt of request in writing by another market participant who considers employing a dealer or broker currently or formerly employed with a financial institution, the financial institution must disclose whether it had made a decision under paragraphs 39.4(a) and 39.4(b). S 39.7 Financial institutions must ensure terms of employment of dealers or brokers contain a notice to such dealers or brokers of the financial institutions’ obligations set out in paragraph 39. 40 Trade Surveillance S 40.1 The management must establish policies and mechanisms to detect trends indicative of prohibited conduct and other misconducts, or the attempt of such behaviour that are commensurate with the size and complexity of wholesale market operations. Code of Conduct For Malaysia Wholesale Financial Markets 24 of 25 Issued on: 31 December 2021 S 40.2 Financial institutions must maintain accurate dealing information by reconciling their own electronic trading logs with records provided by their brokers or other counterparties, as soon as practicable. S 40.3 The management must ensure the staff working within trade surveillance is trained adequately to detect patterns of dealing that suggest any market misconduct. 41 Technical and Operational Capability S 41.1 The management must establish sufficient technical capacity and operational resources to ensure end-to-end dealings can take place in both normal and peak market conditions without undue impact on the settlement timeline. 42 Training S 42.1 Market participants must acquire relevant professional knowledge, both technical and conduct-related trainings, on an on-going basis. G 42.2 The management should provide adequate and continuous technical and conduct related training to all staff that are involved in maintaining the orderly and ethical functioning of wholesale financial market activities in the institution. Code of Conduct For Malaysia Wholesale Financial Markets 25 of 25 Issued on: 31 December 2021 PART I USE OF TECHNOLOGY 43 Use of Electronic Trading and Broking Platforms S 43.1 The management must put in place internal policies for the usage of electronic trading or broking platforms and business continuity plan for contingencies involving these platforms. G 43.2 Market participants are encouraged to synchronise and preserve time stamps on electronic trading and broking platforms internally and globally to ensure appropriate tracking of dealings. S 43.3 Market participants must ensure information technology infrastructure used for treasury operations is robust and has adequate controls and security features to deal with normal and stressed operating conditions. 44 Responsibilities of Approved Operators of Electronic Trading or Broking Platforms S 44.1 Approved operators of electronic trading or broking platforms must ensure electronic trading or broking platforms are robust and have adequate controls and security features. S 44.2 Approved operators of electronic trading or broking platforms must inform the Bank of the following: (a) any suspicious dealings in the wholesale financial markets; and (b) any material breach of security to the platforms, such as through hacking or other intrusions. S 44.3 Approved operators of electronic trading or broking platforms must submit any information requested by the Bank in an accurate and timely manner.

Public Notice

29 Dis 2021

Exposure Draft on Governance, Risk Management, and Operations for Money Services Business

https://www.bnm.gov.my/-/ed-gov-rm-ops-msb

27 Dis 2021

Keputusan Mesyuarat Majlis Penasihat Shariah BNM ke-217

https://www.bnm.gov.my/-/bnm-sac-217th-mtg-ruling-bm

https://www.bnm.gov.my/documents/20124/2629002/SAC_217th_Meeting_Ruling_bm.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/bnm-sac-217th-mtg-ruling-bm&languageId=ms_MY

Reading: Keputusan Mesyuarat Majlis Penasihat Shariah BNM ke-217 Share: Keputusan Mesyuarat Majlis Penasihat Shariah BNM ke-217 Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1540 pada Isnin, 27 Disember 2021 27 Dis 2021 Majlis Penasihat Shariah Bank Negara Malaysia (MPS) pada mesyuarat ke-217 bertarikh 30 September 2021 telah membuat keputusan berhubung Ciri Pengeluaran Awal Pembiayaan Sebelum Kontrak Tawarruq Dilaksanakan bagi Produk Pembiayaan Perdagangan Berasaskan Tawarruq. Keputusan MPS ini bertujuan untuk menjelaskan status Shariah bagi ciri pengeluaran awal pembiayaan sebelum kontrak Tawarruq dilaksanakan dan keperluan operasi bagi pelaksanaannya untuk mencegah risiko ketidakpatuhan Shariah. Keputusan ini berkuat kuasa serta merta pada tarikh penerbitannya dalam laman sesawang Bank Negara Malaysia pada 27 Disember 2021. Sila rujuk lampiran ini untuk maklumat lanjut   Bank Negara Malaysia 27 Disember 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Keputusan Majlis Penasihat Shariah BNM Berhubung Ciri Pengeluaran Awal Pembiayaan Mesyuarat MPS 217 2021 1 Keputusan Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Ciri Pengeluaran Awal Pembiayaan Sebelum Kontrak Tawarruq Dilaksanakan bagi Produk Pembiayaan Perdagangan Berasaskan Tawarruq Mesyuarat MPS ke-217 bertarikh 30 September 2021 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009, MPS telah memutuskan bahawa apabila terdapat kekangan operasi bagi pelaksanaan tawarruq dalam tempoh masa tertentu, pengeluaran awal pembiayaan (early financing disbursement) sebelum tawarruq dilaksanakan yang dibayar terus kepada pihak ketiga dalam produk pembiayaan perdagangan adalah dibenarkan tertakluk kepada pematuhan segala keperluan Syariah dan operasi seperti berikut: a) Institusi perbankan Islam (IPI) tidak dibenarkan mengambil sebarang keuntungan atau mengenakan caj ke atas jumlah pengeluaran awal pembiayaan dengan apa cara sekalipun seperti: i. Mengambil kira tempoh pengeluaran awal pembiayaan1 dalam pengiraan keuntungan transaksi tawarruq susulan; ii. Melanjutkan tempoh pembiayaan melebihi tempoh asal yang telah dipersetujui bersama pelanggan dengan tujuan untuk menampung keuntungan pada hari pengeluaran awal pembiayaan yang terpaksa dilepaskan susulan poin (i) di atas;2 dan/atau iii. Apa-apa kaedah pengiraan keuntungan yang memberi kesan kepada larangan yang disebutkan dalam keputusan MPS ini. b) IPI mestilah memastikan kawalan dalaman yang ketat dan kukuh bagi mengelakkan pengambilan sebarang keuntungan atau caj ke atas jumlah pengeluaran awal pembiayaan, dan kawalan ini termasuklah memastikan kemampuan sistem yang utuh dan prosedur operasi yang mantap; c) Takyif fiqhi atau kontrak Syariah yang terpakai bagi dana pengeluaran awal pembiayaan sebelum pelaksanaan kontrak tawarruq yang dilakukan tanpa pengetahuan pelanggan adalah qard insidental; d) Walau bagaimanapun, IPI boleh menggunakan kontrak Syariah atau takyif fiqhi lain selain daripada qard insidental mengikut kesesuaian dengan ciri pengeluaran awal pembiayaan. Namun, IPI mestilah mematuhi segala keperluan Syariah yang relevan bagi kontrak tersebut. 1.1. Keputusan ini berkuat kuasa serta merta pada tarikh penerbitannya dalam laman sesawang Bank Negara Malaysia pada 27 Disember 2021 dan terpakai ke atas IPI berikut: (a) bank Islam berlesen menurut Akta Perkhidmatan Kewangan Islam 2013 (APKI); (b) bank berlesen dan bank pelaburan berlesen yang diluluskan di bawah seksyen 15(1) Akta Perkhidmatan Kewangan 2013 (APK) untuk menjalankan perniagaan kewangan Islam; dan (c) institusi yang ditetapkan yang diluluskan di bawah seksyen 33B(1) Akta Institusi Kewangan Pembangunan 2002 (DFIA) untuk menjalankan perniagaan kewangan Islam. 1.2. Selaras dengan seksyen 28(1) dan (2) APKI atau seksyen 33D (1) dan (2) DFIA, mengikut mana-mana yang berkenaan, IPI dikehendaki mematuhi keputusan ini kerana pematuhan dengan apa-apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan 1 Tempoh pengeluaran awal pembiayaan merujuk kepada tempoh apabila pengeluaran awal pembiayaan berlaku sehingga tawarruq dilaksanakan. 2 Sebagai contoh, jika tempoh pembiayaan asal yang dipersetujui dengan pelanggan (tanpa situasi pengeluaran awal pembiayaan) adalah 30 hari bermula dari 1 Disember 2021 hingga 30 Disember 2021, pengeluaran awal pembiayaan yang berlaku pada 1 Disember 2021 tidak boleh menyebabkan pelanjutan tempoh melepasi 30 Disember 2021, dengan tujuan untuk menampung keuntungan yang terpaksa dilepaskan pada 1 Disember 2021 disebabkan pengeluaran awal pembiayaan sebelum pelaksanaan tawarruq. Mesyuarat MPS 217 2021 2 pengendalian perniagaan, hal ehwal atau aktiviti IPI tersebut adalah disifatkan sebagai pematuhan kepada Syariah. Bahagian II: Latar Belakang 2.1. Bank Negara Malaysia (Bank) menerima cadangan daripada sebuah IPI berhubung produk pembiayaan perdagangan Trust Receipt-i dan Invoice Financing-i berasaskan tawarruq dengan ciri pengeluaran awal pembiayaan kepada pihak ketiga sebelum kontrak tawarruq dilaksanakan. 2.2. Situasi pengeluaran awal pembiayaan timbul apabila pelanggan meminta IPI untuk membuat penyelesaian kepada pembekal/pengeksport pada hari penyerahan dokumen perdagangan kepada IPI. Bayaran segera tersebut diperlukan oleh pelanggan, antaranya, untuk mendapatkan diskaun atau manfaat tertentu atau bagi memastikan bayaran kepada pembekal/pengeksport dilakukan dalam tempoh perdagangan yang telah dipersetujui. 2.3. Disebabkan kekangan operasi IPI berkenaan yang hanya boleh melaksanakan tawarruq mengikut had waktu tertentu (cut-off time), IPI tidak dapat melaksanakan tawarruq bagi pihak pelanggan sebagaimana diminta lantas menyebabkan pengeluaran pembiayaan melalui prosedur operasi biasa tidak dapat dilaksanakan. Sebagai contoh, IPI perlu melaksanakan tawarruq sebelum pukul 3.00 petang setiap hari, namun pelanggan menyerahkan dokumentasi pada pukul 3.00 petang dan meminta bayaran dilakukan segera sebelum waktu perniagaan tamat pada hari yang sama. Berdasarkan kekangan operasi ini, IPI tidak dapat memenuhi kehendak pelanggan. 2.4. Oleh yang demikian, IPI mengemukakan cadangan kepada MPS supaya pengeluaran awal pembiayaan dibenarkan dengan menggunakan kontrak hawalah mutlaqah. 2.5. Ilustrasi struktur hawalah mutlaqah yang dicadangkan adalah seperti berikut: Isu Syariah Berdasarkan cadangan yang dikemukakan, isu-isu Syariah yang dikenalpasti adalah seperti berikut: 2.6. Adakah kontrak hawalah mutlaqah sesuai diguna pakai dalam struktur pengeluaran awal pembiayaan seperti yang dicadangkan atau terdapat kontrak Syariah lain yang lebih sesuai? 2.7. Adakah terdapat elemen bai` wa salaf (gabungan kontrak jual beli dan pinjaman) yang dilarang dalam struktur yang dicadangkan? Mesyuarat MPS 217 2021 3 Bahagian III: Perbincangan Utama Penggunaan kontrak hawalah mutlaqah dalam struktur pengeluaran awal pembiayaan memerlukan persetujuan pihak berkontrak 3.1. Kontrak hawalah mutlaqah melibatkan pemindahan hak muhal untuk menuntut hutang daripada muheel kepada muhal ‘alaihi. Oleh itu, persetujuan daripada muhal adalah diperlukan bagi melaksanakan hawalah mutlaqah tersebut. Tanpa persetujuan tersebut, hawalah mutlaqah tidak menepati syarat pelaksanaannya. 3.2. Dalam struktur produk yang dicadangkan, kontrak hawalah mutlaqah bukan merupakan aturan asal bagi produk tersebut dan ia berlaku secara insidental (dhimni) iaitu apabila pelanggan memerlukan pembiayaan segera pada hari permohonan dibuat. 3.3. Oleh sebab itu, pelaksanaan kontrak hawalah mutlaqah ini tidak dimasukkan dalam perjanjian fasiliti antara IPI dan pelanggan bagi mengelakkan pelanggan menganggap kewujudan ciri pengeluaran awal pembiayaan secara mutlak. 3.4. Memandangkan IPI tidak boleh menyatakan secara jelas komitmennya untuk membenarkan pengeluaran awal pembiayaan bagi pihak pelanggan dalam situasi tertentu, ciri pengeluaran awal pembiayaan ini tidak boleh disifatkan sebagai hawalah mutlaqah kerana ianya tidak menepati syarat asas kontrak yang memerlukan penawaran dan penerimaan pihak-pihak berkontrak bagi mewakili persetujuan mereka. Dana yang dibayar awal sebelum kontrak tawarruq dilaksanakan ialah qard insidental dan tertakluk kepada segala keperluan Syariah berhubung qard insidental 3.5. Berdasarkan perbincangan di atas, MPS bersetuju untuk mengklasifikasikan pengeluaran awal pembiayaan kepada pihak ketiga sebelum kontrak tawarruq dilaksanakan sebagai qard insidental kerana komitmen IPI untuk membuat pengeluaran awal pembiayaan tidak dinyatakan secara jelas dan ianya dilakukan berdasarkan penilaian dalaman IPI. Oleh itu, IPI mestilah mematuhi segala keperluan qard insidental termasuklah tidak dibenarkan mengambil sebarang keuntungan atau mengenakan caj ke atas jumlah pengeluaran awal pembiayaan dengan apa cara sekalipun seperti: i. Mengambil kira tempoh pengeluaran awal pembiayaan dalam pengiraan keuntungan transaksi tawarruq susulan; ii. Melanjutkan tempoh pembiayaan melebihi tempoh asal yang telah dipersetujui bersama pelanggan untuk menampung keuntungan pada hari pengeluaran awal pembiayaan yang terpaksa dilepaskan susulan poin (i) di atas; dan/atau iii. Apa-apa kaedah pengiraan keuntungan yang memberi kesan kepada larangan ini. Pengeluaran awal pembiayaan tidak mempunyai keterkaitan dengan kontrak tawarruq dan tidak memberikan keuntungan tambahan kepada IPI 3.6. Berdasarkan struktur yang dicadangkan, ciri pengeluaran awal pembiayaan tidak mempunyai kaitan dengan kontrak tawarruq susulan kerana aturan tawarruq telah ditentukan daripada awal apabila pelanggan menerima Surat Tawaran Fasiliti daripada IPI. Pengeluaran awal pembiayaan hanya berlaku apabila pelanggan memerlukan pembiayaan segera tetapi kontrak tawarruq tidak dapat dilaksanakan pada hari yang sama kerana kekangan operasi. 3.7. Selain itu, kewujudan pengeluaran awal pembiayaan tidak akan memberikan keuntungan tambahan kepada IPI kerana tempoh pengeluaran awal pembiayaan tidak akan diambil kira dalam pengiraan keuntungan tawarruq susulan. Mesyuarat MPS 217 2021 4 Bahagian IV: Asas Pertimbangan Kontrak hawalah mutlaqah memerlukan penawaran dan penerimaan yang jelas 4.1. Ulama’ bersependapat mengenai pensyariatan kontrak hawalah berdasarkan hadith Rasulullah SAW seperti berikut: ثَنَا ه َعْبد َحدَّ ، أَبهي َعنْ َمالهٌك، أَْخبََرنَا ي وس َف، ْبن ّللاَّ نَاده ـ عنه للا رضى ـ ه َرْيَرةَ أَبهي َعنْ األَْعَرجه، َعنه الز ه ه َرس ولَ أَنَّ ه َمْطل : قَالَ وسلم عليه للا صلى ّللاَّ فَْليَتْبَعْ َملهي َعلَى أََحد ك مْ أ تْبهعَ فَإهذَا ظ ْلٌم، اْلغَنهي Maksudnya: “Orang yang menangguhkan pembayaran hutang sedangkan dia mampu adalah suatu kezaliman. Barangsiapa yang hutangnya dipindahkan kepada seseorang yang mampu, maka hendaklah dia menerimanya.” (Sahih Bukhari, Kitab Hawalah, Hadith no. 2287) 4.2. Definisi hawalah mutlaqah: Suatu tindakan pemindahan hutang daripada muheel (penghutang) kepada muhal ‘alaihi (pihak yang dipindahkan hutang kepadanya) dan muhal ‘alaihi memberi komitmen untuk membayar dengan dananya sendiri hutang yang ditanggung oleh muheel kepada muhal (pemiutang kepada muheel) . Seterusnya, muhal ‘alaihi berhak menuntut semula daripada muheel jumlah hutang yang telah dibayar kepada muhal atas kehendak muheel.3 4.3. Kontrak hawalah mutlaqah diiktiraf oleh mazhab Hanafi. Walau bagaimanapun, majoriti ulama’ menganggap hawalah mutlaqah menyamai kafalah dan tertakluk kepada segala keperluan Syariah bagi kafalah. 4.4. Jumhur fuqaha’ berpandangan bahawa kontrak hawalah mestilah dimeterai melalui penawaran dan penerimaan yang jelas antara pihak-pihak yang terlibat iaitu muheel, muhal dan muhal ‘alaihi kerana ia melibatkan pembentukan kontrak penyelesaian hutang yang baharu antara muhal dan muhal ‘alaihi melalui pemindahan hak muhal untuk menuntut hutang daripada muheel kepada muhal ‘alaihi. Selain itu, para fuqaha’ turut menegaskan bahawa kontrak hawalah dikategorikan sebagai kontrak pertukaran (mu’awadhah), oleh itu, ia tidak dibenarkan diikat dengan suatu masa tertentu (ta’qiit) atau disandarkan kepada sesuatu situasi di masa hadapan (idhafah ila al-mustaqbal).4 Pengeluaran awal pembiayaan dianggap sebagai qard insidental 4.5. Transaksi pengeluaran awal pembiayaan dianggap sebagai qard insidental kerana kontrak pinjaman yang berlaku antara pihak berkontrak tidak dimaksudkan daripada awal dan ia berlaku disebabkan terdapat suatu kekangan yang menghalang pelaksanaan kontrak asal yang dimaksudkan bagi produk tersebut (dalam konteks produk ini ia adalah kontrak tawarruq). Pemeteraian kontrak qard insidental tanpa melalui dokumentasi qard telah diperakui oleh MPS.5 3 Al-Kasani, Badai’ Al-Sanai’; Al-Sarakhsi, Al-Mabsut; AAOIFI, Mi’yar Syariah Hawalah. 4 Al-Mawsu’ah Al-Fiqhiyyah Al-Kuwaitiyyah, J. 18, M. 191-192 5 MPS telah menerbitkan keputusan berhubung pemeteraian kontrak qard yang bersifat insidental dalam Mesyuarat MPS ke-178 seperti berikut: “Kontrak qard secara insidental boleh dilakukan melalui kaedah unjuk terima (mu’atah) dan fleksibiliti boleh diberikan oleh pihak pengawal selia untuk membenarkan institusi kewangan Islam (IKI) melaksanakan kontrak qard tersebut, tanpa memerlukan sebarang dokumentasi qard.” Mesyuarat MPS 217 2021 5 Pengeluaran awal pembiayaan melalui qard insidental tidak menimbulkan isu bai’ wa salaf yang dilarang 4.6. Situasi bai’ wa salaf yang dilarang boleh berlaku dalam ciri pengeluaran awal pembiayaan sekiranya ia memberikan keuntungan tambahan dan sesuatu manfaat eksklusif kepada IPI berdasarkan parameter bai’ wa salaf yang dilarang yang telah diputuskan oleh MPS dalam mesyuaratnya yang ke-176.6 4.7. Walau bagaimanapun, struktur pengeluaran awal pembiayaan yang dicadangkan ini tidak mengandungi elemen bai’ wa salaf yang dilarang berdasarkan pertimbangan berikut: i. Situasi pengeluaran awal pembiayaan tidak memberikan keuntungan tambahan kepada IPI kerana tempoh pengeluaran awal pembiayaan tersebut tidak akan diambil kira dalam pengiraan keuntungan tawarruq susulan. ii. Kontrak tawarruq yang akan dilakukan selepas pengeluaran awal pembiayaan adalah berasingan dan tidak terkait dengan pengeluaran awal tersebut, kerana pengeluaran awal pembiayaan hanya dibenarkan bagi situasi luar jangka apabila terdapat kekangan operasi bagi melakukan tawarruq pada hari yang sama permohonan pembiayaan dibuat oleh pelanggan. Manakala, pelaksanaan kontrak tawarruq pula telah dipersetujui di awal perjanjian fasiliti antara IPI dan pelanggan. iii. Pelanggan bebas menggunakan dana daripada mana-mana sumber untuk membayar semula dana pengeluaran awal pembiayaan oleh IPI, dan tidak terikat untuk membayar semula daripada dana yang diperolehi daripada transaksi tawarruq. Bahagian V: Implikasi Keputusan MPS 5.1. Pengeluaran awal pembiayaan sebelum pelaksanaan kontrak tawarruq adalah tidak digalakkan kerana ia boleh mengundang risiko ketidakpatuhan Syariah sekiranya tiada kawalan dalaman dan langkah pencegahan yang ketat. Walau bagaimanapun, sekiranya wujud keperluan mendesak disebabkan kekangan tertentu, kaedah ini boleh digunakan dan ianya tertakluk kepada syarat-syarat yang ketat merangkumi keupayaan sistem IPI yang utuh dan prosedur operasi yang mantap bagi memastikan segala keperluan Syariah yang digariskan dalam keputusan MPS ini dipatuhi. 6 MPS telah memutuskan parameter bai’ wa salaf yang dilarang dalam Mesyuarat MPS ke-176 seperti berikut: 1. Terdapat penggabungan antara kontrak yang berasaskan tukaran (mu’awadhat) dan kontrak pinjaman (qard) yang mengandungi peruntukan tersurat berhubung: (a) keterkaitan dan kebergantungan antara dua kontrak tersebut; dan (b) memberi manfaat eksklusif kepada peminjam. 2. Walau bagaimanapun, sekiranya kontrak pinjaman itu dimaksudkan (iaitu bukan insidental), yang digabungkan dengan kontrak berasaskan tukaran yang memberikan manfaat eksklusif kepada peminjam, ia juga dianggap sebagai bai’ wa salaf yang dilarang walaupun tidak terdapat peruntukan tersurat berhubung keterkaitan dan kebergantungan antara dua kontrak tersebut.

Public Notice

15 Dis 2021

Exposure Draft on Payment System Operator

https://www.bnm.gov.my/-/exposure-draft-pso

https://www.bnm.gov.my/documents/20124/943361/PSO_ED_Dec21.pdf

Issued on: 15 December 2021 BNM/RH/ED 029-23 Payment System Operator Exposure Draft Applicable to− 1 Approved operators of payment systems Payment System Operator – Exposure Draft Issued on: 15 December 2021 This exposure draft sets out Bank Negara Malaysia (the Bank)’s proposed requirements and guidance for payment systems’ operators that have been approved under section 11 of the Financial Services Act 2013 or the Islamic Financial Services Act 2013. The Bank invites written feedback on the proposals in this exposure draft, including suggestions on areas to be clarified or elaborated and any alternative proposals that the Bank should consider. The written feedback should be supported with clear rationale, accompanying with evidence or illustrations as appropriate, to facilitate the Bank’s assessment. Responses must be submitted to the Bank by 31 March 2022 to – Pengarah Jabatan Dasar Perkhidmatan Pembayaran Bank Negara Malaysia Jalan Dato' Onn 50480 Kuala Lumpur Email: [email protected] Electronic submission is encouraged. Submissions received may be made public unless confidentiality is specifically requested for the whole or part of the submission. In the course of providing your feedback, you may direct any queries to the following officers at 03-26988044 – 1. Safiyyah Mohsin (ext. 7805 or e-mail: [email protected]) 2. Syafiqa Shamsul (ext. 8969 or e-mail: [email protected]) 3. Puteri Aemelia Sophia (ext. 8338 or e-mail: [email protected]) mailto:[email protected] mailto:[email protected] mailto:[email protected] mailto:[email protected] Payment System Operator – Exposure Draft Issued on: 15 December 2021 TABLE OF CONTENTS PART A OVERVIEW ............................................................................................. 1 1 Introduction ........................................................................................... 1 2 Applicability ........................................................................................... 1 3 Legal provisions .................................................................................... 1 4 Effective date ........................................................................................ 1 5 Interpretation ......................................................................................... 2 6 Related legal instruments and policy documents .................................. 5 PART B GOVERNANCE ...................................................................................... 6 7 Governance arrangement ..................................................................... 6 8 Board of directors .................................................................................. 6 9 Senior management .............................................................................. 7 10 Control functions ................................................................................... 8 11 Fit and proper ...................................................................................... 10 PART C RISK MANAGEMENT AND OPERATIONAL REQUIREMENTS ......... 11 12 Risk management framework .............................................................. 11 13 Business risk ....................................................................................... 11 14 Liquidity risk ........................................................................................ 12 15 Credit risk ............................................................................................ 12 16 Operational risk ................................................................................... 13 17 Technology risk and information security ............................................ 14 18 Cybersecurity ...................................................................................... 16 19 Business continuity management ........................................................ 17 20 Outsourcing arrangement ................................................................... 17 21 Interlinkages ........................................................................................ 19 22 Recovery and orderly wind-down ........................................................ 20 PART D OTHER POLICY REQUIREMENTS ..................................................... 21 23 Access and participation ..................................................................... 21 24 Efficiency ............................................................................................. 21 25 Transparency ...................................................................................... 22 26 Submission requirements .................................................................... 22 Payment System Operator – Exposure Draft 1 of 22 Issued on: 15 December 2021 PART A OVERVIEW 1 Introduction 1.1 An approved operator of a payment system (PSO) performs the roles of processing, clearing and settlement of payment transactions. It facilitates public and private entities, as well as consumers to transfer funds to one another. 1.2 A well-functioning payment system is crucial for the efficient operation of the financial market as well as to support the economy. Disruption could potentially lead to a systemic or system-wide impact to the financial system. Therefore, the safety and efficiency of payment systems are fundamental to promote financial stability. 1.3 This policy document outlines requirements aimed to – (a) ensure the safety, efficiency and reliability of payment systems; (b) preserve public confidence in the payment systems and the use of payment instruments; and (c) ensure payment systems are aligned with relevant international standards, such as the Principles for Financial Market Infrastructures by the Bank for International Settlements (BIS). 2 Applicability 2.1 This policy document is applicable to PSO as defined in paragraph 5.2. 3 Legal provisions 3.1 The requirements in this policy document are specified pursuant to − (a) sections 33(1), 47(1) and 143 of the Financial Services Act 2013 (FSA); and (b) sections 43(1), 57(1) and 155 of the Islamic Financial Services Act 2013 (IFSA). 3.2 The guidance in this policy document is issued pursuant to section 266 of the FSA and section 277 of the IFSA. 4 Effective date 4.1 This policy document comes into effect upon issuance of the final policy document. Payment System Operator – Exposure Draft 2 of 22 Issued on: 15 December 2021 5 Interpretation 5.1 The terms and expressions used in this policy document shall have the same meanings assigned to them in the FSA or IFSA, as the case may be, unless otherwise defined in this policy document. 5.2 For the purposes of this policy document − “S” denotes a standard, an obligation, requirement, specification, direction, condition and any interpretative, supplemental and transitional provisions that must be complied with. Non-compliance may result in enforcement action; “G” denotes guidance which may consist of statements or information intended to promote common understanding and advice or recommendations that are encouraged to be adopted; “approved operator of a payment system” or “PSO” means a person approved under section 11 of the FSA or section 11 of the IFSA to operate a payment system set out in paragraph 1 of Division 1 of Part 1 of Schedule 1 of the FSA or paragraph 1 of Part 1 of Schedule 1 of the IFSA respectively; “Bank” means Bank Negara Malaysia; “Board” means the Board of Directors of PSO, including a committee of the Board where responsibilities of the Board as set out in this policy document have been delegated to such a committee; “business continuity management” or “BCM” refers to enterprise-wide framework that encapsulates policies, processes and practices that ensure the continuous functioning of a PSO during an event of disruption. It also prepares the PSO to resume and restore operations of business functions in a timely manner during an event of disruption, thus minimising any material impact to the PSO; “business continuity plan” or “BCP” refers to a comprehensive action plan that documents the procedures, processes, systems and resources necessary to resume and restore the business functions of a PSO in the event of a disruption; “business risk” refers to risks related to the administration and operation of the PSO as a business enterprise, which result in the potential impairment1 of the 1 Potential impairment may result from poor execution of business strategy, ineffective response to competition, adverse reputational effects, or other business factors. Payment System Operator – Exposure Draft 3 of 22 Issued on: 15 December 2021 financial condition (as a business concern) of the PSO and require the losses to be charged against capital. This excludes risks relating to the default of participants or other relevant parties, such as settlement banks or other PSO; “control function” refers to a function that has a responsibility independent from business lines to provide objective assessments, reporting and assurance on the effectiveness of a PSO’s policies and operations, and its compliance with legal and regulatory obligations. This includes the risk management function, the compliance function and the internal audit function or equivalent functions that perform similar roles of risk management, compliance and internal audit, by whatever name called; “critical business function” refers to operations, activities, or processes undertaken by a PSO, where failure or discontinuances is likely to – (a) critically impact the PSO financially or non-financially; and (b) disrupt the provision of essential services to the public; “cyber resilience” refers to the ability of people, processes, IT systems, applications, platforms or infrastructures to withstand adverse cyber events; “cyber resilience framework” or “CRF” refers to a framework that ensures the PSO’s cyber resilience; “direct participant” refers to a participant that has access to a PSO’s payment, clearing or settlement facilities. A direct participant is bound to the rules and procedures established by the PSO; “disaster recovery plan” or “DRP” refers to a comprehensive action plan that documents the procedures and processes that are necessary to recover and restore IT systems, applications and data of a PSO in the event of a disruption; “essential services” refers to financial services that are essential to support the authorisation, clearing and/or settlement of payment transactions, which must continue to be provided by a PSO during a disruption; “executive director” refers to a director of a PSO who has management responsibilities in the PSO; “independent director” refers to a director of a PSO who is independent in character and judgement, and free from associations or circumstances that may impair the exercise of his independent judgement; Payment System Operator – Exposure Draft 4 of 22 Issued on: 15 December 2021 “indirect participant” refers to a participant that has a contractual relationship with another entity (at times referred to as a sponsor institution) that is a direct participant of the PSO, and therefore has access to a PSO’s payment, clearing or settlement facilities. An indirect participant may be bound to certain rules and procedures established by the PSO; “maximum tolerable downtime” or “MTD” refers to the timeframe allowable for a recovery to take place before a disruption compromises the critical business functions of a PSO; “outsourced service provider” refers to an internal group affiliate or external entity providing services to the PSO under an outsourcing arrangement. This could include, but is not limited to, technology-related functions or services that involve the transmission, processing, storage or handling of confidential information pertaining to the PSO; “outsourcing arrangement” refers to an arrangement in which an outsourced service provider performs an activity on behalf of the PSO on a continuing basis2, where the activity would otherwise be undertaken by the PSO3; “outsourcing risk” refers to risk emanating from outsourcing arrangements that could result in a disruption to business operations, financial loss or reputational damage to the PSO4; “recovery time objective” or “RTO” refers to the timeframe required for systems and applications to be recovered and operationally ready to support critical business functions after a disruption. A recovery time objective has two components: (a) the duration of time from the disruption to the activation of the BCP; and (b) the duration of time from the activation of the BCP to the recovery of the business operation. “senior management” refers to the Chief Executive Officer (CEO) and senior officers of the PSO; “Technology Risk Management Framework or TRMF” refers to a framework that safeguards the PSO’s information infrastructure, system and data; and 2 For the avoidance of doubt, an agreement which is time-bound does not preclude the activity from being considered as being performed on a continuing basis. 3 For the avoidance of doubt, system or application leveraging, data center hosting, data center operations, data storage, cloud computing services and back-up location(s) are considered as outsourcing arrangements. 4 This includes strategic risk, reputational risk, compliance risk, operational risk, exit strategy risk, counterparty risk, country risk, contractual risk, information security risk and concentration risk. Payment System Operator – Exposure Draft 5 of 22 Issued on: 15 December 2021 “tiered-participation arrangement” refers to an arrangement where indirect participant rely on the services provided by the direct participant of a PSO in order to access the PSO’s payment, clearing or settlement facilities. 6 Related legal instruments and policy documents 6.1 This policy document must be read together with other relevant 5 legal instruments and policy document that have been issued by the Bank, and any subsequent review on such documents, in particular – (a) Fit and Proper Criteria for Approved Person; (b) Guidelines on Business Continuity Management (Revised); (c) Interoperable Credit Transfer Framework; (d) Management of Customer Information and Permitted Disclosures; (e) Operational Risk Reporting (ORR); (f) Payment Card Reform Framework; and (g) Risk Management in Technology (RMiT). 5 For the avoidance of doubt, where relevant, a PSO shall comply with the requirements of a policy document and any subsequent document issued thereafter which are more stringent. Payment System Operator – Exposure Draft 6 of 22 Issued on: 15 December 2021 PART B GOVERNANCE 7 Governance arrangement S 7.1 A PSO shall establish adequate governance arrangements which are clear and transparent. To ensure resilient and efficient operations of the payment systems that support the stability of the broader financial system and other relevant public interest considerations, the governance arrangement should include, among others, the following – (a) a Board of Directors (the Board) and senior management that consists of persons with calibre, credibility and integrity; (b) clearly defined and documented organisational and operational arrangements, such as reporting lines between management and the board, ownership, management structure and control functions; and (c) segregation of duties and internal control arrangements to promote good corporate culture that reinforces ethical, prudent and professional behaviour, as well as reduce the chances of mismanagement and fraud. 8 Board of directors S 8.1 The Board must have a board charter that sets out the mandate, responsibilities and procedures of the Board and its committees (if any), including the matters reserved for the Board’s decision. G 8.2 Board committees should be established to assist the Board in executing its duties and responsibilities. A Board is encouraged to have, among others, a risk committee, an audit committee and a remuneration committee, or equivalents. S 8.3 The Board shall have the overall responsibility for promoting the safety, efficiency and reliability of the payment system which include – (a) approving strategic objectives, business plans and significant policies, including its risk appetite; (b) overseeing the selection, performance, remuneration and succession plans of senior management, such that the Board is satisfied with the collective competence of senior management to effectively lead the operations of the PSO; (c) ensuring clear lines of responsibility and accountability are established and communicated throughout the organisation; (d) establishing and overseeing the risk management function and material risk decisions, which include ensuring risk management policies, processes and infrastructure, and effective operationalisation of the risk controls to manage the various types of risks, are in place and effective; (e) ensuring the independence and effectiveness of internal control functions; Payment System Operator – Exposure Draft 7 of 22 Issued on: 15 December 2021 (f) oversee and approve business continuity plans and ensure such plans are updated, particularly as and when there are material changes to the size, nature and complexity of the PSO operations that can significantly affect the said plans; (g) promote timely and effective communication between the PSO and the Bank on matters affecting or that may affect the safety, reliability and efficiency of the PSO; and (h) ensuring compliance with supervisory and oversight requirements. S 8.4 The Board shall be composed of suitable members with appropriate mix of skills, experience and knowledge of the PSO. S 8.5 The Board shall include non-executive directors, including independent directors. S 8.6 The Board must be able to devote sufficient time to their roles and maintain a sound understanding of the business of the PSO as well as relevant market and regulatory developments. 9 Senior management S 9.1 The senior management shall be responsible for ensuring the following – (a) establish and implement effective policies and procedures, among others, in the following areas – (i) risk management and appropriate controls to manage and monitor risks; (ii) due diligence and oversight to manage outsourced arrangements supporting the payment system operations; and (iii) sufficient and timely reporting or escalation of issues to the Board; (b) implement business and risk strategies and other strategic plans, such as technology plan and the associated technology policies and procedures, in accordance with the direction given by the Board; and (c) conduct a robust assessment on any deviation 6 from policies and procedures. Material deviations shall be reported to the Board. S 9.2 The senior management shall consist of individuals with the appropriate skill set and experience to adequately support the operation and risk management of the PSO. This includes individuals with technology background to provide guidance on the PSO’s technology plans and operations. 6 For avoidance of doubt, the requirement is applicable to both internal policies and procedures as well as policy documents issued by the Bank. Payment System Operator – Exposure Draft 8 of 22 Issued on: 15 December 2021 S 9.3 For the purpose of paragraph 9.2, a PSO shall ensure that a designated staff who does not engage in day-to-day technology operations shall be responsible for the identification, assessment and mitigation of technology risks. 10 Control functions G 10.1 The Board and senior management should create an environment which: (a) ensures the PSO and its officers comply with legal and regulatory requirements; (b) adopt relevant risk management practices; and (c) encourages ethical conduct that underlies such requirements. S 10.2 The Board is responsible for the effectiveness of a PSO’s control functions. The Board shall – (d) ensure clear, documented and effective risk management framework that is appropriate to the nature, scale and complexity of its activities is in place; (e) ensure the establishment of control functions and the position of the relevant officers, and ensure that the said functions and officers are provided with appropriate standing, authority and independence; (f) ensure the appointment of officers who have adequate working knowledge in payment system business and the legal and regulatory framework, and can effectively support the PSO’s internal control framework; (g) provide the relevant officers with direct and unimpeded access to the Board; and (h) ensure the PSO’s risk profile is consistent with the business strategy and risk appetite. S 10.3 In managing the technology and cybersecurity risks, the Board shall – (a) establish and approve the technology risk appetite which is aligned to the PSO’s risk appetite statement. In doing so, the Board shall approve the corresponding risk tolerances for technology-related events and ensure key performance indicators are in place to monitor the PSO’s technology risk against its approved risk tolerance; (b) ensure the senior management provides regular updates on the status of these indicators, key technology risks and critical technology operations to facilitate strategic decision-making; and (c) ensure and oversee the adequacy of the PSO’s information technology (IT) and cybersecurity strategic plans. These plans shall address the PSO’s requirements on infrastructure, control measures to mitigate IT and cyber risk as well as financial and non-financial resources. The plans shall be commensurate with the complexity of the PSO’s operations, changes Payment System Operator – Exposure Draft 9 of 22 Issued on: 15 December 2021 in the risk profile and business environment and shall be periodically reviewed. G 10.4 Given the rapidly evolving cyber threat landscape, the Board should allocate sufficient time to discuss cyber risks and related issues, including the strategic and reputational risks associated with cyber-incident. This should be supported by input from external experts where relevant. The Board should also ensure its continuous engagement in cybersecurity preparedness, education and training. S 10.5 The senior management is collectively responsible for the effective management of a PSO’s internal control framework. In discharging its responsibility, senior management shall – (a) establish a control function commensurate with the size, nature of operations and complexity of the PSO; (b) provide sufficient resources for the control function, including officer(s) with appropriate competencies and experience; (c) report periodically to the Board on compliance or risk issues and promptly on any material incidents of non-compliance; and (d) report periodically to the Board on the effectiveness of the PSO’s overall management of compliance and risk management. S 10.6 The Board and senior management shall ensure that the risk management and control framework is periodically reviewed for continued effectiveness. This includes ensuring an audit by an independent party is conducted with reasonable frequency to detect weaknesses and enable corrective measures to be taken in a timely manner. S 10.7 A PSO shall organise its control function in a manner that allows compliance and risk management to be managed effectively, taking into account the size, nature of operations and complexity of the PSO’s business. S 10.8 The control function must be independent of the business lines in order to carry out its role effectively. As such, a PSO must ensure that the control function is not placed in a position where there are real or potential conflicts in respect of, amongst others, scope of responsibilities, reporting lines or compensation. S 10.9 The compliance function shall identify and assess the compliance risk associated with the PSO’s activities. The compliance officer must report to senior management on a regular basis the findings and analyses of compliance risk. The reports must be readily available to internal audit function of the PSO, the Bank and other regulatory authorities upon request. Payment System Operator – Exposure Draft 10 of 22 Issued on: 15 December 2021 S 10.10 The internal audit function shall inform senior management, including the risk or compliance officer (or equivalent), of any incidents of non-compliance or material risks that it discovers. 11 Fit and proper S 11.1 A PSO shall ensure its directors and CEO are persons with calibre, integrity, and fulfil the fit and proper criteria as stipulated in the policy document on Fit and Proper Criteria for Approved Person issued on 24 December 2018 and any subsequent review on such policy document. [The remainder of this page is intentionally left blank] Payment System Operator – Exposure Draft 11 of 22 Issued on: 15 December 2021 PART C RISK MANAGEMENT AND OPERATIONAL REQUIREMENTS 12 Risk management framework S 12.1 A PSO shall establish a risk management framework, which includes policies, procedures and systems, that enables the identification, measurement, control and continuous monitoring of all relevant and material risks, including risks that a PSO bears from and poses to its participants and other relevant parties7 as a result of interdependencies. S 12.2 In establishing the risk management framework, the PSO shall – (a) align the framework with the PSO’s risk appetite; (b) assign responsibilities and accountability for risk decisions; and (c) address efficient decision making in crises. S 12.3 The framework shall be periodically reviewed for continued effectiveness and be supported by a robust management information system that facilitates the timely and reliable reporting of risks. S 12.4 A PSO shall establish risk monitoring and reporting requirements, which include periodic reporting to board and senior management on the assessment of the material risks affecting the PSO, to ensure risks are managed and mitigated in a timely manner. The reports must be readily available to the internal audit function of the PSO, the Bank and other regulatory authorities upon request. 13 Business risk S 13.1 A PSO shall establish robust management and control systems to identify, monitor and manage its business risk and hold adequate capital and liquid net assets8 which are commensurate with its business risk profile and is sufficient to support its operations as a going concern under normal or stress scenarios. G 13.2 A PSO may consider using a combination of tools such as risk management and internal control assessments, scenario analysis, and sensitivity analysis to identify business risks that may affect the PSO. S 13.3 A PSO shall, at a minimum, maintain liquid net assets equal to at least six months of current operating expenses. 7 This may include other PSO, settlement banks, liquidity providers, and service providers. 8 For avoidance of doubt, liquid net assets are derived from assets which can be easily and immediately converted into cash at little or no loss of value, less current liabilities. Payment System Operator – Exposure Draft 12 of 22 Issued on: 15 December 2021 G 13.4 In determining the appropriate threshold of liquid net assets, a PSO should consider its general business risk profile and the length of time required for a recovery or orderly wind-down that is appropriate to the critical business function of the PSO in the event such action is taken. 14 Liquidity risk S 14.1 A PSO shall establish a liquidity risk management framework to effectively identify, measure, monitor and manage liquidity risks faced by the PSO, including risks from its participants and other relevant parties. S 14.2 A PSO shall measure and monitor its settlement and funding flows as well as maintain adequate liquid resources in all relevant currencies to ensure smooth settlement under normal or stress scenarios. G 14.3 In determining the type, amount and assessing the sufficiency of liquid resources, as well as the adequacy of its liquidity risk management framework, a PSO should regularly conduct stress testing which considers a range of relevant scenarios. Results should be reported to the board and senior management to facilitate effective decision making on timely basis. G 14.4 A PSO may, as appropriate, conduct reverse stress testing9 or simulations to identify scenarios or conditions, which may include extreme default scenarios and/or extreme market conditions, in which a PSO’s liquid resources would be insufficient. The results may be used by a PSO, among others, to inform and validate its risk mitigation plans and prepare for these severe conditions. S 14.5 A PSO shall establish clear rules and procedures to address any unforeseen and potentially uncovered liquidity shortfalls, including the process of replenishing liquidity resources it may employ during a stress event, in order to continue operating in a safe and sound manner. 15 Credit risk S 15.1 A PSO shall establish a credit risk management framework to effectively measure, monitor and manage its credit exposures to participants and other relevant parties from its payment, clearing and settlement processes as well as maintain sufficient financial resources to cover its credit exposure to each participant. 9 For avoidance of doubt, reverse stress testing commences from a known adverse outcome and deduces the possible different forward-looking scenarios that could lead to such an outcome materialising for a PSO. Payment System Operator – Exposure Draft 13 of 22 Issued on: 15 December 2021 G 15.2 A PSO may, as appropriate, establish adequate processes to effectively manage its credit concentration risks, including establishment of exposure limits where the potential losses can jeopardise the solvency of, or public confidence in, the PSO. G 15.3 In determining the amount and assessing the sufficiency of financial resources, a PSO should regularly conduct stress testing which considers a range of relevant scenarios. Results should be reported to the board and senior management to facilitate effective decision making on timely basis. G 15.4 A PSO may, as appropriate, conduct reverse stress testing or simulations to identify scenarios and/or extreme market conditions, in which a PSO’s financial resources would be insufficient to cover tail risk. The results may be used by a PSO, among others, to inform and validate its risk mitigation plans and to prepare for these severe conditions. S 15.5 A PSO shall establish clear rules and procedures to address any credit losses as a result of default among its participants with respect to their obligations to the PSO. This includes the process a PSO must employ to replenish financial resources during a stress event, for it to continue operating in a safe and sound manner. S 15.6 A PSO shall establish appropriate collateral management practices which includes processes and procedures to support robust and reliable valuation, adequate monitoring of collateral’s condition and timely liquidation. G 15.7 For purposes of paragraph 15.6, a PSO may, as appropriate – (a) establish concentration limits for holdings of certain collateral as part of its collateral management practices, such as for collateral with value which is likely to be volatile; and (b) regularly mark collateral to market and develop haircuts that are regularly tested, taking into account stressed market conditions to ensure adequate assurance of the collateral’s value in the event of liquidation. G 15.8 A PSO should be supported with a robust collateral management system to facilitate ongoing monitoring and management of collateral. 16 Operational risk S 16.1 A PSO shall establish a robust management and control systems to identify, measure, monitor and manage its sources of operational risk. Payment System Operator – Exposure Draft 14 of 22 Issued on: 15 December 2021 S 16.2 A PSO shall identify and assess the potential vulnerabilities from the operational risk it faces on an ongoing basis and ensure appropriate mitigation measures are implemented on timely basis. S 16.3 A PSO shall ensure sufficient resources with appropriate competencies and experience are employed to operate its systems safely and efficiently during normal and stressed periods. System and service availability S 16.4 A PSO shall establish adequate controls and measures to ensure the reliability, efficiency and smooth operation of the payment system with minimal disruption and to achieve system and service high availability. S 16.5 For purposes of paragraph 16.4, the PSO shall define the service level objectives and set minimum service-level targets for the operation of the payment system. S 16.6 A PSO shall ensure that the payment system have adequate capability and capacity to process and manage stressed scenarios10 at all times. S 16.7 A PSO shall regularly monitor and test the actual capacity and performance of the payment system, as well as, plan for changes in volumes or business pattern. The PSO shall also regularly conduct stress tests to verify whether the payment system can handle abnormally huge volume of transaction under extreme circumstances. G 16.8 In conducting the stress testing as specified under the paragraph 16.7, a PSO should ensure at minimum, the following – (a) detailed approach and methodology of stress testing scenarios are adequately established and tested to ensure comprehensive coverage; (b) participant’s involvement in stress testing to identify weak system linkages and bottlenecks; and (c) stress testing results are reviewed and updated as and when is required to ensure its relevancy and effectiveness. 17 Technology risk and information security S 17.1 A PSO shall establish the Technology Risk Management Framework, to safeguard the PSO’s information infrastructure, systems and data, which shall be an integral part of the PSO’s risk management framework. 10 E.g. high volume or erratic transaction, and prolonged disruption. Payment System Operator – Exposure Draft 15 of 22 Issued on: 15 December 2021 S 17.2 A PSO shall ensure confidentiality, integrity and availability of information held within the payment system by putting in place adequate controls to safeguard the information11 and retention of all information including sensitive data. S 17.3 In relation to paragraph 17.2, the PSO shall also ensure their relevant stakeholders put in place appropriate controls in safeguarding the confidentiality, integrity and availability of sensitive data. G 17.4 In ensuring the confidentiality, integrity and availability of information held within the system, the PSO should ensure the following – (a) develop a comprehensive data management framework that include collection, identification, classification, handling, retention and disposal of data; (b) ensure there is sufficient back-up mechanism in place for all data and information, including critical data and information at all times; (c) ensure that the information contained in the system are not disclosed or accessible to any unauthorised third parties and any changes or revision to the data and the system can only be made with proper authorisation; (d) ensure that there are sufficient controls put in place to minimise human error, mishandling or any other potential gaps; (e) conduct an IT risk assessment and identify proper mitigation measures where the scope of the assessment should include but not limited to the risk assessment on data security, business continuity management and fraud management; (f) conduct periodic review on the configuration and rules settings for all security devices. Automated tools shall be used to review and monitor changes to the configuration and rules settings; (g) perform regular vulnerability assessment and penetration test on the infrastructure and technology ecosystem and ensure any material findings identified in such testing are rectified prior operationalisation; (h) implement fraud detection system to monitor suspicious or fraudulent transaction; and (i) implement appropriate intruder detection and prevention system to monitor, detect and prevent any abnormal or suspicious network traffic within PSO’s internal network. G 17.5 As part of effective management of sensitive data, the PSO may implement the following – (a) conduct periodic review of privileged users12 and the access rights given; (b) ensure technology networks are segregated into multiple zones according to risk profile; 11 From data input into real-time backup. 12 Including outsourced service providers. Payment System Operator – Exposure Draft 16 of 22 Issued on: 15 December 2021 (c) implement multi-layer network security and devices; (d) implement end-to-end encryption for external communication; (e) ensure protection of important data and information in use, in storage and in transit by adopting industry standards for encryption algorithms, message authentication, hash functions, digital signatures and random number generation; (f) establish proper controls to ensure no data leakage occurs; (g) establish audit trail capabilities; and (h) practise timely security patches for operating systems and application systems. 18 Cybersecurity S 18.1 A PSO shall also develop a CRF which articulates the PSO’s governance for managing cyber risks, its cyber resilience objectives and risk tolerance, with due regard to the evolving cyber threat environment. Objectives of the CRF includes ensuring operational resilience against extreme but plausible cyber-attacks. G 18.2 As part of the CRF specified under paragraph 18.1 and in ensuring proper cybersecurity controls are in place, a PSO should undertake the following: (a) actively manage software and hardware inventories and ensure updated records are adequately maintained; (b) adopt appropriate access control policy including explicitly verifying user access by adopting the principles of least privilege and separation of duties for staff, outsourced service providers, as well as related parties in outsourcing arrangements and related connected counterparties; (c) ensure critical systems, applications and data are backed up and protected from deliberate erasure or encryption; (d) ensure micro segmentation of networks based on criticality and risk profiles of assets; (e) perform continuous and integrated security monitoring of IT infrastructure (network, systems and endpoints) including effective collection, analysis and retention of audit logs; (f) adopt multi-factor authentication for all access; (g) perform regular vulnerability management and rapid patching of critical vulnerabilities; (h) establish and periodically test incident response programs to prepare, detect and rapidly respond to cyber-attacks; (i) periodically test the effectiveness and resiliency of IT systems and networks by adopting intelligence-led penetration testing; (j) strengthen security configurations by minimising security misconfigurations and avoid use of default security settings of software and hardware – Payment System Operator – Exposure Draft 17 of 22 Issued on: 15 December 2021 include periodic security reviews and whenever material changes are made to IT systems/networks; (k) implement the use of endpoint malware defence tools including rapid detection and response; and (l) provide adequate and regular technology and cybersecurity awareness education that reflects the current cyber threat landscape for all staff. 19 Business continuity management S 19.1 A PSO shall ensure an effective and comprehensive BCP and DRP for all the critical business functions to ensure continuity and timely recovery of operations in the event of contingencies. G 19.2 In relation to paragraph 19.1, the PSO should ensure the following: (a) detailed contingency plans are established for a variety of plausible scenarios 13 and fully operational back-up arrangements for critical communication and IT systems, crucial data and key personnel are in place; (b) ensure the PSO, its participants, outsourced service providers and other relevant counterparties 14 to have effective BCP and DRP which are sufficiently/regularly tested and covering appropriate test scenarios, to ensure their reliability and effectiveness of the recovery strategies and procedures; and (c) the BCP and DRP are reviewed and updated on a regular basis to ensure its relevancy and effectiveness. S 19.3 A PSO shall determine the maximum tolerable downtime (MTD) and recovery time objectives (RTO) for all critical business functions. S 19.4 A PSO shall conduct an independent assessment on the adequacy and effectiveness of its BCM framework, policies and procedures including testing of BCP and DRP. S 19.5 A PSO shall ensure adequate organisational understanding and training on BCM such that all levels of staff are well trained to perform their roles. 20 Outsourcing arrangement S 20.1 A PSO shall remain responsible and accountable for any services performed by an outsourced service provider. 13 For avoidance of doubt, this should include extreme plausible scenarios such as all system down. 14 E.g. onshore settlement institution or cross-border links. Payment System Operator – Exposure Draft 18 of 22 Issued on: 15 December 2021 G 20.2 A PSO should conduct appropriate due diligence of the outsourced service provider, at the point of considering new service-level arrangement (SLA), and renewing or renegotiating existing SLA. S 20.3 A PSO shall identify and have in-depth understanding of potential risks15 arising from the SLA. The scope and nature of services and operations to be performed by the outsourced service provider should not compromise the controls and risk management of the PSO’s system. S 20.4 In relation to the requirement specified in paragraph 20.3, the PSO shall ensure that the SLA are conducted in a manner which does not affect – (a) the PSO’s ability to effectively monitor the outsourced service provider and execute its BCP; (b) the PSO’s prompt recovery of data in the event of the outsourced service provider’s failure, having regard to the laws of the particular jurisdictions in the case where the outsourced service provider is located in a different jurisdiction from the PSO; and (c) the Bank’s ability to exercise its regulatory or supervisory powers, in particular the Bank’s timely and unrestricted access to systems, information or documents relating to the outsourced service provider arrangement. G 20.5 A PSO should exercise effective oversight on the outsourced service provider, as would have been the case if they were performed in-house which includes the following – (a) conduct regular review and monitoring of contracts and SLA with the outsourced service provider to ensure the integrity and quality of work conducted by the outsourced service provider is maintained; (b) ensure controls are in place and effective in safeguarding the confidentiality, integrity and availability of any information shared with the outsourced service provider including proper escalation and resolution in handling disputes or complaints raised by the relevant stakeholders; (c) ensure the storage of its data is at least logically segregated from the other clients of the outsourced service provider with appropriate controls and period review of the user access; (d) ensure data residing in the outsourced service provider are recoverable in a timely manner; (e) ensure clearly defined arrangements with the outsourced service provider are in place to facilitate the PSO’s immediate notification and timely updates to the Bank and other relevant regulatory bodies in the event of cyber-incident; and 15 Including operational, financial and IT related risk. Payment System Operator – Exposure Draft 19 of 22 Issued on: 15 December 2021 (f) ensure proper communication procedures and processes are in place where the participants or related stakeholders clearly understand the roles and responsibilities of the outsourced service provider to enable them to adequately manage their risks related in using the services. S 20.6 A PSO shall ensure any critical system hosted by the outsourced service provider have strong recovery and resumption capability and provisions to facilitate an orderly exit in the event of failure or unsatisfactory performance by such provider. S 20.7 A PSO shall have a contingency plan or arrangements to secure business continuity in the event the arrangement with the outsourced service provider is suddenly terminated or fails to provide necessary support16. The contingency plan shall be reviewed from time to time to ensure that the plan is current and ready for implementation. G 20.8 For outsourcing involving cloud services, the PSO may rely on third party certification and reports made available by the cloud service provider for the audit17, provided such reliance is supported by an adequate understanding and review of the scope of the audits and methods employed by the third party, and access to the third party and service provider to clarify matters relating to the audit. 21 Interlinkages S 21.1 For the purposes of paragraphs 21.2 and 21.3, the requirements shall be applicable to a PSO that establishes a link arrangement with other counterparties18. S 21.2 A PSO shall conduct appropriate due diligence and assessment on the potential risk that could arise from the link arrangement prior to entering into an arrangement with other counterparties. This shall include the risk associated to the different legal requirements in the case where the counterparties are located in different jurisdictions from the PSO. S 21.3 A PSO shall ensure that its agreement with the counterparties clearly indicates the right and responsibilities of each party, which at minimum, shall include the following – (a) safeguarding the confidentiality, integrity and availability of any information shared; 16 Including insolvency or resource issue. 17 For avoidance of doubt, such certifications or reports should not substitute the PSO’s right to conduct on-site inspections where necessary. 18 E.g. Cross-border links with another PSO. Payment System Operator – Exposure Draft 20 of 22 Issued on: 15 December 2021 (b) ensure proper controls for all established interlinkages to external systems; (c) ensure the reliability, efficiency and smooth operation of the interlinkages system with minimal disruption and to achieve system and service high availability; (d) proper escalation and resolution in handling disputes or complaints raised by the relevant stakeholders; (e) ensure any enhancement or changes associated with the link arrangements does not pose significant operational risk to the other counterparties; and (f) ensure clearly defined arrangements with the counterparties are in place to facilitate the PSO’s immediate notification and timely updates to the Bank and other relevant regulatory bodies in the event of cyber-incident. 22 Recovery and orderly wind-down S 22.1 A PSO shall continuously identify plausible scenarios that may prevent its ability to provide its critical operations and services as a going concern and assess the effectiveness of options for recovery or orderly wind-down under these scenarios. S 22.2 A PSO shall establish appropriate plans for its recovery or orderly wind-down, including its communication strategy with the Bank and other relevant stakeholders to mitigate any unintended consequences. The plans shall be reviewed and updated, where necessary, to ensure it remains relevant. [The remainder of this page is intentionally left blank] Payment System Operator – Exposure Draft 21 of 22 Issued on: 15 December 2021 PART D OTHER POLICY REQUIREMENTS 23 Access and participation S 23.1 A PSO shall establish fair and open access criteria to its payment system that are objective, transparent and risk-based to commensurate the risk profile of the participants. G 23.2 For purposes of paragraph 23.1, the PSO may set reasonable risk-related participation requirements to mitigate potential risks posed by the participants to the payment system. S 23.3 For tiered-participation arrangement, the PSO shall ensure the following: (a) establish rules, procedures and arrangement with the direct participants to enable PSO to obtain information on indirect participants for the purpose of risk identification and monitoring; (b) identify the significant dependencies between direct and indirect participants that may adversely affect19 the PSO; and (c) review regularly the risks associated with the tiered-participation arrangements and institute appropriate mitigating measures. S 23.4 A PSO shall put in place measures to monitor the compliance of its participants with the participation requirements on an ongoing basis. S 23.5 A PSO shall clearly outline and disclose the procedures on the suspension or orderly exit of a participant in the event its participant has breach or is no longer able to meet the participation requirements. 24 Efficiency S 24.1 A PSO shall ensure the payment system offered meets the needs of its participants and the market it serves, in respect to, among others, the clearing and settlement arrangement, operating structure20, and the use of technology and communication procedure. G 24.2 In meeting the requirement specified in paragraph 24.1, the PSO is advised to consider relevant factors such as the practicality and cost structure for its participants and other relevant stakeholders. 19 For example, exposure that could arise from credit and liquidity risk. 20 For example, where the PSO involved in a cross-border links or outsourced arrangement with service providers. Payment System Operator – Exposure Draft 22 of 22 Issued on: 15 December 2021 G 24.3 In addition to paragraph 24.2, A PSO is encouraged to put in place a mechanism to facilitate continuous feedback from its participants and other relevant stakeholders in ensuring it meets the needs of its participants and the market. S 24.4 A PSO shall establish a clearly defined, measurable and achievable objective to ensure it remains effective in the manner that the PSO is operated and the resources required to perform its functions. S 24.5 A PSO shall regularly review the progress against its targeted objectives to ensure the efficiency and effectiveness of its payment system. 25 Transparency S 25.1 A PSO shall ensure rules and procedures established are clear, comprehensive, up-to-date and fully disclosed to its participants. S 25.2 A PSO shall ensure the processes for proposing and implementing changes to its rules and procedures as well as communication of these changes to its participants and relevant authorities are clear and fully disclosed. G 25.3 A PSO is encouraged to provide participants with the relevant documentation, training and information, including the risks participants may face from participating in the payment system to facilitate their understanding on the rules and procedures. S 25.4 A PSO shall publicly disclose its fees and relevant information that would allow participants to assess the total cost of participating in the payment system and/or the services offered by the PSO. S 25.5 A PSO shall ensure that it provides a timeline notice to its participants of any changes to the fees made. 26 Submission requirements S 26.1 The following information shall be made available to the Bank upon request – (a) incident reports; (b) system and service availability reports; (c) audit reports; (d) annual audited financial statements; and (e) other information as required by the Bank. [End of exposure draft] PART A OVERVIEW 1 PART B GOVERNANCE 6 PART C RISK MANAGEMENT AND OPERATIONAL REQUIREMENTS 11 PART D OTHER POLICY REQUIREMENTS 21 PART A OVERVIEW 1 Introduction 2 Applicability 3 Legal provisions 4 Effective date 5 Interpretation 6 Related legal instruments and policy documents PART B GOVERNANCE 7 Governance arrangement 8 Board of directors 9 Senior management 10 Control functions 11 Fit and proper PART C RISK MANAGEMENT AND OPERATIONAL REQUIREMENTS 12 Risk management framework 13 Business risk 14 Liquidity risk 15 Credit risk 16 Operational risk 17 Technology risk and information security 18 Cybersecurity 19 Business continuity management 20 Outsourcing arrangement 21 Interlinkages 22 Recovery and orderly wind-down PART D OTHER POLICY REQUIREMENTS 23 Access and participation 24 Efficiency 25 Transparency 26 Submission requirements

18 Nov 2021

Lelongan Dalam Talian Wang Kertas Ringgit dengan Nombor Siri Khas

https://www.bnm.gov.my/-/auction-ringgit-banknotes-bm

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/auction-ringgit-banknotes-bm&languageId=ms_MY

Reading: Lelongan Dalam Talian Wang Kertas Ringgit dengan Nombor Siri Khas Share: Lelongan Dalam Talian Wang Kertas Ringgit dengan Nombor Siri Khas Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1855 pada Khamis, 18 November 2021 18 Nov 2021 Bank Negara Malaysia (BNM) sedang mengadakan lelongan wang kertas Ringgit dengan nombor siri khas secara dalam talian yang dibuka hingga 20 November 2021. Lelongan ini dikendalikan oleh jurulelong yang dilantik oleh BNM, iaitu MNP Auctioneers (Central) Sdn. Bhd. (MNP) dan bidaan boleh dibuat melalui pautan ini. MNP akan memulakan sesi ‘Lelongan Secara Langsung’ pada 20 November 2021 (Sabtu) jam 11.00 pagi. Wang kertas Ringgit dengan nombor siri khas, seperti set 10 wang kertas terawal (cth. LL0000001-0000010) dan nombor super solid dengan awalan berulang (cth. LL8888888) akan dilelong. Pendaftaran dan bidaan dalam talian boleh dilakukan melalui www.best2bid.com. Maklumat lanjut mengenai lelongan boleh didapati melalui laman sesawang MNP iaitu www.mnp.com.my atau talian khidmat pelanggan MNP melalui 017-400 6661. Bank Negara Malaysia 18 November 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

17 Nov 2021

Kemudahan Tempahan dan Pembayaran Dalam Talian serta Penghantaran bagi Penjualan Wang Peringatan Pertubuhan Keselamatan Sosial (PERKESO) dan Jabatan Pengangkutan Jalan (JPJ)

https://www.bnm.gov.my/-/ordering-coins-jpj75-perkeso50-bm

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/ordering-coins-jpj75-perkeso50-bm&languageId=ms_MY

Reading: Kemudahan Tempahan dan Pembayaran Dalam Talian serta Penghantaran bagi Penjualan Wang Peringatan Pertubuhan Keselamatan Sosial (PERKESO) dan Jabatan Pengangkutan Jalan (JPJ) Share: Kemudahan Tempahan dan Pembayaran Dalam Talian serta Penghantaran bagi Penjualan Wang Peringatan Pertubuhan Keselamatan Sosial (PERKESO) dan Jabatan Pengangkutan Jalan (JPJ) Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 0900 pada Rabu, 17 November 2021 17 Nov 2021 Bank Negara Malaysia (BNM) ingin mengumumkan penyediaan kemudahan tempahan dan pembayaran secara dalam talian serta penghantaran bagi penjualan duit syiling peringatan yang dikeluarkan oleh BNM bersempena dengan Ulang Tahuna PERKESO yang ke-50 (PERKESO50) dan Ulang Tahun JPJ yang ke-75 (JPJ75). Orang ramai boleh membuat tempahan melalui laman sesawang https://duit.bnm.gov.my mulai Isnin, 22 November 2021 (10.00 pagi) hingga Jumaat, 3 Disember 2021 (11.00 malam). Sekiranya terdapat tempahan yang berlebihan, cabutan untuk menentukan tempahan yang berjaya akan dibuat. Orang ramai dinasihati supaya membuat tempahan menerusi sistem dalam talian Bank Negara Malaysia sahaja dan bukannya melalui mana-mana pihak atau kemudahan tempahan lain yang tidak sah. Semua tempahan akan dipertimbangkan dengan sewajarnya dan tiada keutamaan akan diberikan kepada tempahan berdasarkan tarikh dan masa tempahan. Maklumat mengenai pembayaran, pengumunan keputusan tempahan dan kemudahan penghantaran terdapat dalam laman sesawang tempahan.  Bank Negara Malaysia 17 November 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

15 Nov 2021

Tindakan Penguatkuasaan Bersama Terhadap Syarikat yang Disyaki Terlibat dalam Aktiviti Jenayah Kewangan

https://www.bnm.gov.my/-/joint-enforcement-action-20211111-bm

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/joint-enforcement-action-20211111-bm&languageId=ms_MY

Reading: Tindakan Penguatkuasaan Bersama Terhadap Syarikat yang Disyaki Terlibat dalam Aktiviti Jenayah Kewangan Share: Tindakan Penguatkuasaan Bersama Terhadap Syarikat yang Disyaki Terlibat dalam Aktiviti Jenayah Kewangan Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 2226 pada Isnin, 15 November 2021 15 Nov 2021 Pada 11 November 2021, satu tindakan penguatkuasaan bersama telah diambil terhadap i-Serve Online Mall Sdn. Bhd. dan syarikat sekutunya kerana disyaki melakukan pelbagai kesalahan, termasuk di bawah Akta Perkhidmatan Kewangan 2013 (Financial Services Act 2013, FSA) dan Akta Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Hasil daripada Aktiviti Haram 2001 (Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, AMLA). Sebanyak 22 premis yang berkaitan dengan i-Serve Online Mall Sdn. Bhd. dan syarikat sekutunya di Kuala Lumpur dan Selangor telah diserbu, dan dokumen yang berkaitan dirampas bagi membantu siasatan bersama ini. Tindakan serbuan tersebut juga telah menyebabkan 45 akaun dalam tujuh bank dibekukan dan wang tunai dirampas, yang keseluruhannya berjumlah RM118.7 juta. Tindakan penguatkuasaan bersama ini merupakan sebahagian daripada kerjasama antara agensi bagi membanteras jenayah kewangan di Malaysia. Tindakan penguatkuasaan ini diselaraskan oleh Pusat Pencegahan Jenayah Kewangan Nasional (NFCC) dan Bank Negara Malaysia (BNM) sebagai agensi peneraju, bersama-sama dengan Suruhanjaya Sekuriti Malaysia (SC), Suruhanjaya Syarikat Malaysia, Suruhanjaya Pencegahan Rasuah Malaysia, Polis Diraja Malaysia dan CyberSecurity Malaysia. Orang ramai dinasihati bahawa mana-mana individu yang menerima deposit tanpa lesen dianggap telah melakukan kesalahan di bawah seksyen 137(1) FSA. Siasatan terhadap kesalahan pengubahan wang haram juga akan dibuat mengikut peruntukan di bawah AMLA. Jika disabit kesalahan, individu tersebut boleh dikenakan denda tidak kurang daripada lima kali jumlah atau nilai hasil daripada aktiviti haram semasa kesalahan tersebut dibuat atau denda RM5 juta, mana-mana yang lebih tinggi, dan hukuman penjara tidak melebihi 15 tahun. Sebagai langkah berjaga-jaga, orang ramai diingatkan supaya hanya menyimpan wang dan/atau melabur dengan pihak yang berlesen atau berdaftar dengan pihak berkuasa yang berkaitan. BNM dan SC menggesa orang ramai supaya berhati-hati apabila melabur dengan syarikat-syarikat dalam atau luar negara yang menawarkan pelbagai peluang pelaburan di samping menjanjikan pulangan yang lumayan. Sekiranya orang ramai mengetahui atau ditawarkan peluang pelaburan seperti ini melalui promosi media sosial, e-mel atau telefon, mereka digalakkan untuk melaporkan perkara ini kepada BNM atau SC melalui: Bank Negara Malaysia Tel.: 03-2691 0824 / 2692 6482 / 2698 2810 / 2694 2143 Faks: 03-2698 7467 E-mel: [email protected] Suruhanjaya Sekuriti Malaysia Tel.: 03-6204 8999 / 03-6204 8777 Faks: 03-6204 8991 E-mel: [email protected] Bank Negara Malaysia 15 November 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

15 Nov 2021

Discussion Paper on Hajah (Needs)

https://www.bnm.gov.my/-/dp-hajah

https://www.bnm.gov.my/documents/20124/938039/Discussion_Paper_on_Hajah.pdf

Reading: Discussion Paper on Hajah (Needs) Share: 4 Discussion Paper on Hajah (Needs) Embargo : For immediate release Not for publication or broadcast before 1330 on Monday, 15 November 2021 15 Nov 2021 Issuance Date: 15 November 2021 Summary The Discussion Paper outlines the Bank’s thoughts on the proposed requirements for the application of hajah by Islamic financial institutions (IFIs) in the conduct of their business. These encompass the following: proposed definition of hajah in the context of Islamic finance and its scope of application; enhanced governance expectation on roles and responsibilities of the board, senior management, Shariah committee and the control function of IFIs in ensuring the robust assessment of application of hajah; and proposed set of requirements and policy guidance to facilitate Shariah deliberation and decision-making on the application of hajah in the IFIs. The Bank invites written feedback on the proposals in this Discussion Paper, including suggestions on areas requiring further clarification, elaboration or alternatives that the Bank should consider. The feedback must be emailed to [email protected] no later than 31 January 2022. In the course of preparing your feedback, you may direct any queries or clarification to the following officers: Halimaton Mohamad ( [email protected] ) Mohd Shahril Mat Rani ( [email protected] ) Find out more: Discussion Paper on Hajah     Bank Negara Malaysia 15 November 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Hajah – Discussion Paper 1 of 21 Issued on: 15 November 2021 BNM/RH/DP 028-12 Hajah Discussion Paper Applicable to: 1. Licensed Islamic banks 2. Licensed takaful operators including professional retakaful operators 3. Licensed banks and licensed investment banks approved to carry on Islamic banking business 4. Prescribed development financial institutions approved to carry on Islamic financial business Hajah – Discussion Paper 0 of 21 Issued on: 15 November 2021 This discussion paper (DP) outlines Bank Negara Malaysia’s (the Bank) thoughts on proposed requirements for application of hajah by Islamic financial institutions (IFIs) in the conduct of their Islamic banking and takaful business. Specifically, this DP seeks feedback from IFIs on the following: (a) the definition of hajah and its scope of application; (b) the expectations on oversight function and responsibilities of the board, senior management, Shariah committee and the control function of the IFI in ensuring a comprehensive and robust assessment of the application of hajah; and (c) the requirements and policy guidance relating to the processes and procedures to facilitate Shariah deliberation and decision making concerning hajah in the IFIs. The Bank invites written feedback on the proposals in this DP, including suggestions on areas requiring further clarification, elaboration or alternatives that the Bank should consider. The feedback must: (a) be prepared based on inputs from relevant parties within the IFIs, including from the product, strategic management, treasury, risk management, compliance and Shariah sections given the potential implications of the proposals to the IFIs’ strategies, operations and product offerings; (b) include inputs and constructive views from the Shariah committee of the IFI; and (c) be supported with clear justifications, including accompanying evidence or illustrations where appropriate, to facilitate an effective consultation process. The feedback must be submitted to the Bank via email to [email protected] by 31 January 2022. In the course of preparing your feedback, you may direct any queries to the following officers: 1. Halimaton Mohamad ( [email protected] ) 2. Mohd Shahril Mat Rani ( [email protected] ) mailto:[email protected] mailto:[email protected] mailto:[email protected] Hajah – Discussion Paper 1 of 21 Issued on: 15 November 2021 Table of Contents PART A OVERVIEW ............................................................................................. 1 1 Introduction ........................................................................................... 1 2 Interpretation ......................................................................................... 2 PART B HAJAH APPLICATION IN ISLAMIC FINANCE ..................................... 3 3 General overview on hajah and darurah ............................................... 3 4 Hajah Definition ..................................................................................... 5 5 Governance Requirements ................................................................... 9 6 Hajah Decision Making Process .......................................................... 12 APPENDICES .......................................................................................................... 16 Appendix 1 Definition for hajah and darurah ......................................................... 16 Appendix 2 List of potential indicator that can be used to assess severity of hajah case .................................................................................................... 18 Hajah – Discussion Paper 1 of 18 Issued on: 15 November 2021 PART A OVERVIEW 1 Introduction 1.1 The Shariah Advisory Council (SAC) of Bank Negara Malaysia (the Bank) has, on a case-to-case basis, issued several rulings1 in the past related to the application of hajah. These rulings have generally allowed temporary exception to, or disapplication of applicable Shariah rulings in specific exigent circumstances. These existing hajah-related rulings outline broad Shariah parameters without specifying the policy2 or operational guidance to facilitate effective application of the rulings by Islamic financial institutions (IFIs). 1.2 Over the years, the Bank has observed varying practices and rigour in the deliberation by the Shariah committee on the application of hajah. The Bank also observed heavy and undue reliance on assessment and information provided by the business lines, which in some instances may have risked being misleading and/or incomplete. Clear justifications and business impact analysis to support robust deliberation and informed decision making was also not evident. 1.3 Increased complexity and sophistication in the operating environment, rapid developments in the financial landscape, and uncertain business environment are posing significant challenges to financial institutions. Given these developments, IFIs need a toolkit that enable them to manage existing risks, consistently innovate and keep pace with the rapidly evolving operating landscape and demographic changes. A clear interpretation of hajah from the context of contemporary financial practices, supported by an in-depth understanding of its impact will ensure that IFIs continue to operate within the safe boundaries of Shariah thus improving the rigour of existing hajah implementation by the IFIs. The implementation of hajah should therefore be premised on a robust and detailed governance process and assessment. 1 The example of SAC rulings, among others are as follows: (a) the permissibility for a licensed takaful operator to cede out its risk to a licensed insurer or a professional reinsurer in the absence of the capacity or expertise of a licensed takaful operator or a professional retakaful operator to underwrite a takaful risk; (b) the application of bai` istijrar (supply sale) for Islamic trade finance; and (c) the permissibility to benchmark interest rate in the pricing component of Islamic financial products. 2 For the avoidance of doubt, the policy document on Takaful Operational Framework (TOF) issued by the Bank on 26 June 2019 has outlined some operational requirements. However, the TOF does not outline a comprehensive operational guidance to operate SAC rulings on the application of hajah on the cessation of takaful risk to a licensed insurer or professional reinsurer. Hajah – Discussion Paper 2 of 18 Issued on: 15 November 2021 1.4 This discussion paper on Hajah (the DP) seeks to initiate discussions and solicit feedback from IFIs on the following: (a) the proposed definition of hajah in the context of Islamic finance and its scope of application; (b) the enhanced governance expectation on roles and responsibilities of key organs of IFIs in ensuring the robust assessment of application of hajah; and (c) the proposed set of requirements and policy guidance to facilitate Shariah deliberation and decision making on the application of hajah. 2 Interpretation 2.1 The terms and expressions used in this DP shall have the same meanings assigned to them in the Financial Services Act 2013 (FSA), Islamic Financial Services Act 2013 (IFSA) or Development Financial Institutions Act 2002 (DFIA), as the case may be, unless otherwise defined in this DP. 2.2 For the purpose of this DP– “Islamic financial institution” or “IFI” collectively refers to– (a) licensed Islamic banks; (b) licensed takaful operators including professional retakaful operators; (c) licensed banks and licensed investment banks approved under section 15(1)(a) of the FSA to carry on Islamic banking business; and (d) prescribed institutions approved under section 33B(1) of the DFIA to carry on Islamic financial business. Hajah – Discussion Paper 3 of 18 Issued on: 15 November 2021 PART B HAJAH APPLICATION IN ISLAMIC FINANCE 3 General overview on hajah and darurah 3.1 Necessity (darurah) and need (hajah) have been widely discussed by classical and contemporary scholars. These discussions focus on the hardships experienced by an individual, a group or a legal person aiming to preserve the life of a natural person or legal person in severe and mild hardship situations3, during darurah and hajah situations. Discussions concerning a hardship experienced by a legal person however has been limited. 3.2 As we progress, the Bank is considering to provide better clarity and guidance to the industry on the interpretation of hajah and the scope of its application in the context of Islamic finance. It is envisaged that this would pave the way towards improving the rigour in the implementation of hajah by IFIs. For the purpose of this DP, the focus is only on hajah. After an extensive deliberation, the SAC and the Bank concluded that the nature and severity of hardships experienced by an IFI are not likely to reach the darurah level. This is premised on the following: (a) sufficient regulatory measures that are already in place to facilitate the prudent risk management of an IFI such as capital, liquidity and other requirements which contribute to the safety and soundness of an IFI. For example, a situation of hajah exists when an IFI is seeking to manage its risks to meet the internal capital target level4 and to ensure the IFI maintains adequate buffers. Arguably, even if the IFI operates at the minimum required capital level, its safety and soundness remain intact. While this risk management step can be seen as addressing specific interest (maslahah khassah) of the IFI, it is ultimately intended to preserve public interest (maslahah `ammah) i.e. the stakeholders’ interest as well as to prevent instability in the financial system that may result in a wider harm, such as unemployment, to the economy; and (b) the magnitude of harm at darurah level experienced by an IFI vis-à-vis a natural person differs - where a darurah experienced by the IFI(s) requires specific consideration from the authority as it deals with systemic impact to the economy. However, for a darurah experienced by a natural person, the magnitude of harm is limited to the natural person itself. Therefore, the harm needs to be immediately eliminated and can be decided by the natural person itself to preserve the natural person’s life, religion, lineage, progeny or property, without considering a wider benefit (maslahah) or public interest (maslahah `ammah). 3 Refer Appendix 1 on Definition of Hajah and Darurah. 4 Paragraph 19.4 of Risk Based Capital Framework for Takaful Operators. Hajah – Discussion Paper 4 of 18 Issued on: 15 November 2021 Consultation 1: (a) Please provide feedback on the exclusion of darurah and the basis as specified in paragraphs 3.2(a) and 3.2(b). Specifically, the feedback should cover the IFI’s feedback on the level of authority in determining darurah i.e. it can only be made by the authority. Please provide appropriate Shariah justification on the IFI’s views including specifying source of references in supporting such views. (b) Please provide feedback on the proposed exclusion of darurah for hardship experienced by an IFI. In the event where the IFI disagrees with the proposed exclusion, please provide the rationale and real case example(s) experienced by the IFI or plausible scenario(s) based on the IFI’s existing stress testing result. Please include relevant data/information substantiating the severity of hardship experienced by the IFI that confirms its darurah application. In addition to IFI’s feedback, the Shariah committee is required to deliberate and provide specific feedback on the proposed exclusion of darurah. 3.3 In establishing the appropriate definition and scope of hajah, including the category of Shariah prohibitions or areas of Shariah ruling exceptions that can be included under hajah as specified in paragraph 4.7, the Bank has considered the following: (a) the fundamental concepts of hajah and darurah which revolve around the types of situations experienced by a person and the existence of three important characteristics to allow exemption to the rules to be applied as illustrated in Diagram 1, which are– (i) the severity of the hardship experienced or likely to be experienced and its impact on the person; (ii) the availability of an alternative that is acceptable by Shariah to deal with a hajah situation; and (iii) the appropriate quantum of period and size for any temporary solution in hajah or darurah situation encountered by the person; Diagram 1 Hajah – Discussion Paper 5 of 18 Issued on: 15 November 2021 (b) the interchangeable use of hajah and darurah terminologies, in practice, due to the absence of a clear demarcation between the two; (c) the different nature of hardship experienced by natural person and legal person; and (d) examples provided by classical and contemporary scholars as well as modern applications of hajah. 4 Hajah Definition 4.1 Based on the above, the DP proposes to define hajah as follows: Definition : Hajah is a situation of exigent circumstance that will cause or likely to cause a detrimental impact to the safety and soundness of the IFI thus necessitating a temporary exception of a Shariah ruling. Consultation 2: Please provide your feedback on the proposed definition. In addition to IFI’s feedback, the Shariah committee is required to deliberate and provide specific feedback on the proposed definition. Scope of the application of hajah 4.2 For purposes of the proposed definition of hajah in paragraph 4.1, the DP proposes to classify a situation as an exigent circumstance, only if it satisfies the following conditions: (a) there is Shariah compliant alternative, however complying with a Shariah ruling under such a situation will result or will likely result in significant hardship or operational complexities that may cause detrimental impact to the IFI’s funding, operations5 and the performance of critical functions, or economic activities6; and/or (b) there is an absence of appropriate alternatives7 which are in compliance with Shariah to address such a situation. 5 Including customer and environmental perspectives as specified in paragraph 6.2. 6 Such as the ceding out takaful risks to a professional reinsurer, if strictly prohibited, may cause significant hardship in diversifying and managing takaful risk that may impact an IFI’s financial soundness and/or group’s financial strength given the absence of retakaful arrangement of a specific risk or subscription to conventional insurance for high risk vehicle financed by a licensed Islamic bank or the use of conventional nostro account for low volume foreign currency. 7 Such as absence of an enabling law to perform a Shariah compliant transaction or restricted by law stipulated by host country of an Islamic window with foreign parent bank e.g. inability to perform Shariah compliant trade finance transaction using existing products due to restriction imposed by parent bank on the profit calculation methodology or due to operational nature of trade finance which does not satisfy the normal Shariah contract’s principle. Hajah – Discussion Paper 6 of 18 Issued on: 15 November 2021 4.3 In outlining the proposed requirements in paragraph 4.2 above, the Bank is of the view that hardship should be tackled and prevented early on before it poses a bigger risk to the IFI, with possible consequences to the broader financial system and economy in accordance with in the following legal maxims: (a) harm must be removed (al-darar yuzal)8; (b) hardship begets ease (al-mashaqqah tajlib al-taysir)9; and (c) necessity lifts prohibitions or makes the unlawful lawful (al-darurah tubih al- mahzurah)10. 4.4 For the avoidance of doubt, the DP proposes for the significant hardship, as outlined in paragraph 4.2(a), to exclude cases where: (a) the financial loss experienced by an IFI is a result of normal business or operating challenges, and the IFI can still operate on a going concern basis11; (b) the hardship is a result of poor risk management, control, business decision or negligence by the IFI12; or (c) there is insufficient effort13 by the IFI to find alternatives or arrangements which are in compliance with Shariah. Consultation 3: Please provide your feedback on the proposed scope of the application of hajah as stipulated in paragraphs 4.2 and 4.4, including additional area(s) to be included or excluded from the scope of application. In addition to IFI’s feedback, the Shariah committee is required to deliberate and provide specific feedback on the proposed scope. 4.5 In relation to paragraph 4.4(c), the relevant key organs such as the Shariah committee have the responsibility to provide an objective view on the sufficiency of efforts taken by the IFI. This can be performed either by the Shariah committee or a third party appointed by the Shariah committee as specified in paragraph 5.4 (b), based on information provided in 6.1(a) and 6.1(b). In addition, the control function has the responsibility to highlight the gap to the Shariah committee and the board based on the hajah implementation review14. 8 Al-Suyuti, Al-Ashbah wa Al-Naza’ir, Dar Al-Kutub Al-`Ilmiyyah, 1983, p. 83. 9 Ibid, p. 76. 10 Ibnu Nujaim, Al-Ashbah wa Al-Naza’ir, Dar Al-Kutub Al-`Ilmiyyah, 1999, p. 73. 11 For example, the need to forgo profits arising from Shariah non-compliant event or commission arising from exclusive business arrangement with licensed insurers for non-large and non-specialised risk or non-availability of auto renewal features offered by licensed takaful operators for motor financing portfolio. 12 For example, financial losses arising from underwriting credit or takaful risk beyond risk appetite and capacity. 13 May be confirmed by external parties who performed independent review or may be detected by the Shariah committee based on choice of options available at the hajah assessment stage. 14 For example, convenient arrangement with a conventional counterparty from long-standing relationship despite the existence of an alternative Islamic counterparty which might incur additional cost or effort. Hajah – Discussion Paper 7 of 18 Issued on: 15 November 2021 4.6 The period and quantum of the temporary exception allowed under paragraph 4.1 should also be commensurate with the complexity, size and risk management capability of an IFI15. This is consistent with the legal maxim for exceptional situations where it requires leniency to be commensurate with the actual need (al- darurah tuqaddar biqadariha)16. Remainder of this page is intentionally left blank 15 For example, on ceding out arrangement of takaful risk to a licensed reinsurer, a licensed takaful operator may be allowed to transfer 50% of its takaful risk via an intra-group retrocession for two years. This is considering limited capacity of professional retakaful operator to underwrite large and specialised risk and taking into account adverse impact to capital (through stress testing) where it is only sufficient to retain 50% of the retakaful risk. 16 Ibnu Nujaim, Al-Ashbah wa Al-Naza’ir, Dar Al-Kutub Al-`Ilmiyyah, 1999, p. 73. Hajah – Discussion Paper 8 of 18 Issued on: 15 November 2021 4.7 In assessing the application of hajah and the extent of temporary exception that may be allowed for a particular arrangement or transaction, the DP proposes the following examples of categories of Shariah prohibitions or area of Shariah ruling exceptions for which hajah may be applicable. Category Description Example (a) Contravention of original Shariah rulings (hukm al- Shariah) or maqasid Exigent circumstances that trigger contravention of non- inherent forbidden (haram li- ghayrih) matters. • Ceding takaful risk to a professional reinsurer. • Funding provided to conventional parent during a liquidity crisis in the financial system, using a Shariah compliant contract. (b) Non-fulfilment of pillars and / or conditions of specific contracts required under Shariah Exigent circumstances that require modification, variation or flexibility of the original contracts which breach/ contravene the original pillars and/or conditions. Transacting with ribawi items beyond spot rules i.e. allowability of period of T+2 for bai` al-sarf implementation in foreign exchange transaction in accordance with market practices. (c) Changes to the original objective or purpose of a contract (muqtada aqad) Exigent circumstances that require modification to the original objective or purpose of a contract due to the need to mitigate risk. Changing original intention of wa`d (promise) to serve as risk mitigation for Islamic financial product. (d) Production of contracts that lead to hiyal (stratagems) / makharij (way out) Exigent circumstances that require a combination of a few contracts or concepts in a product for the makharij purpose. Usage of tawarruq17 as a temporary solution to satisfy customers’ financial needs. 17 For the avoidance of doubt, this example is based on the majority views of Shariah scholars on the validity of tawarruq from the Shariah perspective. Hajah – Discussion Paper 9 of 18 Issued on: 15 November 2021 Consultation 4: (a) Please provide your feedback on the proposed category of Shariah prohibitions for which hajah may be applicable including other potential proposed category of Shariah prohibition for the Bank’s consideration. What challenges do you foresee from Shariah and operational perspectives in assessing hajah? (b) Please provide additional example(s) for category of Shariah prohibition experienced by the DFIs in performing their mandated roles, that the Bank can consider in developing allowable scenarios for the application of hajah. 4.8 In the event that a darurah situation exists18, the Bank is of the view that the matter must be brought to the SAC’s attention for further deliberation. 5 Governance Requirements 5.1 The existing policy documents on Corporate Governance (CGPD) and Shariah Governance (SGPD) issued by the Bank on 3rd August 2016 and 20th September 2019 respectively outline the requirements imposed on all key organs of an IFI in ensuring effective governance arrangement and sound Shariah compliance culture. Given the specific nature of the application of hajah, the Bank is of the view that additional oversight expectations are required to ensure rigour in the assessment and monitoring of the application of hajah and hence accountability of each key organ. The Board of Directors 5.2 For the board, there is an expectation that they need to consider hajah in performing its oversight function. In doing so, the board is expected to– (a) oversee the implementation of the Shariah committee decisions and ensuring that appropriate internal controls on the application of hajah are established for an end-to-end Shariah compliance; (b) approve internal policy and operational guidance relating to the decision making process on hajah and giving due consideration on the review and exit strategy for hajah; (c) provide sound and substantiated views to the Shariah committee of the IFI on the necessity of hajah, such as validating the existence of hardship and its circumstances that warrant the application of hajah when the board is aware that full information is not being tabled to the Shariah committee or when the board has a strong belief that the Shariah committee has wrongly understood the information provided by the management; and (d) effectively challenging the IFI’s proposal to pursue with the application of hajah, including providing inputs on the adequacy of plausible scenarios, 18 i.e. an IFI or IFIs experiencing unprecedented situation which could not be solved within the proposed requirement in this DP. Hajah – Discussion Paper 10 of 18 Issued on: 15 November 2021 stress testing results, key assumptions used in justifying the application of hajah and its period. Shariah Committee 5.3 In ensuring a sound decision or advice to allow a hajah application, the Shariah committee is expected to ensure proper justification and rigour in deliberating hajah cases whilst ensuring all possible efforts have been demonstrated by the IFI prior to applying hajah, in line with established hajah internal policies. 5.4 In view of paragraph 5.3, the Bank is exploring to heighten the governance expectation on the Shariah committee in terms of meeting composition, deliberation and documentation as outlined below: (a) deliberations of decision relating to the application of hajah are to be made by the entire Shariah committee; (b) in the event where the Shariah committee is unable to finalise its decision or has reasonable doubt on the robustness of hajah assessment performed by the IFI, the Shariah committee may seek independent views from third party experts19 to enable them to make an informed decision; and (c) in addition to the requirement of paragraph 11.4 of SGPD, the respective Shariah committee members who agree with the application of hajah are expected to document, by themselves, the justifications on the decision or advice including the key considerations and rationale for allowing the application of hajah, and any significant concern. Consultation 5: (a) Please outline specific challenges in complying with the proposal to require deliberation by the entire Shariah committee for application of hajah. In addition to the IFI’s feedback, the Shariah committee is required to deliberate and provide specific feedback on the proposed Shariah committee’s roles and responsibilities as specified in paragraph 5.4. (b) In operationalising paragraph 5.4(a), please suggest appropriate governance for a scenario where an IFI is allowed by the Bank to operate below required composition20. 19 Refers to any party which is not related to the IFI and not necessarily an external Shariah advisor. The external party must have sufficient competency to provide independent view on the IFI’s hajah proposal based on the processes to be specified by the Bank. 20 In the event where the Bank rejects any application or there is a decease of a person which resulted in an IFI to operate below the required composition as specified in the SGPD i.e. five or three members depending on nature of institution specified in the SGPD. Hajah – Discussion Paper 11 of 18 Issued on: 15 November 2021 Senior Management 5.5 For the senior management, there is an expectation that they need to consider the policy and application of hajah as part of their scope, in discharging their primary responsibility over the day-to-day management of the IFI. In doing so, the senior management is expected to– (a) ensure effective and efficient implementation of hajah internal policy; (b) provide balanced information and opinion to the Shariah committee supported with the relevant information during the identification and assessment stage as proposed in paragraphs 6.1(a) and 6.1(b); (c) ensure adequate allocation of resources for continuous development of skills and competencies of all key organs in the application of hajah including ensuring adequate budget for development plans of all key organs and putting in place adequate number of officers with appropriate competencies and experience; (d) ensure appropriate internal control systems are in place for the assessment and application of hajah, and monitoring the implementation of hajah by the IFI; and (e) ensure a proper, robust and continuous communication plan of the hajah policies and procedures to all business organs is in place to ensure all relevant business organs are aware of their roles in the application of hajah. Control Function 5.6 In line with paragraphs 16.1 to 16.7 of the SGPD, the Bank expects the control function21 to provide the assurance on the application of hajah and its implementation based on the Shariah committee’s decision that is carried out by the business lines. Specifically, the Bank expects the control function to review and monitor the application of hajah and the implementation by the business organs, including assessment on areas for improvements that can prevent an IFI from applying hajah or continuously using hajah for its business continuity as well as decision making process for the application of hajah. Consultation 6: Do you agree with the expanded roles/responsibilities set out for the board, Shariah committee and senior management as well as the control function? Please explain any specific concerns along with constructive suggestions for the Bank to consider other than those identified in paragraphs 5.2 to 5.6. 21 Such as Shariah risk, compliance or audit functions. Hajah – Discussion Paper 12 of 18 Issued on: 15 November 2021 6 Hajah Decision Making Process 6.1 The Bank is considering introducing a set of requirements and guidance that outlines the process involved in assessing and deciding on the application of hajah. It aims to facilitate a more structured approach to the decision making by the Shariah committee which involves four main steps: Main Steps Details a. Identification ▪ Establish the hajah narrative to be presented to the IFI’s Shariah committee. • Ensure the scope of issues is as specified in this DP as per paragraphs 4.2 to 4.7. • Provide a comprehensive narrative of the exigent circumstance experienced by the IFI by providing information on the efforts done prior to proposing the application of hajah, the size of the exposure, the affected parties, the demographic and the current key financial ratio, as stipulated in paragraph 6.2(a). ▪ Establish a proper strategy to obtain sufficient and appropriate information. b. Assessment ▪ Demonstrate severity of the exigent event(s) based on the IFI’s internal parameters taking into consideration the requirements and guidance set out by the Bank and support the severity analysis with qualitative and quantitative data. This may include the impact on both financial position as well as the business operations as specified in paragraph 6.2(b). ▪ Develop proposed solutions for the Shariah committee’s consideration consisting of options available in dealing with exigent circumstances, supported with rationale, Shariah justifications, impact assessment and assumption, unintended consequences and mitigation measures for each proposed option22. ▪ The Shariah committee may seek views from independent parties in the event where they have reasonable doubt on the presented information and assessment, or the Shariah committee is unable to form any decision related to hajah. c. Finalisation ▪ Decide on the best solution(s) for the exigent circumstance experienced by the IFI and determine the appropriate period to apply hajah as well as determine an exit strategy. ▪ Ensure completeness of: • information provided in the identification and assessment steps; and • the Shariah committee and the board’s deliberation on the appropriateness of management actions to address the risks and vulnerabilities identified in the hajah assessment. d. Monitoring and Reporting ▪ Perform periodic implementation review and reporting to the Shariah committee and/or the board on the progress of the application of hajah and its exit strategy. • In the event where an extended period is needed, a comprehensive justification that considers the size, nature and complexities of the IFI, 22 For example, an IFI is expected to identify the profit/loss (such as profit commission on risk ceded to the reinsurers) which may arise in a situation where hajah is adopted and establish a proper treatment/plan to manage such profit/loss, for instance purifying the impermissible profit via charity. Hajah – Discussion Paper 13 of 18 Issued on: 15 November 2021 supported by a robust Shariah deliberation and proper exit plan for the application of hajah need to be tabled to the Shariah committee and the board. ▪ Provide yearly report on any application of hajah to the Bank including the following information: • detailed narrative and assessment provided in steps 6.1(a) and 6.1(b); • result of hajah assessment as specified in step 6.1(c); • minutes of the Shariah committee meeting(s) as well as written justification as required in paragraph 5.5(c); and • minutes of the board related to the application of hajah. Consultation 7: (a) Please provide your views on the proposed guidance on decision making process, key challenges in adopting the proposed process and reporting requirements. (b) Please provide any other inputs or steps that need to be considered in assessing hajah including specific concerns along with constructive suggestions on the hajah decision making process for the Bank to consider other than those identified in paragraphs 6.1. (c) In respect of the yearly report requirement, please indicate the appropriate duration needed for such submission, including rationale for the proposed duration. Remainder of this page is intentionally left blank Hajah – Discussion Paper 14 of 18 Issued on: 15 November 2021 6.2 In respect of the identification and assessment of the application of hajah as specified in paragraphs 6.1(a) and 6.1(b), the Bank is of the view that the following qualitative and quantitative23 information may be considered by an IFI in preparing its narrative and assessment to the Shariah committee: Areas Proposed details (a) Coverage of narrative of exigent circumstances ▪ Institutional perspectives e.g. operational challenges such as takaful operator not having the risk capacity or absence of risk expertise to accept takaful risk or operational challenges arising from specific roles assigned by the Government to a DFI that may not be undertaken by other financial institutions; ▪ Regulatory and legal perspectives e.g. legal impediments to offer Shariah compliant solutions by local authority(s) or host country(s); ▪ Macro perspectives e.g. unemployment, reduction in GDP growth; ▪ Customer perspectives e.g. customers experience deterioration of their financial position or demographic limitation that constrain their ability to comply with Shariah or customer’s preference to use a conventional product due to different religious belief; or ▪ External event perspectives e.g. environmental or health crisis that translates into loss of income, unemployment, high inflation. (b) Impact (including unintended consequences) ▪ Impact on customers and relevant stakeholders (e.g. counterparties related to main customers, service providers, suppliers, market utilities, public services, government) caused by Shariah limitation or restriction, taking into account – • the impact and speed of disruption to financial health, customer business, and short-term liquidity needs of customers and relevant stakeholders. • the capacity or speed of reaction to the disruption by counterparties, customers and the public. ▪ Impact on other financial institutions and financial markets taking into account – • the magnitude and speed at which disruption of the function would materially affect market participants or market functioning (e.g. liquidity, operations and structure of other financial institutions, financial markets concerned). ▪ Impact on economy, taking into account – • the lack of financial resources for an IFI to continue its operations as its customers or other stakeholders become negatively affected, both directly and indirectly i.e. defaults which may cause emotional distress and further financial repercussions. ▪ Impact on environment and infrastructure, taking into account– • the non-availability of Shariah compliant options to fulfil societal and environmental needs. 23 Refer to Appendix 2 for indicator that can be used or considered for quantitative assessment. Hajah – Discussion Paper 15 of 18 Issued on: 15 November 2021 Consultation 8: (d) Please provide your views on the proposed qualitative and quantitative information specified in paragraph 6.2 including additional information that should be considered by the Bank. Specifically for the DFIs, please provide examples(s) or scenario(s) on areas that need to be considered under the narrative and impact assessment. Remainder of this page is intentionally left blank Hajah – Discussion Paper 16 of 18 Issued on: 15 November 2021 APPENDICES Appendix 1 Definition for hajah and darurah Hajah and darurah from the Quran and Sunnah The following verse of the Quran implies the general use of word hajah that means want or a need: And [also for] those who were settled in al-Madinah and [adopted] the faith before them. They love those who emigrated to them and find not any want in their breasts of what the emigrants were given but give [them] preference over themselves, even though they are in privation. (Surah Al-Hasyr, 59:9) The following verse of the Quran implies the general use of darurah that means necessity: But whoever is forced [by necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon him. Indeed, Allah is Forgiving and Merciful. (Surah Al-Baqarah, 2:173) The following hadith implies the general meaning of hajah: من كان يف حاجة أخيه كان هللا ) :عن ابن عمر رضي هللا تعاىل عنهما عن النيب ملسو هيلع هللا ىلص أنه قال سلم ( رواه البخاري وميف حاجته Ibn `Umar (May Allah be pleased with them) reported: The Messenger of Allah (peace and blessings of Allah be upon him) said: “If anyone fulfills his brother's needs, Allah will fulfill his needs…” The following hadith implies the general meaning of darurah: أن رسول هللا صلى هللا عليه وسلم، قال: )ال ضرَر وال عن أيب سعيد اخلدري رضي هللا عنه : ( رواه ابن ماجه ضرار Abu Sa`eed al-Khudree (may Allah be pleased with him), that the Messenger of Allah (peace and blessings of Allah be upon him) said: “There should be neither harming (dharar) nor reciprocating harm (dhirar).” Hajah – Discussion Paper 17 of 18 Issued on: 15 November 2021 Examples of hajah and darurah from classical and contemporary scholars’ perspectives Definitions of hajah and darurah Classical scholars Hajah Complementary interests; people need them in terms of expansion and also to remove the hurdle often leading to severity and hardship which cause the loss of objective. If these interests are not observed, people will face severity and hardship, though, which will not reach at the level of total disruption of the public interest.24 Darurah a situation where one needs to consume forbidden items to prevent from dying or severe harms.25 Contemporary scholars Hajah a situation where a need of a person or a community to be met by lifting the distress situation temporarily or permanently. If it is not addressed, may reach darurah (necessity) situation.26 Darurah an absolute necessity that permits the forbidden except for what is excluded. However, if a necessity below than that, it is expressed as a need, but sometimes it also included in necessity as a broad use.27 Categorisation of hajah The scholars further categorised hajah into− Hajah `ammah (general need) Need of all human being without any time or period limitation;28 Hajah khasah (specific need) Need of certain parties for example in certain cities, for certain professionals or limited to relevant individuals in certain period or time.29 24 Al-Syatibi, Al-Muwafaqat, Dar Al-Kutub Al-`Ilmiyah, 2004. لضيق المؤدي في الغالب إلى الحرج والمشقة الالحقة لفوت المطلوب فإذا لم تراع دخل الحاجيات ومعناها أنها مفتقر إليها من حيث التوسعة ورفع ا يبلغ مبلغ الفساد المتوقع في المصالح العامة. الحرج والمشقة ولكنه ال -على الجملة -على المكلفين 25 Al-Suyuti, Al-Ashbah wa Al-Nazair, Dar Al-Kutub Al-`Ilmiyah, 1983. فالضرورة: بلوغه حّداً إن لم يتناول الممنوع هلك أو قارب، وهذا يبيح تناول الحرام 26 Ahmad Kafi, Al-Hajah Al-Syar’iyyah Hududuha wa Qawaiduha, Dar Al-Kotob Al-Ilmiyah, 2004. -على الجملة -و التأبيد ، فإذا لم تراع دخل على المكلفين الحاجة هي ما يحتاجه األفراد أو تحتاجه األمة للتوسعة ورفع الضيق إما على جهة التأقيت أ الحرج والمشقة وقد تبلغ مبلغ الفساد المتوقع في الضرورة. 27 Abdullah bin Bayyah, Sina`ah Al-Fatwa wa Feqh Al-Aqalliyat, Al-Muwatta Center, 2018. دون ذلك، وهي المعبّر عنها بالحاجة، إالّ أنهم يطلقون عليها الضرورة في االستعمال والثانية: ضرورة .ضرورة قصوى تبيح المحّرم سوى ما استُثني ً توسعا 28 Modified from Mustafa Ahmad Zarqa, Al-Madkhal Al-Feqhi Al-Am, Dar Al-Qalam, 2004, v.2 p.1005 and Abdullah bin Bayyah, Sina`ah Al-Fatwa wa Feqh Al-Aqalliyyat, Al-Muwatta Center, 2018, p.313-314. 29 Ibid. Hajah – Discussion Paper 18 of 18 Issued on: 15 November 2021 Appendix 2 List of potential indicators that can be used to assess severity of hajah case Categories Indicators Capital • Common equity tier 1 capital ratio • Tier 1 capital ratio • Total capital ratio • Leverage ratio • Capital adequacy ratio • Net asset of Shareholders’ fund • Impairment of Qard/ non-recovery of Qard ratio • Internal target capital level Liquidity • Liquidity coverage ratio • Net stable funding ratio • Cost of funds • Cost of wholesale funding • Concentration of funding (e.g. from top 20 counterparties) Profitability • Return on assets • Return on equity • Net profit margin • Cost-to-income ratio • Operational risk loss • Operating profit Asset quality • Gross impaired financing ratio • Growth rate of gross impaired financing • Net impaired financing ratio • Financing loss coverage ratio Operational risk • Unscheduled downtime for mission critical systems • Cyber-attack incidences on mission critical systems • Critical staff turnover rate • Number of compliance breaches • Shariah non-compliance cost-correction • System errors Takaful risk • Claims ratio • Underwriting ratio • Net contributions • Net claims incurred • Underwriting profit • Retention ratio • Surplus arising ratio Market • Price-to-book ratio • Share price volatility • Credit rating • Credit default swap spread Macroeconomic • GDP growth • Sectoral GDP growth (e.g. construction, manufacturing, exports, etc.) • Sovereign’s credit rating • Sovereign’s credit default swap spread

Public Notice

09 Nov 2021

Exposure Draft on Code of Conduct for Malaysia Wholesale Financial Markets (2021 Review)

https://www.bnm.gov.my/-/ed-code-of-conduct-wholesale-fin-mkt

Reading: Exposure Draft on Code of Conduct for Malaysia Wholesale Financial Markets (2021 Review) Share: Exposure Draft on Code of Conduct for Malaysia Wholesale Financial Markets (2021 Review) Embargo : For immediate release Not for publication or broadcast before 1945 on Tuesday, 9 November 2021 9 Nov 2021 Summary The exposure draft sets out proposed principles and standards to be observed by market participants in upholding integrity and principles of fair market practices, which is essential to support confidence, ensure an orderly functioning of the wholesale financial markets and preserve financial stability. Following the initial issuance of the Code of Conduct for Malaysia Wholesale Financial Markets 4 years ago, these enhancements are the outcome of continuous review of the document following feedbacks from the industry and are timely to address the key gaps and global development on market conduct matters. The Bank invites written comments on the proposals in this exposure draft, including suggestions for particular issues or areas to be clarified or elaborated further and any alternative proposals that the Bank should consider. To facilitate the Bank’s assessment, please clearly indicate which paragraph of this exposure draft each comment is related to and support each comment with clear rationale and accompanying evidence or illustration, where appropriate. Responses must be submitted electronically and addressed to [email protected] by 6 December 2021. In the course of preparing your feedback, you may direct any queries to the following officers at 03-26988044: (a) Esvina Litia Choo Mei Seng (ext 7462) (b) Bryan Loo Hong Jin (ext 7462)   Find out more: Exposure Draft on Code of Conduct for Malaysia Wholesale Financial Markets   Bank Negara Malaysia 9 November 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

27 Okt 2021

Keputusan Majlis Penasihat Shariah BNM ke-214

https://www.bnm.gov.my/-/bnm-sac-214-ruling-bm

https://www.bnm.gov.my/documents/20124/2629002/SAC+Statement+214th+SAC+meeting_BM.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/bnm-sac-214-ruling-bm&languageId=ms_MY

Reading: Keputusan Majlis Penasihat Shariah BNM ke-214 Share: Keputusan Majlis Penasihat Shariah BNM ke-214 Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1210 pada Rabu, 27 Oktober 2021 27 Okt 2021 Majlis Penasihat Shariah (MPS) Bank Negara Malaysia pada mesyuarat ke-214 bertarikh 30 Jun 2021 telah memutuskan bahawa institusi kewangan Islam (IKI) tidak dibenarkan untuk memasuk dan mengambil kira keuntungan terakru bagi pembiayaan asal, sebagai amaun prinsipal yang baharu bagi pembiayaan R&R. Ini kerana amalan tersebut akan menyebabkan keuntungan berganda ke atas hutang (keuntungan berkompaun). Oleh itu, sebarang pelaksanaan pembiayaan R&R hendaklah memastikan bahawa: amaun prinsipal baharu bagi pembiayaan R&R adalah bersamaan dengan baki prinsipal pembiayaan asal sekiranya tiada pembiayaan tambahan; jumlah keuntungan terakru dan caj lewat bayar (jika terpakai) bagi pembiayaan asal boleh ditambah menjadi obligasi keseluruhan pembayaran hutang tetapi jumlah ini tidak boleh diambil kira dalam pengiraan keuntungan yang baharu (cannot be capitalised); dan larangan keuntungan berkompaun terpakai kepada pembiayaan R&R bagi semua pelanggan (termasuk musir dan mu’sir).   Sila lihat lampiran di sini untuk maklumat lanjut   Bank Negara Malaysia 27 Oktober 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Mesyuarat MPS ke-214 2021 1 Keputusan Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Keuntungan Berkompaun bagi Pembiayaan Penstrukturan dan Penjadualan Semula (R&R) Secara Islam Mesyuarat MPS ke-214 bertarikh 30 Jun 2021 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009 berkaitan fungsi MPS, MPS telah memutuskan bahawa institusi kewangan Islam (IKI) tidak dibenarkan untuk memasuk dan mengambil kira keuntungan terakru bagi pembiayaan asal, sebagai amaun prinsipal yang baharu bagi pembiayaan R&R1. Ini kerana amalan tersebut akan menyebabkan keuntungan berganda ke atas hutang (keuntungan berkompaun). Oleh itu, sebarang pelaksanaan pembiayaan R&R hendaklah memastikan bahawa: i. amaun prinsipal baharu bagi pembiayaan R&R adalah bersamaan dengan baki prinsipal pembiayaan asal sekiranya tiada pembiayaan tambahan; ii. jumlah keuntungan terakru dan caj lewat bayar (jika terpakai) bagi pembiayaan asal boleh ditambah menjadi obligasi keseluruhan pembayaran hutang tetapi jumlah ini tidak boleh diambil kira dalam pengiraan keuntungan yang baharu (cannot be capitalised); dan iii. larangan keuntungan berkompaun terpakai kepada pembiayaan R&R bagi semua pelanggan (termasuk musir dan mu’sir).2 1.1. Keputusan ini berkuat kuasa berdasarkan garis panduan yang akan dikeluarkan Bank Negara Malaysia (BNM) dan terpakai ke atas IKI berikut: (a) orang berlesen menurut Akta Perkhidmatan Kewangan Islam 2013 (APKI); (b) bank berlesen dan bank pelaburan berlesen yang diluluskan di bawah seksyen 15(1) Akta Perkhidmatan Kewangan 2013 (APK) untuk menjalankan perniagaan kewangan Islam; dan (c) institusi yang ditetapkan yang diluluskan di bawah seksyen 33B(1) Akta Institusi Kewangan Pembangunan 2002 (DFIA) untuk menjalankan perniagaan kewangan Islam. 1.2. Selaras dengan seksyen 28(1) dan (2) APKI atau seksyen 33D(1) dan (2) DFIA, mengikut mana-mana yang berkenaan, IKI dikehendaki mematuhi keputusan ini dan pematuhan dengan apa-apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan pengendalian perniagaan, hal ehwal atau aktiviti IKI tersebut adalah disifatkan sebagai pematuhan kepada Shariah. 1 Keputusan baharu ini adalah kesinambungan daripada keputusan MPS pada Mesyuarat Khas ke-30 bertarikh 14 Julai 2020 (semakan semula pada 16 Oktober 2020) yang melarang amalan keuntungan berkompaun bagi R&R dalam tempoh pandemik COVID-19. 2 Bagi pelanggan musir, IKI dibenar mengenakan kadar keuntungan baharu bagi penstrukturan semula pembiayaan berdasarkan kaedah pengiraan yang telah digariskan di dalam polisi dokumen BNM dan resolusi MPS yang berkaitan. Namun bagi pelanggan mu’sir, tidak dibenar mengenakan sebarang keuntungan tambahan ke atas pembiayaan sedia ada. Rujuk keputusan MPS pada mesyuarat ke-160 bertarikh 30 Jun 2015, Kompilasi Keputusan Syariah dalam Kewangan Islam, Edisi Ketiga, 2017. Mesyuarat MPS ke-214 2021 2 Bahagian II: Latar Belakang 2.1. Kedudukan kewangan dan aliran tunai individu dan perniagaan dijangka beransur pulih sejajar dengan pemulihan ekonomi negara. Dalam usaha meringankan beban kewangan pelanggan yang terkesan, pelbagai inisiatif telah dilaksanakan bagi membantu mereka menghadapi situasi semasa. 2.2. Antara inisiatif tersebut ialah dengan menjadual dan menstruktur semula pembiayaan sedia ada bagi menyusun semula aliran tunai pelanggan. Dengan pendekatan tersebut, perniagaan dan individu dapat mengurus kewangan mereka dengan lebih baik sesuai dengan keadaan kewangan semasa. 2.3. Melihat kepada cabaran yang dialami oleh pelanggan IKI yang dalam keadaan sukar, MPS dalam Mesyuarat Khas MPS ke-30 bertarikh 14 Julai 2020 (semakan semula pada 16 Oktober 2020), telah menggariskan tuntutan Shariah terhadap kemudahan R&R bertujuan memberikan panduan Shariah yang jelas kepada IKI dan pelanggan. 2.4. Lanjutan daripada keputusan Shariah tersebut, MPS melihat keperluan perbincangan terperinci berhubung pemakaian larangan keuntungan berkompaun diperluaskan dalam situasi biasa (iaitu setelah tempoh pandemik COVID-19 berakhir) bagi semua pelanggan IKI. Isu Shariah 2.5. Adakah Shariah membenarkan IKI mengenakan keuntungan berkompaun bagi pembiayaan R&R? Bahagian III: Perbincangan Utama Larangan keuntungan berkompaun mengurangkan dharar (kemudaratan) kepada pelanggan 3.1. Pembiayaan R&R membolehkan pembayaran semula bulanan pelanggan disusun semula mengikut kemampuan kewangan semasa mereka. Bagi kemudahan ini, IKI dan pelanggan akan memeterai perjanjian baharu atau bersetuju dengan terma dan syarat yang dikemaskini berdasarkan kemampuan kewangan pelanggan. Perubahan biasanya melibatkan pertambahan tempoh pembiayaan dan/atau pengenaan kadar keuntungan yang baharu. Kesan R&R lazimnya menyebabkan kos pembiayaan meningkat. Oleh yang demikian, wujud keperluan untuk mengambil kira kesukaran yang dihadapi oleh pelanggan dengan tidak mengenakan keuntungan berkompaun dalam pembiayaan R&R. 3.2. MPS dalam mesyuarat khas ke-30 bertarikh 14 Julai 2020 telah memutuskan bahawa IKI tidak dibenarkan untuk memasukkan dan mengambil kira keuntungan terakru bagi pembiayaan asal sebagai amaun prinsipal yang baharu bagi R&R. Amalan sedemikian bertujuan untuk mengelakkan berlakunya keuntungan berganda ke atas hutang (keuntungan berkompaun) yang boleh memburukkan lagi kedudukan kewangan pelanggan. Mesyuarat MPS ke-214 2021 3 Kaedah pengiraan keuntungan berkompaun 3.3. Permodalan keuntungan terakru ke dalam pembiayaan R&R berlaku apabila keuntungan terakru daripada pembiayaan terdahulu dimasukkan sebagai jumlah amaun prinsipal baharu. Pengiraan jumlah keuntungan akan berdasarkan amaun prinsipal baharu tersebut bagi menentukan jumlah keseluruhan pembiayaan. Hasilnya, amaun keuntungan akan berganda seterusnya memberi kesan keuntungan berkompaun. Berikut adalah ilustrasi keuntungan berkompaun di dalam pembiayaan R&R: 3.4. Pengiraan kadar keuntungan baharu bagi pembiayaan R&R adalah berdasarkan kepada risiko dan kos pendanaan semasa, manakala pengiraan keuntungan terakru telahpun mengambil kira risiko dan kos bagi pembiayaan terdahulu. Oleh yang demikian, sebarang gandaan keuntungan terakru dengan cara memasukkannya ke dalam jumlah prinsipal baharu, akan menyebabkan IKI memperoleh keuntungan tambahan tanpa menanggung sebarang risiko mahupun kos bagi menjustifikasikan nilai gandaan tersebut. 3.5. Ilustrasi 2: Contoh ringkas kaedah pengiraan jumlah obligasi kewangan bagi pembiayaan R&R3 dengan dan tanpa keuntungan berkompaun: 3 Wujud perbezaan bagi pengiraan pembiayaan penjadualan semula. Kadar keuntungan efektif baharu akan dikira berdasarkan risiko baharu (iaitu tanpa keuntungan berkompaun) dan tidak akan melebihi jumlah harga jualan. Sebarang perbezaan antara kadar keuntungan siling dan kadar keuntungan efektif akan diberi rebat kepada pelanggan. Ilustrasi 1: R&R bagi pembiayaan perumahan Pemeteraian pembiayaan R&R (tempoh dipanjangkan bagi moratorium bayaran ansuran) Jumlah keuntungan berkompaun: RM112 Pembiayaan Asal Jumlah obligasi kewangan: RM57,272 Keseluruhan obligasi kewangan pelanggan tanpa keuntungan berkompaun Keseluruhan obligasi kewangan pelanggan dengan keuntungan berkompaun RM57,272 RM57,384 291,804 Mesyuarat MPS ke-214 2021 4 Amaun pembiayaan sedia ada (sebelum R&R) Amaun pembiayaan R&R Tanpa keuntungan berkompaun Dengan keuntungan berkompaun Baki prinsipal RM50,113 RM50,113 RM50,489** Keuntungan belum terakru/tertangguh RM6,783* RM6,783 RM6,895 Keuntungan terakru RM376 RM376 RM0 Jumlah obligasi kewangan RM57,272 RM57,272 RM57,384 * Keuntungan belum terakru dalam pembiayaan terdahulu akan diberi sebagai rebat (ibra’) kepada pelanggan ** Amaun baki prinsipal baharu bertambah disebabkan oleh amalan permodalan keuntungan terakru [Contoh di atas adalah ilustrasi semata-mata dan bertujuan memberi pemahaman berhubung pengiraan keuntungan berkompaun dan impaknya kepada pembiayaan R&R tanpa mengambil kira faktor-faktor lain seperti pelanjutan tempoh dan perubahan kadar keuntungan. Oleh itu, ia mungkin berbeza dengan pengiraan sebenar di peringkat IKI] Penilaian impak kepada IKI dan pelanggan 3.6. Berdasarkan dapatan simulasi keuntungan IKI, impak larangan keuntungan berkompaun adalah kecil. IKI akan mengalami sedikit pengurangan keuntungan dengan lanjutan larangan keuntungan berkompaun selepas tempoh pandemik COVID-19 berakhir. Ini kerana lazimnya, pembiayaan R&R akan memberi kesan pemanjangan tempoh ansuran yang menyebabkan pelanggan perlu membayar keuntungan yang lebih banyak, manakala, larangan keuntungan berkompaun ini akan mengurangkan sebahagian keuntungan tambahan daripada pembiayaan R&R tersebut. Penerusan dan penambahbaikan keputusan MPS terdahulu 3.7. Sebelum ini terdapat IKI yang sememangnya tidak mengenakan keuntungan berkompaun bagi pembiayaan R&R. Pelaksanaan amalan tersebut adalah berdasarkan keputusan jawatankuasa Shariah IKI berkenaan berikutan tiada keputusan MPS secara khusus mengenainya. 3.8. Namun, melihat kepada situasi ekonomi yang mencabar yang menyebabkan kesulitan yang ketara kepada pelanggan sewaktu tempoh pandemik COVID-19, MPS telah memutuskan untuk melarang IKI mengenakan keuntungan berkompaun bagi pembiayaan R&R. Ini bagi meringankan beban kewangan yang dihadapi oleh pelanggan sewaktu tempoh pandemik COVID-19. 3.9. Sungguhpun pada awalnya, keputusan MPS berkenaan dengan larangan keuntungan berkompaun adalah berdasarkan kepada situasi pandemik COVID-19, namun, setelah mengambil kira aspek maslahah yang lebih luas merangkumi aspek dharar kepada pelanggan IKI, maka wujud kewajaran agar keputusan tersebut dikekalkan dan pemakaiannya diperluaskan kepada semua pelanggan IKI dalam situasi biasa. Mesyuarat MPS ke-214 2021 5 Bahagian IV: Asas Pertimbangan Penerapan konsep Siyasah Syar’iyyah dalam menjaga kemaslahatan pihak berkontrak 4.1. Perkhidmatan kewangan Islam didasari prinsip-prinsip asas Shariah utama yang bertunjangkan maqasid `ammah (objektif umum) iaitu pencegahan kemudaratan dan perolehan manfaat4, di samping meletakkan konsep keadilan dan ihsan sebagai asas utama dalam semua aspek kewangan sebagaimana yang dinyatakan di dalam kaedah fiqah berikut: األصل يف العقود كلها إمنا هو العدل 5 “Hukum asal dalam semua akad adalah keadilan” 4.2. Larangan keuntungan berkompaun mengambil kira pertimbangan siyasah syar`iyyah yang mana pihak pengawal selia berhak menetapkan polisi tertentu yang difikirkan sesuai bagi menjaga kemaslahatan pihak-pihak berkontrak. Ini juga selari dengan kaedah fiqah berikut: 6 تصرف اإلمام على الرعية منوط ابملصلحة “Urusan pemimpin ke atas rakyat berpaksikan maslahah.” 4.3. Pertimbangan siyasah syar`iyyah mengambil kira faktor-faktor berikut: i) Mafsadah (kemudaratan) kepada pelanggan dan IKI disebabkan oleh keuntungan berkompaun o Permodalan keuntungan terakru ke dalam amaun prinsipal baharu menghasilkan pertambahan hutang dan bebanan kewangan kepada pelanggan. Tidak dinafikan bahawa IKI turut menanggung kesan daripada pembiayaan R&R pelanggan. Walau bagaimanapun, berdasarkan pertimbangan di antara dua kemudaratan, pelanggan secara relatifnya mengalami kesan kemudaratan yang lebih berbanding IKI. Ini kerana pelanggan menghadapi masalah kewangan dan memerlukan bantuan tambahan untuk memenuhi obligasi kewangannya. Oleh itu, pengenaan keuntungan berkompaun akan memberi kesan bebanan yang bertambah kepada pelanggan yang berada dalam kesulitan. Ini bertepatan dengan kaedah fiqah berikut: 7جلب املصال علىمقدم درء املفاسد “Mencegah kemudaratan hendaklah diutamakan berbanding menerima atau mengambil maslahah” o Di samping itu, sebarang perkara yang membawa kemudaratan kepada salah satu pihak yang berkontrak adalah tidak dibenarkan sebagaimana yang dinyatakan dalam kaedah fiqah berikut: 4 MPS telah menggariskan prinsip-prinsip asas Shariah utama yang perlu diterapkan dalam perkhidmatan kewangan Islam. Rujuk Laporan Tahunan BNM 2019, h. 37. 5 Ibn Qayyim, I’lam Muwaqi’in ‘an Rabb al-Alamin, Dar Ibn al-Jawzi lil Nasyr wa al-Tawzi’, j.3, h. 170. 6 Al-Suyuti, al-Asybah wa al-Naza’ir, Dar al-Kutub al-`Ilmiyyah, 1403H, h. 121. 7 Ahmad Al-Zarqa’, Syarh al-Qawa`id al-Fiqhiyyah, Damsyik: Dar al-Qalam, 1989, h. 165. Mesyuarat MPS ke-214 2021 6 األصل يف املنافع اإلابحة ويف املضار التحرمي8 “Hukum asal sesuatu yang memberi manfaat adalah dibenarkan dan pada sesuatu yang memudaratkan adalah diharamkan” ii) Larangan keuntungan berkompaun boleh membawa maslahah kepada pihak berkontrak o Maslahah ialah tujuan utama dalam setiap pensyariatan9. Dalam konteks larangan keuntungan berkompaun, keputusan tersebut bertepatan dengan pendekatan Syarak dalam memberi kemaslahatan dengan meringankan atau menghilangkan kesulitan pelanggan yang terkesan. Ia juga akan melahirkan persepsi dan keyakinan pelanggan kepada IKI disebabkan keprihatinan IKI terhadap kesulitan yang dihadapi pelanggan. Sebagai imbalannya, pendeposit dan pihak berkepentingan akan memperoleh manfaat pada masa hadapan disebabkan kecenderungan pelanggan memilih pembiayaan secara Islam. Ini selari dengan kaedah fiqah berikut: 10مقدمة على املصلحة اخلاصة املصلحة العامة “Mengutamakan maslahah yang umum diutamakan ke atas maslahah yang khusus” iii) Keadilan dan ihsan kepada pelanggan o Syarak menekankan keperluan untuk berlaku adil dan ihsan dalam semua perkara termasuklah aktiviti muamalah. Ini sebagaimana yang dinyatakan dalam al-Quran: “Sesungguhnya Allah menyuruh berlaku adil dan berbuat ihsan” (Surah al-Nahl, ayat 90) o Aplikasi prinsip ihsan adalah bersesuaian dalam memberi bantuan dan kelonggaran kepada mereka yang mengalami kesulitan dengan meringankan beban kewangan yang ditanggung. Rasulullah SAW turut menyarankan untuk berlaku ihsan dalam semua perkara, sebagaimana hadith berikut: إن هللا :عن أيب يعلى شداد بن أوس رضي هللا عنه عن رسول هللا صلى هللا عليه وسلم قال 11كتب اإلحسان على كل شيء Daripada Abu Ya’la Syaddad bin Aus RA berkata bahawa Rasulullah SAW bersabda: “Sesungguhnya Allah menetapkan ihsan pada tiap sesuatu”. o Selain itu, penentuan keuntungan juga hendaklah mengambil kira risiko yang ditanggung dan kaedah pengiraannya mestilah bersifat adil kepada kedua-dua pihak berkontrak. Bagi mencapai tujuan ini, kaedah pengiraannya boleh merujuk kepada kriteria yang digariskan di dalam dokumen polisi Responsible Financing12, Risk- 8 Muhammad Sidqi al-Burnu, Mawsu’ah al-Qawa’id al-Fiqhiyyah, Beirut: Mawsu’ah al-Risalah, 2003, j. 12. h.11. 9 Al-Shatibi, al-Muwafaqat, Dar Ibn Affan, 1997, j. 2 h.9. 10 Al-Syatibi, al-Muwafaqat, Dar Ibn `Affan, 1997, j. 3, h. 89. 11 Muslim, Sahih Muslim, Dar al-Ihya’ al-Turath al-Arabi, Beirut. j.3, h. 1548, no. hadith 1955. 12 Tarikh diterbitkan: 6 Mei 2019 Mesyuarat MPS ke-214 2021 7 informed Pricing13 atau polisi lain yang berkaitan yang diterbitkan oleh BNM. Shariah mengiktiraf indikator risiko sebagai salah satu elemen dalam penentuan keuntungan sebagaimana hadis Rasulullah SAW: اخلراج ابلضمان14 “Sesuatu yang terhasil mestilah menerusi tanggungan (risiko)” o Dalam pengiraan obligasi kewangan di bawah pembiayaan R&R, permodalan keuntungan terakru ke dalam amaun prinsipal baharu menghasilkan pertambahan hutang kepada pelanggan. Pertambahan tersebut menggambarkan wujudnya elemen ketidakadilan disebabkan terdapat pengiraan risiko yang tidak jelas imbalannya ke atas keuntungan terakru. Bahkan pengiraannya adalah jelas berdasarkan kepada risiko pembiayaan terdahulu. 4.4. Prinsip maqasid Shariah adalah untuk mencapai pemeliharaan harta berpaksikan keadilan pihak berkontrak. Dalam konteks keuntungan berkompaun, wujud ketidakadilan kepada pelanggan apabila tujuan utama pengenaannya adalah untuk IKI memperoleh ganti rugi disebabkan kegagalan pelanggan melunaskan pembiayaan yang telah ditetapkan. Oleh yang demikian, tujuan tersebut tidak selari dengan prinsip maqasid Shariah. Berdasarkan tujuan tersebut, sebarang wasilah (pendekatan) atau amalan yang memberi kesan keuntungan berkompaun adalah tidak dibenarkan. Ini selari dengan kaedah fiqah berikut: األمور مبقاصدها 15 “Setiap perkara dinilai berdasarkan tujuannya” Bahagian V: Implikasi Keputusan MPS 5.1. Keputusan MPS bertujuan memastikan kejelasan larangan pengenaan keuntungan berkompaun adalah selaras dengan kehendak Shariah dan ia terpakai kepada semua pelanggan yang memeterai pembiayaan R&R. 5.2. Keputusan berhubung keuntungan berkompaun adalah tidak bersifat retrospektif (mempunyai kesan kebelakangan) dengan mengambil kira amalan R&R terdahulu yang mungkin melibatkan keuntungan berkompaun. 13 Tarikh diterbitkan: 16 Disember 2013 14 Ibn Majah, Sunnan Ibn Majah, Dar Ihya al-Kutb Al-Arabiyyah, no. hadith 2234, j. 2, h.754; al-Tarmizi, Sunnan al-Tarmizi, Beirut: Dar al-Gharb al-Islami, no. hadith 1286, j.2, h.573. 15 Ahmad al-Zarqa’, Syarh al-Qawa`id al-Fiqhiyyah, Dar al-Qalam, 1989, h. 47.

Public Notice

22 Okt 2021

Pemberhentian Terbitan Kontrak Berasaskan LIBOR

https://www.bnm.gov.my/-/pemberhentian-terbitan-kontrak-berasaskan-libor

https://www.bnm.gov.my/documents/20124/2629002/fsr2020h2_bm_wb_rfr.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/pemberhentian-terbitan-kontrak-berasaskan-libor&languageId=ms_MY

Reading: Pemberhentian Terbitan Kontrak Berasaskan LIBOR Share: Pemberhentian Terbitan Kontrak Berasaskan LIBOR Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 2227 pada Jumaat, 22 Oktober 2021 22 Okt 2021 Mulai bulan Januari 2022, seluruh dunia akan menggunakan kadar bebas risiko (risk-free rates, RFR) bagi menggantikan LIBOR untuk matawang utama. Sehubungan dengan perkembangan global ini, Bank Negara Malaysia telah mengarahkan bank-bank memberhentikan penerbitan kontrak baharu yang merujuk kepada LIBOR selewat-lewatnya pada 31 Disember 2021. e-Brosur berikut menggariskan perlunya pelanggan institusi perbankan bersedia dengan kadar segera untuk beralih daripada LIBOR kepada RFR.Lihat juga: Perkembangan Pembaharuan Kadar Penanda Aras di Malaysia Bank Negara Malaysia 22 Oktober 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Kekukuhan dan Daya Tahan Institusi Kewangan 36 TINJAUAN KESTABILAN KEWANGAN - SEPARUH KEDUA 2020 Perkembangan Pembaharuan Kadar Penanda Aras di Malaysia Peralihan daripada LIBOR: Pengubahsuaian Tanda Penunjuk Peralihan Malaysia Terdapat banyak kemajuan sejak penerbitan pertama tanda penunjuk peralihan Kadar Tawaran Antara Bank London (London Interbank Offered Rate, LIBOR) Bank3 pada tahun 2020.4 Bank-bank di Malaysia telah berinteraksi secara proaktif dengan peminjam untuk merundingkan semula penggantian penanda aras dan membangunkan peruntukan sandaran dalam kontrak pinjaman berdasarkan LIBOR sedia ada dalam usaha untuk menguruskan kontrak legasi (legacy contract)5 yang sukar dan mengurangkan risiko undang-undang yang timbul. Bank-bank juga berusaha menambah baik sistem yang diperlukan untuk memastikan kesediaan operasi mereka bagi menyokong produk yang mengambil kira kadar bebas risiko (risk-free rate, RFR) alternatif. Usaha ini telah terganggu oleh pandemik COVID-19 di beberapa buah bank, tetapi dijangka dipercepatkan semula pada tahun 2021. Bank-bank di Malaysia yang mempunyai dedahan derivatif yang ketara juga telah mematuhi Protokol Sandaran Kadar Tawaran Antara Bank 2020 ((2020 Interbank Offered Rate, IBOR) Fallbacks Protocol) Persatuan Swap dan Derivatif Antarabangsa (International Swaps and Derivatives Association, ISDA). Pematuhan ini membolehkan peserta pasaran mengubah syarat kontrak derivatif mereka. Dedahan LIBOR industri perbankan Malaysia6 berjumlah RM963 bilion pada 31 Disember 2020 (Gambar Rajah 2.1). Produk tunai memberikan cabaran berbeza dalam peralihan kepada RFR disebabkan oleh ketiadaan struktur tempoh berpandangan ke hadapan. Walaupun peminjam lebih mengutamakan kepastian dalam aliran tunai bulanan mereka yang akan datang, kadar sebenar di bawah tunggakan terkompaun dalam tempoh terkumpul Gambar Rajah 2.1: Dedahan LIBOR Bank-bank Malaysia pada 31 Disember 2020 Sumber: Bank Negara Malaysia 10% Pinjaman 1% Bon 9% Lain-lain** RM963b 80% Derivatif* Nota: Pada peringkat kumpulan perbankan yang disatukan * Merujuk kepada jumlah nosional ** Terutamanya pemberian pinjaman/peminjaman antara bank dan deposit pelanggan 3 Sebagai sebahagian daripada pembaharuan global kadar faedah penanda aras, LIBOR akan dihentikan dan digantikan dengan kadar bebas risiko (risk-free rate, RFR) alternatif. 4 Rujuk Rencana Maklumat ‘Pembaharuan Kadar Penanda Aras: Peralihan daripada LIBOR’ dalam Tinjauan Kestabilan Kewangan BNM bagi Separuh Kedua 2019 untuk maklumat lebih lanjut. 5 Kontrak sedia ada yang menggunakan kadar rujukan LIBOR yang tidak dapat ditukar menjadi kadar rujukan bukan LIBOR atau dipinda untuk mengambil kira peruntukan sandaran apabila LIBOR dihentikan. 6 Merujuk jumlah terkumpul kunci kira-kira dan jumlah nosional derivatif pada peringkat kumpulan perbankan yang disatukan. tekanan susulan pelaksanaan PKP 2.0 juga boleh memberikan tekanan kepada kedudukan mudah tunai sesetengah bank. Walaupun berdepan dengan cabaran ini, institusi perbankan dijangka kekal berdaya tahan disebabkan oleh penampan mudah tunai yang besar dan amalan pengurusan risiko mudah tunai yang mantap, serta kemajuan yang berterusan dalam mengumpulkan sumber pendanaan jangka panjang yang stabil. Pelanjutan fleksibiliti bagi institusi perbankan untuk menggunakan Sekuriti Kerajaan Malaysia (Malaysian Government Securities, MGS) dan Terbitan Pelaburan Kerajaan Malaysia (Malaysian Government Investment Issues, MGII) bagi memenuhi Keperluan Rizab Berkanun (Statutory Reserve Requirement, SRR) hingga 31 Disember 2022 akan turut meningkatkan mudah tunai dalam sistem perbankan bagi menyokong aktiviti pengantaraan kewangan. Kekukuhan dan Daya Tahan Institusi Kewangan 37TINJAUAN KESTABILAN KEWANGAN - SEPARUH KEDUA 2020 Gambar Rajah 2.2: Tanda Penunjuk Peralihan LIBOR Sumber: Bank Negara Malaysia Nota: Tanda penunjuk boleh dinilai semula jika terdapat sebarang perubahan dalam garis masa peralihan global Akhir Disember 2021: LIBOR GBP, EUR, JPY CHF, USD 1 minggu dan 2 bulan dimansuhkan Akhir Jun 2023: LIBOR USD Semalaman, 1, 3, 6 dan 12 bulan dimansuhkan Bagi kontrak LIBOR USD semalaman, 1, 3, 6 dan 12 bulan: 1. Kontrak pinjaman merujuki LIBOR tersebut yang akan matang selepas Jun 2023 mempunyai peruntukan sandaran 2. Memastikan dan menguji keupayaan melaksanakan peruntukan sandaran 3. Memansuhkan pengeluaran produk yang merujuk LIBOR tersebut Bagi kontrak LIBOR yang merujuk GBP, EUR, JPY, CHF, USD 1 minggu dan 2 bulan: 1. Kontrak pinjaman merujuki LIBOR tersebut yang akan matang selepas akhir tahun 2021 mempunyai peruntukan sandaran 2. Memastikan dan menguji keupayaan melaksanakan peruntukan sandaran 3. Memansuhkan pengeluaran produk yang merujuk LIBOR tersebut 1. Semua kontrak derivatif LIBOR akan mempunyai peruntukan sandaran 2. Penghantaran penilaian kesan kewangan kuantitatif dan pelan peralihan serta kemajuan yang terperinci bagi interaksi dengan peminjam LIBOR daripada 5 bank utama yang mempunyai dedahan LIBOR terbesar Melihat kembali pelan peralihan, mengenal pasti dan menyelesaikan semua baki risiko dan halangan untuk menerbitkan produk yang merujuk kepada kadar bebas risiko (termasuk isu sistem, kepakaran, implikasi cukai dan pengurusan risiko) Merundingkan semula kontrak dengan peminjam dan memasukkan peruntukan sandaran bagi kontrak pinjaman LIBOR sedia ada Menyempurnakan penilaian mengenai kesediaan operasi dan keupayaan menyokong produk yang merujuk kadar bebas risiko Baharu S3 2020 S4 2020 S2 2021 S3 2021 S1 2021 S4 2021 Penunjuk peralihan LIBOR RFR hanya diketahui pada akhir tempoh faedah. Oleh itu, terdapat ketidakpadanan antara permintaan dengan penawaran produk yang merujuk RFR tanpa struktur tempoh berpandangan ke hadapan. Bagi menangani permintaan yang tertinggal, Jawatankuasa Kadar Rujukan Alternatif (Alternative Reference Rate Committee, ARRC)7 di AS berusaha mengenal pasti bakal pentadbir bagi menerbitkan Kadar Pembiayaan Semalaman Bercagar Dolar AS (Secured Overnight Financing Rate, SOFR) dengan tempoh berpandangan ke hadapan menjelang akhir tahun 2021. Kejayaan usaha ini bergantung pada keadaan mudah tunai pasaran derivatif SOFR, di mana kadar hadapan diperolehi. Baru-baru ini, Pentadbiran Penanda Aras Antarabangsa ICE (ICE Benchmark Administrator, IBA), pentadbir global LIBOR, mengumumkan kelewatan pemberhentian penerbitan LIBOR USD untuk tempoh semalaman, 1, 3, 6, dan 12 bulan selama 18 bulan hingga 30 Jun 2023. Penerbitan semua tempoh LIBOR USD yang lain dan mata wang LIBOR yang lain akan berhenti pada 31 Disember 2021 seperti yang dirancang. Sejajar dengan perkembangan ini, Bank sedang mengubah suai tanda penunjuk utama untuk memudahkan rundingan semula dan memberikan masa yang mencukupi agar permintaan produk tunai berasaskan SOFR dapat berkembang, kerana tempoh berpandangan ke hadapan SOFR dijangka diterbitkan sebelum akhir tahun 2021. Dua tanda penunjuk akan beralih daripada sasaran asal, iaitu suku kedua tahun 2021 ke suku keempat tahun 2021. Pertama, penghentian produk baharu yang merujuk LIBOR USD semalaman, 1, 3, 6, dan 12 bulan, dan kedua, penggabungan peruntukan sandaran dalam kontrak pinjaman yang merujuk LIBOR USD sedia ada yang akan mencapai tempoh matang selepas bulan Jun 2023 (Gambar Rajah 2.2). 7 ARRC terdiri daripada sekumpulan peserta pasaran swasta, yang dipanggil oleh Lembaga Rizab Persekutuan (Federal Reserve Board) dan Bank Rizab Persekutuan New York (New York Fed), untuk membantu memastikan kejayaan peralihan daripada LIBOR USD kepada SOFR. Kekukuhan dan Daya Tahan Institusi Kewangan 38 TINJAUAN KESTABILAN KEWANGAN - SEPARUH KEDUA 2020 MFRS 9 meningkat kepada sebanyak 10% daripada jumlah pinjaman sistem perbankan (Jun 2020: 8.4%), memandangkan jangkaan peningkatan pinjaman terjejas isi rumah dan prestasi kewangan sesetengah perniagaan yang semakin terjejas. Berikutan itu, bank-bank terus menyediakan peruntukan dengan jangkaan kerugian kredit yang lebih tinggi. Pada asas tahunan, peruntukan meningkat sebanyak 40.6% (Jun 2020: +9%) (Rajah 2.9). Peruntukan keseluruhan lebih tinggi yang disediakan oleh bank-bank pada separuh kedua tahun 2020 (+RM6.1 bilion hingga RM30.9 bilion pada akhir Disember 2020) mencerminkan pelarasan terhadap parameter model peruntukan bank untuk mengambil kira risiko yang berupaya menjejaskan pertumbuhan ekonomi dalam negeri. Di samping itu, kira-kira 40% daripada peruntukan tambahan bagi tahun 2020 adalah mengambil kira pertimbangan pengurusan (management overlay) bank yang menjangkakan kerugian yang jauh melebihi peruntukan model jangkaan kerugian kredit (expected credit loss, ECL). Hal ini mencerminkan cabaran berterusan yang dihadapi oleh bank-bank dalam mengambil kira maklumat berpandangan ke hadapan dalam pengukuran ECL memandangkan ketidakpastian dalam landasan pemulihan ekonomi serta gambaran yang kurang jelas tentang kemampuan bayaran balik peminjam di bawah moratorium pinjaman. 8 Pinjaman Tahap 2 merujuk pinjaman yang menunjukkan kemerosotan risiko kredit yang memerlukan bank menyediakan peruntukan berdasarkan jangkaan kerugian kredit seumur hidup. Pembangunan Kadar Rujukan Alternatif dan Penambahbaikan Kadar Tawaran Antara Bank Kuala Lumpur Bagi kadar penanda aras domestik, sejajar dengan usaha pembaharuan penanda aras global yang disarankan oleh Lembaga Kestabilan Kewangan (Financial Stability Board, FSB), Jawatankuasa Pasaran Kewangan (Financial Market Commitee, FMC) akan memantau usaha dalam mengembangkan Kadar Rujukan Alternatif (Alternative Reference Rate, ARR), yang mematuhi Prinsip untuk Penanda Aras Kewangan oleh Pertubuhan Antarabangsa Suruhanjaya Sekuriti (International Organization of Securities Commission, IOSCO). Bagi memberikan masa yang mencukupi kepada para peserta pasaran untuk bersiap sedia, Kadar Tawaran Antara Bank Kuala Lumpur (Kuala Lumpur Interbank Offered Rate, KLIBOR) akan terus berfungsi selari dengan ARR yang baru. Pada separuh pertama tahun 2021, FMC akan mengadakan konsultasi awam untuk mengumpul maklum balas tentang cadangan ARR dan metodologinya. Konsultasi ini bertujuan memastikan pembangunan ARR akan mengambil kira pandangan daripada pihak berkepentingan utama, termasuk pihak penjual dan pembeli (misalnya bank dan pelanggan institusi), dan akan berfungsi sebagai kadar rujukan efektif bagi semua produk termasuk derivatif, pinjaman dan sekuriti. Apabila dimuktamadkan kelak, Bank bercadang untuk memulakan penerbitan ARR pada separuh kedua tahun 2021, yang akan membolehkan peserta pasaran mula mereka bentuk dan menetapkan harga produk kewangan berdasarkan ARR. Di samping pelaksanaan ini, Bank juga berhasrat memperkenalkan penambahbaikan tambahan terhadap rangka kerja KLIBOR yang sedia ada, termasuk merangkumkan sandaran, bagi mempertingkatkan integriti dan kebolehpercayaannya sebagai penanda aras kewangan. Prospek risiko kredit yang lebih lemah dan pemulihan ekonomi yang tidak menentu meningkatkan kos kredit dan menjejaskan pendapatan Impak pandemik terhadap paras pinjaman terjejas bank sebahagian besarnya kekal terkawal pada separuh kedua tahun 2020 disebabkan oleh program bantuan bayaran balik pinjaman yang ditawarkan oleh bank-bank bagi membantu peminjam isi rumah dan perniagaan mengurus kekangan aliran tunai sementara. Susulan tamatnya moratorium pinjaman secara automatik, nisbah pinjaman terjejas kasar sistem perbankan meningkat sedikit kepada 1.6% (Jun 2020: 1.4%; purata 2019: 1.5%) (Rajah 2.8), didorong terutamanya oleh peningkatan yang sedikit dalam pinjaman terjejas isi rumah. Walau bagaimanapun, dengan ketidakpastian berhubung dengan pandemik yang sedang berterusan dan pemulihan ekonomi yang tidak sekata, prospek risiko kredit kekal mencabar. Bahagian pinjaman secara keseluruhan yang diklasifikasikan sebagai Tahap 28 di bawah

Public Notice

15 Okt 2021

Senarai Amaran Pengguna Kewangan telah dikemaskini

https://www.bnm.gov.my/-/senarai-amaran-pengguna-kewangan-telah-dikemaskini-2

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/senarai-amaran-pengguna-kewangan-telah-dikemaskini-2&languageId=ms_MY

Reading: Senarai Amaran Pengguna Kewangan telah dikemaskini Share: Senarai Amaran Pengguna Kewangan telah dikemaskini Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1155 pada Jumaat, 15 Oktober 2021 15 Okt 2021 Bank telah mengemas kini Senarai Amaran Pengguna Kewangan. Senarai ini terdiri daripada syarikat dan laman web yang tidak dibenarkan atau diluluskan di bawah undang-undang dan pentadbiran berkaitan yang ditadbir oleh BNM. Sila maklum bahawa senarai ini tidak lengkap dan hanya berfungsi sebagai panduan kepada orang ramai berdasarkan maklumat dan pertanyaan yang diterima oleh BNM. Syarikat berikut ditambahkan ke dalam senarai: Noor Investment Scheme Malaysia Tadawul Investment Scheme Arris Merchant Bank Senarai akan dikemas kini secara berkala untuk rujukan orang ramai. Untuk melihat senarai yang dikemas kini, klik pada pautan ini.     Bank Negara Malaysia 15 Oktober 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

15 Okt 2021

Extension of Grace Period for Application for Registration of Currency Processors Under Section 70(1) of Currency Act 2020

https://www.bnm.gov.my/-/pelanutan-pemproses-matawang-mac2022

https://www.bnm.gov.my/documents/20124/2629002/Appendix_II_Registration_Form_For_Currency_Processor.pdf, https://www.bnm.gov.my/documents/20124/2629002/Appendix_I_Gazette_Order.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/pelanutan-pemproses-matawang-mac2022&languageId=ms_MY

Reading: Share: Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1017 pada Jumaat, 15 Oktober 2021 15 Okt 2021 Pursuant to section 70(1), read together with section 63(3) of the Currency Act 2020, Bank Negara Malaysia (BNM) hereby extends the grace period for submission of application for registration of currency processors until 31 March 2022. Further information regarding the registration will be announced at a later date. For clarification, please email [email protected] and/or [email protected]. See also: Gazette Order Application Form to be a Registered Currency ProcessorBank Negara Malaysia 15 Oktober 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Page 1 of 11 Jabatan Pengurusan dan Operasi Matawang APPLICATION FORM TO BE A REGISTERED CURRENCY PROCESSOR 1. This Form is specified by Bank Negara Malaysia (BNM) under paragraph 25(1)(b) of the Currency Act 2020 (CA2020) for the purpose of an application to be registered as a currency processor under subsection 26(1) of the CA2020. Applicant shall submit a cover letter bearing the company’s letterhead, a duly completed application form and appendices (with clear labelling) to- Pengarah Jabatan Pengurusan dan Operasi Matawang Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur 2. This Form consists of six (6) parts, as follows: Part 1: Applicant’s particulars Part 2: Information of Director, CEO, Senior Management and Shareholder with controlling interest on the Applicant Part 3: Financial Resources Part 4: Premises and Security Part 5: Currency Operations Part 6: Others REMINDER  An applicant must properly assess whether its business falls within the definition of currency processing business under subsection 2(1) of the CA2020 and fulfills the registration requirements under the Currency (Registration Requirements) Order 2021 [P.U. (A) 127/2021] before submitting an application to BNM and paying the non-refundable processing fee of RM500 as required under the Currency (Processing Fees for Application of Registration of Currency Processing Business) Regulations 2020 [P.U. (A) 281/2020].  An applicant shall ensure all information provided is true, accurate, complete and not misleading. Please label supporting documents or appendices clearly.  Only complete application will be processed. Incomplete application will be REJECTED or RETURNED to the applicant.  Do NOT alter/amend any word or sentence in this Form. Page 2 of 11 Jabatan Pengurusan dan Operasi Matawang Part 1: Applicant’s particulars (a) Background Name of company Office Telephone no. Business Registration (BRIC) / Certificate of Incorporation No. Office Fax no. Office Email Address Date of incorporation Month/Year of commencement of business operations Business address Type of Organisation Private Limited Limited Others (please specify) _____________________________________________ Nature of Business Collect currency Sort currency by authenticity and quality Pack currency by quality, quantity and denomination Others (please specify) _____________________________________________ Documents to be enclosed: Please tick (X) and provide a certified true copy of the following documents with the Appendix label: Appendix Companies Act 1965 Companies Act 2016 A Form 9 – Certificate of Incorporation Section 17 – Notice of Registration B Memorandum & Articles of Association Constitution C Form 49 – Return Giving Particulars in Register of Directors, Managers and Secretaries and Changes of Particulars Section 58 & 236(2) - Notice of Particulars and Changes of Director, Manager and Secretary D Form 24 - Return of Allotment of Shares Section 75 to 78 – Allotment of Shares E Form 23 - Certificate Under Section 52(3) of the Companies Act 1965 that a Company is Entitled to Commence Business [Applicable for Public Limited Company only] Note: An applicant who commenced business prior to coming into force of the Companies Act 2016 shall submit the above documents pursuant to the Companies Act 1965. Other Documents F Applicant’s licence issued by Minister of Home Affairs (Menteri Dalam Negeri) under the Private Agencies Act (PAA) 1971 or licence of the applicant’s outsourcing party (for currency collection) under PAA 1971. (b) Corporate structure (applicable if applicant is part of a group of companies) Document to be enclosed: Please tick (X) and provide the following document with the Appendix label: Appendix G: Corporate group structure (in a diagram), with adequate details of the parent company, branches, subsidiaries and related companies, including ownership structure and percentage of shareholding (in separate sheet of paper with brief explanation) Page 3 of 11 Jabatan Pengurusan dan Operasi Matawang (c) List of Board of Directors (Board) and Chief Executive Officer (CEO) of an applicant If space provided is insufficient, please provide in separate sheet No. Name NRIC / Passport Number Designation or Type of directorship (e.g. non-executive/executive, independent/non-independent) 1. 2. 3. 4. 5. (d) Organisational structure of the Applicant Document to be enclosed: Please tick (X) and provide the following document with the Appendix label: Appendix H: Current organisational chart, showing Board of Directors, CEO, departments and control functions (i.e. internal audit, compliance and risk management) and with reporting lines (in separate sheet of paper with brief explanation) Note: An applicant is required to pay a processing fee of RM500 via RENTAS with TRN code ANT01, account number 1554095430 (Akauntan Negara Malaysia I/Pejabat-Kecil Terimaan) and furnish the receipt or proof of payment together with this Form. Applicant will be informed in writing of BNM’s decision on the application. FOR BANK NEGARA MALAYSIA USE ONLY Attended by: _____________________________ _______________ Officer’s Signature & Official Seal Date Approved / Reject by: ______________________________ ________________ Signature Date The registration requirements and operations are subject to the provisions of the Currency Act 2020. [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 4 of 11 Jabatan Pengurusan dan Operasi Matawang Part 2: Detailed Information of Director, CEO, Senior Management1 and Shareholder with controlling interest2 on the Applicant (Please make copies of Part 2 and fill up specifically for each individual) (a) Designation of officers Please tick (X) where applicable. Tick more than one box if you hold more than one position. Please attach latest passport sized photograph here 1. Director 2. Chief Executive Officer* (*or any person with similar rank or position, please specify: ______________________________________________________) 3. Senior Management (please state designation): _________________________________ 4. Shareholder with controlling interest (b) Particulars* *For Directors, please complete Part 2(b), (e), (f) and (g) *For others, please complete Part 2(b), (c), (d), (e), (f) and (g) Name Certified true copy documents to be enclosed: Appendix I: Security Vetting Results from Polis DiRaja Malaysia (PDRM) or Kementerian Dalam Negeri (KDN) Appendix J: Copy of NRIC/Passport of the individual Appendix K: Insolvency report from Malaysia Department of Insolvency NRIC/Passport number /BRIC Nationality (not applicable for company) Current address Mobile number Email address Office number (c) Working experience (for the last 5 years) (If space provided is insufficient, please provide in separate sheet) No. Position/ Designation Organisation/Company Business activity Duration of service (Year to year) 1. 2. 3. 4. 5. (d) Do you have working experience in cash operations? Yes. (Please state such experience in part c above) No 1 Any person concerned with the operation or management of currency processing company, e.g. Head of Department, Chief Operation Officer, Chief Finance Officer and etc. 2 An individual or a corporate shareholder who has significant influence over the applicant’s action. Page 5 of 11 Jabatan Pengurusan dan Operasi Matawang (e) Are you involved or have been involved (e.g. holds a controlling interest, director, CEO or senior management) in any other business regulated by BNM? If yes, please complete the following: No. Name of business Business activity Type of interest (e.g. shareholder, director, CEO, senior management) Year 1. 2. 3. 4. 5. (f) Statutory Declaration I, _____________________ (name), of NRIC / Passport No. ____________________ do solemnly and sincerely declare that: A: (i) I have not been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia; (ii) I have not held the position of a director or CEO or been directly concerned in the operation or management of any company which has been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia; (iii) I have passed security vetting conducted by KDN or PDRM. (iv) I am not an undischarged bankrupt; (v) I am a person of probity, personal integrity and good reputation; and (vi) I have managed my financial affairs properly and prudently. B: I am*: (i) representing the interest of __________________; or (ii) not representing the interests of any person; C: All the information submitted above is true. This declaration was made before me: (Signature of Sessions Court Judge, Magistrate or Commissioner For Oaths) Date:  Delete whichever not applicable/relevant [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 6 of 11 Jabatan Pengurusan dan Operasi Matawang (g) Consent for Disclosure of Information Please complete where applicable: 1. For individual who has completed Part 2 of this form. As provided under item (1) of Schedule 11 read together with section 134 of the Financial Services Act 2013 (FSA), item (1) of Schedule 11 read together with section 146 of the Islamic Financial Services Act 2013 (IFSA) and section 120(1)(c) of the Development Financial Institutions Act 2002 (DFIA), I authorize any licensed business under FSA, IFSA, and prescribed institutions under DFIA where I maintain my accounts, or has financial liabilities, to disclose to Bank Negara Malaysia, any information relating to my accounts and affairs including financial liabilities for the purpose of processing this application. ______________ _________________ __________________ __________________ (Date) (Signature) (Name in capital letter) (Designation) 2. For company (corporate shareholder) which has completed Part 2 of this form. As provided under item (1) of Schedule 11 read together with section 134 of the Financial Services Act 2013 (FSA), item (1) of Schedule 11 read together with section 146 of the Islamic Financial Services Act 2013 (IFSA) and section 120(1)(c) of the Development Financial Institutions Act 2002 (DFIA), I authorize any licensed business under FSA, IFSA, and prescribed institutions under DFIA where the company maintains its accounts, or has financial liabilities, to disclose to Bank Negara Malaysia, any information relating to the company’s accounts and affairs including financial liabilities for the purpose of processing this application. [Consent should be given by person authorised by the Board of Directors]. ______________ _________________ __________________ __________________ (Date) (Signature) (Name in capital letter) (Designation) [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 7 of 11 Jabatan Pengurusan dan Operasi Matawang Part 3: Financial Resources Reminder: An applicant shall meet the minimum requirements of net worth and working capital of RM100,000 respectively. Current and projected capital position This is intended to assess the applicant’s ability to maintain the shareholders’ funds requirement taking into consideration projected profit/loss. What is the current amount of the company’s shareholders’ funds? RM Share capital (ordinary shares only) (+) Reserves - including share premium and general reserve fund (+) Retained Profit or (-) Accumulated Losses (+) Audited Profit for the period or (-) Unaudited Loss for the period (-) Intangible assets (including goodwill, capitalised development costs, licenses and intellectual properties) (=) Shareholders’ Funds Documents to be enclosed as evidence: Please tick (X) and provide the following documents with the Appendix label: Appendix L : Latest audited financial statements or latest unaudited management account showing adequate cash balances or cash balances equivalents, as well as, positive shareholders’ funds [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 8 of 11 Jabatan Pengurusan dan Operasi Matawang Part 4: Premises and Security (a) Is the company’s premises exclusively used by the applicant? Yes No (b) Is the company’s premises complied with the Street, Drainage and Building Act 1974 and Town and Country Planning Act 1976? (E.g. no alteration or renovation has been made to the original structure of the building or premises unless with the approval) Yes No (c) Is the company’s premises in compliance with safety requirements imposed by Jabatan Bomba dan Penyelamat Malaysia? Yes No (d) Compliance to system and security No. Description Yes / No Remarks (if yes) 1. Security control room with central monitoring system Yes No 2. Closed-circuit television surveillance system (CCTV) with coverage inside the premise and surrounding premise. Yes No 3. Trespass, theft and robbery prevention system Yes No coverage surrounding the premises: internal and external internal only external only 4. Patrol activity and security control at all times (24 hours/7 days) by armed security guards who have passed security vetting by relevant agency under the Ministry of Home Affairs (KDN) Yes No in-house guard engaged security company licensed by KDN 5. Visitor control or management system Yes No 6. A vault or safe room Yes No 7. An adequate fire-fighting equipment or fire safety installation in relation to the use of the premises as certified by the Director General of Fire and Rescue under the Fire Services Act 1988 Yes No heat or smoke detector fire alarm fire extinguisher others, please specify _______ _________________________ 8. Safety equipment to handle emergency including first aid kit and safety signage Yes No 9. Safety gear including safety boot, glove, face mask and goggle. Yes No safety boot face mask glove goggle others, please specify _______ _________________________ (e) Does the company possess guideline to mitigate occupational safety and health risk at workplace (e.g. work-related incidents that is accident, injury, diseases and damage of property)? Yes No Documents to be enclosed: Please tick (X) and provide the certified true copy of the following documents with the Appendix label: Appendix M: Document/Agreement indicating applicant’s compliance on item 4(a) Appendix N: Document/Agreement indicating applicant’s compliance on item 4(b) Appendix O: Document/Agreement indicating applicant’s compliance on item 4(c) Appendix P: Document/Guideline on occupational safety and health at workplace Page 9 of 11 Jabatan Pengurusan dan Operasi Matawang Part 5: Currency Operations (a) Currency Collection 1. How does the company perform currency collection? By itself Outsource (please provide supporting document as evidence e.g. certify true copy of contract / agreement between the company and the outsource company) 2. If outsource, is the outsourced company licensed by Menteri Dalam Negeri? Yes (If yes, please provide certified true copy of the licence) No (b) Currency Processing Equipment and Machine (i) Are the currency processing equipment and machine capable to: (Please tick (X) where applicable. The below questions are applicable to Malaysian Currency only) Currency Note Coin 1. Detect counterfeit currency? Yes No Yes No 2. Separate (reject) counterfeit currency? Yes No Yes No 3. Sort currency by quality? Yes No Yes No 4. Sort currency by quantity? Yes No Yes No 5. Sort currency by denomination? Yes No Yes No 6. Pack currency by quality? Yes No Yes No 7. Pack currency by quantity? Yes No Yes No 8. Pack currency by denomination? Yes No Yes No Note: For item 6, 7, and 8, If the equipment and machine are unable to perform such function, please specify the method used by the company to perform the activities, _______________________ ____________________________________________________________________________ (ii) List of currency processing equipment and machine (If space provided is insufficient, please provide in separate sheet) No. Type2 Manufacturer Name / Model Purchase Date Number of Units 1. 2. 3. 4. 5. 2 E.g. Banknote Processing Systems or Compact Systems for banknote and/or coin processing machine. Page 10 of 11 Jabatan Pengurusan dan Operasi Matawang (iii) Does the company has standard operating procedures on currency processing? Yes No Documents to be enclosed: Please tick (X) and provide the certified true copy of the following documents with the Appendix label: Appendix Q: All relevant Standard Operating Procedures related to currency processing Part 6: Others (a) Does the company has a business continuity plan? Yes No (b) Does the company has insurance or takaful coverage to cover at all times including during transit on the total value of currencies of its clients which will be processed by the company or in the company’s possession? Yes No Documents to be enclosed: Please tick (X) and provide the certified true copy of the following documents with the Appendix label: Appendix R: Document / guideline of the business continuity plan on cash operation Appendix S: Latest Insurance / Takaful policy agreement issued by the Insurance / Takaful Operators [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 11 of 11 Jabatan Pengurusan dan Operasi Matawang Declaration on the information provided and consent for disclosure of information 1. The company confirms that all information given in this Form and the documents submitted are true, accurate, complete and not misleading, and understands that if the company furnishes any information required which is false, inaccurate, misleading or incomplete, the application will be rejected by Bank Negara Malaysia (BNM). In the event the company has registered, it may be deregistered; 2. The company applies for registration under section 25 of the Currency Act 2020 to carry on Currency Processing Business based on information provided in this application and any additional information provided to BNM in the course of the application; and 3. The company will promptly notify BNM in writing of any changes in the information which the company has provided and supply any other relevant information which may come to light in the period during which its application is being considered by BNM. The company acknowledges that BNM may disclose any information provided in the performance of its statutory functions or otherwise as may be specifically authorised by law. I, the authorised signatory of ____________________________ (name of company) and responsible for the management of the company: (a) Make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act 1960; and (b) As provided under item (1) of Schedule 11 read together with section 134 of the Financial Services Act 2013 (FSA), item (1) of Schedule 11 read together with section 146 of the Islamic Financial Services Act 2013 (IFSA) and section 120(1)(c) of the Development Financial Institutions Act 2002 (DFIA), I hereby authorize any licensed business under FSA, IFSA, and prescribed institutions under DFIA where the applicant maintains its accounts, or has financial liabilities, to disclose to BNM, any information relating to the applicant’s accounts and affairs including financial liabilities for the purpose of processing this application. ___________ __________________ __________________ (Date) (Signature) (Name in capital letter) _____________________ _______________________ (Designation) (Official Company Stamp) This declaration was made before me: (Signature of Session Court Judge, Magistrate or Commissioner For Oaths) Date: 23 Mac 2021 23 March 2021 P.U. (A) 127 WARTA KERAJAAN PERSEKUTUAN FEDERAL GOVERNMENT GAZETTE PERINTAH MATA WANG (KEHENDAK PENDAFTARAN) 2021 CURRENCY (REGISTRATION REQUIREMENTS) ORDER 2021 DISIARKAN OLEH/ PUBLISHED BY JABATAN PEGUAM NEGARA/ ATTORNEY GENERAL’S CHAMBERS P.U. (A) 127 2 AKTA MATA WANG 2020 PERINTAH MATA WANG (KEHENDAK PENDAFTARAN) 2021 PADA menjalankan kuasa yang diberikan oleh perenggan 25(1)(a) Akta Mata Wang 2020 [Akta 827], Bank membuat perintah yang berikut: Nama 1. Perintah ini bolehlah dinamakan Perintah Mata Wang (Kehendak Pendaftaran) 2021. Kehendak pendaftaran 2. Seorang pemohon bagi pendaftaran untuk menjalankan suatu perniagaan pemprosesan mata wang hendaklah memenuhi semua kehendak pendaftaran sebagaimana yang dinyatakan dalam Jadual. JADUAL [Perenggan 2] KEHENDAK PENDAFTARAN 1. Pemohon ialah suatu syarikat yang diperbadankan dan berdaftar atau disifatkan telah didaftarkan di bawah Akta Syarikat 2016 [Akta 777] dengan nilai bersih minimum dan modal kerja masing-masing sebanyak satu ratus ribu ringgit. 2. Pemohon, dalam menjalankan perniagaan mengumpul mata wang kertas atau mata wang syiling bagi atau bagi pihak orang lain, dilesenkan atau mengguna khidmat mana-mana orang yang dilesenkan di bawah seksyen 3 Akta Agensi Persendirian 1971 [Akta 27] untuk menjalankan suatu perniagaan agensi persendirian bagi maksud mengadakan pengawalan dan perlindungan bagi keselamatan harta atau perniagaan orang lain. P.U. (A) 127 3 3. Pemohon hendaklah menggunakan suatu premis yang ditetapkan bagi penggunaan eksklusif pemohon untuk menjalankan perniagaan pemprosesan mata wang. 4. Premis yang digunakan oleh pemohon untuk menjalankan perniagaan pemprosesan mata wang hendaklah— (a) dibina mengikut pelan dan spesifikasi yang diluluskan di bawah Akta Jalan, Parit dan Bangunan 1974 [Akta 133] dan Akta Perancangan Bandar dan Desa 1976 [Akta 172]; dan (b) dilengkapi dengan ciri-ciri keselamatan yang termasuklah— (i) suatu sistem kawalan keselamatan yang merangkumi— (A) suatu bilik kawalan keselamatan yang dipasang dengan suatu sistem pemantauan berpusat; (B) suatu sistem pengawasan televisyen litar tertutup yang dipasang di sekeliling kawasan dalaman dan luaran premis itu; (C) suatu sistem pencegah pencerobohan, kecurian dan rompakan; dan (D) suatu sistem kawalan atau pengurusan pelawat; (ii) pengawal keselamatan yang telah lulus saringan tapisan keselamatan yang dijalankan oleh pihak berkuasa yang berkaitan; (iii) suatu aktiviti rondaan keselamatan di sekeliling premis itu oleh pengawal keselamatan bersenjata pada setiap masa; P.U. (A) 127 4 (iv) suatu bilik kebal atau bilik simpanan selamat; (v) suatu kelengkapan menentang kebakaran atau pepasangan keselamatan kebakaran yang mencukupi berhubung dengan penggunaan premis itu sebagaimana yang diperakukan oleh Ketua Pengarah Bomba dan Penyelamat di bawah Akta Perkhidmatan Bomba 1988 [Akta 341]; (vi) suatu kelengkapan keselamatan bagi mengendalikan apa-apa kecemasan termasuk peti pertolongan cemas dan papan tanda keselamatan; dan (vii) suatu alat perlindungan diri termasuk kasut keselamatan, sarung tangan, topeng muka dan gogal. 5. Pemohon hendaklah menggunakan peralatan dan mesin pemprosesan mata wang yang— (a) berupaya untuk mengesan dan menyisih mata wang kertas atau mata wang syiling yang palsu; (b) berupaya untuk mengisih dan membungkus mata wang kertas atau mata wang syiling mengikut kualiti sebagaimana yang ditentukan oleh Bank; dan (c) berupaya untuk mengisih dan membungkus mata wang kertas atau mata wang syiling mengikut kuantiti dan denominasi. 6. Pengarah, ketua pegawai eksekutif dan mana-mana orang yang terlibat dalam pengendalian atau pengurusan pemohon itu— P.U. (A) 127 5 (a) tidak pernah disabitkan atas suatu kesalahan yang berhubungan dengan ketidakjujuran, fraud, penerimaan suapan atau rasuah di bawah mana-mana undang-undang bertulis di dalam atau di luar Malaysia; (b) tidak pernah memegang jawatan pengarah atau ketua pegawai eksekutif, atau terlibat secara langsung dalam pengendalian atau pengurusan, mana-mana syarikat yang pernah disabitkan atas suatu kesalahan yang berhubungan dengan ketidakjujuran, fraud, penerimaan suapan atau rasuah di bawah mana-mana undang-undang bertulis di dalam atau di luar Malaysia melainkan jika dia membuktikan bahawa kesalahan itu telah dilakukan tanpa pengetahuannya, persetujuannya atau pembiarannya; (c) telah lulus saringan tapisan keselamatan yang dijalankan oleh pihak berkuasa yang berkaitan; (d) bukan seorang bankrap yang belum dilepaskan; (e) ialah seorang yang jujur, berintegriti dan bereputasi baik; dan (f) telah menguruskan hal ehwal kewangannya dengan baik dan berhemat. 7. Pemohon mempunyai suatu tatacara kendalian bagi pemprosesan mata wang dan pelan kesinambungan perniagaan. 8. Pemohon telah mendapatkan suatu perlindungan insurans atau takaful untuk melindungi pada setiap masa nilai keseluruhan mata wang pelanggannya yang akan diproses oleh pemohon atau yang berada dalam milikan pemohon itu. P.U. (A) 127 6 Dibuat 22 Mac 2021 [BNM/JUN/1120/05/09; PN(PU2)295] DATUK NOR SHAMSIAH BINTI MOHD YUNUS Gabenor Bank Negara Malaysia P.U. (A) 127 7 CURRENCY ACT 2020 CURRENCY (REGISTRATION REQUIREMENTS) ORDER 2021 IN exercise of the powers conferred by paragraph 25(1)(a) of the Currency Act 2020 [Act 827], the Bank makes the following order: Citation 1. This order may be cited as the Currency (Registration Requirements) Order 2021. Registration requirements 2. An applicant for registration to carry on a currency processing business shall fulfil all registration requirements as specified in the Schedule. SCHEDULE [Paragraph 2] REGISTRATION REQUIREMENTS 1. The applicant is a company incorporated and registered or deemed to have been registered under the Companies Act 2016 [Act 777] with a minimum net worth and working capital of one hundred thousand ringgit respectively. 2. The applicant, in carrying on a business of collecting currency note or currency coin for or on behalf of another person, is licensed or engages any person licensed under section 3 of the Private Agencies Act 1971 [Act 27] to carry on a business of private agency for the purpose of providing guards and protection for the security of the property or business of other person. 3. The applicant shall use a premises which is designated for the exclusive use of the applicant to carry on a currency processing business. P.U. (A) 127 8 4. The premises used by the applicant to carry on a currency processing business shall be— (a) constructed in accordance with the plans and specifications approved under the Street, Drainage and Building Act 1974 [Act 133] and the Town and Country Planning Act 1976 [Act 172]; and (b) equipped with security features which includes— (i) a security control system encompassing— (A) a security control room which is installed with a central monitoring system; (B) a closed-circuit television surveillance system installed at the surrounding of the internal and external areas of the premises; (C) a trespass, theft and robbery prevention system; and (D) a visitor control or management system; (ii) security guards who have passed security vetting conducted by the relevant authorities; (iii) a security patrol activity at the surrounding of the premises by armed security guards at all times; (iv) a vault or safe room; P.U. (A) 127 9 (v) an adequate fire-fighting equipment or fire safety installation in relation to the use of the premises as certified by the Director General of Fire and Rescue under the Fire Services Act 1988 [Act 341]; (vi) a safety equipment to handle any emergency including first aid kit and safety signage; and (vii) a safety gear including safety boots, glove, face mask and goggle. 5. The applicant shall use currency processing equipment and machine which are— (a) capable to detect and separate counterfeit currency note or currency coin; (b) capable to sort and pack currency note or currency coin by quality as determined by the Bank; and (c) capable to sort and pack currency note or currency coin by quantity and denomination. 6. The director, chief executive officer and any person concerned with the operation or management of the applicant— (a) has not been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia; (b) has not held the position of a director or chief executive officer, or been directly concerned in the operation or management, of any company which has been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia unless he proves that such offence was committed without his knowledge, consent or connivance; P.U. (A) 127 10 (c) has passed security vetting conducted by the relevant authorities; (d) is not an undischarged bankrupt; (e) is a person of probity, personal integrity and good reputation; and (f) has managed his financial affairs properly and prudently. 7. The applicant has an operating procedure on currency processing and a business continuity plan. 8. The applicant has obtained an insurance or a takaful coverage to cover at all times the total value of currencies of its clients which will be processed by the applicant or in the applicant’s possession. Made 22 March 2021 [BNM/JUN/1120/05/09; PN(PU2)295] DATUK NOR SHAMSIAH BINTI MOHD YUNUS Governor Central Bank of Malaysia

Public Notice

01 Okt 2021

Invitation to the 8th Malaysia Statistics Conference (MyStats 2021): "Navigating Resilient Recovery Through Statistics"

https://www.bnm.gov.my/-/8th-mystats-2021

https://www.bnm.gov.my/documents/20124/2629002/Poster+Short+Courses+MyStats+2021.pdf, https://www.bnm.gov.my/documents/20124/2629002/MyStats+Conference+2021+Programme.pdf

Presentation PowerPoint P NAVIGATING RESILIENT RECOVERY VIRTUAL SHORT COURSE FOR THE 8th MALAYSIA STATISTICS CONFERENCE 2021 THROUGH STATISTICS 2021 Bruno Tissot Head of Statistics and Research Support Bank for International Settlements (BIS) • Graduate from École Polytechnique (Paris) and French Statistical Office INSEE and has been working at BIS since 2001. He is also the head of the Secretariat of the Irving Fisher Committee on Central Bank Statistics (IFC). AGENDA Registration 8.15 am – 9.00 am Register here before 8/10/2021 Len Cook Institute of Governance and Policy Studies Victoria University of Wellington, New Zealand • Government Statistician of New Zealand (1992-2000) and a National Statistician of the United Kingdom and Registrar-General of England and Wales (2000-2005). Prof. Madya. Dr. Arifah Bahar Associate Professor Universiti Teknologi Malaysia • PhD in Stochastic Dynamics from University of Strathclyde, UK. Research interest on stochastic modelling of groundwater, stochastic dynamical system, and uncertainty quantification. James William Tebrake Assistant Director and Chief of the Real Sector Statistics Division International Monetary Fund (IMF) • Master degree graduate in Economics from Carleton University. Experienced in macroeconomic statistics, covering in particular national accounts and external sector statistics. Prof. Dr. Ibrahim Mohamed Professor, Institute of Mathematical Sciences Universiti Malaya • PhD in Statistics from UITM. Main research area concerns with the occurrence of outlier in different types of data including circular, time series and survival data. President of Institute of Statistics Malaysia (ISMy). Prof. Dr. Sallahuddin Hassan Professor Universiti Utara Malaysia • PhD in Economics from Universiti Malaya. An expert in applied econometrics, investment, monetary and macroeconomic. Published many articles in ISI-indexed journal, SCOPUS indexed journal, and some refereed journals at the international and national levels. SPEAKERS Parallel Session 1 Session 1a: Forecasting of Economic Indicators During the COVID-19 Pandemic Using Time Series Method - Prof. Dr. Sallahuddin Hassan Session 1b: Linking Climate-related and Macroeconomic/ Financial Data - James William Tebrake Session 1c: Crescent Moon Sighting in Malaysia - A Comprehensive Approach with Statistical Data Science - Prof. Dr. Ibrahim Mohamed 9.00 am – 12.00 pm Break12.00 pm – 2.00 pm Parallel Session 2 Session 2a: Learning from Case Studies: Some Examples from Statistical Offices in New Zealand and United Kingdom - Len Cook Session 2b: Governance in Statistical Data Sharing - Bruno Tissot Session 2c: Statistics Publication Workshop - Prof. Madya. Dr. Arifah Bahar 2.00 pm – 5.00 pm 18 OCTOBER PARALLEL SESSION 1 1a. Forecasting of Economic Indicators During the COVID-19 Pandemic Using Time Series Method Prof. Dr. Sallahuddin Hassan Participants will be introduced to the principles and applications of selected univariate forecasting techniques in this course and also will be trained in using smoothing methods, decomposition time-series and Box-Jenkins methods. This course emphasizes on the issues of estimation, interpretation and application of these methods. Besides, this course will also introduced participants to NCSS Statistical Software for forecasting exercises. P NAVIGATING RESILIENT RECOVERY VIRTUAL SHORT COURSE FOR THE 8th MALAYSIA STATISTICS CONFERENCE 2021 THROUGH STATISTICS 2021 1c. Crescent Moon Sighting in Malaysia – A Comprehensive Approach with Statistical Data Science Prof. Dr. Ibrahim Mohamed This session will share the monthly crescent moon sightings activities conducted under JAKIM. This course will also introduce the variables measured during the activities and describe the data collected for the past 20 years at Teluk Kemang Obseratory Station. In addition, current initiatives in formulating comprehensive system of data sharing in Malaysia for better decision makings, namely, National Rukyah Hilal Malaysia (myRHK) and e-Hilal UM also will be shared in this session. 1b. Linking Climate-related and Macroeconomic/Financial Data James William Tebrake This course will enlighten the audience on latest global initiative on climate change including IMF Climate Change Dashboard to the growing need for climate change related data used in macroeconomic and financial policy analysis. This comprises economic activity and climate indicators; cross border indicators; financial, physical, and transition risk indicators; and government policy indicators. 18 OCTOBER PARALLEL SESSION 2 2a. Learning from Case Studies: Some Examples from Statistical Offices in New Zealand and United Kingdom Len Cook This course will share about unexpected events which have necessitated a change in practice, methods, sources, or statistical outputs to be quickly decided on, and implemented with high priority. Besides, this course will also elaborate about several examples from New Zealand and United Kingdom of the type of strategies that assisted recovery and identify the insights gained during implementation that would have altered the recovery strategy had they been anticipated for the major events. P NAVIGATING RESILIENT RECOVERY VIRTUAL SHORT COURSE FOR THE 8th MALAYSIA STATISTICS CONFERENCE 2021 THROUGH STATISTICS 2021 2c. Statistics Publication Workshop Prof. Madya. Dr. Arifah Bahar This short course exposes participants to local journals that publishes statistical sciences findings that have significant contribution to knowledge and wide range of applications. The scope and submission procedures of each journal will be presented and guideline to write good manuscript will also be presented. 2b. Governance in Statistical Data Sharing Bruno Tissot This course will elaborate on data governance best practices in data sharing to make the best use of the data available across agencies. This includes multiple data governance frameworks, how new information sources can complement official statistics, strategies to improve data usage for policy purposes, evolution of role from being a compiler to curator and agencies in NSS to improve data governance especially on data sharing going forward. 18 OCTOBER 8th MALAYSIA STATISTICS CONFERENCE 2021 “NAVIGATING RESILIENT RECOVERY THROUGH STATISTICS” Date : 20th October 2021 (Wednesday) Time : 8.30 am – 5.00 pm Link : MyStats Conference 2021 Tentative 8.00 am 8.30 am : : Registration (online) National Anthem Department of Statistics Malaysia Official Song Statistik... Segalanya Pasti Doa Recital 8.45 am : Welcoming Address by: YBhg. Dato’ Sri Dr. Mohd Uzir Mahidin Chief Statistician Malaysia Department of Statistics Malaysia (DOSM) 8.50 am 9.15 am 9.30 am : : : Keynote Address by: YB Dato’ Sri Mustapa Mohamed Minister in the Prime Minister’s Department (Economy) Montage Plenary Session: Navigating Resilient Recovery Through Statistics Moderator: YBhg. Dato’ Sri Dr. Mohd Uzir Mahidin Chief Statistician Malaysia, DOSM Panellists: 1. Dr. Stephen Penneck President of International Statistical Institute 2. Prof. Geoffrey Williams Professor of Malaysia University of Science and Technology 3. Prof. Yeah Kim Leng Director, Jeffrey Cheah Institute on Southeast Asia 11.00 am : Parallel Sessions 1 (PS1): PS1(a): Optimising Potential of Granular Data in Evidence Based Decision Making Moderator: Puan Norhayati Jantan Senior Director National Accounts Statistics Division, DOSM Presenters: 1. Nowcasting Private Consumption with Credit Registry Data (Zhong Fei Ong et al, BNM) 2. A Borrower-First Approach to Multi-Period Household Stress Tests (Aaron Luke et al, BNM) https://teams.microsoft.com/l/meetup-join/19%3ameeting_NDE2ODU1NWEtNjliYi00MzI3LWJlMWItNjdjMDk5YTg1ZWU4%40thread.v2/0?context=%7b%22Tid%22%3a%22aac700cd-c721-4651-98dd-b78544c94fd6%22%2c%22Oid%22%3a%228ec26873-5b24-4d4d-afc9-12bea907194f%22%7d 3. The importance of administrative data for statistical purposes (Nur Nabila Najwa Abu Bakar et al, DOSM) : PS1(b): Emerging Statistical Models, Methodologies & Application Moderator: Prof. Dr. Yong Zulina Binti Zubairi Associate Vice-Chancellor (International), UM Presenters: 1. An Empirical Study on the Returns to Scale of Malaysia’s Manufacturing Sector (Rozita Misran et al, DOSM) 2. Analysis of Malaysia Input-output Table at Constant and Current Prices (Nurul Naqiah Mansor et al, DOSM) 3. A Case Study of Malaysia’s FDI in Manufacturing sector towards Exports of Electrical and Electronics (E&E) (Zuradi Jusoh et al, DOSM) : : PS1(c): Computing Platforms for Big Data Analytics and Artificial Intelligence Moderator: Dr. Ong Hong Hoe Head of Data Science and Analytics, BNM Presenters: 1. An Alternative Local Crescent Moon Visibility Criteria: A Case Study of Teluk Kemang, Malaysia (Zuhaili Mohd Nasir et al, UM) 2. Data-Driven Approach using Modin: A Scalable Parallel Processing for Larger Data Frames (Ahmad Najmi Ariffin, DOSM) 3. Application of Topological Data Analysis and Machine Learning to Flooding Events in Nigerian Zones (Felix O. Ohanuba et at, USM) 12.00 pm : Break 2.00 pm : Parallel Session 2 (PS2): : PS2 (a): Optimising Potential of Granular Data in Evidence Based Decision Making Moderator: Encik Saiful Anuar Husin Manager of Data Management and Statistics, BNM Presenters: 1. Estimates of Poverty Rates Post COVID-19 Pandemic in Malaysia (Muhamad Hilmi Abdul Rahman et al, UM) 2. Labour Market Information: The Development of Job Market Insights in Malaysia Context (Betty Hasan et al, DOSM) 3. Managing and Leveraging on the Benefits of Data Flows in the Financial Sector (Chuah Lay Lian, BNM) : PS2(b): Data Intelligence: Transforming Statistics to Meaningful Insights Moderator: Dr. Norshahida Shaadan Senior Lecturer of Statistics, UiTM Presenters: 1. Repercussion of COVID-19 Towards Market and Command Economic Points in Sarawak (Anisa Mohammad Azahari et al, DOSM) 2. Data Visualization for Malaysia’s External Trade Performance Using Tableau Desktop (Shamsuhasnizam Shamsudin et al, DOSM) 3. Unemployment News Type in Malaysia By Topic Modelling and Cluster Analysis Approach (Faiza Rusrianti Tajul Arus, DOSM) : PS2(c): Developing Niche Roles as Statistician and Data Scientist Moderator: Puan Noraliza Mohamad Ali Senior Deputy Executive Director Malaysian Bereau of Labour Statistics, DOSM Presenters: 1. What does it take to be a data scientist in the public sector financial services industry? (Dr. Chiung Ching Ho, BNM) 2. Developing Data Scientists of the Future (Grace Ngu Sook Ern et al, PETRONAS) 3. Quantifying the Impact of the U.S. Balance Sheet Policy on Financial Condition in Malaysia using a Newly Developed Financial Condition Index (Yee Ling Pang et al, UMS) 3.00 pm : Forum Session: Perspective in Reducing the Data Collection Predicament during COVID-19 Moderator: Tan Sri Dato' Sri Ismail Haji Bakar Non Executive Director Bank Islam Panellists: 1. Tan Sri Dato Soh Than Lai Chairman of FFM 2. Dr Fairoza Amira Hamzah Lead Researcher at Coronatracker 3. Dr. Kevin McCormack Head of Division, Sustainable Development Goals Indicators & Reports, Central Statistics Office of Ireland 4.15 pm : Closing Session The Best Young Statistician Presenter 5.00 pm : Session Adjourn

30 Sep 2021

Exposure Draft on Financial Reporting for Takaful Operators

https://www.bnm.gov.my/-/exposure-draft-on-financial-reporting-for-takaful-operators

https://www.bnm.gov.my/documents/20124/948107/20210930_ED_Financial+Reporting+Takaful+Operators.pdf

Reading: Exposure Draft on Financial Reporting for Takaful Operators Share: Exposure Draft on Financial Reporting for Takaful Operators Embargo : For immediate release Not for publication or broadcast before 2150 on Thursday, 30 September 2021 30 Sep 2021 Issuance Date 30 September 2021 Summary This Exposure Draft (ED) sets out the proposed revisions to the current Policy Document on Financial Reporting for Takaful Operators issued by the Bank on 2 February 2018 (the Policy Document) to align the requirements of the Policy Document with the MFRS 17 and MFRS 9 requirements as well as to address the specificities of takaful. The ED is intended to ensure compliance with Shariah requirements and the latest MFRS requirements applicable to takaful business. This is consistent with the latest ruling by the Shariah Advisory Council of the Bank and recommendations by the Malaysian Accounting Standards Board (MASB) relating to the application of MFRS 17 and MFRS 9 to takaful businesses. The Bank invites written feedback on the proposals in this ED including suggestions on areas requiring clarity or elaboration and alternative proposals for consideration. Responses must be submitted electronically to the Bank via [email protected] by 15 November 2021. In the course of preparing your feedback, you may direct any queries to the following officers: Mohd Amirul Mukminin bin Mansor ([email protected]) Zafirah binti Munawar ([email protected])   Find out more: Exposure Draft on Financial Reporting for Takaful Operators     Bank Negara Malaysia 30 September 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

24 Sep 2021

Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Sekatan Kewangan Bersasar untuk Perniagaan dan Profesion Bukan Kewangan yang Ditentukan dan Institusi Kewangan Bukan Bank

https://www.bnm.gov.my/-/pencegahan-pengubahan-wang-haram-pencegahan-pembiayaan-keganasan-dan-sekatan-kewangan-bersasar-aml/cft-dan-tfs-untuk-perniagaan-dan-profesion-bukan-kewangan-yang-ditentukan-dnfbp-dan-institusi-kewangan-bukan-bank-nbfi-

https://www.bnm.gov.my/documents/20124/761679/AMLCFT+and+TFS+for+DNFBPs+and+NBFIs_BM.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/pencegahan-pengubahan-wang-haram-pencegahan-pembiayaan-keganasan-dan-sekatan-kewangan-bersasar-aml/cft-dan-tfs-untuk-perniagaan-dan-profesion-bukan-kewangan-yang-ditentukan-dnfbp-dan-institusi-kewangan-bukan-bank-nbfi-&languageId=ms_MY

Reading: Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Sekatan Kewangan Bersasar untuk Perniagaan dan Profesion Bukan Kewangan yang Ditentukan dan Institusi Kewangan Bukan Bank Share: Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Sekatan Kewangan Bersasar untuk Perniagaan dan Profesion Bukan Kewangan yang Ditentukan dan Institusi Kewangan Bukan Bank Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 2145 pada Jumaat, 24 September 2021 24 Sep 2021 Bank Negara Malaysia telah mengeluarkan versi Bahasa Melayu bagi Dokumen Dasar Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Sekatan Kewangan Bersasar (AML/CFT dan TFS) untuk Perniagaan dan Profesion Bukan Kewangan yang Ditentukan (DNFBP) dan Institusi Kewangan Bukan Bank (NBFI) yang telah dikeluarkan pada 31 Disember 2019 dan berkuatkuasa pada 1 Januari 2020. Lihat juga: Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Sekatan Kewangan Bersasar (AML/CFT dan TFS) untuk Perniagaan dan Profesion Bukan Kewangan yang Ditentukan (DNFBP) dan Institusi Kewangan Bukan Bank (NBFI)Bank Negara Malaysia 24 September 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Page 1 of 11 Jabatan Pengurusan dan Operasi Matawang APPLICATION FORM TO BE A REGISTERED CURRENCY PROCESSOR 1. This Form is specified by Bank Negara Malaysia (BNM) under paragraph 25(1)(b) of the Currency Act 2020 (CA2020) for the purpose of an application to be registered as a currency processor under subsection 26(1) of the CA2020. Applicant shall submit a cover letter bearing the company’s letterhead, a duly completed application form and appendices (with clear labelling) to- Pengarah Jabatan Pengurusan dan Operasi Matawang Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur 2. This Form consists of six (6) parts, as follows: Part 1: Applicant’s particulars Part 2: Information of Director, CEO, Senior Management and Shareholder with controlling interest on the Applicant Part 3: Financial Resources Part 4: Premises and Security Part 5: Currency Operations Part 6: Others REMINDER  An applicant must properly assess whether its business falls within the definition of currency processing business under subsection 2(1) of the CA2020 and fulfills the registration requirements under the Currency (Registration Requirements) Order 2021 [P.U. (A) 127/2021] before submitting an application to BNM and paying the non-refundable processing fee of RM500 as required under the Currency (Processing Fees for Application of Registration of Currency Processing Business) Regulations 2020 [P.U. (A) 281/2020].  An applicant shall ensure all information provided is true, accurate, complete and not misleading. Please label supporting documents or appendices clearly.  Only complete application will be processed. Incomplete application will be REJECTED or RETURNED to the applicant.  Do NOT alter/amend any word or sentence in this Form. Page 2 of 11 Jabatan Pengurusan dan Operasi Matawang Part 1: Applicant’s particulars (a) Background Name of company Office Telephone no. Business Registration (BRIC) / Certificate of Incorporation No. Office Fax no. Office Email Address Date of incorporation Month/Year of commencement of business operations Business address Type of Organisation Private Limited Limited Others (please specify) _____________________________________________ Nature of Business Collect currency Sort currency by authenticity and quality Pack currency by quality, quantity and denomination Others (please specify) _____________________________________________ Documents to be enclosed: Please tick (X) and provide a certified true copy of the following documents with the Appendix label: Appendix Companies Act 1965 Companies Act 2016 A Form 9 – Certificate of Incorporation Section 17 – Notice of Registration B Memorandum & Articles of Association Constitution C Form 49 – Return Giving Particulars in Register of Directors, Managers and Secretaries and Changes of Particulars Section 58 & 236(2) - Notice of Particulars and Changes of Director, Manager and Secretary D Form 24 - Return of Allotment of Shares Section 75 to 78 – Allotment of Shares E Form 23 - Certificate Under Section 52(3) of the Companies Act 1965 that a Company is Entitled to Commence Business [Applicable for Public Limited Company only] Note: An applicant who commenced business prior to coming into force of the Companies Act 2016 shall submit the above documents pursuant to the Companies Act 1965. Other Documents F Applicant’s licence issued by Minister of Home Affairs (Menteri Dalam Negeri) under the Private Agencies Act (PAA) 1971 or licence of the applicant’s outsourcing party (for currency collection) under PAA 1971. (b) Corporate structure (applicable if applicant is part of a group of companies) Document to be enclosed: Please tick (X) and provide the following document with the Appendix label: Appendix G: Corporate group structure (in a diagram), with adequate details of the parent company, branches, subsidiaries and related companies, including ownership structure and percentage of shareholding (in separate sheet of paper with brief explanation) Page 3 of 11 Jabatan Pengurusan dan Operasi Matawang (c) List of Board of Directors (Board) and Chief Executive Officer (CEO) of an applicant If space provided is insufficient, please provide in separate sheet No. Name NRIC / Passport Number Designation or Type of directorship (e.g. non-executive/executive, independent/non-independent) 1. 2. 3. 4. 5. (d) Organisational structure of the Applicant Document to be enclosed: Please tick (X) and provide the following document with the Appendix label: Appendix H: Current organisational chart, showing Board of Directors, CEO, departments and control functions (i.e. internal audit, compliance and risk management) and with reporting lines (in separate sheet of paper with brief explanation) Note: An applicant is required to pay a processing fee of RM500 via RENTAS with TRN code ANT01, account number 1554095430 (Akauntan Negara Malaysia I/Pejabat-Kecil Terimaan) and furnish the receipt or proof of payment together with this Form. Applicant will be informed in writing of BNM’s decision on the application. FOR BANK NEGARA MALAYSIA USE ONLY Attended by: _____________________________ _______________ Officer’s Signature & Official Seal Date Approved / Reject by: ______________________________ ________________ Signature Date The registration requirements and operations are subject to the provisions of the Currency Act 2020. [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 4 of 11 Jabatan Pengurusan dan Operasi Matawang Part 2: Detailed Information of Director, CEO, Senior Management1 and Shareholder with controlling interest2 on the Applicant (Please make copies of Part 2 and fill up specifically for each individual) (a) Designation of officers Please tick (X) where applicable. Tick more than one box if you hold more than one position. Please attach latest passport sized photograph here 1. Director 2. Chief Executive Officer* (*or any person with similar rank or position, please specify: ______________________________________________________) 3. Senior Management (please state designation): _________________________________ 4. Shareholder with controlling interest (b) Particulars* *For Directors, please complete Part 2(b), (e), (f) and (g) *For others, please complete Part 2(b), (c), (d), (e), (f) and (g) Name Certified true copy documents to be enclosed: Appendix I: Security Vetting Results from Polis DiRaja Malaysia (PDRM) or Kementerian Dalam Negeri (KDN) Appendix J: Copy of NRIC/Passport of the individual Appendix K: Insolvency report from Malaysia Department of Insolvency NRIC/Passport number /BRIC Nationality (not applicable for company) Current address Mobile number Email address Office number (c) Working experience (for the last 5 years) (If space provided is insufficient, please provide in separate sheet) No. Position/ Designation Organisation/Company Business activity Duration of service (Year to year) 1. 2. 3. 4. 5. (d) Do you have working experience in cash operations? Yes. (Please state such experience in part c above) No 1 Any person concerned with the operation or management of currency processing company, e.g. Head of Department, Chief Operation Officer, Chief Finance Officer and etc. 2 An individual or a corporate shareholder who has significant influence over the applicant’s action. Page 5 of 11 Jabatan Pengurusan dan Operasi Matawang (e) Are you involved or have been involved (e.g. holds a controlling interest, director, CEO or senior management) in any other business regulated by BNM? If yes, please complete the following: No. Name of business Business activity Type of interest (e.g. shareholder, director, CEO, senior management) Year 1. 2. 3. 4. 5. (f) Statutory Declaration I, _____________________ (name), of NRIC / Passport No. ____________________ do solemnly and sincerely declare that: A: (i) I have not been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia; (ii) I have not held the position of a director or CEO or been directly concerned in the operation or management of any company which has been convicted of an offence relating to dishonesty, fraud, accepting gratification or corruption under any written law within or outside Malaysia; (iii) I have passed security vetting conducted by KDN or PDRM. (iv) I am not an undischarged bankrupt; (v) I am a person of probity, personal integrity and good reputation; and (vi) I have managed my financial affairs properly and prudently. B: I am*: (i) representing the interest of __________________; or (ii) not representing the interests of any person; C: All the information submitted above is true. This declaration was made before me: (Signature of Sessions Court Judge, Magistrate or Commissioner For Oaths) Date:  Delete whichever not applicable/relevant [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 6 of 11 Jabatan Pengurusan dan Operasi Matawang (g) Consent for Disclosure of Information Please complete where applicable: 1. For individual who has completed Part 2 of this form. As provided under item (1) of Schedule 11 read together with section 134 of the Financial Services Act 2013 (FSA), item (1) of Schedule 11 read together with section 146 of the Islamic Financial Services Act 2013 (IFSA) and section 120(1)(c) of the Development Financial Institutions Act 2002 (DFIA), I authorize any licensed business under FSA, IFSA, and prescribed institutions under DFIA where I maintain my accounts, or has financial liabilities, to disclose to Bank Negara Malaysia, any information relating to my accounts and affairs including financial liabilities for the purpose of processing this application. ______________ _________________ __________________ __________________ (Date) (Signature) (Name in capital letter) (Designation) 2. For company (corporate shareholder) which has completed Part 2 of this form. As provided under item (1) of Schedule 11 read together with section 134 of the Financial Services Act 2013 (FSA), item (1) of Schedule 11 read together with section 146 of the Islamic Financial Services Act 2013 (IFSA) and section 120(1)(c) of the Development Financial Institutions Act 2002 (DFIA), I authorize any licensed business under FSA, IFSA, and prescribed institutions under DFIA where the company maintains its accounts, or has financial liabilities, to disclose to Bank Negara Malaysia, any information relating to the company’s accounts and affairs including financial liabilities for the purpose of processing this application. [Consent should be given by person authorised by the Board of Directors]. ______________ _________________ __________________ __________________ (Date) (Signature) (Name in capital letter) (Designation) [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 7 of 11 Jabatan Pengurusan dan Operasi Matawang Part 3: Financial Resources Reminder: An applicant shall meet the minimum requirements of net worth and working capital of RM100,000 respectively. Current and projected capital position This is intended to assess the applicant’s ability to maintain the shareholders’ funds requirement taking into consideration projected profit/loss. What is the current amount of the company’s shareholders’ funds? RM Share capital (ordinary shares only) (+) Reserves - including share premium and general reserve fund (+) Retained Profit or (-) Accumulated Losses (+) Audited Profit for the period or (-) Unaudited Loss for the period (-) Intangible assets (including goodwill, capitalised development costs, licenses and intellectual properties) (=) Shareholders’ Funds Documents to be enclosed as evidence: Please tick (X) and provide the following documents with the Appendix label: Appendix L : Latest audited financial statements or latest unaudited management account showing adequate cash balances or cash balances equivalents, as well as, positive shareholders’ funds [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 8 of 11 Jabatan Pengurusan dan Operasi Matawang Part 4: Premises and Security (a) Is the company’s premises exclusively used by the applicant? Yes No (b) Is the company’s premises complied with the Street, Drainage and Building Act 1974 and Town and Country Planning Act 1976? (E.g. no alteration or renovation has been made to the original structure of the building or premises unless with the approval) Yes No (c) Is the company’s premises in compliance with safety requirements imposed by Jabatan Bomba dan Penyelamat Malaysia? Yes No (d) Compliance to system and security No. Description Yes / No Remarks (if yes) 1. Security control room with central monitoring system Yes No 2. Closed-circuit television surveillance system (CCTV) with coverage inside the premise and surrounding premise. Yes No 3. Trespass, theft and robbery prevention system Yes No coverage surrounding the premises: internal and external internal only external only 4. Patrol activity and security control at all times (24 hours/7 days) by armed security guards who have passed security vetting by relevant agency under the Ministry of Home Affairs (KDN) Yes No in-house guard engaged security company licensed by KDN 5. Visitor control or management system Yes No 6. A vault or safe room Yes No 7. An adequate fire-fighting equipment or fire safety installation in relation to the use of the premises as certified by the Director General of Fire and Rescue under the Fire Services Act 1988 Yes No heat or smoke detector fire alarm fire extinguisher others, please specify _______ _________________________ 8. Safety equipment to handle emergency including first aid kit and safety signage Yes No 9. Safety gear including safety boot, glove, face mask and goggle. Yes No safety boot face mask glove goggle others, please specify _______ _________________________ (e) Does the company possess guideline to mitigate occupational safety and health risk at workplace (e.g. work-related incidents that is accident, injury, diseases and damage of property)? Yes No Documents to be enclosed: Please tick (X) and provide the certified true copy of the following documents with the Appendix label: Appendix M: Document/Agreement indicating applicant’s compliance on item 4(a) Appendix N: Document/Agreement indicating applicant’s compliance on item 4(b) Appendix O: Document/Agreement indicating applicant’s compliance on item 4(c) Appendix P: Document/Guideline on occupational safety and health at workplace Page 9 of 11 Jabatan Pengurusan dan Operasi Matawang Part 5: Currency Operations (a) Currency Collection 1. How does the company perform currency collection? By itself Outsource (please provide supporting document as evidence e.g. certify true copy of contract / agreement between the company and the outsource company) 2. If outsource, is the outsourced company licensed by Menteri Dalam Negeri? Yes (If yes, please provide certified true copy of the licence) No (b) Currency Processing Equipment and Machine (i) Are the currency processing equipment and machine capable to: (Please tick (X) where applicable. The below questions are applicable to Malaysian Currency only) Currency Note Coin 1. Detect counterfeit currency? Yes No Yes No 2. Separate (reject) counterfeit currency? Yes No Yes No 3. Sort currency by quality? Yes No Yes No 4. Sort currency by quantity? Yes No Yes No 5. Sort currency by denomination? Yes No Yes No 6. Pack currency by quality? Yes No Yes No 7. Pack currency by quantity? Yes No Yes No 8. Pack currency by denomination? Yes No Yes No Note: For item 6, 7, and 8, If the equipment and machine are unable to perform such function, please specify the method used by the company to perform the activities, _______________________ ____________________________________________________________________________ (ii) List of currency processing equipment and machine (If space provided is insufficient, please provide in separate sheet) No. Type2 Manufacturer Name / Model Purchase Date Number of Units 1. 2. 3. 4. 5. 2 E.g. Banknote Processing Systems or Compact Systems for banknote and/or coin processing machine. Page 10 of 11 Jabatan Pengurusan dan Operasi Matawang (iii) Does the company has standard operating procedures on currency processing? Yes No Documents to be enclosed: Please tick (X) and provide the certified true copy of the following documents with the Appendix label: Appendix Q: All relevant Standard Operating Procedures related to currency processing Part 6: Others (a) Does the company has a business continuity plan? Yes No (b) Does the company has insurance or takaful coverage to cover at all times including during transit on the total value of currencies of its clients which will be processed by the company or in the company’s possession? Yes No Documents to be enclosed: Please tick (X) and provide the certified true copy of the following documents with the Appendix label: Appendix R: Document / guideline of the business continuity plan on cash operation Appendix S: Latest Insurance / Takaful policy agreement issued by the Insurance / Takaful Operators [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] Page 11 of 11 Jabatan Pengurusan dan Operasi Matawang Declaration on the information provided and consent for disclosure of information 1. The company confirms that all information given in this Form and the documents submitted are true, accurate, complete and not misleading, and understands that if the company furnishes any information required which is false, inaccurate, misleading or incomplete, the application will be rejected by Bank Negara Malaysia (BNM). In the event the company has registered, it may be deregistered; 2. The company applies for registration under section 25 of the Currency Act 2020 to carry on Currency Processing Business based on information provided in this application and any additional information provided to BNM in the course of the application; and 3. The company will promptly notify BNM in writing of any changes in the information which the company has provided and supply any other relevant information which may come to light in the period during which its application is being considered by BNM. The company acknowledges that BNM may disclose any information provided in the performance of its statutory functions or otherwise as may be specifically authorised by law. I, the authorised signatory of ____________________________ (name of company) and responsible for the management of the company: (a) Make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act 1960; and (b) As provided under item (1) of Schedule 11 read together with section 134 of the Financial Services Act 2013 (FSA), item (1) of Schedule 11 read together with section 146 of the Islamic Financial Services Act 2013 (IFSA) and section 120(1)(c) of the Development Financial Institutions Act 2002 (DFIA), I hereby authorize any licensed business under FSA, IFSA, and prescribed institutions under DFIA where the applicant maintains its accounts, or has financial liabilities, to disclose to BNM, any information relating to the applicant’s accounts and affairs including financial liabilities for the purpose of processing this application. ___________ __________________ __________________ (Date) (Signature) (Name in capital letter) _____________________ _______________________ (Designation) (Official Company Stamp) This declaration was made before me: (Signature of Session Court Judge, Magistrate or Commissioner For Oaths) Date:

Public Notice

15 Sep 2021

Dokumen Dasar berkenaan Perkhidmatan Pemeroleh Saudagar

https://www.bnm.gov.my/-/dokumen-dasar-berkenaan-perkhidmatan-pemeroleh-saudagar

https://www.bnm.gov.my/documents/20124/943361/PD_Merchant_Acquiring_Services.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/dokumen-dasar-berkenaan-perkhidmatan-pemeroleh-saudagar&languageId=ms_MY

Reading: Dokumen Dasar berkenaan Perkhidmatan Pemeroleh Saudagar Share: Dokumen Dasar berkenaan Perkhidmatan Pemeroleh Saudagar Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 0930 pada Rabu, 15 September 2021 15 Sep 2021 Tarikh Penerbitan 15 September 2021 Ringkasan Dokumen dasar ini menggariskan keperluan dan jangkaan Bank Negara Malaysia terhadap pemeroleh saudagar yang berdaftar di bawah seksyen 17(1) dan 18 Akta Perkhidmatan Kewangan 2013. Keperluan dan jangkaan ini termasuklah yang berkaitan tadbir urus, pengurusan risiko operasi, teknologi maklumat (IT) dan lain-lain. Seterusnya: Dokumen Dasar berkenaan Perkhidmatan Pemeroleh Saudagar Bank Negara Malaysia 15 September 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Merchant Acquiring Services Issued on: 15 September 2021 BNM/RH/PD 028-119 Merchant Acquiring Services Applicable to: Registered merchant acquirers 2 Merchant Acquiring Services Issued on: 15 September 2021 TABLE OF CONTENTS PART A OVERVIEW ................................................................................................................................ 1 1. Introduction ............................................................................................................................................ 1 2. Applicability ........................................................................................................................................... 2 3. Legal Provisions .................................................................................................................................... 2 4. Effective Date ......................................................................................................................................... 2 5. Interpretation .......................................................................................................................................... 3 6. Related Legal Instruments and Policy Documents ............................................................................ 7 7. Policy Documents Superseded ............................................................................................................ 8 PART B GOVERNANCE .......................................................................................................................... 9 8. Effective Governance and Oversight ................................................................................................... 9 PART C OPERATIONAL REQUIREMENTS ......................................................................................... 13 9. Minimum Capital Funds Requirements for Non-Bank Acquirers ................................................... 13 10. Settlement Risk Management ............................................................................................................. 13 11. Merchant Management ........................................................................................................................ 15 12. Fraud Risk Management ..................................................................................................................... 17 13. Business Continuity Management ..................................................................................................... 18 14. Outsourcing ......................................................................................................................................... 19 15. Arrangement with Parties Involved in Payment and Settlement Process ..................................... 24 16. Appropriate Treatment for Merchants ............................................................................................... 25 PART D INFORMATION TECHNOLOGY (IT) REQUIREMENTS ......................................................... 26 17. Technology Risk Management ........................................................................................................... 26 18. Technology Operations Management ............................................................................................... 28 19. Cybersecurity Management ................................................................................................................ 45 20. Technology Audit ................................................................................................................................ 52 21. Internal Awareness and Training ....................................................................................................... 53 PART E OTHER REQUIREMENTS ........................................................................................................ 54 22. Other Compliance Requirements ....................................................................................................... 54 Appendix 1 COMPUTATION OF MINIMUM CAPITAL FUNDS ............................................................... 56 Appendix 2 MINIMUM REQUIREMENTS ON THE OUTSOURCING AGREEMENT .............................. 57 Appendix 3 STORAGE AND TRANSPORTATION OF SENSITIVE DATA IN REMOVABLE MEDIA ... 59 Appendix 4 CONTROL MEASURES ON PAYMENT ACCEPTANCE DEVICE ...................................... 60 Appendix 5 CONTROL MEASURES ON INTERNET APPLICATION ..................................................... 61 Appendix 6 CONTROL MEASURES ON MOBILE APPLICATION AND DEVICES ............................... 62 Appendix 7 CONTROL MEASURES ON QUICK RESPONSE CODE .................................................... 63 1 Merchant Acquiring Services Issued on: 15 September 2021 Appendix 8 CONTROL MEASURES ON CYBERSECURITY ................................................................... 64 Appendix 9 EXAMPLES OF ARRANGEMENTS EXCLUDED FROM OUTSOURCING SCOPE ............. 66 Merchant Acquiring Services Page 1 of 66 Issued on: 15 September 2021 PART A OVERVIEW 1. Introduction 1.1 Merchant acquiring services enable merchants to accept payment instruments for the sale of goods or services to their customers. Acquirers provide the link between the users of payment instruments to the merchants to enable the purchase of goods or services. When users pay for the goods or services using payment instruments, acquirers ensure that funds for such payment are settled in a timely manner to the merchants. 1.2 In tandem with the rapid changes in the electronic payment (e-payment) landscape, merchant acquiring services have experienced significant growth and considerable change in their business arrangements and set-up. Merchants have extended their acceptance of payment instruments from only payment cards to other types of instruments such as electronic money (e-money). Merchant acquiring services are no longer confined to the use of traditional Point-of-Sale (POS) terminals but now extend to the use of new payment methods such as Quick Response (QR) code and online banking. The acquiring arrangements have also expanded to accept more electronic commerce (e-commerce) merchants and involvement of third parties such as payment facilitators to facilitate expansion. Merchant acquiring services have also adapted to constant evolution of technological advancements to cater for needs of users and enhance efficiency. All of the above changes have increased the complexity and the number of players along the payment chain before payment reaches the merchants. 1.3 Due to the increasingly important role played by acquirers in the payment landscape, it is important to specify the minimum expectations and regulatory requirements for merchant acquiring services to promote confidence in the use of e-payment by both merchants and users of payment instruments. The regulatory requirements serve to ensure proper risk management in merchant acquiring services, which includes the management of settlement risk, financial risk, fraud risk and technology and cyber risk. Merchant Acquiring Services Page 2 of 66 Issued on: 15 September 2021 1.4 The objectives of this policy document are as follows – (a) to ensure the safety and reliability of merchant acquiring services provided by acquirers; and (b) to preserve public confidence in using or accepting payment instruments for the payment of goods and services. 2. Applicability 2.1 This policy document is applicable to acquirers registered pursuant to sections 17(1) and 18 of the Financial Services Act 2013 (FSA) that fulfils the following criteria – (a) enters into a contract with merchant(s), which results in a transfer of funds to the merchant(s) by – (i) conducting or being responsible for fund settlement; or (ii) issuing fund settlement instructions; (b) facilitates the merchant’s acceptance of payment instruments; and (c) is a direct participant of payment instrument network(s) to provide merchant acquiring services. 2.2 The requirements under paragraph 9 of this policy document are only applicable to non-bank acquirers. 3. Legal Provisions 3.1 The requirements in this policy document are specified pursuant to sections 18(2), 33(1), 49, 123(1) and 143 of the FSA. 3.2 The guidance in this policy document is issued pursuant to section 266 of the FSA. 4. Effective Date 4.1 This policy document comes into effect on 15 March 2022. 4.2 However, for non-bank acquirers, the following will apply – Merchant Acquiring Services Page 3 of 66 Issued on: 15 September 2021 (a) paragraphs 17.1 to 21.3 come into effect on 15 September 2022; and (b) paragraphs 9.1 to 9.3 come into effect on 15 September 2023. 5. Interpretation 5.1 The terms and expressions used in this policy document shall have the same meanings assigned to them in the FSA unless otherwise defined in this policy document. 5.2 For the purposes of this policy document – “S” denotes a standard, an obligation, a requirement, specification, direction, condition and any interpretative, supplemental and transitional provisions that must be complied with. Non-compliance may result in enforcement action; “G” denotes guidance, which may consist of statements or information intended to promote common understanding and advice or recommendations that are encouraged to be adopted; “acquirer” refers to any person who is registered1 pursuant to sections 17(1) and 18 of the FSA to provide merchant acquiring services and fulfils the criteria under paragraph 2.1; “critical system” refers to any application system that supports the provision of critical services, where failure of the system has the potential to significantly impair the acquirer’s provision of services to customers or counterparties, business operations, financial position, reputation or compliance with applicable laws and regulatory requirements; “customer and counterparty information” as used in Part D of this policy document, refers to any information relating to the affairs or, in particular, the account, of any customer or counterparty of an acquirer in whatever form; 1 For avoidance of doubt, an e-money issuer that also conducts its own merchant acquiring services (i.e. acquires merchants directly) for its own e-money scheme is also considered as an acquirer. Merchant Acquiring Services Page 4 of 66 Issued on: 15 September 2021 “cyber risk” refers to threats or vulnerabilities emanating from the connectivity of internal technology infrastructure to external networks or the Internet; “digital service” refers to the provision of payment services delivered to customers via electronic channels and devices including Internet and mobile devices, self-service and point-of-sale terminals; “direct participant” refers to a principal member of a payment instrument network(s) for purposes of providing merchant acquiring services; “direct settlement method” refers to a method whereby settlement is done directly from a payment instrument network or an identified settlement bank2 to the merchant, based on the payment instruction by the acquirer. Such settlement funds cannot be claimed by the acquirer or creditors of the acquirer, including upon the acquirer’s liquidation; “e-commerce merchant” refers to merchant that sells or offers goods and/or services electronically over the Internet or any other channels not involving face-to- face interaction (e.g. mail or telephone order); “foreign-issued payment instrument” refers to a payment instrument issued by an issuer not locally incorporated in Malaysia but may be accepted at local merchants; “issuer of e-money” refers to a person approved under section 11 of the FSA or Islamic Financial Services Act 2013 (IFSA) to issue e-money; “key responsible persons” or “KRP” refer to persons that are accountable or responsible for the management and oversight of merchant acquiring services. These comprise the directors and Chief Executive Officer (CEO); 2 A licensed bank, licensed Islamic bank or prescribed institution appointed or identified to conduct direct settlement to merchants. Merchant Acquiring Services Page 5 of 66 Issued on: 15 September 2021 “large acquirers” refer to acquirers with an actual or projected amount of average monthly transaction value (MTV) of more than RM10,000,000 (where for the purpose of calculation of average MTV, the actual amount is calculated based on a 12-month moving average, while the projected amount is calculated based on an estimation of the average monthly amount for the next 12-month period); “licensed Islamic bank” means an Islamic bank licensed under the IFSA; “merchant” refers to a person or an entity that has a contractual agreement with an acquirer to accept payment instruments for the sale or offer of goods or services. This includes the merchants acquired by a payment facilitator on behalf of an acquirer; “non-bank acquirer” refers to any person who is not a licensed bank, licensed Islamic bank or prescribed institution that is registered pursuant to sections 17(1) and 18 of the FSA to provide merchant acquiring services and fulfils the criteria under paragraph 2.1; “outsourcing arrangement” refers to an arrangement in which a service provider performs an activity on behalf of the acquirer on a continuing basis3, where the activity would otherwise be undertaken by the acquirer and does not include activities set out in Appendix 9; “payment facilitator” refers to an entity that is appointed by an acquirer to perform merchant acquiring services on behalf of the acquirer. For avoidance of doubt, a payment facilitator can be either: (1) an existing acquirer for any payment instrument network or (2) a third party acquirer; “payment gateway service provider” refers to an entity that provides the information technology (IT) system and infrastructure for purposes of processing or supporting payment or settlement transactions; 3 For avoidance of doubt, an arrangement which is time-bound does not preclude that activity from being considered as being performed on a continuing basis. Merchant Acquiring Services Page 6 of 66 Issued on: 15 September 2021 “payment instrument network” refers to a payment system that enables payment to be made using a payment instrument under its brand and provides clearing and/or settlement services for its members namely issuers and/or acquirers; “physical merchant” refers to merchant that sells or offers goods or services physically over the counter (i.e. brick-and-mortar/face-to-face business); “point-of-sale (POS) terminal” refers to an electronic device located in or at a merchant’s premise that enables a customer to effect a transaction for the purchase of goods or services using a payment instrument; “prescribed institution” means a development financial institution prescribed under the Development Financial Institutions Act 2002; “production data centre” refers to any facility which hosts active critical production application systems irrespective of location; “senior management” refers to the CEO and senior officers; “service provider” refers to an entity, including an affiliate, providing services to an acquirer under an outsourcing arrangement. This may include third party service provider as used in Part D of this policy document; “small acquirers” refer to acquirers with an actual or projected amount of average MTV of less than RM10,000,000 (where for the purpose of calculation of average MTV, the actual amount is calculated based on a 12-month moving average, while the projected amount is calculated based on an estimation of the average monthly amount for the next 12-month period); Merchant Acquiring Services Page 7 of 66 Issued on: 15 September 2021 “SME” refers to small and medium enterprises as defined in the Notification on Definition of Small and Medium Enterprises (SMEs)4 issued by Bank Negara Malaysia (the Bank) and as may be updated from time to time; “sub-contractor” refers to an entity, including an affiliate, which performs the whole or a part of the outsourced activity for the primary service provider; “third party acquirer” refers to an entity that is appointed by an acquirer to perform merchant acquiring services on behalf of the acquirer, but does not fulfil the criteria in paragraph 2.1; and “third party service provider” as used in Part D of this policy document refers to an internal group affiliate or external entity providing technology-related functions or services that involve the transmission, processing, storage or handling of confidential information pertaining to the acquirer or its customers. This includes cloud computing software, platform and infrastructure service providers. 6. Related Legal Instruments and Policy Documents 6.1 This policy document must be read together with other relevant legal instruments and policy documents that have been issued by the Bank, in particular – (a) the policy document on the Risk-Based Authentication for Online Payment Card Transaction; (b) the policy document on the Payment Card Reform Framework; (c) the policy document on the Management of Customer Information and Permitted Disclosures; and (d) the policy document on Interoperable Credit Transfer Framework. 4 Issued on 27 December 2017. Merchant Acquiring Services Page 8 of 66 Issued on: 15 September 2021 7. Policy Documents Superseded 7.1 This policy document supersedes the requirements listed below – (a) Paragraph 33 – Specific requirements for acquirers in policy document on Credit Card issued on 2 July 2019; (b) Paragraph 34 – Specific requirements for acquirers in policy document on Credit Card-i issued on 2 July 2019; (c) Paragraph 23 – Specific requirements for acquirers in policy document on Debit Card issued on 2 December 2016; (d) Paragraph 25 – Specific requirements for acquirers in policy document on Debit Card-i issued on 2 December 2016; (e) Paragraph 30 – Specific requirements for acquirers in policy document on Charge Card issued on 2 December 2016; and (f) Paragraph 32 – Specific requirements for acquirers in policy document on Charge Card-i issued on 2 December 2016. Merchant Acquiring Services Page 9 of 66 Issued on: 15 September 2021 PART B GOVERNANCE 8. Effective Governance and Oversight 8.1 Acquirers shall establish adequate governance arrangements which are effective and transparent to ensure the continued integrity of its merchant acquiring services which include, among others, the following – (a) a board of directors (board) and senior management that consists of people with calibre, credibility and integrity; (b) clearly defined and documented organisational arrangements, such as ownership and management structure; and (c) segregation of duties and internal control arrangements to reduce the chances of mismanagement and fraud. Board roles and responsibilities 8.2 The board shall have a board charter that sets out the mandate, responsibilities and procedures of the board and its committees (if any), including the matters reserved for the board’s decision. 8.3 The board shall have the overall responsibility in ensuring the sustainable growth, financial soundness and reliability of the acquirer’s merchant acquiring services which include – (a) determining, reviewing and approving strategies, business plans and significant policies, including its risk appetite and monitoring management’s performance in implementing them; (b) setting corporate values and clear lines of responsibility and accountability that are communicated throughout the organisation; (c) ensuring adequate assessment is conducted on key responsible persons (KRP); (d) ensuring selection of competent senior management; (e) ensuring that the operations of the business are conducted prudently, and within the framework of relevant laws and policies; S S S Merchant Acquiring Services Page 10 of 66 Issued on: 15 September 2021 (f) ensuring that comprehensive risk management policies, processes and infrastructure, and effective operationalisation of the risk controls to manage the various types of risks, are in place and effective; and (g) establishing an effective compliance and internal audit functions. 8.4 The board shall ensure that an effective oversight and risk management mechanism is in place, which includes the following – (a) an effective oversight and governance structure to manage the day-to-day operations of the acquirer; (b) risk management and control framework on the following areas – (i) technology risk management and cyber resilience; (ii) mitigation of fund settlement risk to merchants; (iii) mitigation of fraud or illegal activities; (iv) merchant recruitment and monitoring; (v) outsourcing arrangement with service providers; and (c) appropriate and timely reporting or escalation of issues that may impact the safety, security or operational reliability of the merchant acquiring operations. 8.5 The board shall ensure that the risk management and control framework is periodically reviewed for continued effectiveness. This includes ensuring an audit by an independent party is conducted with reasonable frequency to detect weaknesses and enable corrective measures to be taken in a timely manner. 8.6 The board and its committees (if any) shall be of a size that promotes effective deliberation and encourages the active participation of all directors. The board shall meet sufficiently whereby the number and frequency of board meetings shall commensurate with the size and complexity of the acquirer’s operations, to review the acquirer’s performance, including the status of its compliance with regulatory requirements and to deal with any issues pertaining to the operations of merchant acquiring services. S S S Merchant Acquiring Services Page 11 of 66 Issued on: 15 September 2021 8.7 The board shall ensure that clear and accurate minutes of board meetings are maintained to record the decisions of the board, including the key deliberations, rationale for each decision made, and any significant concerns or dissenting views. 8.8 With regard to the management of technology and cybersecurity risks, the board shall – (a) establish and approve the technology risk appetite which is aligned with the acquirer’s risk appetite statement. In doing so, the board shall approve the corresponding risk tolerances for technology-related events and ensure key performance indicators are in place to monitor the acquirer’s technology risk against its approved risk tolerance. The board shall ensure the senior management of the acquirer provides regular updates on the status of these indicators, key technology risks and critical technology operations to facilitate strategic decision-making; and (b) ensure and oversee the adequacy of the acquirer’s IT and cybersecurity strategic plans covering a period of no less than three (3) years. These plans shall address the acquirer’s requirements on infrastructure, control measures to mitigate IT and cyber risk as well as financial and non-financial resources, which are commensurate with the complexity of the acquirer’s operations and changes in the risk profile as well as the business environment. These plans shall be periodically reviewed, at least once every three (3) years. 8.9 Given the rapidly evolving cyber threat landscape, the board should allocate sufficient time to discuss cyber risks and related issues, including the strategic and reputational risks associated with a cyber-incident. This should be supported by input from external experts as appropriate. The board should also ensure its continuous engagement in cybersecurity preparedness, education and training. 8.10 The board shall be responsible for ensuring the effectiveness of the audit function including technology audit. The board shall review and ensure the appropriate audit scope, procedures and frequency of audits. The board shall also ensure effective S G S S Merchant Acquiring Services Page 12 of 66 Issued on: 15 September 2021 oversight over the prompt closure of corrective actions to address any issues or control gaps. Senior Management 8.11 The senior management of acquirers shall be responsible for ensuring the following – (a) effective policies and procedures are established and implemented for, among others, the following areas – (i) risk management and appropriate controls to manage and monitor risks, including those under paragraph 8.4(b); (ii) due diligence and oversight to manage outsourced arrangements supporting the merchant acquiring operations; (iii) sufficient and timely reporting or escalation of issues to the board; (b) overseeing the formulation and effective implementation of any business or strategic plan, including the strategic technology plan and associated technology policies and procedures; and (c) a robust assessment is conducted to approve any deviation from policies and procedures, including technology-related policies. Material deviations shall be reported to the board. 8.12 The senior management shall consist of individuals with the appropriate skill set and experience to adequately support the merchant acquiring services. This includes individuals from technology functions to provide guidance on the acquirers’ technology plans and operations. 8.13 The senior management shall ensure adequate allocation of resources as well as appropriately skilled and competent staff to support all critical functions of the merchant acquiring services, including to ensure maintenance of robust technology systems and management of technology risk. 8.14 For large acquirers, the senior management should embed appropriate oversight arrangements within the technology function to support the enterprise-wide S S S G Merchant Acquiring Services Page 13 of 66 Issued on: 15 September 2021 oversight of technology risk. These arrangements should provide for designated staff responsible for the identification, assessment and mitigation of technology risks who do not engage in day-to-day technology operations. PART C OPERATIONAL REQUIREMENTS 9. Minimum Capital Funds Requirements for Non-Bank Acquirers 9.1 Small non-bank acquirers are required to maintain, at all times, minimum capital funds of RM300,000. 9.2 Large non-bank acquirers are required to maintain, at all times, minimum capital funds of RM1,000,000. 9.3 Non-bank acquirers shall maintain the required minimum capital funds in accordance with the computation specified in Appendix 1. 10. Settlement Risk Management 10.1 Acquirers shall be responsible to process the payment of funds to its merchants in a proper and timely manner to manage settlement risk. For the purpose of this paragraph, settlement risk is described as the risk of acquirers’ inability to honour the obligation to transfer funds arising from a transaction as a result of clearing, at an agreed-upon time to the merchants. 10.2 Acquirers shall ensure timely and complete funds settlement to merchants as per the terms agreed in the contractual agreement with merchants. 10.3 Acquirers shall ensure that the settlement period commensurate with the merchants’ business models and needs. 10.4 Acquirers should ensure that the settlement period is no longer than two (2) and five (5) working days from the date of funds received from the payment instrument S G S S S S S Merchant Acquiring Services Page 14 of 66 Issued on: 15 September 2021 network, for physical merchants and e-commerce merchants, respectively. Notwithstanding this, acquirers should strive for a shorter settlement period and if a merchant requests for a shorter settlement period, the acquirer should assess the feasibility of accommodating such requests accordingly. 10.5 Acquirers shall deposit the funds received for settlement to merchants in a dedicated deposit account (i.e. designated account) with licensed banks, licensed Islamic banks or prescribed institutions, separately from their own funds. The funds in the dedicated deposit account shall only be used for settlement purposes to the merchants and/or chargebacks to issuers of payment instruments less the Merchant Discount Rate (MDR) charged or any other applicable charges to the merchant. 10.6 In the event settlement by acquirers to SME merchants takes more than two (2) working days from the date of funds received from the payment instrument network, the acquirer shall ensure the funds are safeguarded as follows – (a) place the settlement funds in a trust account with a licensed bank, licensed Islamic bank or prescribed institution in accordance with the Trustee Act 1949; or (b) adopt direct settlement method to merchants; or (c) secure a bank guarantee from a licensed bank, licensed Islamic bank or prescribed institution on such settlement funds or outstanding amount for settlement. 10.7 Acquirers shall be liable to provide the funds settlement to merchants in the event the issuer, including foreign issuers of payment instruments, or any other parties involved in the handling of such funds, fail to fulfil its settlement obligations. S S S Merchant Acquiring Services Page 15 of 66 Issued on: 15 September 2021 11. Merchant Management Merchant recruitment 11.1 Acquirers shall establish prudent underwriting criteria and procedures to ensure proper due-diligence for on-boarding of a merchant. The assessment criteria shall include the following – (a) relevant background information on the merchant (e.g. financial history such as bankruptcy/insolvency check, nature of business, etc.); (b) legitimacy of the merchant’s business, with no involvement in or association with any fraudulent or illegal activities including business activities intended to deceive consumers such as “scratch and win” and “get-rich-quick” schemes; and (c) the merchant has not been blacklisted by any authorities or other acquirers for any suspected fraudulent or illegal activities. 11.2 Acquirers shall verify the merchants’ identity using reliable documents, information or any other measures that acquirers deem appropriate, taking into consideration the nature and size of the business of the respective merchants, before establishing any acquiring relationship with the merchants. 11.3 For purposes of paragraph 11.2 – (a) the verification method may include site visits, website/channel checking or company screening; and (b) documents and information to be used for verification may include the business name, address, website/channel, contact, proof of existence (e.g. business registration number, identification number, etc.), owner details, business nature and products/services offered. 11.4 Merchants shall not be on-boarded via a merchant recruitment agent5 unless approved by the acquirer. Acquirers shall retain the responsibility to ensure proper 5 The merchant recruitment agent’s roles are limited to the referral of merchants, collection of merchants’ information and documents for application purposes and submission to acquirers for approval. The activities do not involve processing of funds or facilitating the transactions. S G S S Merchant Acquiring Services Page 16 of 66 Issued on: 15 September 2021 due-diligence on merchants is conducted by the merchant recruitment agent and ensure that the merchants on-boarded do not conduct fraudulent or illegal activities. Acquirers shall also ensure that controls as per paragraphs 11.1 and 11.2 are put in place by the merchant recruitment agent. Merchant monitoring 11.5 Acquirers shall conduct effective monitoring on their merchants’ activities to ensure that the merchants are not involved in any fraudulent or illegal activities. 11.6 Acquirers shall maintain a “watch list” of merchants that are suspected to be collusive or involved in fraudulent or illegal activities, and the activities of these merchants shall be closely monitored and investigated. 11.7 Acquirers shall monitor chargebacks and its trend, including the merchants’ capacity to repay these chargebacks and act accordingly (e.g. close monitoring, termination of merchant, if necessary) to mitigate any risks associated with engaging such merchants. 11.8 Acquirers shall terminate immediately any acquiring relationship with a merchant that has been charged or convicted of a criminal offence relating to fraudulent or illegal activity. 11.9 Acquirers shall conduct periodic assessment, which may include mystery shopping or audit on their merchants, to ensure that the merchants adhere to payment instruments’ acceptance and authorisation procedures. Information security requirements for merchants 11.10 Acquirers shall ensure that merchants maintain and demonstrate compliance with the applicable regulations on data security and data protection as well as establish controls6 that are effective in protecting customer data and information. This 6 Controls include process and procedures as well as IT security controls that are commonly accepted as effective by industry practice. G S S S S S Merchant Acquiring Services Page 17 of 66 Issued on: 15 September 2021 includes any third party service providers engaged by the merchants for accessing, storing, transmitting and processing customer data. 11.11 The acquirers’ agreements with merchants shall include provisions to ensure the merchants and merchants’ third party service providers maintain compliance with applicable security requirements and established security standards. 11.12 Acquirers shall educate7 and raise awareness among their merchants on the importance of protection of customer data and the legal consequences8 of failing to adequately protect such data. 12. Fraud Risk Management 12.1 Acquirers shall put in place an effective mechanism, which includes the process and procedures to mitigate fraud risk, which includes fraud prevention, detection and monitoring. 12.2 Acquirers shall ensure the following – (a) real time fraud detection and monitoring, effective early detection of unusual transactions and mechanism to halt or delay fraudulent or suspicious transactions; (b) necessary processes and procedures are in place to enable authentication by customers based on the risk profile of customers and transactions, to effectively mitigate and manage the potential risk identified; (c) the fraud risk management measures shall be reviewed periodically to ensure proactive actions are taken to address any inadequacies in such measures; (d) fraud incidents and their assessment shall be reported to the board and senior management in a timely manner if the impact is significant; and 7 By providing appropriate level of awareness through various measures such as training, constant reminders or engagement sessions. 8 Such as non-compliance with the Personal Data Protection Act 2010. S S S S Merchant Acquiring Services Page 18 of 66 Issued on: 15 September 2021 (e) reporting to the Bank shall be made in a timely manner if the impact is significant and in accordance with the fraud reporting requirement as issued by the Bank. 13. Business Continuity Management 13.1 Acquirers shall ensure that they have adequate resources and capacity in terms of hardware, software and other operating capabilities9 to deliver consistently reliable and secure services. 13.2 Acquirers shall ensure that measures are in place to support operational reliability, which include – (a) strong internal controls to minimise operational risk such as system security risk; (b) comprehensive and well-documented operational and technical procedures; and (c) systems with a robust disaster recovery plan, including a highly reliable backup system. 13.3 Acquirers shall undertake a structured risk assessment process to – (a) identify potential threats that could cause material business disruptions, resulting in the inability to fulfil business obligations; and (b) assess the likelihood of the identified threats occurring and determine the impact on the acquirer (e.g. business impact analysis). 13.4 Acquirers shall develop an effective business continuity plan (BCP) and disaster recovery plan (DRP) for at least all critical business functions and other functions, where applicable. 13.5 For purposes of paragraph 13.3, acquirers are expected to carry out a business impact analysis (BIA) on an annual basis, which forms the foundation of 9 This may refer to any other skills or processes involved in the operations (e.g. adequate manpower and skill set to operate the systems). G S S S S Merchant Acquiring Services Page 19 of 66 Issued on: 15 September 2021 developing the BCP and as and when there are material changes to the acquirers’ business activities. 13.6 Acquirers should determine the maximum tolerable downtime (MTD) and recovery time objectives (RTO) for each critical business function. The goal is to develop a BCP that details out the procedures and the minimum level of resources required to recover the critical business functions within the recovery timeframe and maintain services at an acceptable level. 13.7 To ensure comprehensiveness of its business continuity management, acquirers shall ensure its outsourced service provider also has an effective BCP and DRP and implements other relevant safeguards to ensure the continuity of the material outsourced activities, with the objective to minimise the acquirers’ business disruptions. 13.8 Acquirers shall test the BCP and DRP regularly to ensure the functionality and effectiveness of the recovery strategies and procedures, preparedness of staff and other recovery resources. 14. Outsourcing 14.1 Acquirers shall remain responsible and accountable for the services outsourced to any service provider10 (e.g. payment facilitators, merchant recruitment agents, payment gateway service providers, IT service providers) under an outsourcing arrangement11. 14.2 Prior to entering into any outsourcing arrangement, acquirers shall, at minimum, ensure the following – (a) availability of sufficient expertise within the acquirer to oversee and manage the outsourcing relationship; 10 Including affiliates of the acquirer, regardless of jurisdiction. 11 For avoidance of doubt, an arrangement will be deemed as an outsourcing arrangement as long as the activities fulfil the “outsourcing arrangement” definition specified under paragraph 5.2 of this policy document. S S S S G Merchant Acquiring Services Page 20 of 66 Issued on: 15 September 2021 (b) the scope and nature of services and operations to be outsourced would not compromise the controls and risk management of the merchant acquiring services. Acquirers shall ensure the following – (i) the outsourcing of such processes does not take away the critical decision making function of the acquirers; (ii) the outsourcing of such processes does not threaten strategic arrangements, flexibility needed by acquirers on important areas and control of the acquirers; (iii) the outsourcing of such processes would not impair the reputation, integrity and credibility of the acquirers; and (iv) processes are in place for the acquirers to retain the ability to comply with the regulatory and supervisory requirements on the outsourced functions. 14.3 Acquirers shall perform appropriate due diligence of the service provider before the outsourcing arrangements are formalised, which includes the following areas – (a) capacity, capability, financial strength and business reputation12; (b) risk management and internal control capabilities, including physical and IT security controls as well as business continuity management13; (c) measures and procedures to ensure data protection and confidentiality; (d) reliance of service providers on sub-contractors; and (e) ability of the service provider to comply with relevant laws, regulations and requirements in this policy document. 14.4 Acquirers should also assess the extent of concentration risk to which the acquirer is exposed with respect to a single service provider and the mitigation measures to address this concentration, except when the service provider is an affiliate and is supervised by a financial regulatory authority. 12 This includes an assessment that the service provider is a going concern and has strong governance structures to manage the outsourced activity throughout the duration of the arrangement. 13 Including the ability of the service provider to respond to service disruptions or problems resulting from natural disasters, or physical or cyber-attacks, within an appropriate timeframe. S G Merchant Acquiring Services Page 21 of 66 Issued on: 15 September 2021 14.5 Approval from the board to outsource identified functions shall be obtained and documented, substantiated by outcomes of the due diligence process conducted on the service provider. 14.6 Acquirers shall ensure that the outsourcing arrangement is governed by a written agreement, which shall be comprehensive, legally enforceable and shall include the minimum requirements specified in Appendix 2. 14.7 In addition to the requirements in Appendix 2, for an outsourcing arrangement with a payment facilitator, acquirers shall ensure that the agreement between the payment facilitator and merchant – (a) clearly reflects that the payment facilitator is entering into the agreement with the merchant on behalf of and/or as agent of the acquirer; (b) contains relevant information of the transactions relevant to the acquirer, including information on the merchants and any other information that may have significant implications to the acquirer; and (c) contains the acquirer’s contact details which the merchant may use to directly submit queries and concerns, if any, related to the transactions. 14.8 Acquirers shall ensure that appropriate controls are in place and are effective in safeguarding the security, confidentiality and integrity of any information shared with the service provider. In meeting this requirement, acquirers shall ensure the following – (a) information disclosed to the service provider is limited to the extent necessary to provide the contracted service, and only on a need-to-know basis; (b) all locations (e.g. city and country) where information is processed or stored, including back-up locations, are made known to the acquirer; (c) where the service provider is located, or performs the outsourced activity, outside Malaysia, the service provider is subject to data protection standards that are comparable to Malaysia; S S S S S S Merchant Acquiring Services Page 22 of 66 Issued on: 15 September 2021 (d) the service provider maintains compliance with applicable security requirements and established security standards14 at all times; and (e) the service provider undertakes to safeguard customer information of the acquirer at all times and reports any customer information breach to the acquirer within an agreed timeframe. 14.9 In addition to the requirements in paragraph (b) of Appendix 2, where applicable, the acquirer shall ensure that the service provider provides a written undertaking to the acquirer to comply with all relevant laws and regulatory requirements on secrecy and data protection. 14.10 Acquirers shall ensure their service provider complies with the relevant regulatory requirements specified in this policy document15 and as may be specified by the Bank from time to time. 14.11 The requirement in paragraph 14.10 is also applicable when a service provider engages a sub-contractor to undertake the activities that were outsourced by the acquirer, whereby the acquirer shall implement proper controls to ensure that the sub-contractor complies with the relevant requirements based on standards issued by the Bank to acquirers from time to time. 14.12 Acquirers shall have a contingency plan or arrangements to secure business continuity with the service provider in the event the arrangement with the service provider is abruptly terminated. This is to mitigate any significant discontinuity in the work that is supposed to be conducted by the service provider. The contingency plan shall be reviewed from time to time to ensure that the plan is current and ready for implementation in the event of abrupt termination of the service provider. 14 Any relevant local or international standards commonly applied by the relevant industry. 15 This includes specific requirements for system development and acquisition, data centre operations, network resilience, technology security and cybersecurity, wherever applicable. S S S S Merchant Acquiring Services Page 23 of 66 Issued on: 15 September 2021 14.13 Notwithstanding that the operational activities are outsourced, reporting by the service provider to the acquirer and monitoring mechanisms on the service provider shall be put in place by the acquirer to ensure that the integrity and quality of work conducted by the service provider is maintained. Regular reviews shall also be conducted by the acquirer to monitor the performance of the service provider. 14.14 Periodic independent reviews either via internal and/or external audits, shall be conducted on the outsourced operations, with the same scope of review if the said operations are conducted in-house. 14.15 Acquirers shall ensure that any weaknesses highlighted during the audit pursuant to paragraph 14.14 are well-documented and promptly rectified by the service provider especially where such weaknesses may affect the integrity of the internal controls of the acquirers. 14.16 For outsourcing arrangements where the service provider is located or the services are performed outside Malaysia, the acquirer should have appropriate controls and safeguards in place to manage any additional risk, with regard to various conditions, including legal and regulatory requirements as well as social and political conditions. 14.17 Acquirers shall ensure that the outsourcing arrangements undertaken outside Malaysia are conducted in a manner which does not affect – (a) the acquirer’s ability to effectively monitor the service provider and execute its BCP; (b) the acquirer’s prompt recovery of data in the event of the service provider’s failure, having regard to the laws of the particular jurisdiction; and (c) the Bank’s ability to exercise its regulatory or supervisory powers, in particular the Bank’s timely and unrestricted access to systems, information or documents relating to the outsourced activity. G S S S S Merchant Acquiring Services Page 24 of 66 Issued on: 15 September 2021 14.18 For outsourcing involving cloud services, acquirers may rely on third party certification and reports made available by the cloud service provider for purposes of conducting audits and inspections on the cloud service provider and sub- contractors. However, such reliance by the acquirer shall be supported by an adequate understanding and review of the scope of the audit and methods employed by the third party, and access to the third party and service provider to clarify matters relating to the audit. 15. Arrangement with Parties Involved in Payment and Settlement Process 15.1 Acquirers are responsible for ensuring that the parties that they enter into a contract with, who may also expose merchants to payment and/or settlement risk, are able to manage such risks appropriately. Such parties include payment facilitators. 15.2 In addition to the requirements in paragraph 14, acquirers are required to ensure such parties in paragraph 15.1 have adequate operational and risk management policies and procedures in place, which include the following – (a) the parties conduct sound assessment and due-diligence on their merchants to ensure that the merchants are conducting a legitimate business and not involved in fraudulent or illegal activities; (b) the parties have safeguard measures to ensure timely and complete funds settlement to the merchants (e.g. placing funds in a designated account with licensed banks, licensed Islamic banks or prescribed institutions only for settlement purposes and are transparent in their settlement terms and period to their merchants); (c) the parties as well as their merchants are able to ensure confidentiality, security and integrity of customer data at all times; (d) the parties are able to ensure the safety, reliability and availability of their system and network infrastructure; and (e) the parties have appropriate dispute resolution mechanisms for the merchants. S S S Merchant Acquiring Services Page 25 of 66 Issued on: 15 September 2021 15.3 Acquirers shall be held responsible for fulfilling the settlement obligation to the merchants of a payment facilitator, in the event that the payment facilitator fails to fulfil its settlement obligations to the merchants. 15.4 Notwithstanding paragraph 14.11, acquirers shall ensure that a payment facilitator does not appoint another payment facilitator for purposes of acquiring a merchant. 15.5 Acquirers shall periodically monitor the transactions or activities of the parties mentioned in paragraph 15.1 (e.g. through transaction monitoring, site visits at the business premises or audit assessment) to ensure that appropriate controls and risk mitigation measures are put in place by such parties in managing the payment and/or settlement risk and any issues or weaknesses detected are promptly rectified. 16. Appropriate Treatment for Merchants 16.1 Acquirers shall establish appropriate rules and procedures on liability management and chargeback, which shall be clearly specified in the merchant agreements. Acquirers shall ensure that merchants are not held liable for any fraud losses or chargeback if the transactions acceptance procedures as stipulated in the merchant agreement have been adhered to by the merchants. 16.2 In the event funds are withheld from the merchants, the acquirers are responsible for ensuring that the withholding of such funds due to their merchants (e.g. for suspected fraudulent transactions or to facilitate chargeback requests from the issuer) is done in a fair manner and not detrimental to the merchants. This shall include but is not limited to the following – (a) provide clarity in the circumstances for withholding of funds due to the merchants (e.g. fraudulent transactions); (b) provide clarity and identify the definite period for withholding of funds due to the merchants (e.g. within chargeback period of one hundred and twenty (120) days); S S S S S Merchant Acquiring Services Page 26 of 66 Issued on: 15 September 2021 (c) processes involved in releasing of withheld funds are done in an expedient manner and within the identified timeframe; (d) maintenance of withheld funds is made in a separate account, which shall not be used for acquirers’ own operations; and (e) provide clear communication and regular updates on the status of the withheld funds to the merchants. 16.3 Acquirers shall establish clear and robust dispute resolution procedures to ensure effective and timely resolution of dispute cases between acquirers and their merchants. 16.4 Acquirers shall acknowledge receipt of the dispute within two (2) working days from the date such dispute is lodged and provide a written decision to merchants within thirty (30) working days. Acquirers shall inform the merchants if a longer time is required to address the dispute and provide appropriate rationale. PART D INFORMATION TECHNOLOGY (IT) REQUIREMENTS 17. Technology Risk Management S G 17.1 Acquirers shall establish the Technology Risk Management Framework (TRMF), which is a framework to safeguard the acquirers’ information infrastructure, systems and data as an integral part of the acquirers’ risk management framework. 17.2 The TRMF should include the following – (a) clear definition of technology risk; (b) clear responsibilities assigned for the management of technology risk at different levels and across functions, with appropriate governance and reporting arrangements; (c) the identification of technology risks to which the acquirers are exposed, including risks from the adoption of new or emerging technology; (d) risk classification of all information assets/systems based on their criticality; (e) risk measurement and assessment approaches and methodologies; S S Merchant Acquiring Services Page 27 of 66 Issued on: 15 September 2021 (f) risk controls and mitigations; and (g) continuous monitoring to timely detect and address any material risks. G 17.3 Acquirers should establish an independent enterprise-wide technology risk management function which should be responsible for — (a) implementing the TRMF and Cyber Resilience Framework (CRF) as provided under paragraph 19; (b) advising on critical technology projects and ensuring critical issues that may have an impact on the acquirers’ risk tolerance are adequately deliberated or escalated in a timely manner; and (c) providing independent views to the board and senior management on third party assessment16, where necessary. G 17.4 Acquirers should designate a Chief Information Security Officer (CISO), by whatever name called, to be responsible for the technology risk management function of the acquirers. The acquirers should ensure that the CISO has sufficient authority, independence and resources17. The CISO should — (a) be independent from day-to-day technology operations; (b) keep apprised of current and emerging technology risks which could potentially affect the acquirers’ risk profile; and (c) be appropriately certified. G 17.5 The CISO should be responsible for ensuring the acquirers’ information assets and technologies are adequately protected, which include — (a) formulating appropriate policies for the effective implementation of TRMF and CRF; (b) enforcing compliance with these policies, frameworks and other technology- related regulatory requirements; and 16 Relevant third party assessment may include the Data Centre Risk Assessment (DCRA), Network Resilience and Risk Assessment (NRA) and independent assurance for introduction of new or enhanced digital services. 17 Acquirers’ CISO may take guidance from the expertise of a group-level CISO, in or outside of Malaysia, and may also hold other roles and responsibilities. Such designated CISO should be accountable for and serve as the point of contact with the Bank on the acquirers’ technology-related matters, including managing entity-specific risks, supporting prompt incident response and reporting to the acquirers’ board. Merchant Acquiring Services Page 28 of 66 Issued on: 15 September 2021 (c) advising senior management on technology risk and security matters, including developments in the acquirers’ technology security risk profile in relation to its businesses and operations. 18. Technology Operations Management Technology Project Management S 18.1 Acquirers shall establish appropriate governance requirements commensurate with the risk and complexity18 of technology projects undertaken. This shall include establishing project oversight roles and responsibilities, authority and reporting structures, and risk assessment throughout the project life cycle. G 18.2 The risk assessment should identify and address the key risks arising from the implementation of technology projects. These include the risks that could threaten successful project implementation and the risks that a project failure will lead to a broader impact on the acquirers’ operational capabilities. At a minimum, due regard should be given to the following areas – (a) the adequacy and competency of resources including those of the vendor to effectively implement the project. This should also take into consideration the number, size and duration of significant technology projects undertaken concurrently by the acquirers; (b) the complexity of systems to be implemented such as the use of unproven or unfamiliar technology and the corresponding risks of integrating the new technology into existing systems, managing multiple vendor-proprietary technologies, large-scale data migration or cleansing efforts and extensive system customisation; (c) the adequacy and configuration of security controls throughout the project life cycle to mitigate cybersecurity breaches or exposure of confidential data; (d) the comprehensiveness of the user requirement specifications to mitigate risks 18 For example, large-scale integration projects or those involving IT systems should be subject to more stringent project governance requirements such as more frequent reporting to the board and senior management, more experienced project managers and sponsors, more frequent milestone reviews and independent quality assurance at major project approval stages. Merchant Acquiring Services Page 29 of 66 Issued on: 15 September 2021 from extensive changes in project scope or deficiencies in meeting business needs; (e) the robustness of system and user testing strategies to reduce risks of undiscovered system faults and functionality errors; (f) the appropriateness of system deployment and fallback strategies to mitigate risks from prolonged system stability issues; and (g) the adequacy of disaster recovery operational readiness following the implementation of new or enhanced systems. G 18.3 The board and senior management should receive and review timely reports on the management of these risks on an ongoing basis throughout the implementation of significant projects. System Development and Acquisition G 18.4 Acquirers should establish an Enterprise Architecture Framework (EAF) that provides a holistic view of technology throughout the acquirers. The EAF is an overall technical design and high-level plan that describes the acquirers’ technology infrastructure, systems’ inter-connectivity and security controls. The EAF facilitates the conceptual design and maintenance of the network infrastructure, related technology controls and policies and serves as a foundation on which acquirers plan and structure system development and acquisition strategies to meet business goals. S 18.5 Acquirers shall establish clear risk management policies and practices for the key phases of the system development life cycle (SDLC) encompassing system design, development, testing, deployment, change management, maintenance and decommissioning. Such policies and practices shall also embed security and relevant enterprise architecture considerations into the SDLC to ensure confidentiality, integrity and availability of data19. The policies and practices shall be reviewed at least once every three (3) years to ensure that they remain relevant to the acquirers’ environment. 19 The security considerations shall include ensuring appropriate segregation of duties throughout the SDLC. Merchant Acquiring Services Page 30 of 66 Issued on: 15 September 2021 G 18.6 Acquirers are encouraged to deploy automated tools for software development, testing, software deployment, change management, code scanning and software version control to support more secure systems development. G 18.7 Acquirers should consider the need for diversity20 in technology to enhance resilience by ensuring critical systems infrastructure are not excessively exposed to similar technology risks. S 18.8 Acquirers shall establish a sound methodology for rigorous system testing prior to deployment. The testing shall ensure that the system meets user requirements and performs robustly. Where sensitive test data is used, acquirers shall ensure proper authorisation procedures and adequate measures to prevent their unauthorised disclosure are in place. G 18.9 The scope of system testing referred to in paragraph 18.8 should include unit testing, integration testing, user acceptance testing, application security testing, stress and regression testing, and exception and negative testing, where applicable. S 18.10 Acquirers shall ensure any changes to the source code of critical systems are subject to adequate source code reviews to ensure the code is secure and was developed in line with recognised coding practices prior to introducing any system changes. S 18.11 In relation to IT systems that are developed and maintained by vendors, acquirers shall ensure the source code continues to be readily accessible and secured from unauthorised access. S 18.12 Acquirers shall physically segregate the production environment from the development and testing environment for critical systems. Where acquirers are 20 Diversity in technology may include the use of different technology architecture designs and applications, technology platforms and network infrastructure. Merchant Acquiring Services Page 31 of 66 Issued on: 15 September 2021 relying on a cloud environment, the acquirers shall ensure that these environments are not running on the same virtual host. S 18.13 Acquirers shall establish appropriate procedures to independently review and approve system changes. The acquirers shall also establish and test contingency plans in the event of unsuccessful implementation of material changes to minimise any business disruption. S 18.14 Where acquirers’ IT systems are managed by third party service providers, the acquirers shall ensure, including through contractual obligations, that the third party service providers provide sufficient notice to the acquirers before any changes are undertaken that may impact the IT systems. G 18.15 When decommissioning systems, acquirers should ensure minimal adverse impact on merchants and business operations. This includes establishing and testing contingency plans in the event of unsuccessful system decommissioning. Cryptography 18.16 Acquirers should promote the adoption of strong cryptographic controls for protection of important data and information which include – (a) the adoption of industry standards for encryption algorithms, message authentication, hash functions, digital signatures and random number generation; (b) the adoption of robust and secure processes in managing cryptographic key lifecycles which include generation, distribution, renewal, usage, storage, recovery, revocation and destruction; (c) the periodic review, at least every three (3) years, of existing cryptographic standards and algorithms in IT systems, external linked or customer-facing applications to prevent exploitation of weakened algorithms or protocols; and (d) the development and testing of compromise-recovery plans in the event of a cryptographic key compromise. This should set out the escalation process, G Merchant Acquiring Services Page 32 of 66 Issued on: 15 September 2021 procedures for keys regeneration, interim measures, changes to business-as- usual protocols and containment strategies or options to minimise the impact of a compromise. G 18.17 Acquirers should conduct due diligence and evaluate the cryptographic controls associated with the technology used in order to protect the confidentiality, integrity, authentication, authorisation and non-repudiation of information. Where acquirers do not generate their own encryption keys, the acquirers should undertake appropriate measures to ensure robust controls and processes are in place to manage encryption keys. Where this involves a reliance on third party assessment21, the acquirers should consider whether such reliance is consistent with the acquirers’ risk appetite and tolerance. Acquirers should also give due regard to the system resources required to support the cryptographic controls and the risk of reduced network traffic visibility of data that has been encrypted. G 18.18 Acquirers should ensure cryptographic controls are based on the effective implementation of suitable cryptographic protocols. The protocols should include secret and public cryptographic key protocols, both of which should reflect a high degree of protection to the applicable secret or private cryptographic keys. The selection of such protocols should be based on recognised international standards and tested accordingly. Commensurate with the level of risk, secret cryptographic key and private-cryptographic key storage and encryption/decryption computation should be undertaken in a protected environment, supported by a hardware security module (HSM) or trusted execution environment (TEE). G 18.19 Acquirers should store public cryptographic keys in a certificate issued by a certificate authority as appropriate to the level of risk. Such certificates associated with customers should be issued by recognised certificate authorities. The acquirers should ensure that the implementation of authentication and signature protocols using such certificates are subject to strong protection to ensure that the 21 For example, where the acquirers are not able to perform its own validation on embedded cryptographic controls due to the proprietary nature of the software or confidentiality constraints. Merchant Acquiring Services Page 33 of 66 Issued on: 15 September 2021 use of private cryptographic keys corresponding to the user certificates is legally binding and irrefutable. The initial issuance and subsequent renewal of such certificates should be consistent with industry best practices and applicable legal/regulatory specifications. Data Centre Infrastructure 18.20 Acquirers shall ensure proper management of data centres and specify the resilience and availability objectives22 of their data centres which are aligned with their business needs. 18.21 The network infrastructure should be designed to be resilient, secure and scalable. Potential data centre failures or disruptions should not significantly degrade the delivery of its financial services or impede its internal operations. G 18.22 Acquirers should ensure production data centres are concurrently maintainable. This includes ensuring that production data centres have redundant capacity components and distribution paths serving the computer equipment. G 18.23 In addition to paragraph 18.22, large acquirers are also encouraged to ensure recovery data centres are concurrently maintainable. G S 18.24 Acquirers should host IT systems in a dedicated space intended for production data centre usage. The dedicated space is to be physically secured from unauthorised access and is not located in a disaster-prone area. Acquirers should ensure there is no single point of failure (SPOF) in the design and connectivity for critical components of the production data centres, including hardware components, electrical utility, thermal management and data centre infrastructure. 18.25 Acquirers shall establish proportionate controls, ensure adequate maintenance, and holistic and continuous monitoring of the critical components of the production 22 Availability objectives refer to the level of availability of the data centre which is expected to be specified as an internal policy. S S G Merchant Acquiring Services Page 34 of 66 Issued on: 15 September 2021 data centres aligned with the acquirer’s risk appetite. G 18.26 Acquirers are encouraged to appoint a technically competent external third party service provider to carry out a production data centre risk assessment and set proportionate controls aligned with the acquirers’ risk appetite. The assessment should consider all major risks associated with the production data centre and to be conducted periodically or whenever there is a material change in the data centre infrastructure. The assessment should at a minimum, include a consideration of whether paragraphs 18.22 to 18.25 have been adopted. For data centres managed by third party service providers, acquirers may rely on independent third party assurance reports provided such reliance is consistent with the acquirers’ risk appetite and tolerance, and the independent assurance has considered similar risks and meets the expectations in this paragraph for conducting the assessment. The designated board-level committee should deliberate the outcome of the assessment. Data Centre Operations 18.27 Acquirers shall ensure their capacity needs are well-planned and managed with due regard to business growth plans. This includes ensuring adequate system storage, central processing unit (CPU) power, memory and network bandwidth. 18.28 Acquirers should involve both the technology stakeholders and the relevant business stakeholders within the acquirers in their development and implementation of capacity management plans. 18.29 Acquirers shall establish appropriate monitoring mechanisms to track capacity utilisation and performance of key processes and services23. These monitoring mechanisms shall be capable of providing timely and actionable alerts to administrators. 23 For example, batch runs and backup processes for the acquirers’ application systems and infrastructure. S G S Merchant Acquiring Services Page 35 of 66 Issued on: 15 September 2021 S 18.30 Acquirers shall segregate incompatible activities in the data centre operations environment to prevent any unauthorised activity24. In the case where vendors’ or programmers’ access to the production environment is necessary, these activities shall be properly authorised and monitored. S 18.31 Acquirers shall establish adequate control procedures for their data centre operations. These control procedures shall include procedures for batch processing management to ensure timely and accurate batch processes, implementing changes in the production system, error handling, as well as, management of other exceptional conditions. G 18.32 Acquirers are encouraged to undertake an independent risk assessment of their end-to-end backup storage and delivery management to ensure that existing controls are adequate in protecting sensitive data at all times. 18.33 Acquirers shall maintain a sufficient number of backup copies of critical data, the updated version of the operating system software, production programmes, system utilities, all master and transaction files and event logs for recovery purposes. Backup media shall be stored in an environmentally secure and access-controlled backup site. G 18.34 In regard to paragraph 18.32 and 18.33, acquirers should also adopt the controls as specified in Appendix 3 or their equivalent to secure the storage and transportation of sensitive data in removable media. G 18.35 Where there is a reasonable expectation for immediate delivery of service, acquirers should ensure that the relevant critical systems are designed for high availability. 24 For example, system development activities shall be segregated from data centre operations. S Merchant Acquiring Services Page 36 of 66 Issued on: 15 September 2021 Network Resilience 18.36 Acquirers are encouraged to design a reliable, scalable and secure enterprise network that is able to support their business activities, including future growth plans. 18.37 Acquirers should ensure the network services for their critical systems are reliable and have no SPOF in order to protect the critical systems against potential network faults and cyber threats. 18.38 Acquirers should establish real-time network bandwidth monitoring processes and corresponding network service resilience metrics to flag any over utilisation of bandwidth and system disruptions due to bandwidth congestion and network faults. This includes traffic analysis to detect trends and anomalies. 18.39 Acquirers shall ensure network services supporting IT systems are designed and implemented to ensure the confidentiality, integrity and availability of data. 18.40 Acquirers should establish and maintain a network design blueprint identifying all of their internal and external network interfaces and connectivity. The blueprint should highlight both physical and logical connectivity between network components and network segmentations. 18.41 Acquirers shall ensure sufficient and relevant network device logs are retained for investigations and forensic purposes for at least three (3) years. 18.42 Acquirers shall implement appropriate safeguards to minimise the risk of a system compromise in one entity affecting other entities within the group. Safeguards implemented may include establishing logical network segmentation for the acquirers from other entities within the group. 18.43 Acquirers are encouraged to appoint a technically competent external third party service provider to carry out regular network risk assessment and set G G S G S G S G Merchant Acquiring Services Page 37 of 66 Issued on: 15 September 2021 proportionate controls aligned with its risk appetite. The assessment should be conducted periodically or whenever there is a material change in the network design. The assessment should consider all major risks and determine the current level of resilience. Third Party Service Provider Management 18.44 In addition to the requirements in paragraph 14 on outsourcing arrangements, the acquirer shall fulfil the requirements under paragraphs 18.45 to 18.51 specifically for IT related third party service providers. 18.45 The board and senior management of the acquirers shall exercise effective oversight and address associated risks when engaging third party service providers for critical technology functions and systems. Engagement of third party service providers, including engagements for independent assessment, does not in any way reduce or eliminate the principal accountabilities and responsibilities of acquirers for the security and reliability of technology functions and systems. 18.46 Acquirers shall conduct proper due diligence on the third party service provider’s competency, system infrastructure and financial viability as relevant prior to engaging its services. In addition, an assessment shall be made of the third party service providers’ capabilities in managing the following specific risks – (a) data leakage such as unauthorised disclosure of customer and counterparty information; (b) service disruption including capacity performance; (c) processing errors; (d) physical security breaches; (e) cyber threats; (f) over-reliance on key personnel; (g) mishandling of confidential information pertaining to the acquirers or its customers in the course of transmission, processing or storage of such information; and (h) concentration risk. S S S Merchant Acquiring Services Page 38 of 66 Issued on: 15 September 2021 18.47 At a minimum, the outsourcing agreements with the acquirers’ third party service providers shall contain arrangements for disaster recovery and backup capability, where applicable, and IT system availability. 18.48 Acquirers shall ensure their ability to regularly review the outsourcing agreements with their third party service providers to take into account the latest security and technological developments in relation to the services provided. 18.49 Acquirers shall ensure data residing in third party service providers are recoverable in a timely manner. The acquirers shall ensure clearly defined arrangements with the third party service providers are in place to facilitate the acquirers’ immediate notification and timely updates to the Bank and other relevant regulatory bodies in the event of a cyber-incident. 18.50 Acquirers shall ensure the storage of their data is at least logically segregated from the other clients of the third party service providers. There shall be proper controls over and periodic review of the access provided to authorised users. 18.51 Acquirers shall ensure IT system hosted by third party service providers have adequate recovery and resumption capability and provisions to facilitate an orderly exit in the event of failure or unsatisfactory performance by the third party service providers. Cloud Services 18.52 Acquirers shall fully understand the inherent risk of adopting cloud services. In this regard, acquirers are required to conduct a comprehensive risk assessment prior to cloud adoption which considers the inherent architecture of cloud services that leverage on the sharing of resources and services across multiple tenants over the Internet. The assessment shall specifically address risks associated with the following – (a) sophistication of the deployment model; S S S S S S Merchant Acquiring Services Page 39 of 66 Issued on: 15 September 2021 (b) migration of existing systems to cloud infrastructure; (c) location of cloud infrastructure; (d) multi-tenancy or data co-mingling; (e) vendor lock-in and application portability or interoperability; (f) ability to customise security configurations of the cloud infrastructure to ensure a high level of data and technology system protection; (g) exposure to cyber-attacks via cloud service providers; (h) termination of a cloud service provider including the ability to secure the acquirers’ data following the termination; (i) demarcation of responsibilities, limitations and liability of the cloud service providers; and (j) ability to meet regulatory requirements and international standards on cloud computing on a continuing basis. 18.53 The risk assessment as outlined in paragraph 18.52 shall be documented and made available for the Bank’s review as and when requested by the Bank. 18.54 Acquirers shall demonstrate that specific risks associated with the use of cloud services for IT systems have been adequately considered and addressed. The risk assessment shall address the risks outlined in paragraph 18.52, as well as, the following areas – (a) the adequacy of the over-arching cloud adoption strategy of the acquirers including – (i) board oversight over cloud strategy and cloud operational management; (ii) senior management roles and responsibilities on cloud management; (iii) conduct of day-to-day operational management functions; (iv) management and oversight by the acquirers of cloud service providers; (v) quality of risk management and internal control functions; and (vi) strength of in-house competency and experience. S S Merchant Acquiring Services Page 40 of 66 Issued on: 15 September 2021 (b) the availability of independent, internationally recognised certifications of the cloud service providers, at a minimum, in the following areas – (i) information security management framework, including cryptographic modules such as used for encryption and decryption of user data; and (ii) cloud-specific security controls for protection of customer and counterparty or proprietary information including payment transaction data in use, in storage and in transit; (c) the degree to which the selected cloud configuration adequately addresses the following attributes – (i) geographical redundancy; (ii) high availability; (iii) scalability; (iv) portability; (v) interoperability; and (vi) strong recovery and resumption capability including appropriate alternate Internet path to protect against potential Internet faults. 18.55 Acquirers should consider the need for a third party pre-implementation review on cloud implementation that also covers the areas set out in paragraph 18.54. 18.56 Acquirers shall implement appropriate safeguards on customer and counterparty information and proprietary data when using cloud services to protect against unauthorised disclosure and access. This shall include retaining ownership, control and management of all data pertaining to customer and counterparty information, proprietary data and services hosted on the cloud, including the relevant cryptographic keys management. G S Merchant Acquiring Services Page 41 of 66 Issued on: 15 September 2021 Access Control 18.57 Acquirers shall implement an appropriate access control policy for the identification, authentication and authorisation of users (internal and external users such as third party service providers). This shall address both logical and physical technology access controls, which are commensurate with the level of risk of unauthorised access to its technology systems. 18.58 In observing paragraph 18.57, acquirers should consider the following in accessing the control policy – (a) adopt a “deny all” access control policy for users by default unless explicitly authorised; (b) employ “least privilege” access rights or on a “need-to-have” basis where only the minimum sufficient permissions are granted to legitimate users to perform their roles; (c) employ time-bound access rights which restrict access to a specific period including access rights granted to third party service providers; (d) employ segregation of incompatible functions to ensure that no single person is responsible for an entire operation that may provide the ability to independently modify, circumvent, and disable system security features. This may include a combination of functions such as – (i) system development and technology operations; (ii) security administration and system administration; and (iii) network operation and network security; (e) employ dual control functions which require two or more persons to execute an activity; (f) adopt stronger authentication for critical activities including for remote access; (g) limit and control the use of the same user ID for multiple concurrent sessions; (h) limit and control the sharing of user ID and passwords across multiple users; and (i) control the use of generic user ID naming conventions in favour of more personally identifiable IDs. S G Merchant Acquiring Services Page 42 of 66 Issued on: 15 September 2021 18.59 Acquirers shall employ robust authentication processes to ensure the authenticity of identities in use. Authentication mechanisms shall commensurate with the criticality of the functions and adopt at least one or more of these three (3) basic authentication factors, namely, something the user knows (e.g. password, PIN), something the user possesses (e.g. smart card, security device) and something the user is (e.g. biometric characteristics, such as a fingerprint or retinal pattern). 18.60 Authentication methods that depend on more than one factor typically are more difficult to compromise than a single factor system. In view of this, acquirers are encouraged to properly design and implement (especially in high-risk or ‘single sign-on’ systems) multi-factor authentication (MFA) that is more reliable and provide stronger fraud deterrents. 18.61 Acquirers shall periodically review and adapt their password practices to enhance resilience against evolving attacks. This includes the effective and secure generation of passwords. There shall be appropriate controls in place to check the strength of the passwords created. 18.62 Acquirers are encouraged to adopt dedicated user domains for selected critical functions, separate from the broader enterprise-wide user authentication system. 18.63 Acquirers shall establish a user access matrix to outline access rights, user roles or profiles, and the authorising and approving authorities. The access matrix shall be periodically reviewed and updated. 18.64 Acquirers shall ensure the following — (a) access controls to enterprise-wide systems are effectively managed and monitored; and (b) user activities in IT systems are logged for audit and investigations. Activity logs shall be maintained for at least three (3) years and regularly reviewed in a timely manner. S G S S G S Merchant Acquiring Services Page 43 of 66 Issued on: 15 September 2021 18.65 In fulfilling the requirement under paragraph 18.64, large acquirers are encouraged to – (a) deploy an identity access management system to effectively manage and monitor user access to enterprise-wide systems; and (b) deploy automated audit tools to flag any anomalies. Patch and End-of-Life System Management 18.66 Acquirers shall ensure that the IT systems are not running on outdated systems with known security vulnerabilities or end-of-life (EOL) technology systems. In this regard, the acquirers shall clearly assign responsibilities to identified functions – (a) to continuously monitor and implement latest patch releases in a timely manner; and (b) identify critical technology systems that are approaching EOL for further remedial action. 18.67 Acquirers should establish a patch and EOL management framework which addresses among others the following requirements – (a) identification and risk assessment of all technology assets for potential vulnerabilities arising from undeployed patches or EOL systems; (b) conduct of compatibility testing for critical patches; (c) specification of turnaround time for deploying patches according to the severity of the patches; and (d) adherence to the workflow for end-to-end patch deployment processes including approval, monitoring and tracking of activities. Security of Digital Services 18.68 Acquirers shall implement robust technology security controls in providing digital services which assure the following – (a) confidentiality and integrity of customer and counterparty information and transactions; (b) reliability of services delivered via channels and devices with minimum disruption to services; S G S G Merchant Acquiring Services Page 44 of 66 Issued on: 15 September 2021 (c) proper authentication of users or devices and authorisation of transactions; (d) sufficient audit trail and monitoring of anomalous transactions; (e) ability to identify and revert to the recovery point prior to incident or service disruption; and (f) strong physical control and logical control measures. 18.69 Acquirers should implement controls to authenticate and monitor all financial transactions. These controls, at a minimum, should be effective in mitigating man-in- the-middle attacks, transaction fraud, phishing and compromise of application systems and information. Acquirers should deploy MFA technology and channels that are more secure than unencrypted short messaging service (SMS). 18.70 Acquirers shall ensure sufficient and relevant digital service logs are retained for investigations and forensic purposes for at least three (3) years. 18.71 Acquirers should ensure that the use of more advanced technology to authenticate and deliver digital services such as biometrics, tokenisation and contactless communication25 comply with internationally recognised standards where available. The technology should be resilient against cyber threats26 including malware, phishing or data leakage. 18.72 Acquirers should undertake a comprehensive risk assessment of the advanced technologies and the algorithms deployed in its digital services. Algorithms should be regularly reviewed and validated to ensure they remain appropriate and accurate. Where third party software is used, acquirers may rely on relevant independent reports provided that such reliance is consistent with the acquirers’ risk appetite and tolerance, and the nature of digital services provided by the acquirers which leverage on the technologies and algorithms. 25 Such as QR code, Bar Code, Near Field Communication (NFC), Radio Frequency Identification (RFID). 26 For example, in respect of QR payments, acquirers shall implement safeguards within its respective mobile applications to detect and mitigate risks relating to QR code that may contain malware or links to phishing websites. S G G G Merchant Acquiring Services Page 45 of 66 Issued on: 15 September 2021 18.73 Acquirers should ensure authentication processes using biometric technology are secure, highly resistant to spoofing and have a minimal false acceptance rate to ensure confidentiality, integrity and non-repudiation of transactions. 18.74 Acquirers should perform continuous surveillance to assess the vulnerability of the operating system and the relevant technology platform used for its digital delivery channels to security breaches and implement appropriate corresponding safeguards. At a minimum, acquirers should implement sufficient logical and physical safeguards for the following channels/devices – (a) payment acceptance device; (b) QR code; (c) Internet application; and (d) mobile application and devices. In view of the evolving threat landscape, these safeguards should be continuously reviewed and updated to protect against fraud and to secure the confidentiality and integrity of customer and counterparty information and transactions. 18.75 With respect to paragraph 18.74, acquirers should adopt the controls specified in the following Appendices for the respective digital delivery channel – (a) Appendix 4: Control Measures on Payment Acceptance Device; (b) Appendix 5: Control Measures on Internet Application; (c) Appendix 6: Control Measures on Mobile Application and Devices; and (d) Appendix 7: Control Measures on Quick Response Code. 19. Cybersecurity Management Cyber Risk Management 19.1 Acquirers should ensure that there is an enterprise-wide focus on effective cyber risk management to reflect the collective responsibility of business and technology lines for managing cyber risks. 19.2 Acquirers shall develop a Cyber Resilience Framework (CRF), which articulates the acquirers’ governance for managing cyber risks, its cyber resilience objectives and G G S G G Merchant Acquiring Services Page 46 of 66 Issued on: 15 September 2021 its risk tolerance, with due regard to the evolving cyber threat environment. Objectives of the CRF includes ensuring operational resilience against extreme but plausible cyber-attacks. 19.3 The CRF should be able to support the effective identification, protection, detection, response, and recovery (IPDRR) of systems and data hosted on-premise or by third party service providers from internal and external cyber-attacks. The CRF should consist of, at a minimum, the following elements – (a) development of an institutional understanding of the overall cyber risk context in relation to the acquirers’ businesses and operations, their exposure to cyber risks and current cybersecurity posture; (b) identification, classification and prioritisation of critical systems, information, assets and interconnectivity (with internal and external parties) to obtain a complete and accurate view of the acquirers’ information assets, critical systems, interdependencies and cyber risk profile; (c) identification of cybersecurity threats and countermeasures including measures to contain reputational damage that can undermine confidence in the acquirers; (d) layered (defense-in-depth) security controls to protect data, infrastructure and assets against evolving threats; (e) timely detection of cybersecurity incidents through continuous surveillance and monitoring; (f) detailed incident handling policies and procedures and a crisis response management playbook to support the swift recovery from cyber-incidents and contain any damage resulting from a cybersecurity breach; and (g) policies and procedures for timely and secure information sharing and collaboration with other acquirers and participants in financial market infrastructure to strengthen cyber resilience. 19.4 In addition to the elements provided in paragraph 19.3 above, large acquirers are encouraged to — G G Merchant Acquiring Services Page 47 of 66 Issued on: 15 September 2021 (a) implement a centralised automated tracking system to manage their technology asset inventory; and (b) establish a dedicated in-house cyber risk management function to manage cyber risks or emerging cyber threats. The cyber risk management function should be responsible for the following – (i) perform detailed analysis on cyber threats, provide risk assessment on potential cyber-attacks and ensure timely review and escalation of all high-risk cyber threats to the board and senior management; and (ii) proactively identify potential vulnerabilities including those arising from infrastructure hosted with third party service providers through the simulation of sophisticated “Red Team” attacks on their current security controls. Cybersecurity Operations 19.5 Acquirers should establish clear responsibilities for cybersecurity operations which should include implementing appropriate mitigating measures in the acquirers’ conduct of business that correspond to the following phases of the cyber-attack lifecycle – (a) reconnaissance; (b) weaponisation; (c) delivery; (d) exploitation; (e) installation; (f) command and control; and (g) exfiltration. 19.6 Where relevant, acquirers should adopt the control measures on cybersecurity as specified in Appendix 8 to enhance its resilience to cyber-attacks. 19.7 Acquirers are encouraged to deploy effective tools to support the continuous and proactive monitoring and timely detection of anomalous activities in its technology G G G Merchant Acquiring Services Page 48 of 66 Issued on: 15 September 2021 infrastructure. The scope of monitoring should cover all critical systems including the supporting infrastructure. 19.8 Acquirers shall ensure that their cybersecurity operations continuously prevent and detect any potential compromise of their security controls or weakening of their security posture. For large acquirers, this shall include performing a quarterly vulnerability assessment of external and internal network components that support all critical systems. 19.9 Acquirers shall conduct annual penetration tests on their internal and external network infrastructure as well as IT systems including web, mobile and all external- facing applications. The penetration testing shall reflect extreme but plausible cyber- attack scenarios based on emerging and evolving threat scenarios. Acquirers shall engage suitably accredited penetration testers and third party service providers to perform this function. 19.10 In addition to the requirement in paragraph 19.9 above, large acquirers are encouraged to undertake independent compromise assessment on the technology infrastructure of their critical systems at least annually and ensure the results of such assessment are escalated to the board and senior management in a timely manner. 19.11 Acquirers shall establish standard operating procedures (SOP) for vulnerability assessment and penetration testing (VAPT) activities. The SOP shall outline the relevant control measures including ensuring the external penetration testers are accompanied on-premises at all times, validating the event logs and ensuring data purging. 19.12 Acquirers shall ensure the outcome of the penetration testing exercise is properly documented and escalated in a timely manner to senior management to identify and monitor the implementation of relevant remedial actions. G S S S S Merchant Acquiring Services Page 49 of 66 Issued on: 15 September 2021 Distributed Denial of Service (DDoS) 19.13 Acquirers should ensure their technology systems and infrastructure, including IT systems outsourced to or hosted by third party service providers, are adequately protected against all types of DDoS attacks (including volumetric, protocol and application layer attacks) through the following measures – (a) subscribing to DDoS mitigation services, which include automatic “clean pipe” services to filter and divert any potential malicious traffic away from the network bandwidth; (b) regularly assessing the capability of the service third party service provider to expand network bandwidth on-demand including upstream third party service provider capability, adequacy of the third party service provider’s incident response plan and its responsiveness to an attack; and (c) implementing mechanisms to mitigate against Domain Name Server (DNS) based layer attacks. Data Loss Prevention (DLP) 19.14 Acquirers should establish a clear DLP strategy and processes in order to ensure that proprietary and customer and counterparty information is identified, classified and secured. At a minimum, acquirers should – (a) ensure that data owners are accountable and responsible for identifying and appropriately classifying data; (b) undertake a data discovery process prior to the development of a data classification scheme and data inventory; and (c) ensure that data accessible by third parties is clearly identified and policies should be implemented to safeguard and control third party access. This includes having in place adequate contractual agreements to protect the interests of the acquirers and their customers. 19.15 Acquirers should design internal control procedures and implement appropriate technology in all applications and access points to enforce DLP policies and trigger any policy violations. The technology deployed should cover the following – (a) data in-use – data being processed by IT resources; G G G Merchant Acquiring Services Page 50 of 66 Issued on: 15 September 2021 (b) data in-motion – data being transmitted on the network; and (c) data at-rest – data stored in storage mediums such as servers, backup media and databases. 19.16 Acquirers should implement appropriate policies for the removal of data on technology equipment, mobile devices or storage media to prevent unauthorised access to data. Security Operations Centre (SOC) 19.17 Acquirers shall ensure their SOC, whether managed in-house or by third party service providers, has adequate capabilities for proactive monitoring of its technology security posture. This shall enable the acquirers to detect anomalous user or network activities, flag potential breaches and establish the appropriate response supported by skilled resources based on the level of complexity of the alerts. The outcome of the SOC activities shall also inform the acquirers’ reviews of its cybersecurity posture and strategy. 19.18 The SOC should be able to perform the following functions – (a) log collection and the implementation of an event correlation engine with parameter-driven use cases such as Security Information and Event Management (SIEM); (b) incident coordination and response; (c) vulnerability management; (d) threat hunting; (e) remediation functions including the ability to perform forensic artifact handling, malware and implant analysis; and (f) provision of situational awareness to detect adversaries and threats including threat intelligence analysis and operations, and monitoring indicators of compromise (IOC). This includes advanced behavioural analysis to detect signature-less and file-less malware and to identify anomalies that may pose security threats including at endpoints and network layers. S G G Merchant Acquiring Services Page 51 of 66 Issued on: 15 September 2021 19.19 Acquirers should ensure that the SOC provides a regular threat assessment report, which should include, at a minimum, the following – (a) trends and statistics of cyber events and incidents categorised by type of attacks, target and source IP addresses, location of data centres and criticality of applications; and (b) intelligence on emerging and potential threats including tactics, techniques and procedures (TTP). For large acquirers, such reports should be provided on a monthly basis. 19.20 Acquirers are encouraged to subscribe to reputable threat intelligence services to identify emerging cyber threats, uncover new cyber-attack techniques and support the implementation of countermeasures. 19.21 Acquirers shall ensure the following – (a) the SOC is located in a physically secure environment with proper access controls; and (b) the SOC operates on a 24x7 basis with disaster recovery capability to ensure continuous availability. Cyber Response and Recovery 19.22 Acquirers shall establish comprehensive cyber crisis management policies and procedures that incorporate cyber-attack scenarios and responses in the organisation’s overall crisis management plan, escalation processes, business continuity and disaster recovery planning. This includes developing a clear communication plan for engaging shareholders, regulatory authorities, customers and employees in the event of a cyber-incident. 19.23 Acquirers should establish and implement a comprehensive Cyber Incident Response Plan (CIRP). The CIRP shall address the following – (a) Preparedness: Establish a clear governance process, reporting structure and roles and responsibilities of the Cyber Emergency Response Team (CERT) as well as invocation and escalation procedures in the event of an incident; S S G G G Merchant Acquiring Services Page 52 of 66 Issued on: 15 September 2021 (b) Detection and analysis: Ensure effective and expedient processes for identifying points of compromise, assessing the extent of damage and preserving sufficient evidence for forensics purposes; (c) Containment, eradication and recovery: Identify and implement remedial actions to prevent or minimise damage to the acquirers, remove the known threats and resume business activities; and (d) Post-incident activity: Conduct post-incident review incorporating lessons learned and develop long-term risk mitigations. 19.24 Acquirers should conduct an annual cyber drill exercise to test the effectiveness of their CIRP, based on various current and emerging threat scenarios (e.g. social engineering), with the involvement of key stakeholders including members of the board, senior management and relevant third party service providers. The test scenarios should include scenarios designed to test – (a) the effectiveness of escalation, communication and decision-making processes that correspond to different impact levels of a cyber-incident; and (b) the readiness and effectiveness of CERT and relevant third party service providers in supporting the recovery process. 19.25 Acquirers shall immediately notify the Bank of any cyber-incidents affecting the institution. Upon completion of the investigation, the acquirers are also required to submit a report on the incident to the Bank. 19.26 Acquirers are strongly encouraged to collaborate and cooperate closely with relevant stakeholders and competent authorities in combating cyber threats and sharing threat intelligence and mitigation measures. 20. Technology Audit 20.1 Acquirers shall ensure that the scope, frequency and intensity of technology audits are commensurate with the complexity, sophistication and criticality of technology systems and applications. S S G G Merchant Acquiring Services Page 53 of 66 Issued on: 15 September 2021 20.2 The audit function shall be adequately resourced with relevant technology audit competencies and sound knowledge of the acquirers’ technology processes and operations. 20.3 Acquirers should ensure their technology audit staff are adequately conversant with the developing sophistication of the acquirers’ technology systems and delivery channels. 20.4 In addition to paragraph 20.2, large acquirers are expected to establish a dedicated technology audit function that has specialised technology audit competencies to undertake technology audits. 20.5 Acquirers shall establish a technology audit plan that provides appropriate coverage of critical technology services, third party service providers, material external system interfaces, delayed or prematurely terminated critical technology projects and post- implementation reviews of new or material enhancements of technology services. 20.6 The audit function (in the case of paragraph 20.2) and the dedicated technology audit function (in the case of paragraph 20.4) may be enlisted to provide advice on compliance with and adequacy of control processes during the planning and development phases of new major products, systems or technology operations. In such cases, the technology auditors participating in this capacity should carefully consider whether such an advisory or consulting role would materially impair their independence or objectivity in performing post-implementation reviews of the products, systems and operations concerned. 21. Internal Awareness and Training 21.1 Acquirers shall provide adequate and regular technology and cybersecurity awareness education for all staff in undertaking their respective roles and measure the effectiveness of its education and awareness programmes. This cybersecurity awareness education shall be conducted at least annually by the acquirers and shall reflect the current cyber threat landscape. G S G S G S Merchant Acquiring Services Page 54 of 66 Issued on: 15 September 2021 21.2 Acquirers should provide adequate and continuous training for staff involved in technology operations, cybersecurity and risk management in order to ensure that the staff are competent to effectively perform their roles and responsibilities. 21.3 Acquirers should provide their board members with regular training and information on technology developments to enable the board to effectively discharge its oversight role. PART E OTHER REQUIREMENTS 22. Other Compliance Requirements 22.1 Newly registered acquirers shall conduct a post-implementation review no later than six (6) months after the implementation of the acceptance of payment instruments. The review shall include the identification of issues, gaps, fraud incidents and implementation of action plans to resolve any shortcomings identified. 22.2 Acquirers shall notify the Bank in writing, to the Director of the department in charge of oversight/supervision of payment services on the following – (a) any proposed changes to their merchant acquiring services model which are significant or changes the risk profile of the business model, which includes but is not limited to any changes in target market, mode of payment acceptance, as well as, payment and settlement flow, by providing the details within thirty (30) days prior to the effective date of the proposed changes; and (b) any change in average MTV that would cause changes from recognition as a small to large acquirer or vice-versa, not more than sixty (60) days from such occurrence. 22.3 Acquirers shall submit the following to the Bank – (a) its annual audited financial statements not later than three (3) months after its financial year end in writing to the Director of the department in charge of oversight/supervision of payment services; S S S G G Merchant Acquiring Services Page 55 of 66 Issued on: 15 September 2021 (b) segmented financial reporting for merchant acquiring services only27 on a quarterly basis; (c) statistical report on the operation of its merchant acquiring services on a quarterly basis; and (d) any other information as required by the Bank. 22.4 The information required in paragraphs 22.3(b) and (c) shall be submitted to STATsmart Integrated Submission Portal on the 20th day of the following month. 27 Based on at least the acquirer’s management account and covering the acquirer’s merchant acquiring services only, if the acquirer also conducts other business activities. S Merchant Acquiring Services Page 56 of 66 Issued on: 15 September 2021 Appendix 1 COMPUTATION OF MINIMUM CAPITAL FUNDS Share capital which includes:  Paid-up ordinary shares/common stock  Paid-up irredeemable non-cumulative preference shares plus Reserves which includes:  Share premium  General reserve fund less Intangible Assets28 plus Retained Profit (or less Accumulated Losses) plus Audited Profit for the period (or less Unaudited Loss for the period) 28 Including goodwill, capitalised development costs, licenses and intellectual properties. Merchant Acquiring Services Page 57 of 66 Issued on: 15 September 2021 Appendix 2 MINIMUM REQUIREMENTS ON THE OUTSOURCING AGREEMENT The outsourcing agreement shall, at a minimum, provide for the following – (a) clearly defined roles and responsibilities as well as obligations of the service provider; (b) provisions to ensure that the service provider ensures security and confidentiality of information shared with the service provider at all times, including – (i) responsibilities of the service provider with respect to information security and confidentiality as well as scope of such information; (ii) for the service provider to be bound by confidentiality provisions stipulated under the contract even after the engagement has ended; (iii) for the service provider to maintain compliance with applicable security requirements and established security standards (e.g. Payment Card Industry Data Security Standard (PCI DSS)) at all times; (iv) provisions on corresponding liability obligations arising from a security breach attributable to the service provider; and (v) notification requirements in the event of a security breach; (c) clear provisions on access rights for the Bank or any party appointed by the Bank to examine or conduct audit on the activity conducted by the service provider or its sub-contractor for the acquirer. This shall include access to any system, record, information or data related to the acquirer, as well as rights to enter the premises of the service provider or its sub-contractor to conduct such examination or investigation; (d) continuous and complete access by the acquirer to its data held by the service provider in the event of a dispute with the service provider, or termination of the arrangement; (e) ability of the acquirer and its external auditor to conduct audits and on-site inspections on the service provider and its sub-contractors, and to obtain any report or finding made in relation to the outsourced activity; (f) dispute resolution process in the event of default or non-performance of obligations, including remedies and indemnities where relevant; (g) measures that the service provider would take to ensure continuity of the outsourced activity in the event of an operational disruption or failure on the part of the service provider; (h) conditions under which the outsourcing arrangement may be terminated, with sufficient time for an orderly transfer of the outsourced activity to the acquirer or another party; (i) allow the acquirer the right to modify or terminate the arrangement when the Bank issues a direction to the acquirer to that effect under the FSA; and (j) where relevant, terms governing the ability of the service provider to sub-contract to other parties, which will not dilute the accountability of the service provider. Merchant Acquiring Services Page 58 of 66 Issued on: 15 September 2021 The terms must include requirement for the sub-contractor to be bound by information confidentiality provisions even after the arrangement has ceased. Merchant Acquiring Services Page 59 of 66 Issued on: 15 September 2021 Appendix 3 STORAGE AND TRANSPORTATION OF SENSITIVE DATA IN REMOVABLE MEDIA Acquirers should ensure adequate controls and measures are implemented for the storage and transportation of sensitive data in removable media, including – 1) Deploying the industry-tested and accepted encryption techniques; 2) Implementing authorised access control to sensitive data (e.g. password protection, user access matrix); 3) Prohibiting unauthorised copying and reading from the media; 4) Shall there be a need to transport the removable media to a different physical location, acquirers should — (a) strengthen the chain of custody process for media management which includes – (i) the media must not be under single custody at any point of time; (ii) the media must always be within sight of the designated custodians; and (iii) the media must be delivered to its target destination without unscheduled stops or detours; (b) use secure and official vehicle for transportation; and (c) use strong and tamper-proof containers for storing the media with high- security lock (e.g. dual key and combination lock); 5) Ensuring third party service providers comply with the requirements in paragraphs 1 to 4 of this Appendix 3, in the event third party services are required in undertaking the storage management or transportation process of sensitive data in removable media. Merchant Acquiring Services Page 60 of 66 Issued on: 15 September 2021 Appendix 4 CONTROL MEASURES ON PAYMENT ACCEPTANCE DEVICE 1) Acquirers should ensure all relevant risks associated to the use of merchant’s payment acceptance device are mitigated, including but not limited to the following - (a) ensuring the payment acceptance devices are – (i) adequately hardened and securely configured using methods that ensure its integrity and authenticity; (ii) protected from tampering and cyber threats such as malware attacks, key logger, and etc; (iii) designed for the protection of PIN data; (iv) certified to be fully compliant with applicable security standards, e.g. PCI PIN Transaction Security (PCI PTS), Software-based PIN Entry on COTS (PCI SPoC), etc.; and (v) used solely as the payment acceptance device. (b) ensuring PIN entry process and cardholder verification method (CVM) applications are secured and protected against manipulation or sabotage; (c) providing guidance for merchants to ensure the PIN is entered in a way that it cannot be observed by an unauthorised party; (d) PIN data must be encrypted upon entry and remain encrypted when transmitted to protect against malicious activity and attacks; (e) ensuring data is protected at all times to prevent data leakage and no data is stored on the payment acceptance devices; (f) ensuring only dedicated merchant staff are allowed to perform system administration functions (e.g. performing correction) of the payment acceptance device; and (g) for PIN Entry on COTS – (i) ensuring PIN CVM applications run only on secured and supported versions of operating systems which have not been compromised, jailbroken or rooted i.e. the security patches are up-to-date; and (ii) use of automated monitoring and attestation system to detect potential compromise of payment acceptance devices and ensuring that all components in the payment acceptance devices are always in a secure state. Merchant Acquiring Services Page 61 of 66 Issued on: 15 September 2021 Appendix 5 CONTROL MEASURES ON INTERNET APPLICATION 1) Acquirers should ensure the adequacy of security controls implemented for Internet application, which include – (a) ensuring Internet application only runs on secured versions of web browsers that have continued developer support for security patches to fix any vulnerabilities; and (b) putting in place additional authentication protocols to enable customers to identify the acquirers’ genuine websites. Merchant Acquiring Services Page 62 of 66 Issued on: 15 September 2021 Appendix 6 CONTROL MEASURES ON MOBILE APPLICATION AND DEVICES 1) Acquirers should ensure digital payment services involving sensitive customer and counterparty information offered via mobile devices are adequately secured. This includes the following – (a) ensuring mobile applications run only on the supported version of operating systems and enforce the application to only operate on a secure version of operating systems which have not been compromised, jailbroken or rooted (i.e. the security patches are up-to-date); (b) designing the mobile application to operate in a secure and tamper-proof environment within the mobile devices. The mobile application shall be prohibited from storing customer and counterparty information used for authentication with the application server such as PIN and passwords. Authentication and verification of unique key and PIN shall be centralised at the host; (c) undertaking proper due diligence processes to ensure the application distribution platforms used to distribute the mobile application are reputable; (d) ensuring proper controls are in place to access, maintain and upload the mobile application on application distribution platforms; (e) activation of the mobile application must be subject to authentication by the acquirers; (f) ensuring secure provisioning process of mobile application in the user’s device is in place by binding the mobile application to the user’s profile such as device ID and account number; and (g) monitoring the application distribution platforms to identify and address the distribution of fake applications in a timely manner. 2) In addition to the guidance above, acquirers should also ensure the following measures are applied specifically for applications running on mobile devices used by the acquirers, appointed parties or intermediaries for the purpose of processing customer and counterparty information - (a) mobile device to be adequately hardened and secured; (b) ensure the capability to automatically wipe data stored in the mobile devices in the event the device is reported stolen or missing; and (c) establish safeguards that ensure the security of customer and counterparty information (e.g. Primary Account Numbers (PAN), Card Verification Value Numbers (CVV), expiry dates and Personal Identification Numbers (PIN) of payment cards), including to mitigate risks of identity theft and fraud29. 29 This includes risks associated with malwares that enable keystroke logging, PIN harvesting and other malicious forms of customer and counterparty information downloading. Merchant Acquiring Services Page 63 of 66 Issued on: 15 September 2021 Appendix 7 CONTROL MEASURES ON QUICK RESPONSE CODE 1) Ensure QR code authenticity which among others include – (a) QR codes are securely generated by host server, unique for each merchant/user/transaction, where dynamic QR codes should have reasonable expiry time; (b) block QR code application from operating on unsecured (e.g. rooted or jail- broken) devices; (c) any fake QR code shall be rejected upfront and the merchant/user shall be automatically notified of the authenticity of the scanned QR code; and (d) bind the QR code to the respective user or merchant ID and transaction amount. 2) Ensure QR codes do not contain any confidential data and are not stored in endpoint devices. 3) Ensure all relevant risks associated with the use of static QR codes at participating merchants are mitigated, including but not limited to the following – (a) all information from the scanned QR codes shall be transmitted to payment instrument’s host server for authentication; (b) educate merchants on fraud risk related to static QR codes and the preventive measures to effectively mitigate such risk (e.g. merchants shall regularly inspect the displayed static QR code to ensure it has not been tampered with); and (c) enforce masking of sensitive customer and counterparty information when displayed on mobile devices. Merchant Acquiring Services Page 64 of 66 Issued on: 15 September 2021 Appendix 8 CONTROL MEASURES ON CYBERSECURITY 1) Conduct periodic review on the configuration and rules settings for all security devices. Use automated tools to review and monitor changes to configuration and rules settings. 2) Update checklists on the latest security hardening of operating systems. 3) Update security standards and protocols for web services encryption regularly. Disable support of weak ciphers and protocol in web-facing applications. 4) Ensure technology networks including mobile and wireless networks are segregated into multiple zones according to threat profile. Each zone shall be adequately protected by various security devices including firewall and Intrusion Prevention System (IPS). 5) Ensure security controls for server-to-server external network connections include the following – (a) server-to-server authentication such as Public Key Infrastructure (PKI) certificate or user ID and password; (b) use of secure tunnels such as Transport Layer Security (TLS) and Virtual Private Network (VPN) IPSec; and (c) deploying staging servers with adequate perimeter defences and protection such as firewall, IPS and antivirus. 6) Ensure security controls for remote access to server include the following – (a) restrict access to only hardened and locked down end-point devices; (b) use secure tunnels such as TLS and VPN IPSec; (c) deploy “gateway” server with adequate perimeter defences and protection such as firewall, IPS and antivirus; and (d) close relevant ports immediately upon expiry of remote access. 7) Ensure overall network security controls are implemented including the following – (a) dedicated firewalls at all segments. All external-facing firewalls must be deployed on High Availability (HA) configuration and “fail-close” mode activated. Deploy different brand name/model for two firewalls located in sequence within the same network path; (b) IPS at all critical network segments with the capability to inspect and monitor encrypted network traffic; (c) web and email filtering systems such as web-proxy, spam filter and anti- spoofing controls; (d) end-point protection solution to detect and remove security threats including viruses and malicious software; (e) solution to mitigate advanced persistent threats including zero-day and signatureless malware; and Merchant Acquiring Services Page 65 of 66 Issued on: 15 September 2021 (f) capture the full network packets to rebuild relevant network sessions to aid forensics in the event of incidents. 8) Synchronise and protect the Network Time Protocol (NTP) server against tampering. Merchant Acquiring Services Page 66 of 66 Issued on: 15 September 2021 Appendix 9 EXAMPLES OF ARRANGEMENTS EXCLUDED FROM OUTSOURCING SCOPE For the purpose of paragraph 14, arrangements which entail procurement of services30, leveraging common industry-wide infrastructure driven by regulatory requirements, and involvement of third parties due to legal requirements, are generally not considered as outsourcing arrangements. These include – (a) services for the transfer, clearing and settlement of funds or securities provided by an operator of a designated payment system or an operator of an approved payment system under the FSA or IFSA; (b) global financial messaging network services provided by an operator that is owned by its member financial institutions and is subject to the oversight of relevant regulators; (c) independent consultancy service (e.g. legal opinions, tax planning and valuation); (d) independent audit assessment; (e) clearing and settlement arrangement between clearing houses and settlement institutions and their members; (f) agent banking; (g) trustee arrangement; (h) credit or market information services; (i) repair, support and maintenance of tangible asset; (j) purchase or subscription of commercially available software; (k) maintenance and support of licensed software; (l) marketing and advertising; (m) telecommunication, postal and courier service; (n) physical security, premise access and guarding services; and (o) catering, cleaning and event services. 30 Where an acquirer acquires services, goods or utilities, which are not expected to be performed by the acquirer. PART A OVERVIEW 1. Introduction 2. Applicability 3. Legal Provisions 4. Effective Date 5. Interpretation 6. Related Legal Instruments and Policy Documents 7. Policy Documents Superseded PART B GOVERNANCE 8. Effective Governance and Oversight PART C OPERATIONAL REQUIREMENTS 9. Minimum Capital Funds Requirements for Non-Bank Acquirers 10. Settlement Risk Management 11. Merchant Management 12. Fraud Risk Management 13. Business Continuity Management 14. Outsourcing 15. Arrangement with Parties Involved in Payment and Settlement Process 16. Appropriate Treatment for Merchants PART D INFORMATION TECHNOLOGY (IT) REQUIREMENTS 17. Technology Risk Management 18. Technology Operations Management 19. Cybersecurity Management 20. Technology Audit 21. Internal Awareness and Training PART E OTHER REQUIREMENTS 22. Other Compliance Requirements Appendix 1 COMPUTATION OF MINIMUM CAPITAL FUNDS Appendix 2 MINIMUM REQUIREMENTS ON THE OUTSOURCING AGREEMENT Appendix 3 STORAGE AND TRANSPORTATION OF SENSITIVE DATA IN REMOVABLE MEDIA Appendix 4 CONTROL MEASURES ON PAYMENT ACCEPTANCE DEVICE Appendix 5 CONTROL MEASURES ON INTERNET APPLICATION Appendix 6 Control Measures on Mobile Application and Devices Appendix 7 Control Measures on QUICK RESPONSE Code Appendix 8 Control Measures on Cybersecurity Appendix 9 EXAMPLES OF ARRANGEMENTS EXCLUDED FROM OUTSOURCING SCOPE

Public Notice

09 Sep 2021

Revocation of Approval Granted to Metbank Limited for its Representative Office Operations

https://www.bnm.gov.my/-/revocation-of-rep-office-approval-metbank-ltd

Reading: Revocation of Approval Granted to Metbank Limited for its Representative Office Operations Share: Revocation of Approval Granted to Metbank Limited for its Representative Office Operations Embargo : For immediate release Not for publication or broadcast before 1800 on Thursday, 9 September 2021 9 Sep 2021 On 24 May 2021, Bank Negara Malaysia has revoked the approval granted to Metbank Limited, Zimbabwe under section 19(4) of the Financial Services Act 2013 to operate a representative office established in Malaysia known as Metbank Limited Kuala Lumpur Representative Office.  With the revocation, please be advised that the representative office is no longer permitted to carry on the specified activities as a representative office. The list of the approved representative offices can be obtained from this page in the BNM website.   Bank Negara Malaysia 9 September 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

30 Ogos 2021

Bancassurance/Bancatakaful Exposure Draft

https://www.bnm.gov.my/-/bancassurance-bancatakaful-exposure-draft

https://www.bnm.gov.my/documents/20124/938039/Banca_ED.pdf

09 Ogos 2021

Senarai Amaran Pengguna Kewangan telah dikemaskini

https://www.bnm.gov.my/-/senarai-amaran-pengguna-kewangan-telah-dikemaskini-1

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/senarai-amaran-pengguna-kewangan-telah-dikemaskini-1&languageId=ms_MY

Reading: Senarai Amaran Pengguna Kewangan telah dikemaskini Share: Senarai Amaran Pengguna Kewangan telah dikemaskini Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1200 pada Isnin, 9 Ogos 2021 9 Ogos 2021 Bank telah mengemas kini Senarai Amaran Pengguna Kewangan. Senarai ini terdiri daripada syarikat dan laman web yang tidak dibenarkan atau diluluskan di bawah undang-undang dan pentadbiran berkaitan yang ditadbir oleh BNM. Sila maklum bahawa senarai ini tidak lengkap dan hanya berfungsi sebagai panduan kepada orang ramai berdasarkan maklumat dan pertanyaan yang diterima oleh BNM. Syarikat berikut ditambahkan ke dalam senarai: Munics Bank Monies Bank Cahaya Maju Investment VanguardFX Asian 2021 Vanguard Financial Services Muhibah Yatu Investment Mining Guru.net Senarai akan dikemas kini secara berkala untuk rujukan orang ramai. Untuk melihat senarai yang dikemas kini, klik pada pautan ini. Bank Negara Malaysia 9 Ogos 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

28 Jul 2021

Policy Document on Recovery Planning

https://www.bnm.gov.my/-/policy-document-on-recovery-planning

https://www.bnm.gov.my/documents/20124/938039/pd_Recovery+Planning.pdf, https://www.bnm.gov.my/documents/20124/938039/Recovery+Planning+Response+to+Feedback+Received.pdf

Reading: Policy Document on Recovery Planning Share: Policy Document on Recovery Planning Embargo : For immediate release Not for publication or broadcast before 2320 on Wednesday, 28 July 2021 28 Jul 2021 The policy document sets out the Bank’s expectations and policy requirements on the development and maintenance of recovery plans for financial institutions. Under the proposed framework, each financial institution will be required to identify and plan for the execution of a suite of recovery options to restore its long-term viability under a range of idiosyncratic and system-wide stress events. The information and assessment contained in recovery plans will also serve as an important starting point for Perbadanan Insurans Deposit Malaysia (PIDM) - as the resolution authority for its member institutions – to improve the resolvability of member institutions and operationalise feasible and credible resolution plans.   See more:  Policy Document on Recovery Planning Recovery Planning Data Templates Response to Feedback Received   Bank Negara Malaysia 28 July 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Issued on 28 July 2021 BNM/RH/PD 029-47 Recovery Planning Applicable to: 1. Financial holding companies 2. Licensed banks 3. Licensed Islamic banks 4. Licensed investment banks Recovery Planning Issued 28 July 2021 TABLE OF CONTENTS GLOSSARY ............................................................................................................... 1 PART A OVERVIEW ............................................................................................... 4 1 Introduction ................................................................................................ 4 2 Applicability ............................................................................................... 5 3 Legal provisions ........................................................................................ 5 4 Effective date ............................................................................................. 6 5 Interpretation ............................................................................................. 6 6 Related legal instruments and policy documents ...................................... 8 PART B POLICY REQUIREMENTS ........................................................................ 9 7 Level of application .................................................................................... 9 8 General requirements ................................................................................ 9 9 Reporting requirements ........................................................................... 11 10 Executive summary of recovery plan ....................................................... 11 11 Strategic analysis .................................................................................... 12 12 Governance structure and oversight ....................................................... 20 13 Recovery indicators ................................................................................. 22 14 Recovery options ..................................................................................... 24 15 Scenario analysis .................................................................................... 29 16 Communication and disclosure plan ........................................................ 33 17 Preparatory measures ............................................................................. 34 18 Periodic reviews ...................................................................................... 34 APPENDICES .......................................................................................................... 35 APPENDIX 1 List of reporting templates ........................................................... 35 APPENDIX 2 Information on business models and core business lines ............ 36 APPENDIX 3 List of potential critical functions .................................................. 37 APPENDIX 4 List of potential operational services ............................................ 38 APPENDIX 5 Information on critical functions and critical shared services ....... 39 APPENDIX 6 Information on governance .......................................................... 40 APPENDIX 7 List of potential recovery indicators .............................................. 41 APPENDIX 8 List of potential recovery options ................................................. 43 APPENDIX 9 Information on each recovery option ............................................ 44 APPENDIX 10 Information on scenario design and scenario analysis ................ 45 Recovery Planning Issued 28 July 2021 GLOSSARY BAU Business-as-usual FHC Financial holding company FMI Financial market infrastructure FSA Financial Services Act 2013 GDP Gross domestic product IFSA Islamic Financial Services Act 2013 PIDM Perbadanan Insurans Deposit Malaysia RRP Recovery and resolution planning SE Significant entities SME Small and medium enterprises Recovery Planning 4 of 45 Issued 28 July 2021 PART A OVERVIEW 1 Introduction 1.1 The Bank, in collaboration with Perbadanan Insurans Deposit Malaysia (PIDM), has established a policy framework to implement recovery and resolution planning (RRP) for financial institutions in Malaysia, in line with the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions (“Key Attributes”). The RRP framework seeks to put in place an effective and efficient process to enhance supervisability, recoverability and resolvability of financial institutions, by incorporating essential elements of Key Attribute 11 of the Key Attributes into the domestic regulatory, supervisory and resolution regimes. 1.2 The RRP framework aims to – (a) facilitate the preparation and maintenance of robust recovery plans by financial institutions which serve as a strategic planning tool that – (i) integrates with the risk appetite framework1 and reinforces risk management functions; and (ii) strengthens incentives to establish private-sector arrangements to recover from a wide range of stress events; (b) enhance capacity and preparedness of supervisory authorities to – (i) facilitate ex ante changes to financial institutions’ business structure and operations to improve group-wide supervisability and recoverability; (ii) support the smooth execution of recovery plans; (iii) inform calibration of timely intervention and resolution actions should recovery options be inadequate to address viability threats; and (iv) support effective supervisory cooperation and crisis management arrangements with host and home authorities; (c) strengthen capacity and preparedness of resolution authorities2 to improve resolvability of financial institutions and operationalise feasible and credible resolution plans that – (i) preserve continuity of critical functions to support the financial intermediation process, orderly market conditions and maintain public confidence in the financial system; (ii) promote resolution strategies that minimise risks of loss to public funds and costs to the financial system, destruction of franchise value and moral hazard; and (iii) provide for procedural/legal clarity to ensure orderly resolution in home and host jurisdictions. 1 This refers to the risk appetite framework as described in the Risk Governance policy document and the Financial Stability Board’s Principles for an Effective Risk Appetite Framework. 2 In respect of banking institutions, PIDM is the resolution authority of licensed banks and licensed Islamic banks. The Bank is the resolution authority for licensed investment banks. Recovery Planning 5 of 45 Issued 28 July 2021 1.3 This policy document sets out key principles, requirements and supervisory expectations on the development and maintenance of recovery plans. A recovery plan is an overarching “playbook” that is developed, maintained, and when necessary, executed by a financial institution to manage severe stress events that threaten to undermine the financial institution’s viability. As part of recovery planning, financial institutions are to identify and plan for the execution of a suite of recovery options to restore long-term viability under a range of idiosyncratic and system-wide stress events. It should not take into account the possibility of policy intervention by authorities, or access to any exceptional financial support from public funds. 1.4 The Bank expects recovery planning to be an iterative and evolving process, with financial institutions reviewing their recovery plan on an ongoing basis. To supplement this, the Bank will continuously engage with financial institutions to clarify the Bank’s expectations on recovery planning as part of ongoing supervision. 1.5 In the extreme event that a financial institution has no reasonable prospect for recovery (i.e. the institution is likely to become non-viable and implementation of recovery options is not feasible or has proven to be ineffective), a resolution plan would be deployed by the resolution authority to ensure that the financial institution is resolved in an orderly manner, i.e. a manner that mitigates the impact on financial stability and minimises losses to public funds. Resolution planning seeks to facilitate the effective use of available resolution powers by enabling resolution authorities to identify in advance a feasible and credible resolution strategy for each financial institution and an operational plan for its implementation. 1.6 To achieve this, the information and assessment contained in the recovery plans will serve as an important starting point for resolution authorities3 to- (a) determine a preferred resolution strategy that is tailored to the specificities of each financial institution; and (b) conduct a resolvability assessment. 2 Applicability 2.1 This policy document is applicable to financial institutions as defined in paragraph 5.2. 3 Legal provisions 3.1 This policy document is issued pursuant to – (a) sections 47(1), 143(1) and 266 of the Financial Services Act 2013 (FSA); and (b) sections 57(1), 155(1) and 277 of the Islamic Financial Services Act 2013 (IFSA). 3 Further guidance on resolution planning for licensed banks and licensed Islamic banks will be issued by PIDM. Recovery Planning 6 of 45 Issued 28 July 2021 4 Effective date 4.1 This policy document comes into effect on 28 July 2021. 5 Interpretation 5.1 The terms and expressions used in this policy document shall have the same meanings assigned to them in the FSA and IFSA, as the case may be, unless otherwise defined in this policy document. 5.2 For the purpose of this policy document – “S” denotes a standard, an obligation, a requirement, specification, direction, condition and any interpretative, supplemental and transitional provisions that must be complied with. Non-compliance may result in enforcement action; “G” denotes guidance which may consist of statements or information intended to promote common understanding and advice or recommendations that are encouraged to be adopted; “banking institution” refers to a licensed bank, a licensed Islamic bank, and a licensed investment bank, collectively referred to as “financial institution(s)”; “board” refers to the board of directors of a financial institution; “core business lines” refers to business lines that are significant to a financial institution as described in paragraphs 11.7 and 11.8; “covered entities” refers to a financial institution and its financial and non- financial subsidiaries, including insurance or takaful subsidiaries as set out in paragraph 7.1; “early warning phase” refers to a phase when one or more early warning thresholds have been breached and a decision has been made by a financial institution to intensify monitoring or prepare to implement appropriate recovery options; “early warning threshold” refers to the threshold set for a recovery indicator that would alert/or prompt a financial institution of its deteriorating financial position. A breach of this threshold may form the basis for intensified monitoring or preparation to implement appropriate recovery options; “financial group” refers to a group of related corporations under a financial holding company or banking institution, as defined in the FSA and IFSA; “FHC” refers to a financial holding company approved by the Bank under section 112(3) of the FSA or section 124(3) of the IFSA; “financial institution” refers to a FHC, a licensed bank, a licensed Islamic bank, and a licensed investment bank, as the case may be; Recovery Planning 7 of 45 Issued 28 July 2021 “financial subsidiary” refers to any entity, whether incorporated in or outside Malaysia, engaged predominantly in, or acquiring holdings in other entities engaged predominantly in, any of the following activities: banking, insurance, takaful, provision of credit, securities broking, fund management, asset management, leasing, and factoring and similar activities that are in connection with or for the purposes of the conduct of these activities; “Islamic entity” refers to the following: i. a licensed Islamic bank, or a licensed takaful operator, or ii. a licensed bank or licensed investment bank to which the Bank has granted its written approval under section 15(1)(a) of the FSA to carry on Islamic banking business; “operational service” refers to a service, activity or operation which does not generate direct revenue for a financial institution, but supports other revenue-generating business activities of that financial institution; “preferred recovery strategy” outlines a combination or sequence of feasible recovery options that a financial institution deems to be the most credible and effective to address a specific stress scenario developed for its recovery plan; “recovery capacity” refers to the ability of a financial institution to restore its financial viability following a significant financial deterioration using appropriate recovery options without the need for intervention by supervisory or resolution authorities; “recovery indicators” refer to a range of quantitative and qualitative indicators used to denote the degree of financial deterioration of a financial institution based on appropriate early warning and recovery thresholds as set out in paragraphs 13.2 and 13.3; “recovery options” refer to a range of actions and measures to maintain or restore viability and the financial position of a financial institution; “recovery phase” refers to a phase when one or more recovery thresholds have been breached and a decision has been made by the financial institution to activate the recovery plan; “recovery plan” refers to the plan prepared and maintained by a financial institution based on the requirements set out in this policy document and includes an overarching “playbook” that is developed, maintained and when necessary, executed by a financial institution to deal with severe stress events that threaten the financial institution’s viability; “recovery planning process” refers to the entire lifecycle of the recovery plan, which comprises the development, approval, maintenance, monitoring, escalation, activation and implementation of the recovery plan; Recovery Planning 8 of 45 Issued 28 July 2021 “recovery threshold” refers to the threshold set for a recovery indicator to indicate the point at which a financial institution’s financial position has deteriorated to such an extent that appropriate recovery options may be necessary to restore the financial soundness and viability of a financial institution. A breach of this threshold may form the basis for the activation of the recovery plan; “senior management” refers to the senior officers of a financial institution; “senior officers” means a person having the authority and responsibility for planning, directing or controlling the activities of a financial institution including the chief executive officer, director, members of decision-making committees and other persons performing key functions such as risk management, compliance, internal audit or other functions as may be specified by the Bank under section 47 of the FSA or section 57 of the IFSA, as the case may be; “significant entity (SE)” refers to an entity within a financial group that meets any of the criteria set out in paragraph 11.4. 6 Related legal instruments and policy documents 6.1 This policy document must be read together with other relevant legal instruments, policy documents, guidelines, codes, or circulars, in particular – (a) Approach to Regulating and Supervising Financial Groups; (b) Business Continuity Management; (c) Capital Adequacy Framework for Islamic Banks (CAFIB) – Internal Capital Adequacy Assessment Process (Pillar 2); (d) Corporate Governance; (e) Outsourcing; (f) Restricted Committed Liquidity Facility; (g) Risk Governance; (h) Risk-Weighted Capital Adequacy Framework (Basel II) – Internal Capital Adequacy Assessment Process (Pillar 2); (i) Shariah Governance; and (j) Stress Testing. Recovery Planning 9 of 45 Issued 28 July 2021 PART B POLICY REQUIREMENTS 7 Level of application S 7.1 The requirements set out in this policy document shall apply to financial institutions on a consolidated basis and shall include the global operations4 of – (a) the financial institution; and (b) all its financial and non-financial subsidiaries, including insurance and/or takaful subsidiaries. S 7.2 For a financial group comprising multiple financial institutions operating in Malaysia, the financial holding company (FHC) or the apex banking institution of the group registered in Malaysia shall prepare a consolidated group recovery plan, which shall be submitted to the Bank in the manner stipulated in paragraph 9. 8 General requirements S 8.1 A financial institution shall prepare a recovery plan that consists of the following components – (a) executive summary; (b) strategic analysis; (c) governance structure and oversight; (d) recovery indicators; (e) recovery options; (f) scenario analysis; (g) communication and disclosure plan; and (h) preparatory measures. S 8.2 A financial institution shall ensure that the level of detail and depth of analysis in the recovery plan is proportionate to – (a) its size, nature and structure of business; (b) the complexity and substitutability of its activities (including the scale of cross border operations); and (c) the degree of intra-group and external dependencies and systemic interconnectedness with the economy and core components of the financial system (e.g. financial markets and FMIs). The analyses conducted must be supported by robust quantitative metrics, qualitative evidence supplemented by realistic- and evidence-based projections. S 8.3 A financial institution must integrate the recovery planning process into the financial institution’s overall risk appetite, strategic planning and risk management frameworks (Figure 1) which shall form an integral part of its enterprise-wide risk management activities. Such integration is essential for timely identification of stress events, and the formulation of actionable and 4 This includes overseas branch operations. Recovery Planning 10 of 45 Issued 28 July 2021 credible recovery options to ensure a financial institution is well-positioned to respond to viability threats, regardless of their origin. S 8.4 In preparing a recovery plan, a financial institution shall take into account recovery plans developed by its foreign branches or subsidiaries (if any) as well as group-wide recovery plans developed by its parent entity (for locally- incorporated foreign financial institutions) to ensure coherence and alignment of recovery plans across jurisdictions. S 8.5 A financial institution must ensure that the recovery plan involving Islamic entities adheres to Shariah requirements, including matters specific to Islamic financial transactions which may have an impact on the development and implementation of the recovery plan. G Figure 1 – Stylised illustration of interlinkages between recovery planning components with risk appetite and risk management frameworks5 ICAAP – Internal Capital Adequacy Assessment Process 5 Figure 1 provides conceptual guidance on how recovery planning components should interact and integrate with risk appetite and risk management frameworks. The degree of alignment should be tailored to a financial institution’s own risk profile, risk strategy and business model. Recovery Planning 11 of 45 Issued 28 July 2021 9 Reporting requirements S 9.1 A financial institution shall submit its first recovery plan within 18 months from the date it receives a written request from the Bank together with completed reporting templates listed in Appendix 1. S 9.2 A financial institution shall keep its recovery plan submitted under paragraph 9.1 updated and notify the Bank as and when there are material changes to its– (a) corporate, shareholding, or governance structure; (b) financial position, risk profile, or business strategy and operations; or (c) any other circumstances that may significantly affect its recovery plan. In this regard, a financial institution shall submit to the Bank details of changes made to the recovery plan within 14 days from the date such changes are internally approved. G 9.3 To facilitate a systematic approach for financial institutions to conduct assessments or provide material information within the recovery planning process, this policy document is accompanied by a set of reporting templates listed in Appendix 1 (List of reporting templates). In this regard, a financial institution is encouraged to consider the templates as a starting point in developing its respective recovery plans. S 9.4 For subsequent submissions where there are no material changes, a financial institution shall submit a set of simplified reporting requirements on an annual basis. For avoidance of doubt, where there are material changes made, the submission requirements are as reflected in paragraph 9.2. G G 9.5 The format of the simplified reporting requirements will be communicated by the Bank at a later date. 9.6 The manner of submission of any document or information that is required to be submitted to the Bank pursuant to this policy document will be specified separately by the Bank. 10 Executive summary of Recovery Plan S 10.1 The section on executive summary of the recovery plan must contain the following – (a) an assessment of the overall recovery capacity of the financial institution, with sufficient justification for the assessment; (b) a description of any material changes made6, or preparatory measures taken since the previous submission, if any; and (c) an assessment of the interlinkages between recovery plans prepared by the financial institution and related entities7 (if any), including how 6 This includes reasons for the changes made and how such changes affect the financial institution’s overall recovery capacity. 7 These may include, but are not limited to, group-wide recovery plans prepared by parents of locally- incorporated foreign financial institutions, and individual entity-level recovery plans prepared by foreign branches/subsidiaries. Recovery Planning 12 of 45 Issued 28 July 2021 such plans would affect the overall recovery capacity of the financial institution. S 10.2 In the executive summary, a financial institution shall outline the main findings and interoperability of all recovery plan components, which includes – (a) a clear and concise mapping of core business lines, critical functions, and critical shared services to, and material intra-group and external dependencies and systemic interconnectedness of, SEs; (b) an overview of the recovery indicator and governance frameworks that ensures an effective and efficient recovery planning process, highlighting key considerations for the calibration of recovery indicators and thresholds8, and the interlinkages with existing governance and risk management frameworks; (c) an overview of the suite of actionable and credible recovery options, including a brief assessment of the likely effectiveness of each recovery option (by highlighting the financial impact and key material impediments); (d) a broad narrative of stress scenarios, including the impact and feasibility of the preferred recovery strategy for each selected scenario; (e) a description of communication, disclosure and stakeholder engagement strategies to support effective implementation of the recovery plan, taking into account potential reputational risks that may undermine public confidence in the financial institution; and (f) an assessment of preparatory measures that will improve the likelihood of successful implementation of each preferred recovery strategy9. 11 Strategic analysis 11.1 The purpose of the strategic analysis is to provide in-depth information about a financial institution’s structure, strategy, business model, financial situation, risk profile, intra-group and external dependencies and systemic interconnectedness. This section forms the foundation of the recovery plan by informing the appropriate scope, granularity and context to calibrate all recovery plan components. For instance, the calibration of recovery options, thresholds, and stress scenarios is contingent upon an understanding of where core business lines, critical functions, material operational services or risk drivers reside across covered entities and the resulting intra-group dependencies. Information from the strategic analysis will critically also be used by the resolution authority to inform the development of entity specific resolution plans. S 11.2 The strategic analysis shall comprise the following components – (a) group structure and SEs; (b) business model and core business lines; (c) critical functions and critical shared services; and 8 For example, speed and type of stress scenarios, time taken for implementation of preferred recovery strategies and realisation of benefits from such strategies. 9 Either by way of reducing implementation timeframe, removing material impediments or improving the impact of the preferred recovery strategy. Recovery Planning 13 of 45 Issued 28 July 2021 (d) intra-group and external dependencies, and systemic interconnectedness. Group structure and significant entities (SEs) S 11.3 A financial institution shall describe the overall group structure and provide a comprehensive overview of all covered and related entities (e.g. associates, joint ventures, minority interests, branches in foreign jurisdictions), including the following: – (a) legal and shareholding structure including voting and non-voting shares; (b) structure of the financial institution’s operations; and (c) jurisdiction(s) of incorporation or operations. S 11.4 A financial institution shall identify SEs of the financial group that meet any of the following criteria – (a) SE is a licensed person under the FSA or IFSA; (b) SE contributes materially to the financial institution’s profit, assets, capital, liabilities, risk profile, reputation or franchise value; (c) SE performs core business lines or critical functions; (d) SE has material intra-group dependencies, e.g. performs key operational services10 that support core business lines and/or critical functions; (e) SE could threaten the viability of the financial institution in the event of the entity’s failure, liquidation, or the disposal of all or part of its business; or (f) SE is designated or deemed to be systemically important to the jurisdiction it operates in. G 11.5 Financial institutions may also rely on other qualitative or quantitative criteria beyond those listed in paragraph 11.4 to identify SEs. The criteria used should best reflect the financial institution’s group structure, risk profile, business model, intra-group and external dependencies and systemic interconnectedness. S 11.6 A financial institution shall provide a comprehensive description of each SE in the recovery plan. At minimum, this includes –– (a) factors, criteria and assumptions used to determine the significance of the SE; (b) nature of business conducted / services provided, key business metrics and relevant income and balance sheet information; (c) material liability components, identifying types and amount of short-term and long-term liabilities, secured and unsecured liabilities, and subordinated liabilities; (d) funding, liquidity and capital needs of, and the resources available to the SE, under ‘business-as-usual’ (“BAU”) conditions and in the event of material stress or failure; and (e) off-balance sheet exposures of the SE that are material to the financial institution, including guarantees and contractual obligations. 10 Refer to Appendix 4 for list of potential operational services. Recovery Planning 14 of 45 Issued 28 July 2021 Business model and core business lines S 11.7 A financial institution shall provide an overview of its business model which provides a high-level description of the activities conducted by the financial institution, including business lines which are significant to the financial institution (“core business lines”). The identification of core business lines is essential to inform the development of preferred recovery strategies. In particular, a financial institution must ensure that recovery options that affect core business lines will not adversely affect its long-term viability. S 11.8 A financial institution must consider the following in identifying core business lines – (a) contribution of the business line to the financial institution’s profit, assets, capital, liabilities, or risk profile; (b) strategic significance of the business line in relation to- (i) customer base, geographic reach, and branch network; (ii) market potential and growth outlook; (iii) indicative franchise value under the current operating environment, taking into account the provision of market access or international linkages to the financial institution; (iv) operational synergies with other business lines; and (v) attractiveness to competitors as a potential acquisition target; and (c) other factors that contribute to the business line’s significance to the financial institution. S 11.9 At minimum, a financial institution shall provide in the recovery plan, the information set out in Appendix 2 (Information on business model and core business lines). Critical functions and critical shared services 11.10 The continuity of critical functions and critical shared services is important to prevent potential systemic disruptions that could adversely impact the functioning of the real economy and financial stability, such as – (a) disruptions to the financial intermediation process, e.g. by curtailing access of individuals and businesses to financial services critical for production and consumption activities; (b) disorderly market conditions, e.g. by impairing market access and liquidity for risk management and funding purposes, or impairing the price discovery process; (c) disorderly functioning of FMIs, e.g. by disrupting access to payment, clearing and settlement systems; (d) undermining of public confidence in the financial system; or (e) rise of cross-institution, cross-market or cross border contagion. When identifying and assessing recovery options, financial institutions should ensure the continuity of such functions and services under a wide range of stress events. Resolution authorities may also engage with financial institutions to ensure that such functions and services can be legally and economically separated from other functions in order to ensure their continuity during resolution. Recovery Planning 15 of 45 Issued 28 July 2021 S 11.11 A financial institution shall identify its critical functions, which refer to underlying operations, activities or services that are performed by a financial institution for third parties11 where the failure or discontinuance of such function would likely lead to the disruption of services that are essential for the functioning of the real economy and financial stability. S 11.12 In identifying critical functions12, a financial institution must consider the impact of sudden discontinuance of the functions on customers, other financial institutions, financial markets, FMIs, and other relevant stakeholders that rely on the critical function, having regard to the following criteria – (a) concentration of the function, i.e. critical mass in terms of market share may have implications on substitutability and interconnectedness; (b) substitutability of the function, i.e. availability and ease of which the provision of the function can be replaced by other substitute providers with similar quality, at comparable cost, and within a reasonable timeframe; and (c) interconnectedness of the function, i.e. extent to which a function may be highly dependent on, or co-mingled with, other functions such that its disruption would likely cause wider contagion effects. S 11.13 At minimum, based on the criteria set out in paragraph 11.12, a financial institution shall, consider the following: Key areas Detailed analysis required Impact of discontinuance  Impact on customers and relevant stakeholders (e.g. counterparties related to main customers, service providers, suppliers, market utilities, public services, government) affected by the function, taking into account – – impact and speed of disruption to financial health, customer business, and short-term liquidity needs of customer base and relevant stakeholders; and – capacity/speed of counterparties, customers and the public to react to the disruption; and  Impact on other financial institutions, financial markets and FMIs, taking into account – – impact and speed at which a disruption of the function would materially affect market participants or market functioning (e.g. liquidity, operations, and structure of other financial institutions, financial markets or FMIs concerned) Concentration Financial institution’s market share of the function, taking into consideration –  nature and extent of the activity 11 For the avoidance of doubt, in this context, third parties refer to entities which are neither covered entities nor related to the financial institution. 12 Note that functions that are critical to the financial institution but are not significant to the financial system are unlikely to be considered as critical functions; rather, such functions may be more appropriately captured under core business lines, dependencies or interconnectedness. Recovery Planning 16 of 45 Issued 28 July 2021 – type of products offered, services provided, or role played by the function; – geographical reach, (global, regional or domestic); – value/volume of transactions; – number of customers, accounts and counterparties; and  nature of customers and stakeholders affected by the function – retail, SMEs, corporate, interbank, exchanges, central clearing houses, public entities etc. Substitutability  Availability of substitute providers, taking into account – – number of available substitute providers; and – presence of alternative products or markets that conduct activities that are broadly equivalent to the function; and  Number of customers that rely on the financial institution as the only or principal banking partner; and  Ease of customers to move to substitute providers, i.e. time required, process involved, and costs incurred, by customers; and  Necessary requirements to assume the function, taking into account – – capacity of, and expected time needed for substitute provider to assume all or a large share of activities or customers; – organisational arrangements, infrastructure, expertise, regulatory approvals required; – willingness of substitute providers to take on all or a large share of activities or customers, taking into consideration attractiveness of the function, e.g. economies of scale, margins, complements overall business; – importance of brand, market positioning or reputation; – costs for substitute provider(s) to assume all or a large share of activities and customers; – interoperability between providers of the function, e.g. presence of common standards, procedures and interfaces; and – significance and form of any other barriers to substitutability Interconnected -ness  Interactions with other functions of the financial institution or of the market, including – – the relevance of the market for this function to the functioning of other markets; and – role of the function in influencing the availability of other functions or products which are typically bundled or tied with the function S 11.14 While the identification of critical functions shall focus primarily on the criticality relative to the Malaysian financial system and economy, a financial institution shall also assess the criticality of such functions as performed by overseas SEs in relation to their respective jurisdiction of operations. The criticality of Recovery Planning 17 of 45 Issued 28 July 2021 overseas SEs could affect the feasibility of recovery options. By providing such assessments, the financial institution and the Bank can assess the feasibility of recovery options such as a potential sale of foreign operations. G 11.15 For financial institutions with significant Islamic operations, a financial institution may separately assess the criticality of the conventional and Islamic functions performed. S 11.16 A financial institution shall at minimum assess the criticality of functions13 set out in Appendix 3 (List of potential critical functions) if performed by the financial institution. A financial institution must identify any other functions not listed in the Appendix 3, if it considers that its performance of such functions meets the criteria set out in paragraph 11.13. S 11.17 Critical shared services refer to the underlying operations, activities or services that are performed for one or more covered entities, where the failure or discontinuance of such services would present a serious impediment or completely impair the performance of one or more critical functions. A financial institution shall identify critical shared services that are performed by an internal unit, a covered or related entity and/or outsourced to external providers. S 11.18 In identifying critical shared services, a financial institution shall take into consideration the following criteria – (a) impact of discontinuance on critical functions, i.e. whether the sudden discontinuance of the service is likely to have a material adverse impact on one or more critical functions; and (b) substitutability of the service, i.e. availability and ease of which the provision of the service can be replaced by other substitute providers with similar quality, at comparable cost, and within a reasonable timeframe. G 11.19 As a starting point, a financial institution may refer to Appendix 4 (List of potential operational services) to identify critical shared services. S 11.20 At minimum, a financial institution shall provide information for critical functions and critical shared services in the recovery plan as set out in Appendix 5 (Information on critical functions and critical shared services). Intra-group and external dependencies and systemic interconnectedness S 11.21 A financial institution shall identify material dependencies and assess key risk transmission channels and the extent of potential contagion and systemic impact arising from the disruption or failure of such dependencies which may be financial, operational or legal in nature (Figure 2). Such information is necessary to assess the feasibility of recovery options, particularly in identifying 13 Note that the performance of any of the functions listed in Appendix 4 by a financial institution does not automatically render such functions critical. The supervisory or resolution authorities will also conduct separate criticality assessments, taking into account the self-assessments conducted by the financial institutions. Recovery Planning 18 of 45 Issued 28 July 2021 potential financial, operational or legal impediments to implementing recovery options. In particular, a financial institution shall highlight – (a) intra-group dependencies, i.e. material interdependencies among covered entities, and entities related14 to the financial institution that, if disrupted, would significantly affect the funding or operations of the financial institution and/or its performance of critical functions; (b) external dependencies, i.e. material dependencies on third parties15 by the financial institution that, if disrupted, would significantly affect the funding or operations of the financial institution and/or its performance of critical functions; and (c) systemic interconnectedness, i.e. material dependencies on the financial institution by third parties that, if disrupted, would likely lead to the disruption of the functioning of the real economy and financial system. This is intended to capture functions assessed under paragraph 11.13 (or those listed in Appendix 3) but are not deemed critical by the financial institution. G Figure 2 – Illustration of intra-group and external dependencies and systemic interconnectedness 14 For example, overseas parent of locally-incorporated foreign financial institutions, sister companies, affiliates. 15 For Islamic entities, this includes services provided by third parties in facilitating transactions, e.g. community trading platform such as Bursa Suq Al Sila’. Recovery Planning 19 of 45 Issued 28 July 2021 S 11.22 To identify dependencies, a financial institution shall, at minimum, consider the following – Intra-group dependencies External dependencies Systemic inter- connectedness (a) Financial i.e. extent of financial institution’s reliance on intra- group capital, funding and liquidity arrangements, e.g. –  material intra-group on- and off-balance sheet exposures, capital, liquidity, funding, risk transfer, derivatives relationships;  financial support agreements/ guarantees, including details on the form, and conditions associated with the provision of support (if any); and  cross-collateral and intra- group/cross-default/cross- product netting arrangements. i.e. extent of financial institution’s reliance on external counterparties, e.g. –  material on- and off- balance sheet exposures, capital, liquidity, and funding with major non-related counterparties; and  financial commitments, guarantees, netting arrangements and risk transfers i.e. significance of financial institution’s role in providing funding, liquidity or risk transfer to third parties, financial markets, and FMIs (b) Operational i.e. extent of financial institution’s reliance on internal service providers, including-  shared material operational services (including personnel, facilities and systems) among intra-group entities; and  reliance on intra-group entities to access FMIs (local and foreign), e.g. reliance on one entity which is a clearing member of a central counterparty. i.e. extent of financial institution’s reliance on external service providers including FMIs (local and foreign), e.g. operational services that are outsourced to external service providers16 i.e. extent of financial institution’s role in providing/ performing activities, functions or services that are potentially essential for the functioning of the real economy and financial system 16 Refer to Outsourcing policy document for a list of operational services that can be outsourced. Recovery Planning 20 of 45 Issued 28 July 2021 (c) Others, e.g. legal and structural Including –  reliance on intra-group entities’ licences to conduct certain regulated activities; and  material legally binding agreements e.g. financial contracts, service level agreements for sharing or usage of personnel, office space, intellectual property and trademarks. Including material legally binding agreements e.g. financial contracts, service level agreements for sharing or usage of personnel, office space, intellectual property and trademarks. 12 Governance structure and oversight S 12.1 A financial institution shall establish sound governance arrangements to oversee and manage the recovery planning process. A financial institution shall, at minimum, establish – (a) well-defined roles, responsibilities and accountabilities of the board, senior management, business units and control functions; and (b) robust policies, procedures and management information systems to support informed decision making across the BAU, early warning and recovery phases, in order to ensure that a recovery plan is capable of being executed in an effective and efficient manner. S 12.2 The board of the financial institution shall exercise effective oversight on all aspects of the development, maintenance and implementation of the recovery plan. In doing so, the board shall, at minimum – (a) assess and approve the recovery plan (i) during its initial development; and (ii) as and when there are material changes to the recovery plan as highlighted in paragraph 9.2; (b) designate a senior officer and an internal governing body17 (comprising personnel with the necessary competencies and authority) responsible for driving the overall recovery planning process; (c) ensure sufficient resources and adequate representation across SEs and core organisational functions18 are allocated to support the development and maintenance of the recovery plan; (d) provide constructive challenge to the conclusions, reasoning, analysis, and assumptions underpinning the recovery plan, including risk models and quantitative risk methodologies used in the recovery indicator framework and scenario analysis; (e) ensure that the recovery plan is integrated with existing risk appetite and risk management frameworks and is complementary and closely 17 The board may leverage upon existing management or board committees. 18 For example, treasury, risk management, finance, legal, compliance, IT and communication functions. Recovery Planning 21 of 45 Issued 28 July 2021 linked to the financial institution’s strategic and contingency planning; and (f) promote understanding of, and involvement in, the recovery planning process, at all relevant levels across the organisation, including internal governing bodies tasked with making decisions during stress events. S 12.3 The designated senior officer and the designated internal governing body shall be responsible for the development, maintenance, activation and implementation of recovery plan. In this capacity, the senior officer shall – (a) ensure that the recovery planning process is undertaken with the appropriate level of involvement of key personnel across core organisational functions, particularly to appropriately assess the strategic and structural implications of potential recovery options; (b) ensure the robust and credible application of expert judgement and critical scrutiny in the development of the risk modelling and quantitative risk methodologies used in the recovery indicator framework and scenario analysis; (c) ensure that well-defined processes and management information systems are developed to provide good quality and granular data for timely risk communication within the financial institution and risk reporting to the board and senior management, on an ongoing and ad- hoc basis; and (d) regularly update the board on material developments relating to recovery planning, including the status of recovery indicators, breaches of recovery thresholds, activation of the recovery plan, implementation of recovery options and its progress, and preparatory measures to be undertaken. S 12.4 For a recovery plan involving Islamic entities, a financial institution shall refer its recovery plan to its Shariah Committee and seek advice on Shariah requirements consistent with the Bank’s Shariah Governance policy document. In the context of recovery plan, the Shariah Committee must – (a) advise on the application of Shariah requirements in relation to the recovery options and other relevant components of the recovery plan; (b) advise and provide clarification on relevant Shariah rulings, decisions or policy documents on Shariah matters issued by the Bank19, and if relevant, any other authorities impacting, or which may impact the development and implementation of the recovery plan; and (c) give opinions on any other Shariah matters in general, where necessary. S 12.5 A financial institution shall involve the senior management of SEs in the development of the recovery plan to ensure specificities of the SEs are appropriately accounted for. 19 On matters where the Shariah Committee’s (SC) opinion differs from rulings made by the Shariah Advisory Council (SAC) of the Bank, the financial institution shall refer the matter to the SAC in accordance with the Manual Rujukan Institusi Kewangan Islam kepada Majlis Penasihat Shariah. Recovery Planning 22 of 45 Issued 28 July 2021 S 12.6 A financial institution must ensure that the recovery plan is reviewed by an independent party, which may either be the internal audit function or an external party which is qualified and competent to conduct such review with the objective to provide independent assurance on the – (a) accuracy of data and information provided in the plan; and (b) robustness of processes and methodology used in developing the plan. At minimum, such reviews shall be carried out after the initial development or following significant updates to the recovery plan, with the results reported to the board and senior management. S 12.7 A financial institution shall escalate any breaches of recovery thresholds to senior management to (i) assess the nature and extent of the viability threat; and (ii) deliberate and decide on the next course of action. A breach in a recovery threshold will not automatically lead to the activation of the recovery phase or the implementation of recovery options. Rather, senior management, in consultation with the Board shall decide on whether to activate the recovery phase or implement recovery options. Senior management, in consultation with the board, shall also decide on whether to transition back to the early warning or BAU phase upon the successful implementation of recovery options. S 12.8 A financial institution shall inform the Bank in advance of its intentions to activate its recovery plan. In addition, the financial institution shall formally notify the Bank within 24 hours upon the activation of the recovery plan. In notifying the Bank, the financial institution shall include – (a) an explanation of events and circumstances leading to the breach of the recovery threshold; (b) management actions20 that have been taken, if any; and (c) management actions that are intended to be taken, including the implementation of recovery options drawn from the preferred recovery strategy or any other option deemed appropriate under these circumstances. S 12.9 At minimum, a financial institution shall provide information on governance arrangements underpinning the recovery plan process as set out in Appendix 6 (Information on governance). 13 Recovery indicators S 13.1 A financial institution shall establish a recovery indicator framework that sets out clearly defined criteria, thresholds, procedures and governance arrangements to facilitate timely monitoring, escalation, activation and implementation of the recovery plan. Such framework shall – (a) enable risk monitoring and management across BAU, early warning, and recovery phases in a cohesive manner; 20 Management actions refer to board-approved strategies undertaken by a financial institution to mitigate potential vulnerabilities during stresses. Recovery Planning 23 of 45 Issued 28 July 2021 (b) facilitate prompt identification and escalation of key vulnerabilities and stress events which could adversely affect the financial institution; (c) ensure early discussion and timely activation of potential management actions by senior management; and (d) minimise delays in implementation of management actions and/or recovery options. Selection of recovery indicators S 13.2 A financial institution shall develop a suite of quantitative and qualitative recovery indicators that are – (a) tailored to the size and complexity of its business model/operations, and its inherent risk drivers and strategy; (b) clearly defined, forward looking and suitable for close monitoring of evolving stress events, taking into consideration the intrinsic characteristics and quality of indicators (e.g. reliability, sensitivity and ease of monitoring); (c) aligned with existing indicators used for risk monitoring, escalation and decision-making; and (d) diverse to capture an extensive range of stress scenarios of varying nature and severity. S 13.3 At minimum, a financial institution shall include at the consolidated level recovery indicators from the following categories – (a) Capital-related indicators, that capture an actual and/or a potential material deterioration in the quantity and quality of capital on a going concern basis, including via increasing leverage and/or risk exposures; and (b) Liquidity-related indicators, that capture actual or potential funding and liquidity risks, including those stemming from intra-group funding needs and off-balance sheet exposures (e.g. potential drawdowns on commitments and contingencies), that may hamper the ability of the financial institution to meet its short- and long-term obligations. G 13.4 As a starting point, a financial institution may assess the applicability of the capital and liquidity-related recovery indicators listed in Appendix 7 (List of potential recovery indicators). A financial institution may wish to also consider additional categories beyond capital and liquidity, taking into account the requirements outlined in paragraphs 13.1 and 13.2. Appendix 7 provides examples of additional categories and potential indicators that a financial institution may wish to consider. G 13.5 A financial institution is encouraged to supplement the recovery indicators developed at the consolidated level with entity-level recovery indicators specific to a SE, where such indicators serve to capture specific key vulnerabilities faced by the SE. Recovery Planning 24 of 45 Issued 28 July 2021 Calibration of thresholds S 13.6 For each applicable recovery indicator, a financial institution shall establish an early warning and a recovery threshold to facilitate the implementation of recovery options under different stress scenarios. The calibration of these thresholds shall, at minimum, take into consideration – (a) impact and time required for successful implementation of recovery options21; (b) magnitude and speed of deterioration under various stress scenarios22; and (c) alignment with financial institutions’ risk appetite and risk management frameworks, including interactions with risk limits/thresholds identified under the existing risk monitoring, escalation and decision-making frameworks during BAU and early warning phases. S 13.7 A financial institution shall calibrate – (a) recovery thresholds at a level (before the point of non-viability) that provides reasonable time based on realistic assumptions to implement, and realise the benefits of, recovery options; and (b) early warning thresholds at a level (before the recovery thresholds) that allows adequate lead time to intensify monitoring and prepare for the implementation of recovery options. S 13.8 For each applicable recovery indicator, a financial institution must include the following information in the recovery plan – (a) latest position of the recovery indicator as at the effective date of the recovery plan; (b) early warning and recovery thresholds, including the considerations, processes and assumptions underpinning the threshold calibration; (c) relevant personnel/committees responsible for monitoring and reviewing the recovery indicators; and (d) frequency of monitoring and review of the indicator framework. 14 Recovery options S 14.1 A financial institution shall develop and maintain a set of actionable and credible recovery options to restore financial soundness and preserve long-term viability of the financial institution, in particular SEs that carry out core business lines, critical functions or critical shared services. Such recovery options must be substantially within its direct control23, supported by a clear implementation plan, and capable of being executed within an appropriate timeframe to ensure 21 For example, calibration of capital thresholds should allow for sufficient lead time to implement capital- related measures as such measures typically require longer implementation periods. 22 For example, calibration for liquidity thresholds should allow for a timely reaction to the typically fast- moving scenarios associated with liquidity-related stress events. 23 Where the implementation of any recovery option is dependent on other entities or stakeholders, those dependencies, processes and conditions to execute such options must be set out in the recovery plan. Recovery Planning 25 of 45 Issued 28 July 2021 reasonable prospect of recovery and enhance the survivability of the financial institution across different stress scenarios. S 14.2 The set of recovery options shall include measures that may have permanent structural or strategic implications on the financial institution and would likely be contemplated only in extremely stressed circumstances. This includes but is not limited to – (a) sale, transfer or disposal of part or the whole of assets, business lines or legal entities; and (b) restructuring of liabilities or issuance of capital instruments at short notice. S 14.3 In developing the set of recovery options, the financial institution must – (a) consider measures that- (i) restore or improve capital and liquidity positions; (ii) de-risk and reduce leverage; (iii) secure adequate and diverse funding sources (with due consideration to availability of eligible collateral in terms of volume, quality and location and its potential drawing capacity), including possible intra-group financial support24; and (iv) allow for voluntary restructuring of liabilities e.g. via debt-to-equity conversion where relevant; (b) ensure options are sufficiently diverse to deal with an extensive set of severe stress events that may threaten viability of the financial institution; (c) disregard the possibility of policy intervention by authorities, or access to any exceptional financial support from public funds; (d) seek to minimise potential contagion effects associated with recovery options, including those involving intra-group financial support; and (e) provide for measures necessary to preserve the financial institution’s business continuity capabilities to support the financial institution’s operations and implementation of recovery options (e.g. staff and resources)25. S 14.4 A locally-incorporated foreign financial institution must include recovery options involving assistance from parents and/or foreign related entities but only if such assistance is (a) contractually committed by the relevant entity; or (b) explicitly provided for in the group’s recovery plan that has been submitted to the home supervisory authority. S 14.5 A financial institution shall only consider access to central bank liquidity facilities (across all jurisdictions of operations) as a potential recovery option where such facilities are committed26. Nonetheless, this shall not be regarded as any form of ex ante application for, or approval of, any facility administered by the Bank. 24 This refers to financial support among covered entities and entities related to the financial institution. 25 In line with the business continuity management principles and requirements set out in the Business Continuity Management policy document. 26 For Malaysia, this refers to the Restricted Committed Liquidity Facilities. Recovery Planning 26 of 45 Issued 28 July 2021 S 14.6 At a minimum, a financial institution must assess the applicability of recovery options set out in Appendix 8 (List of potential recovery options). For other recovery options which are not listed in Appendix 8, a financial institution shall take into account requirements and considerations outlined in paragraphs 14.1 to 14.5. S 14.7 For recovery options identified, a financial institution shall undertake the following – (a) impact assessment to measure the probable success and potential benefits of the recovery option in ensuring the long-term viability of the financial institution without jeopardising the continuity of critical functions and material operational services, including critical shared services; and (b) feasibility assessment to assess the execution readiness of the financial institution, including the identification of implementation barriers and their corresponding remediation measures. S 14.8 For purposes of conducting the impact and feasibility assessments of recovery options, a financial institution shall – (a) place more emphasis on long-term viability effects in addition to its ability to address immediate stress (short-term remedies)27, when ascertaining the benefits of each recovery option; (b) consider any foreseeable impact on resolvability, particularly the creation of potential barriers for orderly resolution arising from the resultant structural or strategic changes to the financial institution following the implementation of specific recovery options; and (c) apply rigorous and conservative assumptions to avoid overestimating the effectiveness and credibility of the recovery options. S 14.9 To enhance its overall preparedness (i.e. its capacity and agility to respond to various stress events), the financial institution must conduct impact and feasibility assessments– (a) without referring to a specific stress event to allow for the identification of a set of recovery options, that would enable the financial institution to respond flexibly during crises and serves as a reference point to compare the effectiveness of recovery options under defined stress scenarios, as required under paragraph 14.9(b); and (b) under defined stress scenarios, as described in paragraph 15, in order to test for the efficacy of recovery options, the recovery indicator framework, and the overall recovery capacity of the financial institution. This is to recognise that some recovery options may not be practical or deliver expected benefits under specific conditions. 27 For example, disposal of a particular core business line at a fire sale price may alleviate some immediate concerns but could potentially have significant adverse effects on long-term viability. Recovery Planning 27 of 45 Issued 28 July 2021 S 14.10 The impact and feasibility assessments undertaken by a financial institution shall consider the following – Assessment Detailed analysis and description/information required Impact assessment  Financial impact, i.e. on capital, liquidity, profitability, asset quality and market expectations of financial position, covering at minimum the associated recovery indicators for each category, and taking into consideration potential spillovers on intra-group and external (financial) dependencies following the implementation of recovery options; and  Strategic impact on SEs, core business lines, franchise value and reputation; and  Operational impact, i.e. potential risks or spillovers to its day-to- day business operations following the deployment of specific or a combination of recovery options, including the – – continuous functioning of businesses and operational services (e.g. human resource operations, IT facilities and systems), including those outsourced to external service providers; – uninterrupted access to FMIs, including the impact on provision of services to covered entities through membership in relevant FMIs (e.g. payment, clearing and settlement systems), after accounting for safeguards and risk mitigation arrangements for operational continuity as may be provided under the financial institution’s existing business continuity plan28; and  Stakeholder impact, i.e. expected impact on shareholders, creditors, depositors and borrowers; and  Systemic implications, including the – – expected impact on the financial institution’s provision of critical functions and critical shared services; and – potential cross-institution, cross-market or cross-infrastructure contagion effects triggered through the high degree of systemic interconnectedness, including such effects in relevant jurisdictions of operations. Feasibility assessment  Assessment of the interactions and interdependencies between recovery options to identify those which are mutually exclusive or highly dependent on other options for execution29;  Evaluation of potential risks associated with the recovery option, drawing upon any prior experience in implementing such an option or similar measures; 28 For example, this may include (i) performing operational services via separate entities that are robust in the event of a failure (i.e. bankruptcy remote entities); or (ii) having contractual or service level arrangements that ensure continuation of the services, particularly for those outsourced to external service providers. 29 For example, to raise liquidity, a financial institution may include an option to pledge a particular security in a repurchase agreement or to do an outright sale of the same. Both measures shall be included in the broad list of available recovery options, although they cannot be feasibly implemented at the same time. Recovery Planning 28 of 45 Issued 28 July 2021  Material impediments that could potentially reduce the likelihood of successful implementation or render a theoretically possible recovery option infeasible, i.e. – – any implementation constraints due to group structure and/or intra-group dependencies (e.g. practical or legal constraints that may complicate or hinder effective intra-group distribution of funds); – any hurdles arising from legal and regulatory preconditions, financial, business and operational constraints, reputational considerations and Shariah requirements; and – potential obstacles in seeking approval from relevant authorities or third parties30; and  Identification of solutions and necessary preparatory measures to remedy identified material impediments and improve overall efficacy of the recovery option S 14.11 For recovery options involving Islamic entities, consideration shall be given by a financial institution to the following aspects when conducting the feasibility assessment – (a) for recovery options involving transfer of assets/portfolios, eligibility and ability of the transferee to continue upholding Shariah requirements; (b) potential limitations in providing financial assistance to a non-Shariah compliant entity; and (c) specific requirements of the underlying Shariah contracts involved in the structuring of a particular financial transaction31, including – (i) protection of rights of the contracting parties32; (ii) potential changes in terms and conditions of the contracts; (iii) fulfilment of the specified obligations/liabilities by the contracting parties; and (iv) transferability of assets/portfolios. In order to enhance the feasibility of the recovery options, a financial institution shall assess (i) the requirement to obtain consent according to the type of Shariah contract and, if required33, provide an execution plan to ensure it can be obtained or managed in advance; and (ii) for recovery options involving 30 For example, approval from (i) overseas parent of a locally-incorporated foreign financial institution for recovery options that are under the direct control of the parent; or (ii) other local and/or foreign authorities where a recovery option involves entities which are not regulated by the Bank. 31 For example, when transferring ijarah muntahiyah bi tamlik financial assets, requirements of each underlying Shariah contract involved such as ijarah, wa`d and hibah must be observed. 32 Refer to the transferee and any other party who continues to be involved in the contract, such as the customers and their guarantors. 33 For example, (i) unless specified otherwise in the terms and conditions, transferability of financing structured using murabahah, tawarruq, qard or ijarah will not require consent from customers; (ii) any change in terms and conditions to musyarakah or mudarabah ventures and investment accounts will require mutual agreement from the partners or relevant parties involved; and (iii) right of first refusal to partners may be considered for transfer of assets/portfolios under musyarakah venture, including musyarakah mutanaqisah. Recovery Planning 29 of 45 Issued 28 July 2021 transfers, an acceptable transfer mechanism taking into consideration the prospective transferee’s preferred method34. S 14.12 At minimum, a financial institution must provide information for each recovery option in the recovery plan as set out in Appendix 9 (Information on each recovery option). S 14.13 A financial institution shall provide a comparative summary of all relevant recovery options assessed, highlighting the key elements outlined in Appendix 9 (Information on each recovery option). 15 Scenario analysis 15.1 The aim of scenario analysis is to assess under a range of stress scenarios – (a) the adequacy of the recovery indicator framework to detect impending stress and enable timely activation of the recovery plan; and (b) the efficacy and feasibility of recovery options to restore viability. This part provides a structured framework for financial institutions to identify preferred recovery strategies and gauge the overall recovery capacity of the financial institution. S 15.2 To conduct the analysis, a financial institution shall develop a set of stress scenarios, incorporating adverse events that are – (a) relevant to the financial institution’s size, risk profile, complexity of its activities, intra-group and external dependencies, and systemic interconnectedness; (b) severe enough to threaten the viability of the financial institution unless recovery options are successfully capable of being implemented in a timely manner, i.e. near non-viability; and (c) exceptional yet plausible in order to ascertain whether available recovery options are realistic, impactful and implementable to address potential viability threats. S 15.3 The set of stress scenarios must be sufficiently diverse to ensure the relevance of the recovery plan under a range of adverse conditions. At minimum, a financial institution shall develop three stress scenarios, including- (a) a system-wide stress scenario, incorporating events that materially affect the functioning of the real economy and financial system; (b) an idiosyncratic stress scenario, incorporating events that are institution- specific and could directly threaten the business and operations of specific SEs, core business lines or the entire financial institution; and (c) a combined stress scenario, in which the system-wide and idiosyncratic stress events interact and occur simultaneously. Notwithstanding this, the Bank will have the discretion to require financial institutions to assess additional scenarios. 34 For example, a financial institution may apply the bai’ dayn bi sila’ (sale of debt with commodity) for transfer of murabahah financing, unless such method is not preferred by the prospective transferee. Recovery Planning 30 of 45 Issued 28 July 2021 G 15.4 Stress events may include- System-wide stress events Idiosyncratic stress events  macroeconomic downturn  adverse price movements in market(s) to which the financial institution is heavily exposed  decrease in aggregate liquidity available in domestic or foreign interbank markets  heightened sovereign risk and portfolio outflows from a key jurisdiction of operations  failure of significant counterparties impacting the financial system  regional/global catastrophes  severe credit losses in specific portfolios  increased default risk in specific portfolios and rating downgrade  significant liquidity outflow, including deposit run  increased costs of, or impaired access to significant funding sources  failure of related entities, e.g. parent bank, branches or subsidiaries  failure of, or early redemption of liabilities by, significant counterparties  severe operational losses (e.g. losses through a rogue trader)  damage to reputation (e.g. fraud, loss of goodwill)  Shariah risk event (e.g. court/Shariah ruling on the validity of a particular Shariah contract against the financial institution’s favour) S 15.5 In relation to the three stress scenarios in paragraph 15.3, a financial institution shall include at least one fast-moving and slow-moving elements in its range of stress scenarios. In general, fast-moving stress events typically materialise within 12 months or less, whereas slow-moving stress events may span up to 3 years. G 15.6 A financial institution may draw upon existing stress testing programmes35 from the risk management process and regulatory requirements36 as an initial basis to inform the design and calibration of scenarios for recovery planning. Notwithstanding this, stress tests do not necessarily serve the same purpose and stress scenarios from existing stress testing programmes may not be directly suitable for recovery planning purposes. For instance, scenarios used in existing stress testing programmes are typically less severe in nature than those required for recovery planning (Figure 3). S 15.7 If a financial institution intends to draw upon existing stress testing programmes, the financial institution shall evaluate the applicability of scenarios used in stress testing programmes before recalibrating the stress parameters to meet the intended objectives of scenario analysis for recovery planning. G 15.8 Given the severity of stress scenarios required for recovery planning, a financial institution may also use reverse stress testing as a starting point to determine possible events that could lead to the financial institution’s non-viability. Reverse stress testing assumes the failure of the financial institution and identifies conditions in which this is likely to occur, rather than testing for outcomes arising 35 Existing stress testing programmes include but are not limited to the ICAAP, contingency funding plan and business continuity plan. 36 Refer to the Stress Testing policy document. Recovery Planning 31 of 45 Issued 28 July 2021 from changes in the operating environment. To achieve this, a rigorous vulnerability assessment that identifies the elements leading to non-viability in both quantitative and qualitative terms forms a vital component of reverse stress testing. G Figure 3 – Stylised illustration of stress test continuum and main considerations to calibrate scenario analysis under recovery planning Analysis of stress scenarios S 15.9 For each stress scenario, a financial institution shall assess the financial and operational impact of the scenario to the financial institution. The assessment must be supported by robust quantitative metrics/models and sound qualitative evidence/expert judgement. S 15.10 Based on the set of feasible recovery options as identified in paragraph 14.7(b), a financial institution shall assess the applicability of such recovery options under each stress scenario. A financial institution shall then conduct the impact and feasibility assessments on each feasible and applicable recovery option to determine the preferred recovery strategy. It is vital for the financial institution to undertake this second iteration of impact and feasibility assessments against identified stress scenarios (Figure 4), given that the impact, feasibility, and Recovery Planning 32 of 45 Issued 28 July 2021 G applicability of recovery options may vary widely in response to the nature, severity and speed of stress events37. Figure 4 – Stylised illustration of the two-step process for selecting a set of preferred recovery strategy S 15.11 At minimum, a financial institution must provide information on scenario design and scenario analysis as set out in Appendix 10 (Information on scenario design and scenario analysis). 37 For example, in a system-wide scenario, more than one institution may seek to implement similar recovery options at the same time under stressed market conditions, rendering it difficult to secure additional liquidity or capital. Recovery Planning 33 of 45 Issued 28 July 2021 G 15.12 A financial institution may describe its assessment of the likely efficacy of each preferred recovery strategy to inform the Bank’s assessment of the financial institution’s overall recovery capacity, by highlighting the key elements as outlined in the illustrative template below – 16 Communication and disclosure plan 16.1 Developing clear communication and disclosure strategies ensures that all relevant stakeholders are adequately informed throughout the recovery planning process in a timely manner. Such strategies enable the financial institution to be agile in its response which is vital in maintaining confidence of customers, counterparties and the public at large. S 16.2 As part of the recovery plan, a financial institution shall develop a communication and disclosure plan that, at a minimum, takes into account the following – (a) communication needs of different stakeholders; (b) communication needs specific to individual recovery options and preferred recovery strategies; and (c) applicable disclosure requirements (e.g. legal provisions, regulations, or listing rules), particularly in relation to unpublished, price-sensitive information. S 16.3 The communication and disclosure plan shall include, at minimum, the following – (a) identification of key stakeholders, comprising – (i) internal stakeholders including staff, key (domestic and overseas) branches and subsidiaries; and (ii) external stakeholders including shareholders, depositors, investment account holders, the Bank, PIDM, other authorities, counterparties, general public; (b) stakeholder engagement strategies to support implementation of the recovery options, highlighting the – (i) medium of communication; Recovery Planning 34 of 45 Issued 28 July 2021 (ii) level of detail, timing and frequency of information to be provided; and (iii) the parties identified to lead such engagements; (c) plans to mitigate or prevent potential adverse market reactions and maintain public confidence; and (d) personnel responsible for ensuring the effective coordination and execution of the communication and disclosure plan. 17 Preparatory measures S 17.1 A financial institution shall identify preparatory measures that the financial institution has taken, will or may take, to improve the overall efficacy of the recovery plan. This includes but is not limited to measures aimed at overcoming the barriers to the efficacy of identified recovery options and preferred recovery strategies, i.e. preparatory measures identified pursuant to the feasibility assessment under paragraph 14.10. S 17.2 In the recovery plan, a financial institution shall provide a reasonable plan for such preparatory measures, including the implementation timeline, target completion dates, resources required and estimated costs, and personnel responsible for the implementation of these measures. 18 Periodic review S 18.1 Notwithstanding paragraph 17.1, a financial institution shall establish a framework to periodically test the efficacy of the recovery plan. These tests would serve to identify potential shortcomings in the plan, demonstrate how the arrangements set out in the plan would work in practice and ultimately improve overall crisis preparedness. Based on the findings and recommendations from these periodic tests, a financial institution shall identify additional preparatory measures and incorporate them into the recovery plan, as set out in paragraphs 17.1 and 17.2. G 18.2 Financial institutions may perform these periodic tests by adopting approaches that best suit the financial institution’s size, complexity and risk management framework. Testing approaches may include, but are not limited to desktop simulations, fire drills or ‘live’ simulations, and backtesting. Initially, a financial institution may opt to test specific parts of the recovery plan, such as: (a) the efficiency and efficacy of governance arrangements to activate the recovery plan and implement recovery options; (b) the operational capacity of the institution to execute specific recovery options; or (c) the capacity of management information systems to produce the information required to support decisions on activation of the recovery plan. Nonetheless, frameworks for recovery plan testing are expected to evolve over time as recovery planning becomes more embedded within the organization. Recovery Planning 35 of 45 Issued 28 July 2021 APPENDICES APPENDIX 1 List of reporting templates Recovery planning component Reporting template Strategic analysis  Template 1(a): Assessment of SEs  Template 1(b): Description of SEs  Template 1(c): Assessment of core business lines  Template 1(d): Description of core business lines  Template 1(e): Mapping of core business lines to significant entities and operational services  Template 1(f): Assessment of critical functions  Template 1(g): Overview of assessment of critical functions  Template 1(h): Description of critical functions  Template 1(i): Mapping of critical functions to SEs, core business lines and critical shared services  Template 1(j): Description of intra-group dependencies  Template 1(k): Description of external dependencies  Template 1(l): Description of systemic interconnectedness Recovery indicators  Template 2: Overview of recovery indicators Recovery options  Template 3(a): Description and assessment of recovery options  Template 3(b): Overview of recovery options Scenario analysis  Template 4(a): Assessment for determination of preferred recovery strategy  Template 4(b): Assessment of applicable recovery options under stress scenario  Template 4(c): Overview of scenario analysis Recovery Planning 36 of 45 Issued 28 July 2021 APPENDIX 2 Information on business models and core business lines Key areas Detailed analysis and description/information required (a) Business model Overview of the operating model and business strategy, including how business lines are organised across covered entities (b) Core business lines For each core business line:  considerations, processes and metrics supporting identification of core business line  relevant profit and loss (including breakdown of revenue, operating expenses, loan loss provisions, and impairments) and balance sheet information, branch network and customer base by jurisdiction(s) of operations  interactions and division of responsibilities between parent entity and core business lines  components and composition of risk drivers (c) Mapping of core business lines to:  SEs  operational services that support the business line Recovery Planning 37 of 45 Issued 28 July 2021 APPENDIX 3 List of potential critical functions Category Critical function Deposit-taking and savings  Demand and savings deposits accepted from individuals  Term deposits accepted from individuals (fixed and short- term)  Demand and savings deposits accepted from private non- individuals  Term deposits accepted from private non-individuals (fixed and short-term) Lending and loan servicing  Secured lending to individuals  Unsecured lending to individuals  Secured lending to small and medium enterprises (SMEs)38  Unsecured lending to SMEs  Secured lending to private non-individuals (excluding SMEs)  Unsecured lending to private non-individuals (excluding SMEs)  Secured and unsecured lending to government  Trade finance  Leasing  Project financing Capital markets and investments  Debt capital market (excluding financial institution’s own issuance)  Equity capital market (excluding financial institution’s own issuance)  Secondary market (proprietary and non-proprietary)  Derivatives (proprietary and non-proprietary)  Asset management  Prime brokerage  Corporate advisory services  Investment account Wholesale funding markets  Repurchase and reverse repurchase transaction  Securities borrowing and lending (excluding with the Bank)39  Wholesale borrowing and lending (excluding with the Bank) Payment, clearing, custody, and settlements  Payment services (e.g. cash/wire services)  Custodian services  Clearing and settlement services (MYR)  Clearing and settlement services (USD)  Clearing and settlement services (SGD)  Clearing and settlement services (Other FCY)  Remittances 38 For the definition of SMEs, please refer to the latest guidelines issued by SME Corporation Malaysia. 39 In line with the Bank’s Guideline on Securities Borrowing and Lending of RENTAS Securities issued in June 2016. Recovery Planning 38 of 45 Issued 28 July 2021 APPENDIX 4 List of potential operational services Category Operational service Treasury/ALM services  Steering function for the treasury activity (management and monitoring risk appetite, operations steering, defining risk monitoring)  Booking arrangements  Collateral management, entity refinancing  Reporting function  Medium and long-term funding programs  Refinancing operations Trading/Asset management  Operations processing: trade capture, life cycle management  Confirmation, settlement, payment  Position and counterparty management (data reporting, counterparty relationships)  Position management (risk and reconciliation) Risk management and valuation  Centralised risk management  Risk management units, by business line and risk type  Embedded risk managers  Risk report generation  Risk IT infrastructure and personnel, not covered elsewhere Accounting  Statutory reporting  Regulatory reporting  Valuation activities for market positions  Management reporting Physical operations  Cash handling  Access control  Security Human resource support  Payroll  Staff administration (contracts)  Communication for human resources Information Technology  Data storage and processing  IT infrastructure, workstations, servers, data centres and related services  Software licenses and applications  Access to external providers (e.g. Bloomberg, stock exchanges)  Application maintenance (software application maintenance and related data flows, to be limited to corrective maintenance during the resolution period)  User support  Disaster recovery solutions Legal services/ compliance  Corporate legal support  Business/transactional legal services  Compliance support Recovery Planning 39 of 45 Issued 28 July 2021 APPENDIX 5 Information on critical functions and critical shared services Key areas Detailed analysis and description/information required (a) Description of the function  Nature of business  Customer base by jurisdiction(s) of operations (b) Risk management practices and governance structure  Overview of risk management policies and procedures and governance structure of the function, highlighting the interactions and division of responsibilities between parent entity and the provider of the function (c) Assessment of criticality of the function  Considerations, processes and metrics supporting the assessment of criticality (d) Critical shared services  Considerations, processes and metrics supporting the assessment of criticality (e) Mapping of functions to:  SEs  core business lines  critical shared services Recovery Planning 40 of 45 Issued 28 July 2021 APPENDIX 6 Information on governance Key areas Detailed analysis and description/information required (a) Overview Description of how the recovery plan is integrated with the existing governance structure and risk management framework of the financial institution, including necessary steps and timeline to address any misalignments (b) Development, review, approval and maintenance of recovery plan Description of –  roles and responsibilities of persons responsible, including the identified members of the board and senior management accountable for recovery planning  governing policies and procedures for development, review, approval and maintenance of recovery plan, including arrangements taken by the financial institution to ensure that recovery options are coordinated and consistent at the consolidated and individual entity-level  statement of confirmation that the recovery plan has been – assessed and approved by the board; and – reviewed by the internal audit function and/or the external auditors. (c) Monitoring, escalation, activation and implementation of recovery plan Description of the internal escalation and decision-making process that applies upon a breach of the early warning and recovery thresholds, including –  roles and responsibilities of persons and/or committee involved  decision-making framework for activating and implementing the recovery plan including guiding principles, policies, procedures and timeframe to determine the course of action  when and how other relevant authorities will be notified Recovery Planning – Exposure Draft 41 of 45 Issued 28 July 2021 APPENDIX 7 List of potential recovery indicators Category Recovery indicator Capital Ascertain actual and potential material deterioration in the quantity and quality of capital of the financial institution on a going concern basis, including via increasing leverage and/or risk exposures  Common equity tier 1 capital ratio  Tier 1 capital ratio  Total capital ratio  Leverage ratio Liquidity Identify actual or potential funding and liquidity risks, including those stemming from intra-group funding needs and off- balance sheet exposures, that may hamper the ability to meet short- and long-term obligations  Liquidity coverage ratio  Net stable funding ratio  Cost of funds  Cost of wholesale funding  Concentration of funding (e.g. from top 20 counterparties) Profitability Capture actual and potential deterioration in revenue generating capacity and rapid increase in costs, including operating expenses and losses incurred from legal and operational risk events  Return on assets  Return on equity  Net interest margin  Cost-to-income ratio  Operational risk loss Asset quality Indicate profile of, and potential changes in, credit risk exposures, including movements in the staging of loan and financing exposures under accounting standards and impairments, and adequacy of provisions made, including for off-balance sheet exposures (e.g. assets sold with recourse)  Gross impaired loans/financing ratio  Growth rate of gross impaired loans/financing  Net impaired loans/financing ratio  Loan/financing loss coverage ratio Operational risk Capture disruptions to operational services that may materially impair the long-term viability of the financial institution, and threaten public confidence in the financial institution or operations of the financial market. This includes indicators that may not immediately affect the financial performance of the financial institution. Recovery Planning – Exposure Draft 42 of 45 Issued 28 July 2021  Unscheduled downtime for mission critical systems  Cyber-attack incidences on mission critical systems  Critical staff turnover rate  Number of compliance breaches Market Capture adverse market developments and potential rating downgrades (short- and/or long-term) that may impair access to funding and financial markets40, e.g. - equity-based indicators that measure variations in share prices of listed covered entities - debt-based indicators that reflect expectations from wholesale funding providers - portfolio-related indicators that capture market expectations for specific asset classes  Price-to-book ratio  Share price volatility  Credit rating  Credit default swap spread Macroeconomic Signal deterioration in economic conditions and operating environment, and adverse external developments that may influence performance of the financial institution, e.g. – - country-specific macroeconomic indicators - sectoral macroeconomic indicators, relating to major sectors of economic activity (e.g. real estate, mining, construction, agriculture), that are relevant to financial institution’s operations or to which risk exposures/funding liabilities are concentrated  GDP growth  Sectoral GDP growth (e.g. construction, manufacturing, exports, etc.)  Employment  Sovereign’s credit rating  Sovereign’s credit default swap spread 40 Including money, debt, equity, derivatives, foreign exchange and commodities markets, taking into account primary and secondary markets, where relevant. Recovery Planning – Exposure Draft 43 of 45 Issued 28 July 2021 APPENDIX 8 List of potential recovery options Category Recovery option Capital raising  External share capital increase  Share capital increase by parent institution  Additional Tier 1 capital increase  Tier 2 capital increase Disposal  Sale of banking branch/subsidiary  Initial public offering of banking subsidiary  Sale of banking minority stake  Sale of non-banking entity  Sale and lease-back transactions Asset sales  Stocks  Bonds  Real estate  Transfer of assets  Other illiquid assets Liability management  Rollover issuance of Additional Tier 1 instruments  Rollover issuance of Tier 2 instruments  Internal liquidity support from parent institution  Internal liquidity support from affiliated (non-parent) institution  Repurchase of liabilities under book value  Liquidation of collateral in case of customer default  Adjustment of existing credit lines within the credit business  Utilisation of existing lines  Cease trading activities  Intensify deposit retention efforts i.e. customers incentives Cost savings  Containment / reduction of staff costs (e.g. cancel bonus payments, reduction of working time, cut in voluntary benefits)  Stop/delay investments in facilities and equipment  Stop/delay investments in IT  Major expenditure cutbacks / rationalisation  Renegotiation of existing contracts Earnings retention  Non-payment of coupon on Tier 1/Tier 2 issues  No distribution of dividends Access to wholesale funding  Repurchase agreement  Issuance of covered bonds  Issuance of unsecured bonds Reduction of riskiness/ improvement of risk profile  Reduction of new business origination  Syndication of existing loans  Sale of existing loans  Securitisation  Synthetic securitizations  Early termination of derivatives in banking book Mergers  Merger with affiliated institution or non-affiliated institution Recovery Planning – Exposure Draft 44 of 45 Issued 28 July 2021 APPENDIX 9 Information on each recovery option Key areas Detailed analysis and description/information required (a) General information  Description and quantum (e.g. size of issuance, value of subsidiary to be disposed, portfolio volume, magnitude of cost reduction) of the recovery option  Assumptions underpinning the recovery option  Relevant personnel/committees which are primarily responsible for developing, maintaining, implementing and approving the recovery option, including description of specific governance arrangements (e.g. intra-group coordination) for the implementation of recovery option, if any  Estimated time required for implementation and realisation of benefits of the recovery option  Estimated implementation cost, including cost arising from, e.g. hiring advisors, restructuring charges, sales commissions (b) Impact assessment  Financial, strategic, operational, stakeholder and systemic impact assessments and assumptions underpinning the assessments (e.g. valuation assumptions which incorporates value and marketability of assets/businesses, behaviour of other market participants) (c) Feasibility assessment  Assessment of overall feasibility and assumptions underpinning the assessment (d) Applicability to stress scenario  Assessment of applicability of recovery options under different stress scenarios (i.e. system-wide, idiosyncratic, fast-moving, slow-moving) and justification/considerations to support assessment (e) Execution process  Necessary procedures/steps to implement the recovery option  Specific communication plans with internal, external and other stakeholders to support implementation Recovery Planning – Exposure Draft 45 of 45 Issued 28 July 2021 APPENDIX 10 Information on scenario design and scenario analysis Key areas Detailed analysis and description/information required (a) Scenario design Narrative of each stress scenario, including –  type, speed, severity and time horizon  logical sequence and timeline of stress events, including detailed description and quantitative parameters at each time period  considerations, processes and assumptions underpinning the selection and design of the scenario (b) Scenario analysis For each stress scenario –  financial and operational impact of stress scenario on the financial institution, including – – how relevant recovery indicators are affected over time, i.e. the extent and timing of breaches of early warning and recovery thresholds – risk transmission channels of the stress scenario to the financial institution  assessment of adequacy of the recovery indicator and governance frameworks, including – – number and type of recovery thresholds that have been breached – extent and timing of the breach to assess the time available for the execution of recovery options – monitoring and escalation processes  description of preferred recovery strategy and recovery capacity, including but – – cumulative impact (i.e. financial, strategic, operational, stakeholder and systemic impact), feasibility and time taken to implement and realise the benefits of the preferred recovery strategy – considerations and assumptions underpinning the selection of the strategy Page 1 of 5 Response to Feedback Received Recovery Planning In finalising the requirements, the Bank has considered feedback received during the consultation period and has incorporated them where appropriate into the final policy document. Comments that are of wider interest have been set out in this document, together with the Bank’s responses. The Bank would like to thank all respondents for the feedback and suggestions received during the consultation period. Bank Negara Malaysia 28 July 2021 Page 2 of 5 1. General requirements Feedback received: Some respondents requested for the Bank to consider reviewing or approving recovery plans developed by financial institutions. Some also suggested for the Bank to allow locally-incorporated foreign financial institutions to leverage on group-wide recovery plans developed by their respective parent institution abroad. The Bank’s view: 1.1 The Bank would like to emphasise that the recovery plan required under the policy document is a financial institution’s “playbook” to facilitate quick responses to severe stress events that could undermine the financial institution’s viability. Hence, a financial institution must take ownership of the recovery plan and ensure that it is well-developed and kept up-to-date. While recovery plans will not be subject to the Bank’s approval, the Bank shall review the recovery plan as part of our on-going supervisory process, to ascertain whether the plan is credible and supported by sound judgement and analysis and can be effectively implemented. The Bank expects recovery planning to be an iterative process, and as such will continuously engage with financial institutions to clarify the Bank’s expectations on recovery planning as part of ongoing supervision. 1.2 For locally-incorporated foreign financial institutions, the Bank acknowledges the importance of aligning local recovery plans with group-wide plans developed by the parent entity to ensure coherence within the group. While the policy document does not preclude banks from leveraging on group-wide recovery plans, the Bank expects financial institutions to conduct their own assessment to ensure group-wide recovery plans are credible and feasible in the local context, and meet the requirements set out in this policy document. 2. Reporting requirements Feedback received: Majority of respondents viewed the 12-month timeframe for development of the first iteration of the recovery plan as insufficient, especially for financial institutions with little to no experience in preparing recovery plans. The Bank’s view: 2.1 Recognising the amount of time and resources required to develop recovery plans, the Bank has agreed to extend the timeline for submission of recovery plans by an additional 6 months, i.e. from 12 to 18 months. The extension of timeline has been reflected accordingly in paragraph 9.1 of the PD. The request for the submission of recovery plans will be conducted in phases, during which financial institutions will be individually notified by the Bank. Page 3 of 5 3. Strategic Analysis Feedback received: Some respondents enquired if activities that are currently categorised as critical business functions in both the Business Continuity Management (BCM) and Operational Risk Integrated Online Network (ORION) policy documents be automatically considered as critical functions in the Recovery Plan. Some requested to allow foreign financial institutions to leverage on assessments conducted by the group on critical functions and critical shared services. The Bank’s view: 3.1 The term critical functions as defined in this policy document is a broader concept than the term critical business functions defined in the BCM and ORION policy documents. Paragraphs 11.10 and 11.11 of the policy document provide guidance on the identification and classification of critical functions, whereby failure or discontinuance of such functions could adversely impact the functioning of the real economy and financial stability. Meanwhile, critical business functions defined in the BCM policy document may affect a financial institution’s performance of critical functions as defined in this policy document and in such cases, should be included in the recovery plan. However, a financial institution cannot solely rely on critical business functions defined in the BCM policy document for recovery planning purposes. The definition of critical business functions in the BCM policy document is also currently under review with proposed refinements to be covered in an upcoming Business Continuity Management exposure draft pending issuance in 2H 2021. 3.2 While locally-incorporated foreign financial institutions may leverage on the group-wide assessment of critical functions and critical shared services as a starting point, the Bank expects financial institutions to also assess the criticality of such functions and services in relation to the potential impact of their discontinuance to the Malaysian financial system and economy. 4. Governance structure and oversight Feedback received: Some respondents requested for more clarity on the Bank’s expectation relating to model methodologies and validation. The Bank’s view: 4.1 Consistent with the requirement set out in paragraph 8.2 of this policy document, the Bank expects that models used for the purposes of scenario analysis/stress testing are conceptually sound, fit for purpose and remain relevant on an ongoing basis for the smooth implementation of the recovery planning process. 4.2 While the policy document does not prescribe the level of sophistication of the model methodologies, financial institutions may be guided by paragraphs 27 to 29 of the Risk Governance policy document on minimum expectations relating to usage of models. Page 4 of 5 5. Recovery Indicators Feedback received: Respondents proposed for monitoring of indicators to be conducted at entity level, given the compensating effects of stronger entities in the group. Respondents also requested for flexibility to be given in terms of monitoring of indicators, proportionate to size and complexity of entity. The Bank’s view: 5.1 The Bank requires the recovery planning process to be conducted at a consolidated group level, to facilitate a holistic assessment of the recoverability of a financial institution, while ensuring that intragroup dependencies are well-understood. In line with this, group-level recovery indicators are important to surface stress events that could threaten the viability of the entire financial group. Nonetheless, the monitoring of recovery indicators at the group level does not preclude financial institutions from also monitoring the indicators at an entity-specific level, where appropriate. Rather, it aims to ensure that financial institutions establish an internally consistent recovery indicator framework within the group. As such, while paragraph 13.3 of this policy document requires development of indicators at a consolidated group level, paragraph 13.5 encourages financial institutions to supplement these with entity-level recovery indicators, where such indicators serve to capture specific vulnerabilities faced by significant entities within the group. 5.2 The Bank agrees with the industry on the need for flexibility in the selection of recovery indicators for monitoring. In this regard, the Bank has revised paragraph 13.3 which stipulates the minimum categories of recovery indicators to be developed by financial institutions. 6. Recovery Options Feedback received: For recovery options which entail regulatory approval prior to execution, respondents sought guidance on how such approvals should be incorporated into the implementation timeframe. Respondents also requested for additional clarity on whether certain exceptional rulings against Shariah Advisory Council’s (SAC) resolutions can be made by the financial institution’s Shariah Committee (SC), such as the application of Darurah and Hajah principles for crisis situations. The Bank’s view: 6.1 In determining the relevant timeframe, financial institutions will be expected to identify the requisite documents and information required, laws and regulations to be met, and internal governance processes involved. In this regard, early engagement with the relevant authorities during the development of recovery plans is especially crucial to ensure such considerations are adequately accounted for. 6.2 As specified under IFSA, Islamic financial institutions (IFIs) must adhere to SAC rulings. In the case where the SC’s opinion differs from the ruling made by the SAC, the IFI shall refer the matter to the SAC in accordance with the Manual Rujukan Institusi Kewangan Islam kepada Majlis Penasihat Shariah. Page 5 of 5 7. Scenario Analysis Feedback received: Some respondents requested the Bank to prescribe minimum stress scenarios to be used by financial institutions. The Bank’s view: 7.1 Scenario analysis within the recovery planning process is intended to incorporate significant risk factors across all portfolios and business lines of a financial institution under appropriately severe forward-looking scenarios in order to test the effectiveness of recovery options to restore financial strength and viability when the financial institution comes under severe stress. Given the varied risk profile and business mix of financial institution, the Bank is of the view that specific parameters of the stress scenarios should be institution-specific but guided by the broad expectations prescribed in paragraphs 15 of the policy document.

Public Notice

09 Jul 2021

Keputusan Majlis Penasihat Shariah (MPS) ke - 213

https://www.bnm.gov.my/-/keputusan-majlis-penasihat-shariah

https://www.bnm.gov.my/documents/20124/1085561/%5BUntuk+penerbitan%5D+Kenyataan+Mesyuarat+MPS+ke-213+Aplikasi+TVM+bagi+Qard.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/keputusan-majlis-penasihat-shariah&languageId=ms_MY

Reading: Keputusan Majlis Penasihat Shariah (MPS) ke - 213 Share: Keputusan Majlis Penasihat Shariah (MPS) ke - 213 Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1100 pada Jumaat, 9 Julai 2021 9 Jul 2021 Majlis Penasihat Shariah (MPS) Bank Negara Malaysia pada mesyuarat ke-213 bertarikh 27 April 2021 telah memutuskan bahawa kaedah pengukuran perakaunan bagi transaksi qard (pinjaman tanpa faedah) antara dana pemegang saham dan dana takaful di bawah keperluan MFRS 17 Kontrak Insurans dan MFRS 9 Instrumen Kewangan dibenarkan. Ini adalah kerana jumlah bayaran balik amaun qard tidak akan bertambah walaupun prinsip nilai wang mengikut masa (time value of money (TVM) diterapkan dalam kaedah pengukuran. Keputusan ini tertakluk kepada penzahiran maklumat komprehensif dalam nota penyata kewangan seperti berikut: Keperluan pengendali takaful memberi qard daripada dana pemegang saham apabila terdapat kekurangan dalam dana takaful; Sifat kontrak qard, jumlah asal qard yang diberikan kepada dana takaful dan tempoh bayaran balik yang dijangka apabila terdapat lebihan dalam dana takaful; dan Penjelasan berhubung pengukuran perakaunan seperti penerapan prinsip TVM untuk menentukan nilai kini (present value) dan nilai masa hadapan (future value) bagi qard serta kesan terhadap jumlah asal qard dan pelarasan nilai saksama (fair value) yang diperlukan untuk mencapai jumlah asal. Penjelasan tersebut hendaklah merangkumi “hak dana pemegang saham untuk menerima jumlah qard asal” dan “obligasi dana takaful membayar balik jumlah qard asal” yang tidak berubah amaunnya sepanjang tempoh bayaran balik qard.   Sila lihat lampiran di sini untuk maklumat lanjut Bank Negara Malaysia 9 Julai 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Kenyataan Mesyuarat MPS ke-213 Aplikasi TVM bagi Qard [Final] Mesyuarat MPS ke-213 2021 1 Keputusan Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Penerapan Prinsip Nilai Wang Mengikut Masa bagi Tujuan Pengukuran Perakaunan bagi Transaksi Qard Antara Dana Pemegang Saham dan Dana Takaful Mesyuarat MPS ke-213 bertarikh 27 April 2021 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009 berkaitan fungsi MPS, MPS memutuskan bahawa kaedah pengukuran perakaunan bagi transaksi qard (pinjaman tanpa faedah) antara dana pemegang saham dan dana takaful di bawah keperluan MFRS 17 Kontrak Insurans1 dan MFRS 9 Instrumen Kewangan2 dibenarkan. Ini adalah kerana jumlah bayaran balik amaun qard tidak akan bertambah walaupun prinsip nilai wang mengikut masa (time value of money (TVM) diterapkan dalam kaedah pengukuran. Keputusan ini tertakluk kepada penzahiran maklumat komprehensif dalam nota penyata kewangan seperti berikut: i. Keperluan pengendali takaful memberi qard daripada dana pemegang saham apabila terdapat kekurangan dalam dana takaful; ii. Sifat kontrak qard, jumlah asal qard yang diberikan kepada dana takaful dan tempoh bayaran balik yang dijangka apabila terdapat lebihan dalam dana takaful; dan iii. Penjelasan berhubung pengukuran perakaunan seperti penerapan prinsip TVM untuk menentukan nilai kini (present value) dan nilai masa hadapan (future value) bagi qard serta kesan terhadap jumlah asal qard dan pelarasan nilai saksama (fair value) yang diperlukan untuk mencapai jumlah asal. Penjelasan tersebut hendaklah merangkumi “hak dana pemegang saham untuk menerima jumlah qard asal” dan “obligasi dana takaful membayar balik jumlah qard asal” yang tidak berubah amaunnya sepanjang tempoh bayaran balik qard. Keputusan ini berkuat kuasa serta merta pada tarikh penerbitannya dalam laman sesawang Bank Negara Malaysia pada 8 Julai 2021 dan terpakai kepada pengendali takaful berlesen termasuk pengendali takaful semula profesional yang diluluskan di bawah Akta Perkhidmatan Kewangan Islam 2013 (APKI) untuk menjalankan perniagaan takaful. Selaras dengan seksyen 28(1) dan (2) APKI, mengikut mana-mana yang berkenaan, pengendali takaful berlesen dikehendaki mematuhi keputusan ini kerana pematuhan dengan apa-apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan pengendalian perniagaan, hal ehwal atau aktiviti pengendali takaful berlesen tersebut adalah disifatkan sebagai pematuhan kepada Syariah. 1 Piawaian Pelaporan Kewangan Malaysia 17 Kontrak Insurans 2 Piawaian Pelaporan Kewangan Malaysia 9 Instrumen Kewangan Mesyuarat MPS ke-213 2021 2 Bahagian II: Latar Belakang Pengolahan perakaunan di bawah MFRS  Mengikut amalan semasa, MFRS 4 Kontrak Insurans3 membenarkan pengendali takaful berlesen mengukur qard yang diberi untuk menampung kekurangan dana takaful4 pada nilai kos di dalam penyata kewangan pengendali takaful dan dana takaful. Memandangkan MFRS 4 akan digantikan sepenuhnya oleh MFRS 17 berkuat kuasa 1 Januari 2023, terdapat keperluan untuk mengkaji semula pengolahan perakaunan sedia ada untuk memenuhi keperluan pengukuran baharu di bawah MFRS 17. Oleh itu, penilaian ini turut mempertimbangkan keperluan perakaunan yang berkaitan dengan transaksi qard di bawah piawaian perakaunan lain terutamanya piawaian MFRS 9.  Lembaga Piawaian Perakaunan Malaysia (MASB)5, telah mengesyorkan pengolahan perakaunan yang merangkumi perspektif dana takaful dan pengendali takaful. Khususnya, prinsip TVM akan diguna pakai dalam kaedah penilaian qard bertepatan dengan keperluan MFRS. Cadangan pengolahan perakaunan adalah seperti berikut: o Dari perspektif dana takaful, qard dianggap sebagai sebahagian daripada pemenuhan aliran tunai (fulfilment cash flows) di bawah MFRS 17 dan diukur berdasarkan kaedah nilai kini di mana pemasaan aliran tunai (timing of cash flows) dipertimbangkan. o Dari perspektif pengendali takaful6, qard dianggap sebagai aset kewangan di bawah MFRS 9 dan pada awalnya diukur pada nilai saksama, di mana faktor diskaun berdasarkan anggaran pulangan komersial atas nilai nominal7 akan digunakan untuk menganggarkan nilai saksama pada permulaan qard. Kesan pengolahan perakaunan terhadap penyata kewangan  Sewaktu pengukuran awal qard, penggunaan prinsip TVM akan menghasilkan nilai jangkaan qard yang lebih rendah yang perlu dibayar pada masa hadapan memandangkan qard pada dasarnya adalah bersifat bebas faedah dan tidak mengambil kira TVM. Dalam hal ini, perbezaan antara nilai pengukuran awal dan nilai nominal (nilai asal) qard akan menggambarkan kesan TVM dan direkod dalam penyata kewangan masing-masing sebagai keuntungan kepada dana takaful dan kerugian kepada pengendali takaful.  Sepanjang tempoh bayaran balik qard, nilai qard akan dilaraskan untuk merungkai kesan TVM dengan keuntungan dan kerugian yang direkodkan masing-masing dalam penyata kewangan dana takaful dan pengendali takaful. Pelarasan pada nilai qard akhirnya akan menghapuskan kesan TVM yang direkod pada pengukuran awal sehingga tidak 3 Piawaian Pelaporan Kewangan Malaysia 4 Kontrak Insurans 4 Seperti yang dikehendaki di bawah seksyen 95 APKI 5 MASB telah mengeluarkan satu buletin (Reporting Qard in the Takaful Fund column within Takaful Entity financial statements) pada 3 Jun 2021 berhubung pengolahan perakaunan yang sesuai bagi qard dalam konteks takaful di bawah keperluan MFRS 6 MASB memberikan panduan berhubung pengolahan perakaunan dari perspektif pengendali takaful hanya sekiranya syarikat takaful memilih untuk mengemukakan operasi pengendali takaful yang berdiri sendiri (standalone takaful operator) dalam penyata kewangan kolumnarnya 7 Berdasarkan kadar bebas risiko Sekuriti Kerajaan Malaysia (MGS) dan/atau Terbitan Pelaburan Kerajaan (GII) Mesyuarat MPS ke-213 2021 3 menghasilkan sebarang keuntungan atau kerugian daripada transaksi qard antara pengendali takaful dan dana takaful sepanjang tempoh bayaran balik qard. Pelarasan tersebut bertujuan untuk memastikan nilai qard mencapai nilai asal qard apabila dibayar sepenuhnya dan tidak mempengaruhi obligasi dana takaful dalam membayar balik jumlah asal qard dan hak pengendali takaful untuk menerima kembali jumlah asal qard. Isu Syariah  Adakah penggunaan prinsip TVM bagi qard untuk tujuan pengukuran perakaunan membawa kepada amalan pinjaman berserta faedah (riba)?  Adakah penggunaan TVM menimbulkan isu ketidakpastian (gharar) dalam penyata kewangan? Bahagian III: Perbincangan Utama Implikasi penerapan prinsip TVM dalam mengukur nilai qard bagi tujuan pengolahan perakaunan Tiada unsur riba dalam kontrak qard  Pengukuran nilai qard berdasarkan prinsip TVM boleh memberi kesan pinjaman berdasarkan faedah (riba) yang dilarang oleh Syariah memandangkan nilai asal qard yang akan dibayar adalah lebih tinggi berbanding nilai qard yang direkodkan pada permulaan.  Namun, perbezaan nilai qard pada permulaan dan nilai bayaran balik yang direkod dalam penyata kewangan tidak memberikan kesan kewangan seperti pinjaman berserta faedah. Hal ini disebabkan nilai qard (sama ada diukur pada nilai saksama atau nilai kini) akan dilaraskan sepanjang tempoh bayaran balik qard.  Pelarasan terhadap nilai qard sepanjang tempoh pembayaran qard sebenarnya menggambarkan bahawa nilai qard asal adalah sama dengan nilai penuh bayaran balik qard.  Oleh itu, unsur riba berikutan penggunaan prinsip TVM untuk mengukur qard tidak timbul kerana nilai qard yang diberikan oleh pengendali takaful pada permulaannya adalah sama dengan nilai qard yang dibayar balik oleh dana takaful setelah pembayaran penuh dibuat. Ini sejajar dengan definisi qard seperti yang dinyatakan dalam Dokumen Polisi Qard8. Unsur ketidakpastian dalam penyata kewangan boleh dimitigasi dengan penzahiran maklumat komprehensif  Unsur ketidakpastian boleh menjadikan suatu kontrak terbatal disebabkan tiada pengetahuan dan maklumat secukupnya oleh pihak-pihak berkontrak berhubung suatu kontrak.  Syariah melarang unsur ketidakpastian yang signifikan (gharar fahisy) berhubung elemen penting dalam suatu kontrak pertukaran seperti ketersediaan dan kewujudan aset bagi kontrak penjualan, penentuan harga jualan dan sebagainya. Ini adalah kerana ianya 8 Qard refers to a contract of lending money by a lender to a borrower where the latter is bound to repay an equivalent replacement amount to the lender (Perenggan 8.1 Dokumen Polisi Qard) Mesyuarat MPS ke-213 2021 4 boleh menimbulkan perselisihan antara pihak berkontrak. Namun, Syariah membenarkan unsur ketidakpastian yang sedikit (gharar yaseer) selagi ianya tidak mempengaruhi elemen penting berhubung kesahihan kontrak pertukaran.  Dalam konteks pengolahan perakaunan, penggunaan prinsip TVM bagi mengukur nilai qard tidak menggambarkan sifat sebenar qard. Nilai qard yang direkodkan pada peringkat permulaan berbeza dengan jumlah sebenar yang diberi oleh pengendali takaful dan jumlah pembayaran balik oleh dana takaful.  Perbezaan antara nilai qard yang diukur berdasarkan prinsip TVM dan nilai sebenar qard yang diberi serta jumlah pembayaran balik mungkin dianggap tidak menggambarkan hakikat sebenar kontrak qard9 yang boleh membawa kepada elemen ketidakpastian dalam penyata kewangan. Hal ini kerana pengguna penyata kewangan pengendali takaful berkemungkinan tidak menyedari berhubung pengolahan perakaunan yang menerapkan prinsip TVM dalam mengukur nilai qard.  Walaupun penggunaan prinsip TVM bagi mengukur nilai qard dapat mempengaruhi tahap ketelusan penyata kewangan bagi pengendali takaful, namun ia dilihat tidak membawa kepada ketidakpastian yang signifikan yang dilarang. Hal ini kerana unsur ketidakpastian hanya terdapat pada maklumat dalam penyata kewangan pengendali takaful dan tidak mempengaruhi elemen penting kontrak qard yang telah dimeterai.  Obligasi kewangan antara pihak berkontrak tetap tidak berubah dan kedua-dua pihak berkontrak iaitu pemberi pinjaman (pengendali takaful) dan peminjam (dana takaful) mengetahui nilai sebenar liabiliti dan obligasi kewangan mereka hasil daripada kontrak qard berkenaan.  Tambahan pula, unsur ketidakpastian dalam kaedah pengukuran qard boleh diatasi melalui penzahiran maklumat komprehensif untuk memberitahu pengguna penyata kewangan berhubung penggunaan prinsip TVM dalam mengukur nilai qard. Keperluan penzahiran maklumat yang komprehensif  Bagi mengurangkan kemungkinan implikasi negatif yang timbul daripada penggunaan prinsip TVM seperti persepsi bahawa pengendali takaful memberikan pinjaman berdasarkan faedah dan terdapatnya unsur ketidakpastian, pengendali takaful mesti menzahirkan maklumat secara komprehensif dalam nota penyata kewangan.  Penzahiran tersebut hendaklah merangkumi sekurang-kurangnya maklumat seperti berikut: i. Keperluan perundangan berhubung pemberian qard daripada dana pemegang saham oleh pengendali takaful apabila terdapat kekurangan dalam dana takaful; ii. Sifat kontrak qard, jumlah asal qard yang diberikan kepada dana takaful dan tempoh masa yang dijangka untuk bayaran balik qard apabila terdapat lebihan dalam dana takaful; dan iii. Penjelasan mengenai pengukuran perakaunan iaitu berhubung penerapan prinsip TVM dalam menentukan nilai kini dan nilai masa hadapan bagi qard serta kesan kepada jumlah asal qard dan pelarasan nilai saksama yang diperlukan untuk mencapai jumlah asal. Penjelasan tersebut juga hendaklah merangkumi “hak 9 Nazih Hammad, Mu`jam al-Mustolahat al-Maliyyah wal-Iqtisodiyyah fi Lughah al-Fuqaha, Dar al-Qalam, 2008, h. 143 Mesyuarat MPS ke-213 2021 5 dana pemegang saham untuk menerima jumlah qard asal” dan “obligasi dana takaful membayar balik jumlah qard asal” yang tetap tidak berubah sepanjang tempoh bayaran balik qard. Bahagian IV: Asas Pertimbangan Penggunaan prinsip perakaunan tidak membawa kepada riba  Penggunaan prinsip TVM bagi mengukur nilai qard dalam penyata kewangan tidak membawa kepada pinjaman berserta faedah kerana pemberi pinjaman (pengendali takaful) tidak memperoleh sebarang faedah kewangan daripada kontrak qard. Dalam situasi ini, nilai sebenar qard adalah bersamaan dengan jumlah yang akan dibayar balik. Ini menunjukkan bahawa pengukuran qard berdasarkan prinsip TVM bebas daripada unsur riba kerana tidak terdapat `illah (sebab) riba iaitu manfaat kepada pemberi pinjam yang disebut dalam hadis berhubung larangan riba: .ربا كل قرض جر منفعة، فھو: أن رسول هللا صلى هللا علیھ وسلم قال علي بن أبي طالب عن “Daripada Ali r.a berkata, bahawa Rasulullah SAW bersabda: Semua pinjaman yang membawa manfaat (kepada pemberi pinjaman) maka ia adalah satu bentuk riba.10  Sungguhpun demikian, penggunaan prinsip TVM dalam mengukur nilai qard harus dihadkan hanya untuk pengolahan perakaunan bagi transaksi qard antara dana pemegang saham dan dana takaful sahaja. Penggunaan prinsip TVM di luar skop dan konteks perbincangan keputusan ini adalah bertentangan dengan keputusan MPS sedia ada berhubung penggunaan prinsip TVM bagi urus niaga pinjaman11. Penggunaan prinsip perakaunan dalam penyediaan penyata kewangan tidak membawa kepada unsur ketidakpastian yang dilarang  Penggunaan prinsip TVM dalam penyediaan penyata kewangan dilihat tidak membawa kepada ketidakpastian yang signifikan12 kerana penyediaan penyata kewangan merupakan perkara tambahan di luar pemeteraian kontrak. Kaedah pengukuran perakaunan tidak menjejaskan elemen penting kontrak qard kerana obligasi kewangan antara pihak berkontrak tetap sama.  Namun begitu, Syariah tetap menekankan kepentingan ketelusan maklumat dalam penyata kewangan kerana ia bertujuan memberi gambaran sebenar prestasi kewangan sesebuah entiti perniagaan. Maklumat ini menjadi rujukan bagi pengguna seperti pemegang taruh, pelabur dan pelanggan dalam membuat keputusan atau penilaian perniagaan yang tepat terhadap suatu entiti kewangan.  Oleh yang demikian, unsur ketidakpastian yang terdapat dalam penyata kewangan mestilah diatasi melalui penzahiran maklumat secara komprehensif berhubung kaedah 10 Ibnu Hajar al-`Asqalani, Bulugh al-Maram min Adillah al-Ahkam, Matba`ah al-Salafiyyah, 1928, h. 176 11 MPS dalam mesyuarat ke-71 bertarikh 26-27 Oktober 2007 telah memutuskan bahawa penerapan prinsip nilai masa dalam kewangan dalam pelaporan kewangan Islam dibenarkan khusus untuk kontrak pertukaran yang melibatkan pembayaran secara bertangguh. Namun demikian, ia dilarang sama sekali dalam urus niaga pinjaman (qard). 12 Organisasi Perakaunan dan Pengauditan bagi Institusi Kewangan Islam (AAOIFI), Al-Ma`ayir al-Syar`iyyah, Piawaian no. 31 (Dabit al-Gharar al-Mufsid li al-Mu`amalat al-Maliyyah), 2015, perenggan 4/3, h. 783. Mesyuarat MPS ke-213 2021 6 pengukuran qard dalam penyata kewangan (seperti yang digariskan di Bahagian I: Keputusan MPS).  Selain daripada mengatasi unsur ketidakpastian yang sedikit, penzahiran maklumat secara komprehensif diperlukan untuk mencapai pembentangan penyata kewangan yang benar dan adil (true and fair presentation). Bahagian V: Implikasi Keputusan MPS  Keputusan ini memberikan kejelasan berhubung penggunaan prinsip TVM bagi qard dalam konteks takaful, di mana ia tidak akan mengubah hak dan obligasi kontrak kedua- dua pihak. Ini akan memastikan pematuhan sepenuhnya terhadap keperluan MFRS oleh pengendali takaful lantas membolehkan juruaudit mengesahkan pandangan yang benar dan adil terhadap penyata kewangan. Di samping itu, keputusan ini membolehkan penyatuan penyata kewangan di peringkat kumpulan tanpa menimbulkan sebarang pengecualian pendapat audit (qualified audit opinion).

Public Notice

30 Jun 2021

Discussion Paper on Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design)

https://www.bnm.gov.my/-/dp-risk-based-capital-framework-instkf

https://www.bnm.gov.my/documents/20124/948107/DP_risk_based_capital_framework_instkf_June2021.pdf

Reading: Discussion Paper on Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) Share: 2 Discussion Paper on Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) Embargo : For immediate release Not for publication or broadcast before 2345 on Wednesday, 30 June 2021 30 Jun 2021 Issuance Date 30 June 2021 Summary This Discussion Paper explores proposed enhancements to the design of the capital adequacy framework for licensed insurers and licensed takaful operators, as part of the Bank’s multi-phased review of the overall solvency framework. These proposed enhancements aim to ensure that the framework remains effective under changing market conditions and facilitates consistent and comparable capital adequacy measurement across the insurance and takaful industry, where appropriate. In developing the proposals, the Bank has also taken into consideration the developments in global capital standards.  This Discussion Paper seeks to initiate discussions and solicit feedback from ITOs on the following four key areas: recognition of the loss absorbing capacity of management actions under Total Capital Available; appropriate target risk level for calibration of capital charges; comprehensiveness of the risk components under Total Capital Required and the appropriateness of the approach for measuring these risks; and feasibility of introducing a single formula for calculating the Capital Adequacy Ratio for ITOs, which promotes greater comparability of capital adequacy across the two industries but reflects uniqueness between insurance and takaful business models. The Bank invites written feedback on this Discussion Paper, including suggestions for particular areas to be clarified or enhanced and any alternative proposals that the Bank should consider. To facilitate a constructive consultation process, the feedback should be supported with clear justifications, especially on the practical aspects, and accompanying evidence or illustrations, where appropriate. In addition to providing general feedback, it is highly recommended that respondents also provide feedback to the specific questions set out in this Discussion Paper.    Responses must be submitted electronically as per the template provided to [email protected] by 30 September 2021.   In the course of preparing your feedback, you may direct any queries to the following officers: Rajeswari Eliyathamby ([email protected]) Wan Fatin Hamimi Wan Azman ([email protected]) Mah Mei Foong ([email protected]) Khairul Danial Imran Khairul Nizam ([email protected])   Refer Attachment:  Discussion Paper on Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) Response Template    Bank Negara Malaysia 30 June 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Issued on: 30 June 2021 BNM/RH/DP 029-3 Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) Discussion Paper Applicable to: 1. Licensed insurers, including professional reinsurers 2. Licensed takaful operators, including professional retakaful operators Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper Issued on: 30 June 2021 This discussion paper explores proposed enhancements to the design of the capital adequacy framework for licensed insurers and licensed takaful operators, as part of the Bank’s multi-phased review of the overall solvency framework. These enhancements aim to ensure that the framework remains effective under changing market conditions, and facilitates consistent and comparable capital adequacy measurement across the insurance and takaful industry, where appropriate. In developing the proposals, the Bank has also taken into consideration the developments in global capital standards. The Bank invites written feedback on this discussion paper, including suggestions for particular areas to be clarified or enhanced and any alternative proposals that the Bank should consider. To facilitate a constructive consultation process, the feedback should be supported with clear justifications, especially on the practical aspects, and accompanying evidence or illustrations, where appropriate. In addition to providing general feedback, it is highly recommended that respondents also provide feedback to the specific questions set out in this discussion paper. Responses must be submitted electronically as per the attached template to [email protected] by 30 September 2021. In the course of preparing your feedback, you may direct any queries to the following officers – (a) Rajeswari Eliyathamby ([email protected]) (b) Wan Fatin Hamimi Wan Azman ([email protected]) (c) Mah Mei Foong ([email protected]) (d) Khairul Danial Imran Khairul Nizam ([email protected]) mailto:[email protected] mailto:[email protected] mailto:[email protected] mailto:[email protected] mailto:[email protected] Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper Issued on: 30 June 2021 TABLE OF CONTENTS PART A OVERVIEW ................................................................................................. 1 1. Introduction ...................................................................................................... 1 2. Interpretation.................................................................................................... 3 PART B DESIGN OF THE CAPITAL ADEQUACY FRAMEWORK ......................... 4 3. Total Capital Available (TCA) .......................................................................... 4 4. Total Capital Required (TCR) .......................................................................... 6 (a) Overall structure ........................................................................................ 6 (b) Target risk level for calibration ................................................................... 7 (c) Components of TCR ................................................................................. 8 (i) Insurance and takaful risk ................................................................... 8 (ii) Credit risk .......................................................................................... 16 (iii) Market risk ........................................................................................ 21 (iv) Look-through approach for credit and market risk ............................. 26 (v) Operational risk ................................................................................. 28 (d) Diversification .......................................................................................... 31 5. Formula for the Capital Adequacy Ratio (CAR) ............................................ 32 6. Other considerations ...................................................................................... 35 APPENDICES .......................................................................................................... 37 Appendix 1 Differences between insurance and takaful business models .......... 37 Appendix 2 Additional details on takaful-specific issues ..................................... 39 Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 1 of 41 Issued on: 30 June 2021 PART A OVERVIEW 1. Introduction 1.1 The Risk-Based Capital Framework for Insurers (RBC) and the Risk-Based Capital Framework for Takaful Operators (RBCT), collectively referred to as “the framework” in this Discussion Paper (DP), were implemented in 2009 and 2014 respectively. The framework is primarily aimed at ensuring that licensed insurers and licensed takaful operators (ITOs) maintain a capital adequacy level that reflects their underlying risk profiles, while catering for the specificities of the business models. 1.2 Since the implementation of the framework, the market conditions in which ITOs operate and the landscape of the insurance and takaful industry have evolved (e.g. through product innovation, and the introduction of new takaful models and Shariah contracts). There have also been global regulatory developments such as the Risk- based Global Insurance Capital Standards (ICS)1 by the International Association of Insurance Supervisors (IAIS) which serve as useful guidance in identifying areas for enhancement in the existing capital adequacy framework for ITOs. These developments have anchored the Bank’s review of the capital adequacy framework for ITOs to: (a) Ensure that the framework remains risk sensitive and responsive to changes in the market conditions, as well as insurance and takaful landscape; (b) Improve consistency of capital adequacy measurement across the insurance and takaful industry, where appropriate; and (c) Achieve greater alignment with key elements of the global capital standards such as ICS, where appropriate. 1.3 The review of the framework is multi-phased, with the key milestones and broad timelines summarised below: Table 1 Date Milestone Phase 1: Review of valuation requirements for insurance/takaful liabilities 24 December 2019 Issuance of Exposure Draft on Valuation of Insurance and Takaful Liabilities (Valuation ED), together with a quantitative test Phase 2: Review of capital adequacy requirements 17 November 2020 Issuance of Discussion Paper on Risk-Based Capital Framework for Insurers and Takaful Operators – Capital Instruments (Capital Instruments DP) 30 June 2021 Issuance of Discussion Paper on Risk-Based Capital Framework for Insurers and Takaful Operators – Framework Design 2H 2021 Quantitative impact study on the proposed new framework design 1 Level 1 and 2 Documents: ICS Version 2.0 for the monitoring period, https://www.iaisweb.org/page/supervisory-material/insurance-capital-standard https://www.iaisweb.org/page/supervisory-material/insurance-capital-standard Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 2 of 41 Issued on: 30 June 2021 Phase 3: Further refinements 2022 Issuance of Exposure Draft on Risk-Based Capital Framework for Insurers and Takaful Operators (including refined requirements for valuation of insurance and takaful liabilities), as well as further quantitative impact studies, where relevant 2023 Parallel run based on the new framework 2024 Potential implementation of the new framework, subject to the results of the parallel run (at the earliest) 1.4 Building on the proposals introduced in the Valuation ED and the Capital Instruments DP, this DP will explore potential enhancements to the key design elements of the framework in order to achieve the objectives specified in paragraph 1.2. Other requirements of the existing framework which are not discussed in this DP remain relevant. As such, this DP should be read together with the existing RBC and RBCT policy documents. 1.5 Specifically, this DP seeks to initiate discussions and solicit feedback from ITOs on the following: (a) The recognition of the loss absorbing capacity of management actions under the Total Capital Available (TCA); (b) The appropriate target risk level for calibration of capital charges; (c) The comprehensiveness of the risk components under the Total Capital Required (TCR) and the appropriateness of the approach for measuring these risks; and (d) The feasibility of introducing a single formula for calculating the Capital Adequacy Ratio (CAR) for ITOs, which reflects the uniqueness of insurance and takaful business models while promoting greater comparability of capital adequacy across the two industries. 1.6 In moving towards a more consistent capital adequacy measurement for the insurance and takaful industry, the Bank has explored enhancements that take into account the similarities in the underlying risks of ITOs, while considering the differences2 between the underlying business models of insurance and takaful. These include differences in the fiduciary duties of insurers and takaful operators to policyholders and takaful participants respectively, as well as the fungibility of capital3. In line with this, the enhancements set out in this DP are being considered in relation to both insurers and takaful operators, unless otherwise specified. Where there are additional considerations for each business model, these are specifically highlighted. 2 These differences are further elaborated in Appendix 1. 3 Fungibility of capital refers to the availability of capital to absorb losses in other funds. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 3 of 41 Issued on: 30 June 2021 2. Interpretation 2.1 The terms and expressions used in this DP shall have the same meanings assigned to them in the Financial Services Act 2013 (FSA) and the Islamic Financial Services Act 2013 (IFSA), as the case may be, unless otherwise defined in this DP. 2.2 For the purposes of this DP – “account-based products” refer to life insurance/family takaful products with unitised or non-unitised accounts, including investment-linked (IL), universal life and takaful products with Participants’ Individual Fund (PIF); “factor-based approach” refers to the determination of the capital charge for a particular risk by applying a factor to an exposure measure; “insurance/takaful liabilities” refer to the liabilities of insurance/takaful contracts. For takaful, this includes the liabilities relating to the shareholders’ fund (i.e. expense liabilities), unless otherwise specified; “ITO” refers collectively to – (a) a licensed insurer, including a professional reinsurer, as defined under the FSA; and (b) a licensed takaful operator, including a professional retakaful operator, as defined under the IFSA; “long-term insurance/takaful contracts” refer to insurance/takaful contracts with boundary of more than one year; “non-account-based products” refer to life insurance/family takaful products other than account-based products; “Participants’ Individual Fund” or “PIF” refers to a takaful fund established to allocate a portion of a takaful participant’s contributions for the purpose of investment or savings; “Participants’ Risk Fund” or “PRF” refers to a takaful fund established to pool a portion of a takaful participant’s contributions for the purpose of meeting takaful claims associated with events or risks specified in the takaful certificate; “short-term insurance/takaful contracts” refer to insurance/takaful contracts with boundary of one year or less; “stress-based approach” refers to the determination of the capital charge for a particular risk based on the impact on assets and/or liabilities due to a shock. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 4 of 41 Issued on: 30 June 2021 PART B DESIGN OF THE CAPITAL ADEQUACY FRAMEWORK 3. Total Capital Available (TCA) 3.1 The main focus of the Capital Instruments DP was to explore the principles and eligibility criteria for recognition of capital instruments as capital available under the framework. This DP expands the discussion on capital available to cover additional areas which were not discussed in the Capital Instruments DP. In particular, the Bank is exploring the treatment of the following capital elements, taking into account the proposals on valuation of insurance/takaful liabilities set out in the Valuation ED and their implications to the TCA: (a) The extent to which the loss absorbing capacity of management actions which have been accounted for in the valuation of insurance/takaful liabilities, should be explicitly recognised as capital available, and the approach for recognition. This includes a review of management actions that are already recognised under the existing framework such as bonus revisions, and consideration for those that are not recognised under the existing framework such as decisions on distribution of surplus for takaful contracts and repricing of in-force medical and health insurance/takaful contracts with reviewable premiums/takaful contributions; and (b) The extent to which negative insurance/takaful liabilities4 should be recognised as capital available. Question 1 Recognition of management actions Please provide your views on the following: (a) For participating life business, whether potential bonus revisions should continue to be recognised as capital available, and if yes, whether the current approach for recognition remains appropriate. If you would like to suggest any alternatives, please provide details and rationale; (b) Whether the loss absorbing capacity of the following new areas should be recognised as capital available, and if yes, to what extent (e.g. in full or partially) and how should it be recognised: (i) For takaful operators, future surplus distributions; and (ii) The ability to reprice in-force medical and health insurance/takaful contracts; and (c) Any other management actions that could be recognised, with reasons. 4 Paragraph 13.5 of Valuation ED. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 5 of 41 Issued on: 30 June 2021 Question 2 Deductions The Bank is of the view that the deductions5 from capital available covered under the existing framework remain relevant. Please provide your views on whether these deductions should be expanded (e.g. to include a deduction for future tax payable on the surplus relating to current in-force business). If yes, please provide supporting details and rationale. 5 Paragraph 8.1 of RBC and paragraph 9.9 of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 6 of 41 Issued on: 30 June 2021 4. Total Capital Required (TCR) (a) Overall structure 4.1 The TCR will continue to capture the key risks faced by ITOs, namely insurance, takaful (including expenses), credit, market and operational risks. The Bank is exploring potential enhancements to the risk components in order to ensure that they are comprehensive and sufficiently risk sensitive. The enhancements generally relate to the calibration of capital charges, the scope of the risks, and the measurement approach. The overall structure of the TCR that the Bank is considering is as follows: Total Capital Required (TCR) Insurance/ Takaful Risk Credit Risk Market Risk Operational Risk Life/Family (excluding MHIT) General and Short-term MHIT Mortality Risk Longevity Risk Equity Risk Morbidity/ Disability Risk Lapse Risk Expense Risk Catastrophe Risk (new) Claims Risk Premium/ Contribution Risk Catastrophe Risk (new) Interest/Profit Rate Risk Non-Default Spread Risk (new) Property Risk Currency Risk Asset Concentration Risk Where: • Long-term MHIT refers to medical and health insurance/takaful contracts with boundary of more than one year; • Short-term MHIT refers to medical and health insurance/takaful contracts with boundary of one year or less; and • For takaful, expense and operational risks are borne by the shareholders’ fund. Long-term MHIT Mortality Risk Morbidity/ Disability Risk Lapse Risk Expense Risk Medical Payments Risk (new) Catastrophe Risk (new) Longevity Risk Expense Risk (for takaful only) Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 7 of 41 Issued on: 30 June 2021 (b) Target risk level for calibration 4.2 The Bank is considering to calibrate the capital charges such that they correspond broadly to a Value-at-Risk (VaR) of 99.5% confidence level over a one-year period. Question 3 Risk measure In determining a suitable risk measure for the capital adequacy framework, two options were considered: VaR and Tail-Value-at-Risk (T-VaR). Recognising the practical constraints of the T-VaR (such as availability of data) despite it being theoretically better able to capture extreme events, the Bank is considering to adopt the VaR as the risk measure for the capital adequacy framework at this juncture. Please provide your views on the appropriateness of the VaR as a risk measure. Where you would like to suggest any alternatives, please provide supporting rationale and highlight the practical implications of the alternatives. Question 4 Confidence level and time horizon Please provide your views on the broad target confidence level of 99.5% and one- year time horizon. Where you would like to suggest any alternatives, please provide supporting rationale and highlight the practical implications of the alternatives. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 8 of 41 Issued on: 30 June 2021 (c) Components of TCR (i) Insurance and takaful risk 4.3 The Bank is considering to re-categorise some of the risks covered under the insurance and takaful risk component in the existing framework, introduce new risk categories, clarify the differences in risk categories and enhance the measurement approach. The following table sets out the proposed components of insurance and takaful risk: Table 2 Risk Products without medical and health coverage Medical and health products6 Life insurance and family takaful General insurance and general takaful Long- term7 Short- term8 Mortality / / Longevity / / Morbidity/disability / / Medical payments (new) / Lapse / / Expense / /9 / /9 Claims / / Premium/ contribution / / Catastrophe (new) / / / / 4.4 The risks set out in Table 2 are defined as follows: Table 3 Risk Definition/scope Mortality Risk of loss due to unexpected increase in mortality rates. Longevity Risk of loss due to unexpected decrease in mortality rates. Morbidity/ disability Risk of loss due to unexpected increase in morbidity or disability rates. This includes events that are caused by accident and sickness, including dread disease. However, this does not include events involving reimbursement of medical costs, which are covered under medical payments risk. 6 Both standalone policies/takaful certificates and riders. 7 Refers to medical and health insurance/takaful (MHIT) contracts with boundary of more than one year, including guaranteed yearly renewable MHIT contracts. 8 Refers to MHIT contracts with boundary of one year or less. 9 For takaful only. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 9 of 41 Issued on: 30 June 2021 Medical payments Risk of loss due to unexpected increase in the level of medical payments and medical payments inflation rate for medical and health insurance/takaful products that provide reimbursement of medical costs. This excludes fixed benefit payouts for incidence of dread disease, and hospital income, which are captured under morbidity/disability risk. Lapse Risk of loss due to unexpected changes in the exercise rates of policy/takaful certificate options, including but not limited to forfeitures, surrenders, renewals, terminations and premium/takaful contribution holidays. This includes consideration of mass lapse event. Expense Risk of loss due to unexpected increase in the level of expenses and expense inflation rate. For takaful, this risk is borne by the shareholders’ fund. Claims Risk of loss due to unexpected changes in the expected future payments for claim events that have already occurred, whether or not they have been reported. Premium/ contribution Risk of loss due to unexpected changes in the timing, frequency and severity of future claim events. Catastrophe – Life/family Risk of loss due to low frequency and high severity mortality claim events that have yet to occur arising from a pandemic. Catastrophe – General Risk of loss due to low frequency and high severity claim events that have yet to occur. This includes: (a) natural catastrophes such as flood and tsunami; and (b) other catastrophes such as pandemic, explosion, airplane crash and terrorism. 4.5 For the claims and premium/contribution risks for general insurance and general takaful, the Bank is of the view that, for fire and medical and health businesses, long- term contracts should be segregated from short-term contracts, as the longer-term insurance/takaful contracts expose ITOs to greater levels of uncertainty. The following table sets out how the Bank intends to segregate these risks according to the classes of business: Table 4 Class of business Definition/scope10 Aviation All business underwritten in the Aviation Department including Aviation Hull and Liabilities, Satellites, Airport Operator’s Liabilities, Aircraft Refuelling Liabilities, and Pilot's Loss of Licence insurance/takaful. 10 Generally in line with the definitions specified in the Guidance Notes on Insurance Companies Statistical System (ICSS) and Takaful Operators Statistical System (TOSS). Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 10 of 41 Issued on: 30 June 2021 Bonds All types of bonds which ITOs are permitted to underwrite, including contract bonds, advance payment guarantees, immigration bonds, customs bonds, administration bonds and other types of bonds. Cargo All business underwritten in the Cargo Department including Marine Cargo, Air Cargo, Land Transit, Marine Cargo Loss of Profits, Cargo Throughput Policies, Port Operator’s Liability, Freight Forwarder’s Liability etc. Contractors’ All Risks & Engineering All business underwritten in the Engineering Department including Contractor’s All Risks, Erection All Risks, Advance Loss of Profits, Machinery Breakdown, Boiler Explosion, Related Loss of Profits, Computer All Risks and Storage Vessels, but excluding contract bonds. Long-Term Fire (new) Fire insurance/takaful cover with contract boundary of more than one year, where fire refers to all business underwritten in the Fire Department including Industrial All Risks, Fire and Allied Perils Material Damage and Loss of Profits, Houseowners/Householders insurance/takaful coverage. Short-Term Fire (new) Fire insurance/takaful cover with contract boundary of one year or less. Liabilities All insurance/takaful coverage of liabilities such as Public Liability or General Third Party Liability, Products Liability, Professional Indemnity, Errors and Omissions Cover, Directors’ and Officers’ Liability and other forms of liability. Marine Hull & Liability All business underwritten in the Marine Hull & Liability Department including Marine Hull Loss of Profits, Loss of Hire, Builder’s Risk and Marine Liability. Long-Term Medical & Health (new) Medical and health insurance/takaful cover with contract boundary of more than one year, including guaranteed yearly renewable medical and health insurance/takaful cover, where medical and health refers to a policy/takaful certificate that provides specified benefits against risks of person becoming totally or partially incapacitated as a result of sickness or infirmity (this includes medical and health insurance/takaful coverage packaged with personal accident policies/takaful certificates where the medical and health portion constitutes the major proportion of the insurance/takaful cover). Short-Term Medical & Health (new) Medical and health insurance/takaful cover with contract boundary of one year or less. Motor “Act” The following motor insurance/takaful cover and claims made in respect of such insurance/takaful cover: (a) Liabilities to third parties corresponding to the requirements under the Road Transport Act 1987; Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 11 of 41 Issued on: 30 June 2021 (b) Legal liability to passengers (liabilities to passengers in the vehicle); and (c) Legal liability of passengers (liabilities of passengers for negligent acts), where motor refers to a policy/takaful certificate providing insurance/takaful cover on a motor vehicle, including liabilities arising and other specified benefits against risks from the use of the motor vehicle. Motor “Others” Any motor insurance/takaful cover other than Motor “Act” and claims made in respect of such insurance/takaful cover. Offshore Oil & Gas Related Insurance/takaful coverage of oil and gas exploration, development (including construction) and production risks, offshore or onshore, for account of owners or operators of such risks, or offshore oil and gas contractors. Personal Accident (PA) Coverage of individual PA, group PA and travel PA. This includes travel insurance/takaful packages with a significant PA element. Workmen’s Compensation & Employer’s Liability All insurance/takaful coverage indemnifying employers in respect of their liabilities to workmen either under Workmen’s Compensation Act or under common law. Others All other types of miscellaneous insurance/takaful coverage not falling within any of the above classifications. Question 5 Overall scope of the insurance and takaful risk component Please provide your views on whether Table 3 sufficiently captures the exposure to insurance and takaful risk. If there are any other sub-risks that you think should be included, please provide details with supporting rationale and suggestions on how they could be measured. 4.6 In terms of measurement, the Bank is exploring enhancements to the approach used for insurance and takaful risk in order to accommodate the new risks and to better measure the existing risks. The following is an overview of the measurement approaches that the Bank is considering, where a stress-based approach is used for life insurance and family takaful risk, and a factor-based approach is used for general insurance and general takaful risk (except for catastrophe risk): Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 12 of 41 Issued on: 30 June 2021 Table 5 Risk Stress-based Factor-based Mortality / Longevity / Morbidity/disability / Medical payments (new) / Lapse (including mass lapse) / (revised) Expense – Life/family and long-term MHIT / Expense – General takaful and short-term medical and health takaful / (revised) Claims / Premium/contribution / Catastrophe – Life/family (new) / Catastrophe – General (new) / Question 6 Measurement approach Please provide your views on the appropriateness of the measurement approaches set out in Table 5, in particular those that remain unchanged. Where you have any alternative suggestions, please provide details and rationale. Question 7 Medical payments risk Under the existing framework, medical payments risk is not explicitly measured for life insurance and family takaful business, but implicitly captured under the claims and premium/contribution risks for general insurance and general takaful business. In view that long-term MHIT contracts (written by both life insurers/family takaful operators and general insurers/general takaful operators) are more exposed to unexpected changes in the level of medical payments and medical payments inflation rate than short-term MHIT contracts, the Bank is considering to introduce a separate medical payments risk charge for long-term MHIT contracts. Please provide your views on: (a) Whether the inclusion of an explicit capital charge for medical payments risk for long-term MHIT contracts is appropriate; (b) Whether the definition of medical payments risk appropriately captures the characteristics of the risk. If you have any alternative suggestions, please provide details and rationale; Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 13 of 41 Issued on: 30 June 2021 (c) Whether you consider medical payments inflation rate in setting your valuation assumptions. If yes, please explain how it is considered in the projection of medical payments for the valuation of insurance/takaful liabilities; (d) Whether you foresee any challenges in applying the proposed stress-based approach for medical payments risk. Please also share any alternative suggestions that you may have, with rationale; and (e) Whether you plan to use the discounted cash flow method to determine the liabilities of short-term MHIT contracts. If yes, please provide details of the relevant MHIT products. Question 8 Lapse risk for life insurance and family takaful Under the existing framework, mass lapse risk is addressed by the surrender value capital charge (SVCC)11, which acts as a floor for the TCR. Moving forward, in line with the definition set out in Table 3, the Bank is considering to include the mass lapse risk charge as an additional charge under lapse risk (i.e. lapse risk will cover two separate charges for normal lapse and mass lapse). With this, the SVCC will no longer act as a floor for the TCR. The Bank is of the view that the new approach will capture lapse risk more holistically and allow for greater stability in the TCR. Please provide your views on: (a) The appropriateness of the proposed approach of removing SVCC as a floor for the TCR and including it under lapse risk. Where you have any alternative suggestions, please provide details and rationale; and (b) The appropriate approach for determining the separate capital charge for mass lapse risk (e.g. would the current approach of comparing the aggregate surrender value of the business in force and the insurance/takaful liabilities continue to be appropriate?). Please accompany your suggestions with sufficient details and rationale, and indicate whether or not your company currently adopts the suggested approach for internal monitoring purposes. Question 9 Lapse risk for general insurance and general takaful Under the existing framework, lapse risk is not specifically considered for general insurance and general takaful business. 11 Paragraph 16 of RBC and paragraph 17 of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 14 of 41 Issued on: 30 June 2021 (a) Please provide your views on whether lapse risk is material for general insurance and general takaful business, with rationale and details of the product features which contribute to the lapse risk; and (b) If yes to (a), please provide suggestions on how the lapse risk could be measured. Where your company currently measures lapse risk for internal monitoring purposes, please share the approach used. Question 10 Expense risk for general takaful Under the existing framework, expense risk for general takaful business12 is measured using a stress-based approach, similar to family takaful business. However, the Bank is considering to revise the measurement approach for expense risk for general takaful business to a factor-based approach, in order to streamline with the overall approach used for general insurance business given the similarities in the underlying risks that general insurers and general takaful operators are ultimately exposed to. Please provide your views on whether a factor-based approach would adequately capture the expense risk for general takaful business. If you are of the view that the current stress-based approach should be retained, or if there are any alternatives that the Bank should consider, please provide details and rationale. Question 11 Premium/contribution risk Under the existing framework, premium/contribution liabilities is used as a proxy for the exposure to the risk of under-estimation of reserves relating to the unexpired portion of coverage13. Taking into consideration the proposals under the Valuation ED, this would mean that the risk factors would be applied to the unexpired risk reserves (URR). While this approach captures the risk arising from in-force policies/takaful certificates, it does not fully capture the risk that an ITO is potentially exposed to over the coming one-year time horizon, in particular, the risk associated with expected renewals and new business relating to very short-term cover (e.g. daily e-hailing insurance/takaful cover, PA cover for sports events). Given this, the Bank is exploring the use of the following new proxies for premium/contribution risk exposure in place of the URR, in order to capture the risk 12 Paragraph 15.1 of RBCT. 13 Paragraph 13 of RBC and paragraph 13 of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 15 of 41 Issued on: 30 June 2021 arising from business already written, as well as business expected to be written, over a one-year time horizon: Insurance Takaful PRF(s) Shareholders’ fund (expense risk) (i) Net earned premium for the year preceding the reporting date Net earned tabarru’ charges for the year preceding the reporting date Net earned wakalah fees for the year preceding the reporting date or (ii) Expected net earned premium over the next year based on the company’s business plan Expected net earned tabarru’ charges over the next year based on the company’s business plan Expected net earned wakalah fees over the next year based on the company’s business plan or (iii) The higher of (i) and (ii) Please provide your views on whether any of the proxies mentioned above would provide a suitable basis for measuring the risk arising from future claim events over a one-year time horizon. Where you have any alternative suggestions, please provide details and rationale. Question 12 Catastrophe risk for life insurance and family takaful (a) Please provide your views on whether there are any other catastrophe scenarios, apart from a pandemic, that are relevant to life insurers and family takaful operators. This may include the potential impact of climate change. If yes, please elaborate on the approach that could be used to measure the risks arising from these catastrophe scenarios and whether there is sufficient data to calibrate the risk charges for these catastrophe scenarios, with reasons. (b) For the pandemic scenario, please provide your views on whether an increase in medical payments and morbidity/disability claims should be included, in addition to the increase in mortality rates. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 16 of 41 Issued on: 30 June 2021 Question 13 Catastrophe risk for general insurance and general takaful (flood risk) (a) Does your company currently measure flood risk? If yes, please describe how. (b) Please provide your views on how flood risk could be captured under the catastrophe risk component (e.g. would applying stress factors to exposures in the top three geographical locations covered under the company’s portfolio be appropriate?). Please accompany your suggestions with sufficient details and rationale. Question 14 Catastrophe risk for general insurance and general takaful (other than flood risk) (a) Please provide your views on whether there are any other catastrophe scenarios, apart from the examples in Table 3, that are relevant to general insurers and general takaful operators. With regard to natural catastrophes, please also consider the potential impact of climate change. (b) Please provide your views on the approach that could be used to measure the risks arising from the catastrophe scenarios set out in Table 3, and any other catastrophe scenarios you have suggested under (a) (e.g. stress/scenario or factor-based), with reasons. (c) Please provide your views on the availability and credibility of data to calibrate the risk charges for the catastrophe scenarios set out in Table 3, as well as any other catastrophe scenarios you have suggested under (a). (ii) Credit risk 4.7 The Bank is exploring enhancements to the definition of credit risk, the scope and categorisation of exposures covered, the measurement approach and the recognition of credit risk mitigation (CRM) tools. 4.8 Credit risk is defined as the risk of loss resulting from asset defaults, related losses of income and the inability or unwillingness of a counterparty to fully meet its contractual financial obligations. This therefore includes migration risk and spread risk due to defaults14. 14 Please note that non-default spread risk, which results in losses from unexpected changes in the level of volatility of spreads over the risk-free interest rate term structure will be explored under the market risk component. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 17 of 41 Issued on: 30 June 2021 Question 15 Definition of credit risk Please provide your views on whether the definition sufficiently describes the credit risk that your company is exposed to. Where you have any suggestions for additional aspects to be included in the definition, please provide details and rationale. 4.9 The Bank is of the view that the current factor-based approach is adequate to measure credit risk, considering the ITOs’ current credit risk profiles. Question 16 Measurement approach (a) Please explain the extent to which your company adopts a stress-based approach in the internal measurement of credit risk. (b) Please provide your views on whether the factor-based approach continues to be appropriate in measuring credit risk under the framework. 4.10 The investment strategies of ITOs may have evolved since the framework was first introduced, in tandem with the wider range of available investment products in the market. Therefore, the Bank is exploring potential expansions and/or re- categorisation of exposures to ensure that the credit risk charges remain comprehensive and risk sensitive. In particular, the Bank is considering the following: (a) Expansion to include new instruments and exposures, which may not be captured under the existing framework; and (b) Further segregation of long-term debt securities according to maturity. 4.11 Similar to the scope of exposures, the use of CRM may have evolved over time along with the investment strategies. Therefore, the Bank is exploring potential improvements to the treatment of CRM in reducing the credit risk charges, including capturing new forms of CRM. Question 17 Classes of financial instruments (a) Does your company have any exposure to the following instruments? If yes, please provide details of the instruments in the response template. (i) Securitised assets (ii) Unrated bonds/sukuk (iii) Subordinated debt instruments (b) Notwithstanding the answer to (a), please elaborate on your company’s risk appetite for investing in these instruments in the future. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 18 of 41 Issued on: 30 June 2021 (c) Please provide your views on whether there are other instruments that warrant separate treatment under the credit risk component. If yes, please provide reasons and indicate whether your company currently has exposure to these instruments in the response template. Question 18 Sovereign exposures Does your company have any exposures to sovereigns other than Malaysia? If yes, please provide the exposure amounts in the response template and elaborate on the reasons for investing in them, including whether or not your company plans to continue to do so. Otherwise, please share your company’s risk appetite and/or plans for investing in foreign sovereigns in the future. Question 19 Differentiation according to maturity Under the existing framework, debt facilities are differentiated into short-term (i.e. original maturity of 1 year or less) and long-term exposures15. The Bank is exploring further segregation of long-term exposures based on the debt facilities’ maturity, in addition to the current approach that relies on rating category. This is to reflect the higher credit risk in the longer-maturity debt facilities, and vice versa. In addition, the Bank is considering the possible methods of measuring maturity, including the use of effective maturity, defined as: 𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑀𝑎𝑡𝑢𝑟𝑖𝑡𝑦 = Σ𝑡𝑡 ∗ 𝐶𝐹𝑡 Σ𝑡𝐶𝐹𝑡 where 𝐶𝐹𝑡 denotes the cash flows (principal, interest/profit payments and fees) contractually payable by the borrower in period 𝑡. Please provide your views on: (a) Whether there is merit to differentiate further the risk charges by maturity and whether this should be done separately for different counterparties (e.g. banks, other corporates); and (b) The appropriateness of using effective maturity to measure the debt facilities’ maturity for this purpose. If you would like to suggest any alternatives, please provide details and rationale, including any comparison to the methodology used in your company’s internal credit risk monitoring approach. 15 Appendix X of RBC and Appendix VI of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 19 of 41 Issued on: 30 June 2021 Question 20 Off-balance sheet exposures While the existing framework specifies the treatment for off-balance sheet exposures arising from over-the-counter (OTC) derivatives16, there are no specific requirements on off-balance sheet exposures arising from non-OTC derivatives, such as commitment, direct credit substitutes and self-liquidating trade letters of credit. (a) Does your company have off-balance sheet exposures arising from non-OTC derivatives (e.g. direct credit substitutes and self-liquidating trade letters of credit)? If yes, please provide the following information in the response template: (i) Details on the exposure amounts; and (ii) Examples of the credit instruments; and (b) Notwithstanding the answer to (a), please elaborate on your company’s risk appetite for having such exposures in the future. Question 21 Reinsurance and retakaful arrangements Under the existing framework, ITOs are allowed to benefit from capital relief associated with portions of risk that have been ceded out to a reinsurer/retakaful operator. However, the risk that the reinsurer/retakaful operator is unable to provide the capital relief if it becomes necessary, is not explicitly captured. A possible way of accounting for this risk is by considering the difference between the impact of insurance/takaful risk and catastrophe risk stresses on liabilities gross and net of reinsurance/retakaful. The difference can then be allocated according to the relevant categories of reinsurers/retakaful operators, and the risk charges applied accordingly. (a) Please describe how your company assesses and manages the risk that the reinsurer/retakaful operator is unable to provide the necessary capital relief in the event that unexpected losses occur. (b) Please provide your views on whether potential credit exposure of this form should be included in the credit risk component, and whether the approach that is being explored above would appropriately capture the risk. If you have any suggestions for alternatives, please provide details and rationale. 16 Paragraph 7, Appendix II of RBC and paragraph 6, Appendix II of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 20 of 41 Issued on: 30 June 2021 Question 22 Credit risk mitigation (a) Please provide details on the collaterals and guarantees that your company currently holds in the response template. (b) Please provide your feedback on any challenges that your company currently faces in recognising capital relief from the use of CRM. (c) Please share whether your company uses or plans to use any CRM tools which are not currently recognised under the framework, describing these tools in detail. Where you have any suggestions on how these CRM tools can be recognised under the framework, please elaborate with rationale. Question 23 Measurement of credit risk for IL funds and PIFs Under the existing framework, assets held in IL unit funds of ITOs and PIFs of takaful operators are not subject to credit risk charges. This is because the investment risk is borne by policyholders or takaful participants. However, ITOs may also be impacted by credit losses in IL funds and PIFs by virtue of how these losses would impact insurance/takaful liabilities (e.g. an increase in insurance/takaful liabilities in the IL operating fund due to a decrease in income from the IL unit fund). This impact is not captured under the existing framework. A potential way forward could be to apply the relevant risk factors to the exposures in the IL unit funds and PIFs, and then measure the impact to the cash inflows for the other funds. The difference in insurance/takaful liabilities arising from the changes in cash inflows would represent the potential losses to ITOs arising from credit losses in the IL unit funds and PIFs. In relation to this: (a) Please share how your company currently assesses and manages the impact of potential credit risk losses in IL funds and PIFs on insurance/takaful liabilities. (b) Please provide your views on the potential approach explored above. Where you have any alternative suggestions, please provide details and rationale for how it would better achieve the outcome of fully capturing the risk. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 21 of 41 Issued on: 30 June 2021 (iii) Market risk 4.12 Given the increasing exposure of ITOs to the financial markets as well as strengthening of international standards on market risk requirements, the Bank is exploring potential inclusions into the scope of the market risk component, re- categorisation of some of the exposures, and enhancements to the measurement approach. The following table sets out the proposed components of market risk, and their measurement approaches which are intended to ensure sufficient risk sensitivity without introducing undue complexity. Generally, where a factor-based approach has been proposed, it is expected that the outcome would not be significantly different from a stress-based approach. Table 6 Risk Definition/scope Stress- based Factor- based Interest/ profit rate risk Risk of loss due to unexpected changes in the level or volatility of interest/profit rates. / Non-default spread risk (new) Risk of loss due to unexpected changes in the level or volatility of spreads over the risk-free interest/profit rate term structure, excluding the default component. / Equity risk Risk of loss due to unexpected changes in the level or volatility of market prices of equities. / Property/real estate risk Risk of loss due to unexpected changes in the level or volatility of market prices of property/real estate or from the amount and timing of cash flows from investments in real estate. / Currency risk Risk of loss due to unexpected changes in the level or volatility of currency exchange rates. / Asset concentration risk Risk of loss due to the lack of diversification in the asset portfolio. / Question 24 Overall scope of the market risk component Please provide your views on whether Table 6 sufficiently captures the exposure to market risk. If there are any other sub-risks that you think should be included, please provide details with supporting rationale and suggestions on how they could be measured. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 22 of 41 Issued on: 30 June 2021 Question 25 Interest/profit rate risk Under the existing framework, a simplified approach is adopted when computing interest/profit rate risk charges for undiscounted liabilities in the general insurance and general takaful fund, and shareholders’ fund17. Given the proposal set out in the Valuation ED for discounting to be applied in valuing all types of contracts, a stress- based approach to determining interest/profit rate risk would be relevant to all types of businesses and funds moving forward. Please provide your views on: (a) Whether the stress-based approach for all types of businesses and funds moving forward would capture the risk more effectively and consistently. If you are of the view that there are alternative measurement approaches that could achieve the outcomes of more effective risk capture and consistency, please provide details with supporting rationale; (b) Whether you foresee any operational challenges in applying the stress-based approach for computation of interest/profit rate risk charges, for exposures where the factor-based approach is currently used; (c) Whether the current approach of applying stress factors based on residual terms of maturity remains appropriate moving forward. If you have any alternative suggestions, please provide details and rationale, including whether your company currently adopts the suggested approach for internal monitoring purposes; and (d) Whether the use of guaranteed liabilities as a basis for measurement of interest/profit rate risk continues to be appropriate. If you have any suggestions for alternative bases, please elaborate with reasons. Question 26 Non-default spread risk (NDSR) The Bank is considering to include NDSR as a new component of market risk charges, to capture the impact of unexpected changes in credit spreads on the value of assets and liabilities. The Bank is of the view that unexpected changes in non- default spreads pose a risk to an ITO’s solvency position given the typically high proportion of corporate bonds/sukuk held. It is observed that the inclusion of NDSR within capital adequacy frameworks has also become more common globally. In relation to this: 17 Part II, paragraph 4, Appendix II of RBC and Part II, paragraph 3, Appendix II of RBCT. Note that for takaful operators, the simplified approach is not applicable for the shareholders’ fund of family takaful operators. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 23 of 41 Issued on: 30 June 2021 (a) Please provide your views on the appropriateness of including NDSR as a sub- risk under the market risk component, and whether the definition of NDSR in Table 6 appropriately captures the risks arising from changes in non-default credit spreads. (b) Please describe the conditions/scenarios that would cause NDSR to materialise and the extent to which NDSR would affect your company’s capital resource position. (c) Please provide your views on an appropriate approach to measure NDSR (e.g. an upward shock to spreads for assets only or bi-directional stress factors applied to assets and liabilities), with reasons. (d) Does your company currently measure and monitor the risks arising from credit spreads within its internal risk management process? If yes, please share the approach your company takes to assess and mitigate the risk of movement in non-default credit spreads. Question 27 Equity risk The Bank is considering to streamline the categorisation of investments in equity indices and investments in individual equity instruments18 since the risks arising from these two equity instrument classes do not differ materially. With this, exposures to equity indices would be subsumed in the corresponding buckets for individual equity instruments. Please provide your views on: (a) Whether the equity risk arising from exposures to indices are similar to that arising from individual exposures, thus warranting the risk charges to be the same; and (b) Whether there are any other modifications to the categories that the Bank should consider. This would include risk factors that you deem significant and should be accorded differentiated risk charges (e.g. equities in developed markets vs. emerging markets). If yes, please provide details and rationale. Question 28 Property risk Under the existing framework, exposures to immovable properties are differentiated between self-occupied properties, and other property and property-related investments19. The Bank is considering to streamline the categorisation, such that 18 Table 1, Appendix II of RBC and Table 1, Appendix II of RBCT. 19 Table 2, Appendix II of RBC and Table 2, Appendix II of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 24 of 41 Issued on: 30 June 2021 only a single risk charge is applicable to all types of immovable properties. The Bank views that the risks do not differ significantly based on the use of the property (i.e. the risk of changes in the market value would be similar regardless of whether the property is for own use or for investment purposes). Please provide your views on: (a) Whether the risk arising from self-occupied properties are similar to that arising from other property and property-related investments, thus warranting the risk charges to be the same; and (b) If you are of the view that the current categories should be retained, or if there are any alternatives that the Bank should consider, please provide details and rationale. Question 29 Currency risk The Bank is of the view that the current approach for capturing currency risk remains appropriate20. More complex approaches are possible, including the differentiation of risk charges according to currency, and the use of correlation matrices to account for diversification effects beween currencies. However, one of the Bank’s main considerations is the balance between ensuring sufficient risk sensitivity and introducing undue complexity, particularly given that exposure to foreign currency is generally not significant at this point in time. In relation to this: (a) Does your company have foreign currency exposure? If yes, please provide details in the response template. (b) Please provide your views on whether the current approach remains effective in capturing currency risk, with reasons. If you would like to suggest any alternatives (including the introduction of differentiation in risk charges and correlation matrices mentioned above), please provide details and rationale. In providing your response, please consider the practical aspects of implementation, including availability of data and complexity of calculations. Question 30 Asset concentration risk Under the existing framework, a simplified approach is used, in which exposures in excess of specified limits are subject to 100% asset concentration risk charge, 20 Paragraph 5, Appendix II of RBC and paragraph 4, Appendix II of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 25 of 41 Issued on: 30 June 2021 calculated according to individual asset classes and counterparties21. The limits are intended to minimise the impact of idiosyncratic risks due to an ITO’s exposure to an individual asset class or counterparty. Moving forward, the Bank is considering potential enhancements to improve the sensitivity of measurement, such as the use of risk factors which are differentiated by the degree of concentration. In relation to this: (a) Does your company currently adopt any alternative approaches, other than that defined in the existing framework, to assess the exposure to asset concentration risk? If yes, please describe the approach. (b) Please provide your views on whether the factor-based approach described above would better capture the risk, as compared to the current approach. If you have any alternative suggestions (including retaining the current approach), please elaborate with reasons. Question 31 Measurement of market risk for IL funds and PIFs Under the existing framework, assets held in IL unit funds of ITOs and PIFs of takaful operators are not subject to market risk charges. This is because the investment risk is borne by policyholders or takaful participants. However, ITOs may also be impacted by market-related changes to IL funds and PIFs by virtue of how these changes would impact insurance/takaful liabilities (e.g. an increase in insurance/takaful liabilities in the IL operating fund due to a decrease in income from the IL unit fund). This impact is not captured under the existing framework. A potential way forward could be to apply the relevant risk factors or stresses to the exposures in the IL unit funds and PIFs, and then measure the impact to the cash inflows for the other funds. The difference in insurance/takaful liabilities arising from the changes in cash inflows would represent the potential losses to ITOs arising from market-related losses in the IL unit funds and PIFs. In relation to this: (a) Please share how your company currently assesses and manages the impact of potential market risk losses in IL funds and PIFs on insurance/takaful liabilities. (b) Please provide your views on the potential approach explored above. Where you have any alternative suggestions, please provide details and rationale for how it would better achieve the outcome of fully capturing the risk. 21 Paragraph 10.1, Appendix II of RBC and paragraph 9.1, Appendix II of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 26 of 41 Issued on: 30 June 2021 Question 32 Treatment of options The existing framework captures delta risk22, but not gamma and vega risks, although ITOs are required to consider these additional risk dimensions when setting their Individual Target Capital Level (ITCL). Examples of possible enhancements to the approach include: • Introducing explicit risk charges for vega23 and gamma24 risks; or • Where a stress-based approach is used for the sub-risk (e.g. interest/profit rate risk), incorporating measures of volatility shocks into the stress scenarios. However, the Bank is of the view that the approach under the existing framework remains appropriate, particularly given that exposure to options is generally not significant. In relation to this: (a) Does your company have exposure to options? If yes, please provide details in the response template. (b) If yes to (a), please describe how your company currently measures vega and gamma risks for the purposes of ITCL and internal risk management. Please also elaborate on any other risks that your company measures, and how this is done. (c) Please provide your views on the continued appropriateness of the current approach in capturing risk arising from options. If you have any alternative suggestions (including views that the alternative approaches mentioned above would be more appropriate), please provide details and rationale. In providing your response, please consider the practical aspects of implementation, including availability of data and complexity of calculations. (iv) Look-through approach for credit and market risk 4.13 Under the existing framework, a look-through approach (LTA) may be adopted to determine the appropriate market risk charges for investment in structured products25. The Bank is exploring the use of the LTA in determining the credit and market risk capital requirements for collective investment schemes (CIS) and any other indirect exposures, including structured products. 22 Paragraph 6, Appendix II of RBC and paragraph 5, Appendix II of RBCT. 23 The sensitivity of the value of an option with respect to a change in volatility. 24 The rate of change of delta, where delta is defined as the sensitivity of the option price relative to the instruments underlying the option. 25 Paragraph 9.6, Appendix II of RBC and paragraph 8.6, Appendix II of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 27 of 41 Issued on: 30 June 2021 Question 33 Look-through approach for credit risk (a) Does your company have any indirect exposures (other than CIS), which may give rise to credit risk? If yes, please provide details. (b) Please provide details on how your company currently measures credit risk arising from CIS and other indirect exposures, for internal monitoring purposes, including whether or not LTA is used. (c) Please indicate the level of granularity and frequency of information that your company receives in relation to the underlying exposure of funds that your company is invested in and whether such information is verified by a third party. (d) Please provide your views on whether the use of LTA in applying credit risk charges to CIS and other indirect exposures would result in better risk capture, with reasons. (e) Please provide your views on whether you foresee any practical challenges with adopting the LTA in applying credit risk charges, and any suggestions for alternatives or simplifications. Question 34 Look-through approach for market risk (a) Does your company have any indirect exposures (other than CIS), which may give rise to market risk? If yes, please provide details. (b) Please provide details on how your company currently measures market risk arising from CIS and other indirect exposures, for internal monitoring purposes, including whether or not LTA is used. (c) Please indicate the level of granularity and frequency of information that your company receives in relation to the underlying exposure of funds that your company is invested in and whether such information is verified by a third party. (d) Please provide your views on whether the use of LTA in applying market risk charges to CIS and other indirect exposures would result in better risk capture, with reasons. (e) Please provide your views on whether you foresee any practical challenges with adopting the LTA in applying market risk charges, and any suggestions for alternatives or simplifications. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 28 of 41 Issued on: 30 June 2021 (v) Operational risk 4.14 Operational risk is defined as the risk of loss arising from inadequate or failed internal processes, people and systems, or from external events, and includes legal risk. For takaful business, operational risk also includes the risk of loss arising from Shariah non-compliance26 and failure by a takaful operator in executing its fiduciary duties27. 4.15 For takaful operators, the capital required for operational risk shall continue to be borne by the shareholders’ fund28. This is because takaful operators have the fiduciary duty to manage takaful funds on behalf of and in the best interests of the takaful participants. Therefore, takaful operators are accountable for decisions made in managing the takaful funds, and thus have to account for any exposure to operational risk. Question 35 Definition of operational risk Please provide your views on whether the definition of operational risk sufficiently captures operational losses. If there are additional operational loss events which you think should be included, please provide details and rationale. 4.16 The Bank intends to retain the use of a factor-based approach for measuring operational risk. However, the Bank is exploring alternative proxies for operational risk exposure, including premiums/takaful contributions or insurance/takaful liabilities (to reflect the size of the business), as well as an additional risk charge relating to excessive growth, in order to better capture operational risk. Question 36 Exposure measure – size of the business Under the existing framework, operational risk exposure is proxied by total assets. While this is a simple and straightforward measure that captures the size of the business, there are issues with using assets as a proxy given that they are typically less reflective of the main operating activities of the insurance/takaful business (e.g. underwriting), and are also exposed to factors that are not intended to be captured under operational risk such as market movements (which are already captured under market risk) as well as capital management actions (e.g. decisions to retain profits). 26 Shariah non-compliance risk is defined as the risk of legal or regulatory sanctions, financial loss or non-financial implications including reputational damage, which a takaful operator may suffer arising from failure to comply with the rulings of the Shariah Advisory Council (SAC), standards on Shariah matters issued by the Bank pursuant to section 29(1) of the IFSA, or decisions or advice of the Shariah committee. 27 Failure in executing fiduciary duties refers to the failure of a takaful operator to carry out the duties (amanah) that it is authorised to perform towards the takaful participants. 28 Paragraph 8.1 of RBCT. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 29 of 41 Issued on: 30 June 2021 As such, the Bank is considering to replace the current total assets proxy with the following proxies for operational risk, which would better reflect the operating activities of the insurance/takaful business: (i) Premiums/takaful contributions; (ii) Insurance/takaful liabilities; or (iii) A combination of both. Please provide your views on: (a) Whether the proxies mentioned above would adequately represent the exposure to operational risk, and which would be most appropriate. Where you would like to suggest any other alternatives, please provide justifications; (b) Any suggestions for the computation of the proxies mentioned above (e.g. net or gross of reinsurance/retakaful) that would better represent the operational risk exposure; (c) Whether you foresee any challenges in computing the operational risk charges using any of the proxies mentioned above; and (d) Whether there are any circumstances or types of business which may be disproportionately affected by the use of the proxies mentioned above in measuring operational risk. Question 37 Exposure measure – growth of the business The proposed inclusion of an additional risk charge on premium/takaful contribution growth is intended to capture the increased operational risk associated with excessive business growth, for example, arising from acquisitions or entries into new lines of business. The exposure could be proxied by the growth in premiums/takaful contributions over the previous year beyond a pre-determined threshold (i.e. beyond “normal” growth). The ICS recommends a growth threshold of 20%. For example, if the gross written premium of the most recent year grows by more than 20% as compared to the preceding year, an additional risk charge will be applied on the amount of gross written premium in excess of the growth threshold. With that said, the IAIS has also acknowledged that the insurance market growth of developing markets may be significantly higher than that of developed markets. Please share your views on: (a) Whether excessive business growth contributes to increased operational risk, and thus is appropriate to be included as an additional component under operational risk, with reasons; and Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 30 of 41 Issued on: 30 June 2021 (b) Whether the growth threshold of 20% is punitive to your company, with reasons. If you have any alternative suggestions for the growth threshold, please supplement them with justifications. 4.17 The Bank is also considering to differentiate the operational risk factors according to certain categories in order to reflect the differences in operational complexity for different types of businesses. Question 38 Categories for differentiation of operational risk (a) Please provide your views on the appropriateness of differentiating the operational risk factors based on the following categories, with reasons: (i) Life insurance/family takaful business vs. general insurance/general takaful business; (ii) Account-based products vs. non-account-based products; (iii) Unitised account-based products vs. non-unitised account-based products; (iv) Long-term insurance/takaful contracts vs. short-term insurance/takaful contracts; (v) Regular premium policies/takaful contribution certificates vs. single premium policies/takaful contribution certificates; and (vi) By distribution channel (e.g. agency, bancassurance/bancatakaful, direct and other distribution channels). If you have any other suggestions, please provide details and rationale. (b) For takaful operators, please provide your views on whether the operational risk factors should also be differentiated by the different types of funds, i.e. PRF, PIF and shareholders’ fund, with reasons. If yes, please suggest suitable proxies for operational risk exposure for each of these funds. Question 39 Impact of catastrophes Catastrophes, such as pandemic and natural disasters, while not frequent, can result in significant operational losses to an ITO in addition to the losses under insurance/takaful risk. Please provide your views on whether the risk of operational losses arising from catastrophes should be included as a separate component from the operational risk charge described above. If yes, please provide your views on: Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 31 of 41 Issued on: 30 June 2021 (a) The approach that could be used to measure the risk of operational losses arising from catastrophes (e.g. stress/scenario or factor-based), with reasons; and (b) The availability and credibility of data to calibrate the risk charges for operational losses arising from catastrophes. Question 40 Shariah non-compliance risk Under the existing framework, Shariah non-compliance (SNC) risk is implicitly captured under the single operational risk charge. This takes into consideration that the underlying causes for SNC occurrences are likely to be associated with operational lapses (i.e. also caused by processes, people and systems). To elevate the commitment of takaful operators (and their conventional parent, if any) in ensuring effective management of SNC risk, the Bank is exploring the introduction of a separate risk charge for SNC within the operational risk component. Please provide your views on: (a) The appropriateness of introducing a separate risk charge for SNC; (b) A possible proxy for SNC risk exposure, with reasons; (c) The availability and credibility of data to calibrate the SNC risk charge; and (d) Any other operational challenges that you foresee in having a separate risk charge for SNC. (d) Diversification 4.18 One of the key considerations in determining how to aggregate the risk charges for different risk categories within a risk component, as well as across risk components, is diversification. While the existing framework does not explicitly account for the impact of diversification in determining the TCR, the Bank is exploring the significance of the effects of diversification, for potential inclusion, if appropriate. Question 41 Please provide your views on whether there are substantial diversification effects: (a) Within each of the risk components themselves (e.g. within market risk); and (b) Between each of the risk components (e.g. between insurance/takaful and market risks, or between market and credit risks), with reasons. If yes, please include suggestions on how the diversification benefits could be calculated and reflected. Where your company has internally accounted for this (e.g. for group reporting), please share the methodology used. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 32 of 41 Issued on: 30 June 2021 5. Formula for the Capital Adequacy Ratio (CAR) 5.1 Similar to the current approach, the capital adequacy of an ITO will continue to be represented by a Capital Adequacy Ratio (CAR). The CAR will reflect the Total Capital Available (TCA) to meet the Total Capital Required (TCR) for the ITO as a whole. It will therefore capture the collective strength of the entity, after taking into account the level of support that individual funds can provide to each other (i.e. fungibility of capital). 5.2 The Bank is exploring possible enhancements to the CAR formula, to improve consistency across the insurance and takaful industry, as well as to better reflect the relationships between funds, in terms of fungibiity of capital. In doing so, the Bank is considering the use of the following formula to replace the existing formulae for both insurance and takaful businesses: where, TCRfi = The capital required for fund i Available excessfi = The amount of capital available in excess of what is needed to meet the TCR for fund i, that would not be subject to any restrictions on fungibility. For avoidance of doubt, the available excess would be negative in instances where the capital available in the fund is less than the TCR of the fund. 5.3 To demonstate how the formula captures the characteristics of different types of funds, the following scenarios are considered: Table 7 Scenario Treatment of available excess (A) There is sufficient capital available in the fund to meet the fund-level TCR, and there are no restrictions on fungibility. The full amount of excess above the TCR will be accounted for in the numerator of the formula. (B) There is sufficient capital available in the fund to meet the fund-level TCR, but there are restrictions on fungibility. The amount of excess included in the numerator of the formula will be in line with the restriction, and may, in some cases be zero. (C) There is insufficient capital available in the fund to meet the fund-level TCR. The shortfall will be reflected as negative “available excess” (i.e. a deduction from the numerator of the formula). This represents the amount of capital support that the fund needs from other funds. CAR = 𝑇𝐶𝐴𝑒𝑛𝑡𝑖𝑡𝑦 𝑇𝐶𝑅𝑒𝑛𝑡𝑖𝑡𝑦 = (𝑇𝐶𝑅𝑓1 + 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑒𝑥𝑐𝑒𝑠𝑠𝑓1) + ….. + (𝑇𝐶𝑅𝑓𝑛 + 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑒𝑥𝑐𝑒𝑠𝑠𝑓𝑛) 𝑇𝐶𝑅𝑓1 + ….. + 𝑇𝐶𝑅𝑓𝑛 Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 33 of 41 Issued on: 30 June 2021 Example Consider an entity with the following funds: • Fund 1 has sufficient capital available to meet its TCR and no restrictions on fungibility, as per Scenario (A) above; • Fund 2 has sufficient capital available to meet its TCR, but has restrictions on fungibility, as per Scenario (B) above; and • Fund 3 has insufficient capital available to meet its TCR, as per Scenario (C) above. Using the proposed formula, the CAR of the entity will be calculated as follows: Fund 1 Fund 2 Fund 3 Entity TCA 200 200 50 400* TCR 100 100 100 300 Available excess 100 50 -50 CAR 133% * TCAentity is the sum of TCR and available excess across all three funds. 5.4 The enhancements to the design of the framework explored in this DP will be taken into account in the Bank’s future review of related requirements such as the internal capital adequacy assessment process and supervisory intervention levels. Question 42 For insurers only Please provide your views on the appropriateness of the proposed CAR formula, taking into account the intended outcomes in paragraph 5.2. Where you have any alternative suggestions, please provide details and rationale. Question 43 For life insurers only (a) The existing framework takes into account the non-fungibility of capital in participating life funds, in line with the nature of the business. The Bank intends to continue to reflect this lack of fungibility, and is of the view that the proposed new formula would be able to do so, with greater stability in the CAR outcomes such that movements in CAR reflect changes in the underlying risk profile of the life insurer rather than changes in the basis resulting from including or excluding the participating life funds. Please provide your views on whether the proposed new formula would adequately reflect the restrictions on fungibility relating to participating life funds. If you would like to suggest any alternatives, please provide details and rationale. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 34 of 41 Issued on: 30 June 2021 (b) Please provide your views on whether there are any circumstances which may reduce or restrict the fungibility of capital from the funds of a life insurer, other than participating life funds, with reasons (e.g. legal constraints). Question 44 For general insurers only Please provide your views on whether there are any circumstances which may reduce or restrict the fungibility of capital from the funds of a general insurer, with reasons (e.g. legal constraints). Question 45 For takaful operators only The proposed new CAR formula is similar to the current formula for takaful operators, in that it considers the circumstances of each fund in the calculation of TCR, and the amount of capital available in the fund that can contribute to the overall strength of the takaful operator. Please provide your views on whether the proposed formula would be able to adequately capture the nature of fungibility of capital between funds. If you would like to suggest any alternatives, please provide details and rationale. Question 46 For takaful operators only Currently, the amount of capital available in excess of the fund-level TCR that can be recognised for takaful funds for the purpose of computing CAR is limited to 130% of the fund-level TCR. However, the Bank is reviewing the appropriateness of this limit29. In addition to considering the appropriateness of the limit within the current regulatory environment, the Bank is also exploring potential changes that can be introduced to further support the principles of ta’awun (mutual assistance), in particular, the recognition of excess surplus in a takaful fund as capital available to absorb losses in other takaful funds, if the arrangement is clearly articulated in the takaful certificate30. Notwithstanding the above, the Bank would like to clarify that: 29 Please refer to Appendix 2 for an illustration of the CAR computation. 30 Please refer to Appendix 2 for more details on the potential criteria. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 35 of 41 Issued on: 30 June 2021 (a) To reflect the ownership and obligations of the various funds in the takaful operations, considerations on fungibility of capital are only with regard to a takaful fund meeting the risks and obligations of other takaful funds; and (b) Recognition of available excess in takaful funds in calculating the CAR is not equivalent to an actual transfer of capital. Please provide your views on: (a) Whether full recognition of excess capital above the TCR for each fund would be in line with Shariah requirements, without any changes to your current product design or management practices, with reasons. If you are of the view that full recognition is not appropriate, please suggest the appropriate extent of recognition, with reasons; and (b) Whether explicit contractual stipulation and agreement of the assistance that takaful funds can provide to each other would be in line with Shariah requirements, and would allow for full fungibility of excess capital between takaful funds. Please include the opinion of your takaful operator’s Shariah Committee in your views. 6. Other considerations Question 47 Takaful contracts with PIF Savings PIF Savings refers to a takaful fund established for the pupose of savings, where the principal amount is protected. The qard contract is adopted for the PIF Savings fund, where the takaful participant acts as the lender of money and the takaful operator as the borrower. In return, the takaful operator has the obligation to fully repay the principal upon a pre-agreed event31. This is unlike PIF Investment where the principal amount is not protected. The Bank intends for the characteristics of PIF Savings contracts, which are relatively new to the market, to be sufficiently catered for under the capital adequacy framework. For the avoidance of doubt, the impact of credit and market losses on the amount in the PIF Savings fund would be captured under the shareholders’ fund in the manner set out under the credit and market risk sections above (i.e. by considering the impact of these losses to the liabilities relating to the obligation to fully repay the principal amount). This would be similar to the treatment for account- based insurance products which provide guarantees on account value. 31 Please refer to Appendix 2 for an illustration of PIF Savings contracts. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 36 of 41 Issued on: 30 June 2021 In relation to this: (a) Does your company have products with PIF Savings, or does your company plan to introduce such products? If yes, please provide details on the features of the products and the mechanism for PIF Savings, including how qard is currently managed (i.e. under the shareholders’ fund or in a separate fund), as well as the investment strategy for the relevant funds. (b) Where your company currently has these contracts, please elaborate on how you have applied the existing RBCT requirements. (c) Please provide your views on whether the enhancements that are being explored in this DP would sufficiently capture the risks arising from these contracts, with reasons. If there are additional risks that should be captured, please elaborate. Question 48 Other takaful-specific considerations Please provide your feedback on whether the capital adequacy framework, with the enhancements that are being considered, would sufficiently address risks arising from the specificities of the different types of takaful models and Shariah contracts. This includes current models or contracts, and any new types of models or contracts that your company may be exploring. If there are any that are not sufficiently catered for, please provide details of the models or contracts and suggestions on how the gaps can be addressed. Question 49 General comments Please provide any other comments you may have on the enhancements that are being explored, including their implications on reinsurance/retakaful strategies, innovation and digitalisation in the insurance and takaful industry, as well as considerations for the impact of climate change32. 32 For example, as described in the Climate Change and Principle-Based Taxonomy document issued on 30 April 2021, https://www.bnm.gov.my/documents/20124/938039/Climate+Change+and+Principle- based+Taxonomy.pdf https://www.bnm.gov.my/documents/20124/938039/Climate+Change+and+Principle-based+Taxonomy.pdf https://www.bnm.gov.my/documents/20124/938039/Climate+Change+and+Principle-based+Taxonomy.pdf Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 37 of 41 Issued on: 30 June 2021 APPENDICES Appendix 1 Differences between insurance and takaful business models Insurance Takaful Area 1: Underlying concept Insurance business is based on the concept of risk transfer. Risk is transferred from policyholders to the insurer, in return for premiums. Takaful business is based on the concept of risk sharing or mutual assistance (ta’awun). A pool of participants contribute to a common fund (i.e. takaful fund), providing for mutual benefits which are payable on the occurrence of pre-agreed events. A particular takaful fund is therefore collectively owned by the pool of participants who have contributed towards it. Based on the concept of tabarru’, these contributions are considered as donations to provide financial aid to other participants who suffer from specific losses or difficulties. Area 2: Role of the entity The insurer has the obligation to make guaranteed payouts to the policyholders on the occurrence of pre-agreed events. Accordingly, expenses relating to the business, including acquisition and management expenses, are borne by the relevant insurance funds. Profits arising from the insurance funds ultimately belong to the shareholders, with the exception of participating life business where the profits are shared between the insurer and the policyholders. The takaful operator has the fiduciary duty to manage the takaful funds, which are collectively owned by the participants, on behalf of and in the best interests of the participants33. This must be carried out in accordance with Shariah principles. Accordingly, acquisition and management expenses incurred in managing the takaful funds are borne by the shareholders’ fund rather than the takaful funds. Surplus arising from the takaful funds may be shared between the takaful operator and the participants based on a pre-agreed ratio. In addition, the takaful operator has the following obligations: • In the event of a deficit in the takaful funds (i.e. excess of liabilities over assets), the 33 In line with section 92(1) of IFSA and the Policy Document on Takaful Operational Framework (TOF). Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 38 of 41 Issued on: 30 June 2021 takaful operator is required to provide qard to immediately rectify the deficit34; and • In the event of a deficit or loss in a takaful fund due to mismanagement or negligence, the takaful operator must immediately rectify the deficit or loss through an outright transfer of assets from the shareholders’ fund to the takaful fund35. Area 3: Fund segregation and availability of capital to absorb losses in other funds (i.e. fungibility of capital) For life insurers, participating life business must be managed in a separate fund36 in light of the sharing of profits between the policyholders and the insurer. Capital available is generally fungible entity-wide, with the exception of participating life business. The non-fungibility of capital in the participating life fund reflects the rights that participating life policyholders have over the profits arising from the fund. In line with the underlying concept of takaful and the role of the takaful operator above, fund segregation is required between the takaful funds and the shareholders’ fund37, reflecting the different ownership of the funds. The capital available in the shareholders’ fund is fungible across the takaful funds due to the fiduciary duty of the takaful operator. In contrast, currently, the capital available in each takaful fund is expected to be used to cover only the risks that the particular takaful fund is exposed to. The capital required for the shareholders’ fund and the takaful funds are differentiated according to the types of risks borne by the shareholders and the takaful participants respectively. 34 In line with section 95 of IFSA and TOF. 35 In line with TOF. 36 In line with section 81(2) of FSA and the Policy Document on Management of Insurance Funds. 37 In line with section 91 of IFSA and TOF. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 39 of 41 Issued on: 30 June 2021 Appendix 2 Additional details on takaful-specific issues 1. Comparison between the current RBCT formula and the proposed new formula Current requirements CR Capital Available 100 130 30% buffer Recognised Capital Available Illustration for PRFs Capital Required (𝑇𝐶𝑅𝑓1 ) The approach being explored CR Capital Available 100 All Available Excess, x 100 + x or Some Available Excess, x 100 + x Recognised Capital Available (Full) Recognised Capital Available (Partial) Capital Required (𝑇𝐶𝑅𝑓1 ) Illustration for PRFs Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 40 of 41 Issued on: 30 June 2021 2. Expansion of the application of ta’awun Under the principles of ta’awun (mutual assistance), the Bank is currently exploring the use of distributable surplus in a takaful fund which has sufficient capital available to meet its TCR, to be used to provide assistance in absorbing losses of another takaful fund38 which has insufficient capital available to meet its TCR, as long as: (a) The arrangement is clearly stipulated in the takaful certificate and agreed by the takaful participants39; (b) As part of the terms and conditions of the takaful certificate, the takaful participants have access to accurate and clear information, including on the implications of the arrangement, to ensure well-informed decisions; (c) Any decisions on capital transfers to provide assistance to other takaful funds are approved by the Board, endorsed by the Shariah Committee and supported by a recommendation from the Appointed Actuary. The decision must have given due regard to the following: (i) Best interest of the takaful participants; (ii) Fair treatment of the takaful participants; and (iii) Reasonable expectations of the takaful participants; and (d) In the event that a transfer of capital to another takaful fund to provide assistance becomes necessary, the takaful participants in the takaful fund providing the assistance are notified of the transfer. 38 Provided that the takaful operator maintains more than one takaful fund. 39 For example, if the contract allows the takaful operator to unilaterally amend the terms and conditions after the inception of the takaful certificate, the takaful operator may issue an endorsement to the takaful participants on the arrangement. On the other hand, if the contract does not allow the takaful operator to unilaterally amend the terms and conditions after the inception of the takaful certificate, the takaful operator will need to explore other means for obtaining consent from the takaful participants on the arrangement. Risk-Based Capital Framework for Insurers and Takaful Operators (Framework Design) – Discussion Paper 41 of 41 Issued on: 30 June 2021 3. Illustration of PIF Savings arrangements Participants’ Risk Fund (PRF) Shareholders’ Fund (SHF) Contribution allocated to PIF Wakalah fees Contribution PIF Savings Tabarru` charge dripped to PRF SHF liable to pay principal amount upon withdrawal PIF Savings

Public Notice

30 Jun 2021

Policy Document on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) (Supplementary Document No. 1) – Money Services Business Sector

https://www.bnm.gov.my/-/policy-doc-msb-sector-onboarding

Reading: Policy Document on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) (Supplementary Document No. 1) – Money Services Business Sector Share: 2 Policy Document on Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) (Supplementary Document No. 1) – Money Services Business Sector Embargo : For immediate release Not for publication or broadcast before 1630 on Wednesday, 30 June 2021 30 Jun 2021 The policy document sets out the minimum requirements and standards that an approved licensed Money Services Business (MSB) must observe in implementing non face-to-face verification process when on-boarding corporate customers. This is to ensure effective and robust Anti-Money Laundering and Counter Financing of Terrorism control measures and systems are in place to safeguard the safety and integrity of money services.   Refer Attachment:  Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) (Supplementary Document No. 1) – Money Services Business Sector Frequently Asked Questions (FAQs)Bank Negara Malaysia 30 June 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

20 Mei 2021

Online Auction of Ringgit Banknotes with Special Serial Numbers

https://www.bnm.gov.my/-/online-auction-ringgit-banknotes-special-serial-numbers

19 Mei 2021

Alternative Reference Rate and Strategic Direction on KLIBOR and KLIRR for the Malaysian Financial Markets

https://www.bnm.gov.my/-/dp-alt-ref-rate-klibor-klirr

https://www.bnm.gov.my/documents/20124/938039/dp_Alternative+Reference+Rate_may2021.pdf

Issued on: 19 May 2021 BNM/RH/DP 028-11 Alternative Reference Rate and Strategic Direction on KLIBOR and KLIRR for the Malaysian Financial Markets Discussion Paper Applicable to: 1. Market participants referencing financial benchmark rates in Malaysia Alternative Reference Rate – Discussion Paper Issued on: 19 May 2021 In line with global financial benchmark reforms and the upcoming London Interbank Offered Rate (LIBOR) cessation for most currencies by end-2021, Bank Negara Malaysia (the Bank) has appointed the Financial Markets Committee (FMC) to oversee the development of a transaction-based alternative reference rate (ARR) for Malaysia and deliberate on the strategic direction for the Kuala Lumpur Interbank Offered Rate (KLIBOR) and the Kuala Lumpur Islamic Reference Rate (KLIRR). The objective of this discussion paper is to seek feedback from industry stakeholders on the framework, design and features pertaining to the development of ARR, potential enhancements to KLIBOR as well as a review of KLIRR. This paper outlines the features of the proposed transaction-based ARR, proposals to refine and fallback plans for KLIBOR and future direction for KLIRR. The Bank, in consultation with the FMC, invites written feedback on this discussion paper, including suggestions to improve clarity on the proposals or alternatives for consideration. To facilitate a constructive consultation process, the feedback and views shall be supported with justifications especially on the practical and operational aspects, including accompanying evidence or illustrations, where appropriate. Please provide your name and the organisation you represent in your written feedback. All queries and responses must be submitted via the attached feedback form electronically to the financial benchmark review team at [email protected] by 18 June 2021. DISCLAIMER: This is a non-binding publication and the views, findings, interpretations and conclusions expressed in this document do not necessarily represent the decision or the stated policy of the Bank, nor does citing of trade names or commercial processes constitute endorsement. The Bank may reproduce and publish contents of the feedback, in any form, and may use, adapt or develop any proposal put forward without seeking permission or providing acknowledgement to the relevant party. mailto:[email protected] Alternative Reference Rate – Discussion Paper Issued on: 19 May 2021 TABLE OF CONTENTS PART A OVERVIEW ................................................................................................................1 1. Background ..........................................................................................................................1 PART B DEVELOPMENT OF ARR ..........................................................................................2 2. Characteristics of ARRs and Interbank Offered Rates (IBORs) ............................................2 3. ARR for Malaysia ..................................................................................................................2 4. Key features of ARR .............................................................................................................2 PART C REFINEMENTS TO KLIBOR ......................................................................................4 5. Reference rate for derivatives ...............................................................................................4 6. Removal of least referenced tenors ......................................................................................4 PART D IBOR FALLBACK LANGUAGE .................................................................................5 7. Background ..........................................................................................................................5 8. Scope of KLIBOR fallback language .....................................................................................5 9. ISDA IBOR Fallbacks Protocol .............................................................................................5 10. Fallback language for KLIBOR-linked derivatives ...............................................................6 PART E REVIEW OF KLIRR ....................................................................................................7 11. Potential discontinuation of KLIRR ......................................................................................7 APPENDICES................................................................................................................................8 Appendix I: Malaysia Overnight Rate (MYOR) Features ............................................................8 Appendix II: Feedback Form ......................................................................................................9 Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 1 of 9 PART A OVERVIEW 1. Background 1.1 Financial benchmark reforms are underway in various jurisdictions to improve the integrity and reliability of interest rate benchmarks, in line with the Financial Stability Board’s (FSB) recommendation1. Among the key recommendations of the FSB are the development of a nearly risk-free ARR and strengthening of the existing IBOR of respective jurisdictions. 1.2 While the LIBOR for most major currencies will cease to exist after end-2021, some other jurisdictions have maintained their existing IBORs while developing an ARR. It is envisioned that market participants will make wider use of ARR in order to reduce reliance on IBORs in the foreseeable future. 1.3 In line with global financial benchmark reforms, the Bank has appointed the FMC which comprises representatives from the Bank, Securities Commission Malaysia, financial institutions, insurers, fund managers and corporate treasurers, to oversee the development of a transaction-based ARR and deliberate on the strategic direction for KLIBOR and KLIRR in Malaysia. 1.4 Similar to other jurisdictions, it is proposed for the Malaysian ARR to be based on overnight transactions in the interbank market and will run in parallel to the existing KLIBOR. The availability of both rates provides the market with the flexibility to choose either ARR or KLIBOR as the reference rate for pricing of financial instruments. 1.5 This discussion paper is structured into four parts for industry feedback: 1. Development of ARR; 2. Refinements to KLIBOR; 3. IBOR fallback language; and 4. Review of KLIRR 1 FSB - Reforming Major Interest Rate Benchmarks (www.fsb.org/wp-content/uploads/r_140722.pdf) Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 2 of 9 PART B DEVELOPMENT OF ARR 2. Characteristics of ARRs and Interbank Offered Rates (IBORs) 2.1 The major characteristics that differentiate ARRs and IBORs are as follows: i. ARRs are nearly risk-free while IBORs generally reflect the perceived credit risk of large banks; ii. ARRs are typically overnight rates while the tenors of IBORs can span from overnight to 12 months; and iii. ARRs are derived solely from transaction data whereas IBORs are based on submissions by a number of selected contributing banks. While reform measures have been implemented to anchor IBOR submissions to transaction data, contributing banks are allowed to exercise expert judgement in providing rate submissions when there is a lack of transactions. 3. ARR for Malaysia 3.1 The Bank has appointed the FMC to engage relevant stakeholders in identifying an appropriate ARR for KLIBOR. 3.2 The Bank currently compiles and publishes the Average Overnight Interbank Rate (AOIR) which is a near risk-free weighted average overnight interbank funding rate taking into account the Bank’s monetary operations and interbank transactions based solely on transaction data, consistent with the development of major currencies' ARR globally. 3.3 Taking into consideration the characteristics of the current AOIR, the FMC has identified AOIR as the ARR. The FMC has also proposed some technical refinements to AOIR to enhance its robustness and representativeness. 3.4 The refined AOIR is proposed to be renamed as the Malaysia Overnight Rate (MYOR) with the proposed features set out in paragraph 4 and summarized in Appendix I. 4. Key features of ARR 4.1 The FMC has deliberated on various approaches for the framework and design of ARR for Malaysia including calculation methodology and data collection and has proposed the following technical refinements to MYOR as outlined below: (a) Calculation methodology: MYOR will be calculated as the volume-weighted average rate of unsecured overnight MYR interbank transactions comprising the following eligible transactions: (i) Wholesale unsecured deposits between interbank institutions2 (either brokered or direct/bilateral); and (ii) The Bank’s overnight monetary operations, excluding Standing Facilities (SF). 2 refers to institutions which are approved by the Bank to deal in the interbank market, whether acting as principals or agents in the wholesale financial markets Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 3 of 9 This aims to remove susceptibility to rate volatility driven by high numbers of small transactions and eliminate the need for a minimum threshold for transactions. MYOR will be rounded to 2 decimal places. Q1. Do you agree with the proposed type of transactions to be included in the calculation methodology? If not, please provide your suggestions, supported by appropriate rationale. (b) Data source: MYOR will capture all eligible transactions sourced from the Real-time Electronic Transfer of Funds and Securities System (RENTAS). This ensures the robustness of MYOR and reduces the risk of misreporting. (c) Data collection window: All eligible transactions settled via RENTAS throughout the entire business day will be included in the MYOR calculation. (d) Publication time: To capture all eligible transactions settled on the same day, the FMC proposes for the publication time of MYOR to be at 10.00 am Kuala Lumpur time on the next business day. This proposed change is in line with international practices for publication of rates such as the Secured Overnight Financing Rate (SOFR) and Sterling Overnight Index Average (SONIA) which are published on the following business day. (e) Erroneous data: A republication shall be made if the error is more than 2 basis points away from the correct rate and is identified or reported by 2.00pm on publication day. The republication will be made by 4.00pm on the same day. If findings or reports of erroneous calculations are made after the cut-off time, no republication will be made. (f) Contingency arrangements: As a backstop in the event of disruption to the normal production of MYOR (e.g. disruption to trade settlement, interbank trading or data collection), the Bank shall at its discretion publish MYOR using a simple average of MYOR over the previous three publication days. For exceptional circumstances (e.g. a prolonged disruption), the Bank reserves the right to determine the appropriate contingency rate. Q2. Do you agree with the proposed methodology for contingency arrangements? If not, please provide your suggestions, supported by appropriate rationale. Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 4 of 9 PART C REFINEMENTS TO KLIBOR 5. Reference rate for derivatives 5.1 5.2 KLIBOR was introduced in June 1987 as an official indicator of the conditions in the interbank money market. KLIBOR is mainly used as the reference rate for derivatives products e.g. interest rate swaps and cross currency swaps and less frequently in cash products such as bank loans. KLIBOR is administered by the Bank, with Refinitiv Malaysia Sdn Bhd as the designated KLIBOR distributor. Eleven licensed banks have been appointed as KLIBOR submitters and are currently required to provide submissions for 5 tenors i.e. 1, 2, 3, 6 and 12 months3. 6. Removal of least referenced tenors 6.1 The 1 and 3-month KLIBOR tenors are the most frequently used benchmark tenors, with 97.7% of total KLIBOR exposure referenced to these two tenors. In comparison, the 2, 6 and 12-month tenors are less referenced by market participants. 6.2 The Bank, as administrator of KLIBOR, undertakes periodic reviews to ensure that KLIBOR continues to remain reliable as a financial benchmark. Notwithstanding these reviews, KLIBOR will remain available for reference until end-2022 at least. 6.3 The FMC proposes to adopt a phased approach to potentially discontinue rate submissions for the least referenced tenors to ensure the integrity of KLIBOR rates and facilitate transition. In this regard, the 2 and 12-month tenor will be discontinued first, followed by the 6-month tenor. 6.4 The FMC proposes that market participants are given 12 months’ advance notice in the event that certain KLIBOR tenors are discontinued upon review. Q3. Should least referenced KLIBOR tenors be discontinued? If yes, which tenors and why? Q4. Do you agree with the proposed notice period? If not, please provide suggestions, supported by appropriate rationale. 3 In line with the requirements of the KLIBOR Rate Setting Policy Document issued on 27 December 2016. Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 5 of 9 PART D IBOR FALLBACK LANGUAGE 7. Background 7.1 IBOR fallback language refers to provisions in financial contracts that cater to scenarios where the IBOR becomes unavailable, e.g. upon an official announcement of cessation or non-representativeness (“pre-cessation trigger”) by the IBOR administrator or regulatory authority. The fallback language specifies the trigger events, the replacement rate and the spread adjustment needed to address structural differences between the replacement rate and the IBOR. For example, a secured, overnight lending rate would have to be adjusted for its lower credit risk and shorter tenor vis-à-vis the unsecured, term nature of the IBOR. 7.2 In light of the upcoming LIBOR cessation, authorities worldwide have recommended that market participants undertake the necessary preparations to minimize market disruption by inserting robust fallback language into their financial contracts. Due to the varied nature of products referencing IBORs, appropriate fallback language may differ between products to allow for different calculation methodologies or market conventions. 8. Scope of KLIBOR fallback language 8.1 The FMC proposes for the current scope of KLIBOR fallback language development to focus on derivatives as the largest product referencing KLIBOR. This will ensure that sufficient resources are available for the primary goal of ARR development, with the staggered development approach supported by the near-term continuity of KLIBOR. 9. ISDA IBOR Fallbacks Protocol 9.1 Over-the-counter interest rate derivatives are generally transacted and governed under the International Swaps and Derivatives Association (ISDA) Master Agreement, which contain basic terms and conditions, and accompanying definitional booklets including the 2006 ISDA Definitions, which provide a general framework for the documentation of such transactions. 9.2 Since 2018, ISDA has conducted a series of public consultations to develop IBOR fallback language for derivative transactions under its Master Agreement and Definitions, culminating in the launch of the ISDA IBOR Fallbacks Protocol (ISDA Protocol) and IBOR Fallbacks Supplement (ISDA Supplement)4 in October 2020. By adhering to the ISDA Protocol, fallback language as contained in the ISDA Supplement is automatically incorporated into legacy transactions between adherents. This will avoid the need for arduous and potentially contentious bilateral negotiations to amend each legacy transaction. 9.3 In view of this standardized and efficient approach to incorporate fallback language into legacy IBOR-linked derivative transactions, FMC proposes to issue a recommendation for market participants to voluntarily adhere to the ISDA Protocol. 4 The ISDA Supplement, which came into effect on 25 January 2021, amends the 2006 ISDA Definitions to incorporate robust fallbacks for new transactions in derivatives linked to certain IBORs Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 6 of 9 10. Fallback language for KLIBOR-linked derivatives 10.1 While the ISDA Supplement contains robust fallback language for the major IBORs (e.g. USD, GBP LIBOR), it has yet to include KLIBOR. FMC proposes to engage ISDA to incorporate KLIBOR fallback language, with the fallback rate based on the calculation methodologies5 and parameters from the results of ISDA’s public consultations, summarized as follows: 1. Compounded setting in arrears rate Continuous compounding of the ARR over an accrual period corresponding to the tenor of the original IBOR. The “in arrears” structure compounds these rates over the current interest period (as opposed to the preceding period for the “in advance” structure), with the main benefit of reflecting the actual daily interest costs incurred by an entity borrowing at the ARR during the period. 2. Backward shift adjustment (i.e. lookback with observation shift) A two-banking-day backward shift adjustment applied to the accrual period will provide sufficient time for operational and payment purposes. 3. Spread adjustment based on historical median over a five-year lookback period, without exclusion of outliers or negative spreads A median-based spread is robust against the presence of outliers, especially when supported by a 5-year lookback period, which provides sufficient data for resilience against temporary market volatility while still remaining reflective of current market conditions. As a result, there is no need to exclude outliers or negative spreads, ensuring operationally simple and consistent calculations. 4. No transitional period A transitional period refers to the period where the spread is linearly interpolated between the immediate spread at the time of fallback to the long- term historical median spread for a smoother transition. However, a transitional period is not recommended as the operational difficulty of implementing such a structure would likely outweigh the benefits. 5. Inclusion of pre-cessation trigger The pre-cessation trigger is a supplement to the permanent cessation triggers, and will activate upon official declaration of “non-representativeness” of the IBOR by the regulatory authority. This will provide the flexibility to address “tough legacy” contracts by allowing the publication of a potentially synthetic rate until contract maturity. Note: Timeline and outcome of this engagement depends on negotiations with ISDA Q5. If KLIBOR fallback language is included in the development of a new ISDA Protocol and Supplement, would you be interested to adhere? If no, please provide appropriate rationale. 5 IBOR Fallback Rate Adjustments Rule Book (http://assets.isda.org/media/34b2ba47/c5347611-pdf/) Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 7 of 9 PART E REVIEW OF KLIRR 11. Potential discontinuation of KLIRR 11.1 KLIRR was introduced in 2006 as a reference rate for the Islamic interbank market. However, its usage as a pricing reference has remained limited. 11.2 The Bank, in consultation with the FMC, is conducting a comprehensive review on the continuity of KLIRR and a potential alternative Islamic reference rate that adheres to global standards for financial benchmarks. Please answer all of the following questions. Given the limited usage of KLIRR, the Bank would like to propose and seek feedback on the discontinuation of KLIRR: Q6. Do you agree with the proposed discontinuation? Please provide appropriate rationale. Q7. What is your firm’s exposure (if any) to KLIRR-based financial contracts? On potential alternative Islamic reference rates, Islamic financial market participants recommended for: i) transaction-based, Islamic overnight rate (similar to the conventional ARR); or ii) composite overnight rate based on the weighted average of conventional and Islamic transacted rates. Q8. Please state your preference between the two proposals or suggest an alternative option. Please provide appropriate rationale for your choice. Q9. What are the key considerations to ensure the success and widespread use of the new alternative Islamic reference rate? Q10. Would you use the new alternative Islamic reference rate, which is in line with the best practice framework for financial benchmarks introduced by the International Organization of Securities Commissions (IOSCO), in your financial contracts? If no, please provide appropriate rationale. Q11. Given that there is no Shariah issue in referencing conventional financial benchmarks, if you are currently using KLIBOR for your Islamic financial contracts, would you continue doing so after the introduction of the new alternative Islamic reference rate? Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 8 of 9 APPENDICES Appendix I: Malaysia Overnight Rate (MYOR) Features Description MYOR is the transaction-based alternative reference rate based on unsecured overnight MYR interbank transactions in the Malaysian interbank market. Benchmark Owner and Administrator BNM Calculation Agent BNM Eligible Transactions Overnight MYR interbank transactions comprising the following eligible transactions: i. Wholesale unsecured deposits between interbank institutions (either brokered or direct/bilateral) ii. BNM’s overnight monetary operations, excluding Standing Facilities Calculation Methodology Volume-weighted average Contributing Brokers 1. ICAP Malaysia Sdn Bhd 2. Harlow’s & MGI Sdn Bhd 3. Affin Money Brokers Sdn Bhd Publication The computed MYOR shall be published on BNM’s website at 10:00 a.m. Kuala Lumpur time on the next business day. No. of Decimal Points Rounded to two decimal places Contingency Arrangements In the event of disruption to the normal production of MYOR, the Bank shall at its discretion publish MYOR using a simple average of MYOR over the previous three publication days. For exceptional circumstances (e.g. prolonged disruption), the Bank reserves the right to determine the appropriate contingency rate. Issued on: 19 May 2021 Alternative Reference Rate – Discussion Paper 9 of 9 Appendix II: Feedback Form Name : Organisation : Telephone no. / E-mail address : No. Part / paragraph / question number Comments/feedback Suggestions 1. 2. 3. Any other matters/feedback/suggestions

30 Apr 2021

Perubahan Iklim dan Taksonomi Berasaskan Prinsip

https://www.bnm.gov.my/-/perubahan-iklim-dan-taksonomi-berasaskan-prinsip

https://www.bnm.gov.my/documents/20124/938039/Climate+Change+and+Principle-based+Taxonomy.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/perubahan-iklim-dan-taksonomi-berasaskan-prinsip&languageId=ms_MY

Reading: Perubahan Iklim dan Taksonomi Berasaskan Prinsip Share: Perubahan Iklim dan Taksonomi Berasaskan Prinsip Tarikh Siaran: 30 Apr 2021 Perubahan Iklim dan Taksonomi Berasaskan Prinsip Kertas Perbincangan mengenai Perubahan Iklim dan Taksonomi Berasaskan Prinsip telah dikeluarkan pada 27 Disember 2019 untuk memudahkan institusi kewangan menilai dan mengklasifikasikan aktiviti ekonomi yang menyumbang kepada pengurangan dan penyesuaian perubahan iklim. Bank menerima maklum balas bertulis daripada responden, termasuk institusi kewangan, syarikat pengurusan aset, agensi penarafan dan pertubuhan bukan kerajaan, semasa tempoh perundingan. Bank sejak itu telah bekerjasama dengan Jawatankuasa Bersama mengenai Perubahan Iklim (JC3) Jawatankuasa Kecil Pengurusan Risiko untuk menggabungkan maklum balas yang diterima dan mempertingkatkan kertas perbincangan. Penghasilan Garis Panduan Perubahan Iklim dan Taksonomi Berasaskan Prinsip menampilkan peningkatan utama dalam bidang berikut: Memperkukuh dokumen panduan dengan pengenalan sistem kategori peralihan yang progresif (Menyokong Iklim, Peralihan dan Senarai Pantau) untuk mengiktiraf usaha dan komitmen peralihan konkrit oleh perniagaan untuk menerima pakai amalan mampan; dan Memberi kejelasan dan panduan yang lebih untuk penilaian prinsip panduan termasuk penggabungan hasil alam sekitar yang lebih luas melalui prinsip tiada bahaya yang ketara, dengan tumpuan khusus tentang cara operasi perniagaan mempengaruhi pencemaran, biodiversiti dan kecekapan sumber. Institusi kewangan boleh merujuk kepada kohort pertama Panduan Sektoral Pembiayaan Pengantaraan Berasaskan Nilai dan Rangka Kerja Penilaian Kesan Pelaburan (VBIAF) mengenai Minyak Sawit, Tenaga Boleh Diperbaharui dan Kecekapan Tenaga untuk panduan mengenai metrik sektoral/berasaskan aktiviti, dan iklim- berkaitan dan langkah-langkah pengurangan risiko alam sekitar. Kohort kedua Panduan Sektor VBIAF mengenai Minyak dan Gas, Pembinaan dan Infrastruktur, serta sektor Pembuatan akan diterbitkan menjelang akhir 2021. Panduan Sektoral VBIAF mengenai Minyak Sawit, Tenaga Boleh Diperbaharui dan Kecekapan Tenaga boleh diakses melalui pautan ini: https://aibim.com/value-based-intermediation © 2024 Bank Negara Malaysia. All rights reserved.

Issued on: 30 April 2021 Climate Change and Principle-based Taxonomy Applicable to: 1. Licensed banks 2. Licensed investment banks 3. Licensed international Islamic banks 4. Licensed Islamic banks 5. Licensed insurers 6. Licensed reinsurers 7. Licensed takaful operators 8. Licensed retakaful operators 9. Prescribed development financial institutions Climate Change and Principle-based Taxonomy 1 of 47 Issued on: 30 April 2021 TABLE OF CONTENTS Preface & Acknowledgement 2 Abbreviations 3 Part A: Overview Introduction 4 – 5 Applicability 6 Effective date 6 Related documents 6 Part B: Climate change impact and opportunities Dimensions and transmission channels of climate-related risks 7 – 9 Advancing climate ambitions and opportunities 9 – 11 Part C: Assessment of Economic Activities Guiding principles for the assessment of economic activities 12 Guiding Principle 1: Climate change mitigation 12 – 14 Guiding Principle 2: Climate change adaptation 14 – 16 Guiding Principle 3: No significant harm to the environment 16 – 17 Guiding Principle 4: Remedial measures to transition 18 – 20 Guiding Principle 5: Prohibited activities 20 – 21 External certification and verification 21 – 22 Part D: Classification of Economic Activities Classification system 23 – 24 Part E: Use Cases Use case 1: Financing for an expansion of oil palm plantation 25 – 26 Use case 2: Financing for a broiler chicken house 27 Use case 3: Refinancing a green building 28 – 29 Use case 4: Financing in fossil fuel-related activities 30 – 32 Use case 5: Investment in green assets 32 Appendices Appendix 1: Characteristics and effects of climate change 33 – 36 Appendix 2: Relevant national policies and plans to address climate change, biodiversity and environmental issues 37 – 38 Appendix 3: Examples of activities that generally meet GP1 39 – 41 Appendix 4: Examples of activities that generally meet GP2 42 – 45 Appendix 5: Examples of certification and independent verification 46 – 47 Climate Change and Principle-based Taxonomy 2 of 47 Issued on: 30 April 2021 PREFACE & ACKNOWLEDGEMENT The Climate Change and Principle-based Taxonomy (CCPT) is prepared by Bank Negara Malaysia in collaboration with the Risk Management sub-committee of the Joint Committee on Climate Change (JC3). The World Wide Fund for Nature (Malaysia and Singapore offices) also provided substantial inputs, particularly on aspects of environmental sustainability to the drafting of this document. Feedback and suggestions received during the public consultation have been incorporated in this document, where relevant. Queries and clarification may be directed to [email protected]. Members of Risk Management sub-committee of JC3 are listed below: 1. Bank Islam Malaysia Berhad 2. Bank Pertanian Malaysia Berhad (Agrobank) 3. CIMB Bank Berhad 4. Etiqa Insurance and Takaful 5. Hong Leong Bank Berhad 6. Institutional Investors Council Malaysia 7. Malayan Banking Berhad 8. Nomura Asset Management Malaysia Sdn Bhd 9. Securities Commission Malaysia 10. Standard Chartered Bank Malaysia Berhad 11. Zurich Insurance and Takaful DISCLAIMER: The views, findings, interpretations and conclusions expressed in this document do not necessarily represent the decision or the stated policy of the Bank, nor does citing of trade names or commercial processes constitute endorsement. Climate Change and Principle-based Taxonomy 3 of 47 Issued on: 30 April 2021 ABBREVIATIONS AMC Asset management company CCPT Climate Change and Principle-based Taxonomy CDP Carbon Disclosure Project CO2 Carbon dioxide EIA Environmental Impact Assessment EPU Economic Planning Unit, Prime Minister’s Department EQA 1974 Environmental Quality Act 1974 ESG Environmental, social and governance FIs Financial institutions GDP Gross domestic product GHG Greenhouse gas IFI International Financial Institution IPBES Intergovernmental Panel Science-Policy Platform on Biodiversity and Ecosystem Services IPCC Intergovernmental Panel on Climate Change ITOs Insurers and takaful operators JC3 Joint Committee on Climate Change LULUCF Land Use, Land-Use Change and Forestry MGP Malaysian Sustainable Palm Oil General Principle MSPO Malaysian Sustainable Palm Oil NDC Nationally determined contributions RE Renewable energy TCFD Task Force on Climate-Related Financial Disclosures UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change UN PRI United Nation Principles for Responsible Investment VBI Value-based Intermediation VBIAF Value-based Intermediation Financing and Investment Impact Assessment Framework WWF World Wide Fund for Nature Climate Change and Principle-based Taxonomy 4 of 47 Issued on: 30 April 2021 PART A OVERVIEW 1 Introduction 1.1 Climate change has significant impacts on the society, economy and financial system. Such changes can be observed through many ways such as a rise in surface temperature and sea level, volatility in local climate including drought and rainfall patterns, and higher frequency and severity of disaster occurrences. These changes are occurring at an unprecedented level, with human activity largely responsible1 (refer to Appendix 1 for the characteristics and effects of climate change). 1.2 Malaysia has experienced an increase in surface mean temperature of 0.13°C to 0.24°C per decade since 1969 to 2016.2 The impact of physical risk resulting from climate-related events and disasters has been significant with occurrences of more than 50 natural disasters in the past 20 years. These disasters have resulted in over RM8 billion monetary losses and affected the lives and livelihoods of more than 3 million people in Malaysia through displacements, injuries and death.3 1.3 Climate change also affects biodiversity, ecosystems, and natural resources such as fresh water, air and soil nutrients. In food production for example, increases in temperature can reduce the quality and quantity of cultivated crops, and lower the resilience of agroecosystems against pests and pathogens. Environmental degradation may also reduce the capacity of the ecosystems to absorb carbon.4 This demonstrates the close interlinkages and interactions between climate-related and environmental risks, with negative feedback loops that reinforces the damage from the materialisation of these risks. 1.4 Failure to recognise and manage climate and environmental-related risks may therefore lead to substantial financial consequences for businesses and households, as well as FIs that provide financing or investment to those exposed to such risks. 1.5 As corporate citizens and given the impact of climate change on enterprise value, viability and profitability, it is imperative that FIs integrate climate change considerations in all aspects of their business strategies and 1 IPCC. (2014). Fifth Assessment Report and IPCC (2018) Special Report: Global Warming of 1.5 ºC. 2 Ministry of Environment and Water. (December 2020). Malaysia’s Third Biennial Update Report submitted to the UNFCCC. 3 Zurairi AR. (October 2018). “Climate-related natural disasters cost Malaysia RM8b in last 20 years”. 4 Ecosystems such as forests, soils and oceans provide essential carbon storage as they absorb 60% of all anthropogenic carbon emissions. IPBES. (2019). The Global Assessment Report on Biodiversity and Ecosystem Services, Summary for Policymakers. Climate Change and Principle-based Taxonomy 5 of 47 Issued on: 30 April 2021 operations including human capital and compensation, risk management processes and public disclosures. 1.6 FIs should play a pivotal role in accelerating their customers’ transition towards more sustainable practices in their business operations. 1.7 This document aims to: (a) provide an overview of climate change and its impact on businesses and households as well as the broader economy; (b) introduce a principle-based taxonomy for FIs to assess and categorise economic activities according to the extent to which the activities meet climate objectives and promote the transition to a low-carbon economy. The taxonomy also incorporates the consideration of broader environmental outcomes through the principle of no significant harm, with specific regard to how business operations affect pollution, biodiversity and resource efficiency. In supporting an orderly transition, the taxonomy recognises remediation measures and introduces a progressive system of transition categories to acknowledge concrete efforts and commitments by businesses to adopt sustainable practices; and (c) facilitate standardised classification and reporting of climate-related exposures to support risk assessments at the institution and systemic levels, strengthen accountability and market transparency, and encourage financial flows towards supporting climate objectives. FIs can also leverage on the taxonomy in the design and structuring of green finance solutions and services to accelerate development of green sectors and activities, and decarbonisation efforts. 1.8 The principle-based approach considers the state of economic development of the country and the nascent stage of climate risk management at which businesses and other economic agents are currently in. By taking a more nurturing approach, this could avoid disruptive exclusions and dislocations thus ensuring an orderly transition of the economy. 1.9 The principle-based approach also supports applications in a wider context and alignment with other classification systems, particularly for FIs that operate across geographies. This takes into account different surrounding conditions across economies, progress in bridging data gaps, the quality of reporting or verification systems, and the ongoing update on national commitments, sectoral targets, thresholds and metrics. Climate Change and Principle-based Taxonomy 6 of 47 Issued on: 30 April 2021 2 Applicability 2.1 This document is developed to serve as a guide for FIs supervised by Bank Negara Malaysia:  Licensed banks  Licensed investment banks  Licensed international Islamic banks  Licensed Islamic banks  Licensed insurers  Licensed reinsurers  Licensed takaful operators  Licensed retakaful operators  Prescribed development financial institutions 2.2 The document is developed such that it may also be used by other financial sector stakeholders such as capital market players and intermediaries and analysts to guide in investment and asset selection decisions, as well as rating agencies in rating decisions. For the public sector, the document may serve as a guide for policy formulation and prioritisation as well as funds allocation. 3 Effective date 3.1 This document comes into effect on 30 April 2021. 4 Related documents 4.1 This document complements the VBIAF Guidance Document issued by Bank Negara Malaysia in November 2019. The VBIAF lays the foundation for ESG considerations in the provision of financial services, to generate a positive and sustainable impact on the economy, community and environment. While the VBIAF is premised on Shariah tenets, the framework has universal application for FIs seeking to reflect ESG considerations in their governance, business strategy and operations, reporting and risk management systems. 4.2 In efforts to align and converge the VBI and climate risk initiatives, the CCPT will leverage the VBIAF sectoral guides developed (thus far on renewable energy, palm oil and energy-efficiency) by the VBIAF Sectoral Guide Working Group spearheaded by the VBI Community of Practitioners (VBI CoP), to support the implementation of the VBIAF and CCPT.5 Guides for other sectors and activities are being developed6 to expand the practical resources available to FIs in implementing the VBIAF and CCPT progressively. FIs are encouraged to make reference to the VBIAF sectoral guides for more detailed guidance to conduct ESG impact assessments in specific sectors. Climate Change and Principle-based Taxonomy 7 of 47 Issued on: 30 April 2021 PART B CLIMATE CHANGE IMPACT AND OPPORTUNITIES 5 Dimensions and transmission channels of climate-related risks 5.1 Climate change impacts can manifest in three dimensions of risk namely physical, transition and liability risks. (a) Physical risk arises from acute (event-driven) and chronic (long term shift) climate-related events that damage property, reduce productivity and disrupt trade. This in turn, increases financial risk to FIs as revenue- generating capacity and credit worthiness of borrowers are materially impacted. In addition, this would lead to higher cost of financial protection or the potential reduction in insurance/takaful capacity. Physical risk also impacts collateral values, where assets pledged as collateral to financial institutions can be destroyed or significantly damaged by climate events, impacting the recovery value. (b) Transition risk occurs as a result of adjustment to a low-carbon economy. The adjustment may translate into financial and/or reputational risk to FIs. Sources of transition risk include changes in public policy and strategy, legislative and regulatory framework (e.g. mandatory disclosure requirements and carbon pricing policies), technological advancements (e.g. lowering the cost of RE) and/or shift in consumer and investor behaviour (e.g. certification mandates and fossil fuel divestment strategies). (c) Liability risk stems from legal risk and claims on damages and losses incurred from inaction or lack of action that results in the effects of physical and transition risks. This risk is potentially higher for ITOs as climate- related liabilities are transferable via liability protection underwritten by ITOs. For banking institutions and asset managers, this could result from financing and investment activities, whilst for the public policy makers and regulatory authorities, this could stem from public and regulatory policies. 5.2 Climate-related risks in the form of physical risk and transition risk are transmitted to FIs through various economic transmission channels that impact businesses and households as well as the broader economy. Bank Negara Malaysia views climate-related risks as a risk driver that has an impact on most of the commonly known risks managed by FIs, namely credit, market, liquidity, insurance/takaful, operational and strategic risks. 5 See the VBIAF Sectoral Guide Working Group and related documents at https://aibim.com/value-based- intermediation. 6 For 2021, the focus is on manufacturing, oil and gas, construction and infrastructure sectors. https://aibim.com/value-based-intermediation https://aibim.com/value-based-intermediation Climate Change and Principle-based Taxonomy 8 of 47 Issued on: 30 April 2021 5.3 The diagrams below illustrate the transmission of climate-related risks to the financial system. Source: Network of Central Banks and Supervisors for Greening the Financial System. (May 2020). "Guide for Supervisors Integrating Climate-related and Environmental Risks into Prudential Supervision." 5.4 It is important to recognise that climate-related risks are dynamic, evolving over time and interacting with each other. A significant increase in physical risk or delays in responding to physical risk would warrant a swift response to build resilience as well as to withstand and absorb climate shocks. This in turn will translate into higher transition risk. Where resources are limited, transition can be costly and involves significant inter-temporal trade-offs between competing socio-economic priorities. Poorly designed and sequenced changes in climate policy and technology, and shifts in market sentiment during the adjustment to a lower carbon economy could result in economic and social dislocations. 5.5 If the required adaptation and transition measures are not implemented carefully and in a timely manner, physical risks will escalate and manifest in further financial losses. This will adversely impact the balance sheets of FIs with broader consequences for financial stability. In a worst-case scenario of inaction, the increased probability of disruptive events will inevitably force a Climate Change and Principle-based Taxonomy 9 of 47 Issued on: 30 April 2021 sudden and radical change to the economy, with adverse consequences to a large part of the population. 6 Advancing climate ambitions and opportunities 6.1 The Paris Agreement sets out the long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit temperature increase to 1.5°C above pre-industrial levels.7 Central to the Paris Agreement is the NDC that embodies efforts by each country to reduce national emissions and adapt to the impacts of climate change. The NDC process is dynamic with countries expected to periodically increase their ambitions until the Paris Agreement goal is achieved. 6.2 Malaysia, in its NDC, pledged to reduce GHG emissions intensity of GDP by 45% by 2030, relative to the GHG emissions intensity of GDP in 2005. The commitment represents a 35% reduction on an unconditional basis and an additional 10% with the support of climate finance, technology transfer and capacity building from developed countries.8 6.3 To support the NDC, the Government has introduced relevant policies and targets (refer to Appendix 2 for relevant national policies and plans to address climate change, biodiversity, and environmental issues). These efforts would require the mobilisation of funds to support climate change mitigation and adaptation activities. 6.4 The table below provides the relevant policies and targets9: Sectors Policies Targets Renewable Energy Power Sector Development Plan 2021- 2039 31% renewable energy installed capacity mix by 2025, 45% reduction of emissions from the power sector by 2030 compared to 2005 level Energy Efficiency National Energy Efficiency Action Plan 2016 A savings of 52,233 GWh of electricity from 2016 to 2025, corresponding to an 8% reduction of electricity demand by 2025 across residential, commercial and industrial sectors 7 UNFCCC. (2015). Paris Agreement, Article 2 Paragraph 1(a). 8 In 2016, the energy sector was the largest contributor of emissions which accounted for 79.4% of emissions, followed by industrial processes and product use (IPPU), and waste sectors, which contributed to about 8.6% of total emissions. The agriculture, forestry and other land use (LULUCF) sectors contributed to about 3.4% of emissions. Compared with 2005, Malaysia’s GHG emissions intensity of GDP decreased by 23.3% in 2016 (without LULUCF) and 29.4% (with LULUCF). Malaysia 3rd Biennial Update Report to UNFCCC (December 2020). 9 The policies and targets listed are non-exhaustive. Climate Change and Principle-based Taxonomy 10 of 47 Issued on: 30 April 2021 Sectors Policies Targets Green Technology Master Plan Malaysia 2017-2030 15% reduction in electricity consumption by 2030 Transport National Automotive Policy 2020 Reduce carbon emissions in line with the ASEAN Fuel Economy Roadmap of 5.3 Lge/100km by 2025 National Land Public Transport Masterplan 40% modal share of public transport in urban areas by 2030 National Electric Mobility Blueprint 2015-203010 100,000 electric cars, 100,000 electric motorcycles, 125,000 charging stations, 2000 electric buses by 2030 Building Green Technology Master Plan Malaysia 2017-2030 1,750 green buildings certified by 2030 Manufacturing Green Technology Master Plan Malaysia 2017-2030 Increase in the number of green manufacturers to 17,000 by 2030 Waste Green Technology Master Plan Malaysia 2017-2030 28% recycling rate by 2030 Forestry Malaysian Forestry Policy11 50% of the land mass to be maintained under forest cover 6.5 Climate change mitigation and adaptation also bring significant new opportunities. The Global Commission on the Economy and Climate estimated that the transformative investments in energy, cities, food and land use, water, and industry could amount to USD26 trillion by 2030.12 Globally, there has been a significant increase in the number of companies committed to net zero emission, from 500 recorded in 2019 to 1,541 in 2020, driving demand for nature-based and technological solutions that actively remove carbon from the atmosphere.13 According to a study commissioned by the UN PRI, corporate demand for forest-related carbon removal could generate an annual revenue of 10 In April 2021, the Malaysian Climate Action Council announced that the Low Carbon Mobility Development Plan 2021-2030 would be implemented, which may entail updated targets for e-mobility. The Edge. (April 13, 2021). “Government’s approach to climate change issues outlined in MyCAC, says KASA”, https://www.theedgemarkets.com/article/govts-approach-climate-change-issues-outlined-mycac-says-kasa. 11 As reported in The Edge (March 21, 2021) “Malaysian Forestry Policy to serve as reference for policies adopted by states” and Forest Research Institute Malaysia (March 21, 2021) “PM launches Malaysian Forestry Policy at KBG FRIM”, https://www.frim.gov.my/pm-launches-malaysian-forestry-policy-at-kbg-frim/. 12 The Global Commission on the Economy and Climate. (August 2018). Unlocking the Inclusive Growth Story of the 21st Century: Accelerating Climate Action in Urgent Times. 13 UNPRI. (October 2020). “An Investor Guide to Negative Emissions Technologies and Land Use”. https://www.theedgemarkets.com/article/govts-approach-climate-change-issues-outlined-mycac-says-kasa https://www.frim.gov.my/pm-launches-malaysian-forestry-policy-at-kbg-frim/ Climate Change and Principle-based Taxonomy 11 of 47 Issued on: 30 April 2021 USD800 billion by 2050 with assets valued over USD1.2 trillion, surpassing the current market capitalisation of major oil and gas companies. 6.6 Locally, Malaysia’s targets as outlined in the policies above and the recent establishment of the Malaysian Climate Action Council which would steer national direction and coordination towards a green recovery, the development of low carbon cities14 and mobility, alongside the development of carbon markets,15 unlock new investment and funding opportunities for FIs. There are also emerging opportunities for FIs to support the development of nature-based solutions which have wider benefits for enhancing carbon sink, such as advanced soil and farming management techniques which sequester and keep carbon in soil, afforestation and reforestation of terrestrial forests, sustainable forest management and restoration of wetland areas. Aside from agriculture and plantation activities, opportunities are also aplenty in other sectors and industries such as manufacturing in terms of reengineering of production, processes and operations to be environmentally friendly and sustainable, application of new energy and water efficiency technology as well as sustainable materials in construction activities to produce energy efficient buildings and properties, etc. 6.7 The continuous pursuit of the Paris Agreement ambitions creates significant opportunities for the financial sector to catalyse further growth in sustainable businesses and practices. As the economy and financial system are dependent on and simultaneously impact the environment and society, it is important that FIs embrace the opportunities to support pathways towards low carbon and climate-resilient development for the benefit of people, planet and prosperity. 14 Based on EPU and UNDP study, investments in low-carbon cities in the country could create work opportunities in emerging green sectors and save RM46.9 billion in energy spending between 2016 and 2030, https://www.my.undp.org/content/malaysia/en/home/news-centre/articles/2019/lowcarboncity.html. 15 The Edge. (April 13, 2021). “Government’s approach to climate change issues outlined in MyCAC, says KASA”, https://www.theedgemarkets.com/article/govts-approach-climate-change-issues-outlined-mycac-says-kasa. https://www.my.undp.org/content/malaysia/en/home/news-centre/articles/2019/lowcarboncity.html https://www.theedgemarkets.com/article/govts-approach-climate-change-issues-outlined-mycac-says-kasa Climate Change and Principle-based Taxonomy 12 of 47 Issued on: 30 April 2021 PART C ASSESSMENT OF ECONOMIC ACTIVITIES 7 Guiding principles for the assessment of economic activities 7.1 Recognising the impact of climate change on communities, businesses and the wider economy, there is an urgency to alleviate the impact of climate change and accelerate transition towards a low carbon and climate resilient economy. FIs play a critical role in this transition by channeling capital and funds through their green financing and investment as well as advisory activities. The taxonomy supports these efforts by facilitating robust and consistent assessments of economic activities and their impact on climate and the environment. 7.2 In applying the taxonomy, the key elements of its guiding principles should be embedded in the due diligence assessment of existing and prospective customers. GP1 and GP2 are assessed at transaction level (e.g. upon origination and extension of credit, investment in financial assets, and structuring of capital market transactions). A more holistic assessment of the customer’s overall business is required to evaluate compliance with GP3, GP4 and GP5. Effective and transparent engagements between FIs and their customers, as well as access by FIs to relevant and verifiable information will be required to support assessments against the principles. Guiding Principle 1 (GP1): Climate change mitigation 7.3 The objective of climate change mitigation is to reduce or prevent emission of GHG into the atmosphere. An economic activity can be considered to meet climate change mitigation if such activity makes a substantial16 contribution in the following objectives: (a) Avoid GHG emissions; (b) Reduce GHG emissions; or (c) Enable others to avoid or reduce GHG emissions. 7.4 Common climate change mitigation activities include, but are not limited to, generation of renewable energy, rehabilitation, retrofitting and/or replacement of energy-inefficient technology and/or production of energy-efficient technologies as well as maintenance and strengthening of land-based carbon stock and sinks17, above and below ground. The activity should demonstrate 16 Positive impact from the activities should not be negligible and must be material enough to avoid potential greenwashing. 17 Activities involving maintenance and strengthening of land-based carbon stock and sinks, above and below ground can only be recognised as meeting GP1 if undertaken at the source of emissions. Climate Change and Principle-based Taxonomy 13 of 47 Issued on: 30 April 2021 the capability to avoid or reduce GHG emissions compared to the baseline scenario without the mitigating action. 7.5 Examples of the application of GP1 are provided in Table A. Table A: Examples on the application of GP1: Economic Activity Examples Measurement Renewable energy  Onshore and/or offshore wind power generation  Onshore and floating solar photovoltaic (PV) power generation  The IFI approach18 to GHG accounting for renewable energy projects can be used to measure GHG emissions associated with production of electricity at a wind farm, solar farm or hydro power plant.  These activities are assumed to reduce CO2 emission by comparing against emissions under an alternative scenario without the project. Rehabilitation , retrofitting and/or replacement with energy- efficient technology  Replacement of existing heating/cooling systems in buildings with non- fossil fuel powered systems  Energy-efficient vehicles and transport (e.g. hybrid cars)  The IFI approach to GHG accounting for energy-efficient economic activities can also be used to measure GHG emissions associated with investments in improvement of energy efficiency.  These activities are assumed to reduce CO2 emissions by comparing against existing emissions. Restoring, maintaining, conserving and strengthening of natural land-based carbon stock and sinks (for LULUCF only)  Avoidance/ suspension of deforestation  Afforestation and reforestation  Restoration or rehabilitation of forests, croplands, peatlands, grasslands and wetlands  Sustainable forest and agricultural management  Forest and peatland conservation  Guidance on forest, soil and biomass GHG accounting are provided by: o LULUCF GHG Protocol; o Guidelines for National GHG Inventories by the IPCC; and o CDP disclosure framework and system.  These activities are assumed to avoid or reduce CO2 emissions by comparing against existing emissions. 18 UNFCCC. (2021). “IFIs - Harmonization of Standards for GHG accounting”, https://unfccc.int/climate- action/sectoral-engagement/ifis-harmonization-of-standards-for-ghg-accounting. https://unfccc.int/climate-action/sectoral-engagement/ifis-harmonization-of-standards-for-ghg-accounting https://unfccc.int/climate-action/sectoral-engagement/ifis-harmonization-of-standards-for-ghg-accounting Climate Change and Principle-based Taxonomy 14 of 47 Issued on: 30 April 2021 7.6 An economic activity, while contributing to climate change mitigation, should not cause significant negative impact on the broader environment. Further examples of economic activities that generally meet GP1 are provided in Appendix 3. Guiding Principle 2 (GP2): Climate change adaptation 7.7 Adaptation is the process or actions taken to lower the negative effects and/or moderate harm caused by climate change19. The objective of climate change adaptation is to increase resilience to withstand the adverse physical impact of current and future climate change. The adaptation activity can benefit an entity, organisation, community, market, sector or region. An economic activity can be considered as meeting climate change adaptation objective through the following: (a) Implement measures to increase own resilience to climate change; or (b) Enable others to increase resilience to climate change. 7.8 In order to demonstrate that an activity contributes to increasing resilience to the negative physical effects of climate change, it is necessary to: (a) Identify expected negative physical effects of climate change by leveraging evidence and appropriate climate information; and (b) Demonstrate how the activity or measures taken can build resilience, prevent an increase or shift the identified negative impact of climate change. 7.9 In order to identify an economic activity that contributes to the climate change adaptation objective, the following considerations are necessary: (a) The economic activity shall positively contribute to a reduction in material physical climate risk (i) For adaptation activity to increase its own resilience, the adaptation activity shall reasonably reduce material physical risk from current and future climate change. Impact assessments under a broad range of climate scenarios shall be conducted to provide better understanding and insights on the effectiveness and benefits of the adaptation activity. (ii) For an activity that is enabling adaptation of other economic activities, the activity shall reduce the impact of material physical risk from other economic activities and/or reduce barriers to adaptation through the use of technology, service or product. 19 IPCC. (2012). Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation. Climate Change and Principle-based Taxonomy 15 of 47 Issued on: 30 April 2021 (b) The economic activity, while contributing to climate change adaptation, should be sustainable, does not negatively impact other adaptation efforts or cause harm to the broader environment and community. (c) The economic activity should have climate change adaptation outcomes that can be clearly defined. The outcomes of the action taken shall be sustainable and fit-for-purpose. These outcomes should also be observable, measurable and monitored over time against a set of pre- determined indicators. 7.10 Examples of assessment criteria are provided in Table B. Table B: Examples of assessment criteria Economic Activity Component Key Consideration Assessment Criteria Purpose of the economic activity Positively contribute to a reduction in material physical climate risk  Is the purpose of economic activity to reduce physical risk to an organisation, community or society?  Can the objectives and benefits of the activity be clearly articulated?  How far reaching are the expected benefits to the organisation, community or society? Impact of the economic activity Should be sustainable and does not negatively impact other adaptation efforts or cause harm to the broader environment and community  Is the activity performed in a sustainable manner?  Has the organisation or the FI obtained an independent and reliable expert opinion for due diligence purposes? (e.g. feasibility studies, vulnerability assessments, impact analysis)  Any unintended impacts on other adaptation efforts or the broader environment and community? (e.g. displacement of flood water at the expense of another community area, poorly managed construction of adaptation infrastructure resulting in waste production, water contamination, destruction of natural animal habitats or local communities) Defining the outcome of the economic activity Outcome to be clearly defined, sustainable and fit-for-purpose  What is the desired outcome of the activity i.e. project/R&D/business process improvement/product innovation? (e.g. construction of slope protection to prevent landslides)  Can the desired outcome increase resilience against the effects of climate change in the long run? (e.g. sustained crop production in Climate Change and Principle-based Taxonomy 16 of 47 Issued on: 30 April 2021 drought-prone areas with the installation of water harvesting systems)  Is the objective clearly articulated and transparent to relevant stakeholders? (e.g. shareholders, financiers, sponsors, insurers/takaful operators, fund managers, vendors, customers, local community) Measuring outcome of the economic activity Outcome shall be observable, measureable and monitored over time against a set of pre-determined indicators  What is the expected performance of activity and how is success defined? (e.g. reduced landslide incidences and loss of assets during rainfall)  Is the outcome of economic activity measurable? (e.g. frequency of landslide incidences)  Can the outcome be measured on an on- going basis to monitor effectiveness of economic activity? (e.g. annual occurrences of landslide incidences) 7.11 Non-exhaustive examples of climate change adaptation activities are provided in Appendix 4. Guiding Principle 3 (GP3): No significant harm to the environment 7.12 An economic activity is generally location and context specific and interacts directly or indirectly with the surrounding environment. While the economic activity may contribute towards climate risk mitigation and/or adaptation, the economic activity and the overall business may cause unintended harm to the broader environment. This could adversely impact the surrounding community and environment and may even precipitate disruptions to overall climate resilience. 7.13 FIs should therefore take into account the impact of the economic activity and the overall business on the wider ecosystem. Specifically, the following environmental objectives20 must be met: (a) Prevent, reduce and control pollution (air, water and land); (b) Protect healthy ecosystems and biodiversity; and (c) Use energy, water and other natural resources in a sustainable and efficient manner. 7.14 FIs should establish a clear risk acceptance criteria for informed decision making, particularly in assessing whether the economic activity and overall business is at risk of causing significant harm to the environment. FIs are 20 Environmental Quality Act 1974 and National Policy on the Environment 2002. Climate Change and Principle-based Taxonomy 17 of 47 Issued on: 30 April 2021 expected to exercise appropriate due diligence in determining if the customers meet the principle of no significant harm to the environment.21 More often than not, a certification serves as a starting point for FIs to understand the assessment criteria used as well as the strength of emphasis placed on specific climate and/or environmental objectives. FIs should obtain assurance that the certification can strongly demonstrate substantial contribution to climate and/or environmental objectives. 7.15 The following non-exhaustive criteria can be considered in facilitating the assessment: Environmental objectives Examples of assessment criteria Prevent, reduce and control pollution (air, water and land)  Prevent pollution of air, water and land where the economic activity takes place, including appropriate use of products, equipment and techniques. For example, proper use of fertilisers, pesticides and herbicides taking into account the appropriate dosage, avoidance of harmful materials/substances such as asbestos in buildings/constructions.  Undertake cleaning measures immediately when there is a pollution.  Proper waste management practices.  Ensure no potential contaminants on land prior to or during use. Protect healthy ecosystems and biodiversity  Implement necessary measures to protect ecosystems and biodiversity.  Prevent soil erosion and run-off into watercourses.  Avoid land/site use on protected natural areas.  Adopt sustainable logging practices and ensure timber products are sourced from sustainably managed forests. Sustainable and efficient use of energy, water, and other natural resources  Identify and manage risks related to water quality/energy/natural resources and/or water/energy/natural resources loss through leakage and/or improper management of infrastructure.  Implement water use/conservation management plans.  Ensure water/energy/natural resources appliances fulfil the requirements of relevant national legislations. 21 For avoidance of doubt, certification in itself is insufficient to fulfil GP3. Climate Change and Principle-based Taxonomy 18 of 47 Issued on: 30 April 2021 Guiding Principle 4 (GP4): Remedial measures to transition 7.16 The applicability of remedial measures is predicated on FIs’ assessment of GP1, GP2 and GP3 insofar as the remedial measures address the significant harm identified at either the economic activity level or the overall business level or both. 7.17 The recognition of remedial measures aims to support an orderly transition by avoiding any outright exclusion of economic activities that are currently not contributing to climate change objectives and/or not sustainable. Accordingly, FIs are expected to encourage, facilitate and take into account the remedial efforts and improvement programmes undertaken by businesses to align their operations with a low-carbon and climate resilient economy. Where relevant, FIs should also encourage businesses to adopt practices that are both resource-efficient and minimise waste production as propounded by the concept of circularity or a circular economy22. 7.18 FIs may consider establishing baseline expectation(s) on the broader environmental strategy of businesses which can be done by ensuring that businesses set mid-term target(s), identify pathways to meet climate objective(s) and establish implementation plans to meet the target(s) over a defined period of time. For carbon intensive sectors, FIs must exercise due care to avoid supporting activities that promote long-term carbon lock-in and/or activities that maintain economic barriers to low carbon solutions. 7.19 In this regard, FIs should conduct adequate assessments to ascertain the effects and significance of remedial efforts undertaken by businesses, taking into account the business objectives, the size and systemic importance to the economy, and impact of the efforts to compensate short-term loss/harm to the environment. The strength and suitability of remedial efforts may be evaluated based on the following considerations as illustrated in Table C. 22 A circular economy is a systemic approach to economic development designed to benefit businesses, society, and the environment. In contrast to the ‘take-make-waste’ linear model, a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources. The Ellen MacArthur Foundation, https://www.ellenmacarthurfoundation.org/explore/the-circular-economy-in-detail. https://www.ellenmacarthurfoundation.org/explore/the-circular-economy-in-detail Climate Change and Principle-based Taxonomy 19 of 47 Issued on: 30 April 2021 Table C: An illustration of criteria to assess the strengths and suitability of remedial efforts Background/Context Setting Business is assessed as causing significant harm to the climate and/or the environment. Assessment Objectives  The remedial efforts should directly contribute towards the outcomes in which unacceptable risks to the climate and/or environment can be eliminated or significantly reduced.  The commitment/willingness of the business is demonstrated through the development/practice/commitment of sustainable practices to ensure that the business is conducted in a sustainable manner where all parties involved understand the potential risks and take appropriate mitigating actions to reduce any adverse climate and/or environmental impacts. Assessment Criteria Sector/industry  What is the intensity of the business’ GHG emissions in comparison with the industry average or other acceptable benchmark?  Is there a decarbonisation pathway established within the industry that the business operates in?  What are the environmental-related risks commonly associated with the sector/industry? Have these risks been taken into consideration in business strategy and policies?  Is there any pollution management or mitigation plan? How effective is the policy implementation?  Is there a requirement for mandatory industry-specific certification? Purpose and possible impact of loan/financing/investment  What are the proceeds used for?  Will the use of proceeds help reduce GHG emissions?  Will the use of proceeds help increase climate resilience?  Will the use of proceeds help fund sustainable practices?  Will the use of proceeds help remediate, or at least not increase, the harm caused by the business to the environment? Business profile  Is the business strategy (proactiveness and willingness) aligned with climate change and environmental objectives?  Is the business operation(s) and asset(s) located in areas vulnerable to physical risk?  How extensive is the business supply chain and to what extent are the business’ vendor(s) adopting sustainable practices?  Does the business have adequate financial capacity to fund the remedial efforts, including supporting remediation efforts by its vendor(s)?  What is the business competitive position and its leadership role in the industry? Climate Change and Principle-based Taxonomy 20 of 47 Issued on: 30 April 2021 Determining remediation efforts for credit decision and monitoring Remedial efforts and transition period  What is the business’ current GHG emissions profile and does it have a plan to close gaps against acceptable benchmarks?  Has a plan with specific milestones been drawn up to outline appropriate measures to achieve GHG emissions reduction and reduce environment- related risks?  Is the remediation plan appropriate and does the plan commensurate with the size, complexity and financial capacity of the business?  Is there a plan and time-bound commitment to pursue external certification and/or validation (voluntary certifications)? Tracking and monitoring of remedial outcomes  Progress of remedial efforts should be tracked by FIs against the agreed milestone and timelines i.e. short, medium and long term. 7.20 The above illustration serves as a guide and FIs are encouraged to expand the scope of assessment to include broader ESG considerations for more holistic due diligence on the business’ transition commitment. Guiding Principle 5 (GP5): Prohibited activities 7.21 At the outset, FIs should verify and ensure that the economic activities being considered and/or financed are not illegal and do not contravene environmental laws. These include, but are not limited to: (a) The National Forestry Act 1984; (b) Wildlife Conservation Act 2010; (c) National Parks Act 1980; (d) The Fisheries Act 1985; and (e) The Environmental Quality Act 1974. 7.22 Examples of environment-related prohibited activities are as follows: (a) Operations involving illegal deforestation or the act of illegal deforestation, which results in soil degradation that ultimately releases CO2 into the atmosphere; (b) Industrial process operations, generation, storage, treatment and disposal, which include illegal waste management as well as the release of untreated toxic and hazardous industrial waste and substances; and (c) Operations that use fire for land clearance or leave fires burning for the purpose of agriculture and urbanisation, and other forestry related activities within, adjacent to, or upstream of designated protected areas (reserved forests and habitats of rare/endangered species). 7.23 FIs are also strongly encouraged, as part of their lending and/or investment decisions, to ascertain if businesses are engaged in activities that are in Climate Change and Principle-based Taxonomy 21 of 47 Issued on: 30 April 2021 contravention with national human rights and labour laws in line VBIAF23.These include but are not limited to the following laws: (a) Employment Act 1955; (b) Children and Young Persons (Employment Act 1966); and (c) Minimum Wages Order 2018. 7.24 FIs may obtain written statements or enforce compliance clauses signed by customers in the Letter of Undertaking or any other form of facility agreements to give effect to GP5. This provides an avenue for FIs to take necessary actions in the event that customers are subsequently found to be involved in illegal activities post on-boarding. This includes actions to terminate relationship with the customer. 8 External certification and verification 8.1 FIs can leverage on third party verifications or recognised certifications by local agencies, national authorities or international accreditation bodies to inform their internal due diligence process. 8.2 FIs need to be aware of the differences in scope and assessment rigour under various certification standards and apply informed judgment on whether certification standards used in assessment against the guiding principles meets the climate and environmental objectives. FIs should review and be satisfied that the certifications provided are relevant, credible, and supported by acceptable standards and criteria with robust and transparent assessment processes. 8.3 Where relevant, FIs should consider mandatory certification requirements in the respective jurisdiction that the business operates in, to determine the relevance and adequacy of the certification standard. 8.4 In instances where an economic activity does not meet the substance of the guiding principles or internationally accepted practices, FIs should evaluate the nature of the gaps and assess the effectiveness of remedial actions taken/or to be taken, if any, to raise the standards of performance and/or compliance. 8.5 FIs should establish an internal list of approved certifications, which is subject to appropriate oversight and regular review to ensure the certifications are relevant, current and valid. Examples of third party certifications and verifications are provided in Appendix 5. 23 FIs may also refer to OECD Guidelines for Multilateral Enterprise and UN Guiding Principles on Business and Human Rights. Climate Change and Principle-based Taxonomy 22 of 47 Issued on: 30 April 2021 8.6 FIs can also leverage sustainability reporting standards or external rating agencies to assess evidence of customers’ practices. -The rest of this page has been intentionally left blank- Climate Change and Principle-based Taxonomy 23 of 47 Issued on: 30 April 2021 PART D CLASSIFICATION OF ECONOMIC ACTIVITIES 9 Classification system 9.1 A consistent and systematic classification of economic activities can facilitate and promote the channeling of financial flows to activities that support climate change and environmental objectives, including the transition towards more sustainable practices. For the purpose of this document, economic activities are classified into three broad categories (Climate Supporting, Transitioning and Watchlist), based on GP1 to GP4. 9.2 The classification system in Table D is constructed based on the following considerations: (a) Positive impact on climate change objectives i.e. mitigation (GP1) and adaptation (GP2); (b) Potential negative effects to the broader environment (GP3); and (c) Measures taken (or not taken) to reduce harmful practices (GP4). FIs should ascertain that the positive impact and remediation measures are not negligible and must be material enough to avoid potential greenwashing. Table D: Classification of economic activities Classification Economic Activity (Transaction Level) Overall Business GP1 GP2 GP3 GP4 Climate Change Mitigation Climate Change Adaptation No Significant Harm to the Environment Remedial Efforts to Promote Transition Climate Supporting C1 GP1 or GP2 or both ✓ Transitioning C2 GP1 or GP2 or both ✘ ✓ C3 ✘ ✘ ✓ Watchlist C4 GP1 or GP2 or both ✘ ✘ C5 ✘ ✘ ✘ 9.3 An economic activity should not be considered sustainable independently of the impact of such economic activity and overall business of the party undertaking the economic activity on the wider eco-system. Due diligence assessments by FIs for this purpose should include ensuring that there is no track record of environmentally damaging practices. Climate Change and Principle-based Taxonomy 24 of 47 Issued on: 30 April 2021 9.4 ‘C1’ to ‘C5’ represent the different levels of contribution of economic activities towards climate and environmental objectives. Only economic activities that meaningfully contribute to climate objectives without causing significant harm to the environmental objectives identified in GP3, in the immediate and intermediate future, can be categorised as ‘C1’. 9.5 When businesses undertake efforts to transition to low carbon and sustainable practices, the initiatives and/or overall business may still, in the immediate and intermediate future, cause some harm to the broader environment. In such cases, FIs must assess the level of commitment and actions taken to implement remedial measures necessary to reduce or eliminate the identified harm. Categories ‘C2’ and ‘C3’ in the classification system serve to represent these businesses that are in the progressive stages of transitioning. 9.6 For businesses that do not display any commitment or are not serious in their commitment to remediate the harm identified and/or do not undertake any initiative to transition to more sustainable practices, the economic activities are categorised as ‘C4’ or ‘C5’. These categories reflect the heightened transition cost and reputational risk associated with the economic activity or business. FIs should constructively engage customers in these categories to develop concrete, actionable plans to address the identified harm to the environment and promote business viability associated with more sustainable practices. 9.7 FIs have an important role in supporting and/or accelerating business transition through providing incentives, which include, among others, via pricing mechanisms, rehabilitation programmes, financing and underwriting conditions and strategy, and advisory and corporate finance activities. Notwithstanding, should the customer fail to demonstrate serious commitment in implementing remediation measures or failed to effectively limit or reduce harm caused by the activities, FIs can consider applying more stringent lending terms such as a shorter tenor, a lower loan limit, increasing the loan pricing, or reassessing its relationship with the customer with a view to exit the relationship. Climate Change and Principle-based Taxonomy 25 of 47 Issued on: 30 April 2021 PART E USE CASES Use case 1: Financing for an expansion of oil palm plantation Background  An existing mid-sized customer (with more than 500 hectares, including peatland) is requesting a new project financing to expand its oil palm plantation on an existing agriculture land. The project financing is primarily to fund new cultivation and implement measures to support the adoption of sustainable practices.  All oil palm plantations are required to obtain MSPO certification by January 202224, failing which, the licence will be suspended or revoked and the economic activity will fall within the prohibited category (GP5). The customer has obtained MSPO certification covering 7 MGPs for its existing oil palm plantation and 6 MGPs for its palm oil mills as follows: (a) MGP1: Management commitment and responsibility (b) MGP2: Transparency (c) MGP3: Compliance to legal requirements (d) MGP4: Social responsibility, health, safety, and employment conditions (e) MGP5: Environment, natural resources, biodiversity and ecosystem services (f) MGP6: Best practices (g) MGP7: Development of new planting Note: EIA and biodiversity assessment form part of the MSPO certification for oil palm players with more than 500 hectares of plantation. The MSPO certification is reviewed on an annual basis and renewal is required every 5 years. Scenario A: Assessment and classification  Feedback from relevant Government agencies such as the Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Certification Council (MPOCC) and Department of Environment (DOE) on the customer’s operations and its impact to the environment was satisfactory. The FI had also ascertained through enhanced due diligence that the customer has satisfactorily implemented the following measures: (a) Measures to reduce GHG emissions (GP1) (i) Systematically collect, accumulate and transfer oil palm biomass for processing by biofuel producer; and 24 Malaysian Palm Oil Board Climate Change and Principle-based Taxonomy 26 of 47 Issued on: 30 April 2021 (ii) Use of hybrid vehicles for maintenance work and transportation of palm fruits. (b) Measures to increase climate resilience (GP2) (i) Install water harvesting system (e.g. redirecting water from drainage and storage of rainwater as contingency for dry spell periods). (c) Remedial measures to reduce harm to the environment (GP4) (i) No use of open burning in preparation for cultivation and waste disposal; (ii) Management of water table in existing peat areas to reduce peat subsidence rate i.e. release of GHG emissions from peat soil; and (iii) Use palm oil mill effluent (POME) as a substitute for inorganic fertilisers.  The customer is subjected to periodic due diligence to assess the progress and performance of the above measures.  The customer is MSPO certified and has implemented measures to actively reduce its GHG emissions and increase resilience of crop production during dry spell periods. In addition, the customer is making efforts to limit harm to the broader environment. Hence, the project financing shall be classified as ‘C2’. Scenario B: Assessment and classification  The FI has ascertained that the customer is also implementing international best practices to limit harm to the environment (GP3): (a) No new deforestation; (b) No new cultivation on peatland; (c) Maintain a ground cover of natural vegetation in existing peatland to keep surface moist, minimize irreversible drying and reduce GHG emissions; (d) Construct water management and drainage systems to maintain acceptable level of water table for existing peatland; (e) No new cultivation on steep terrains with slope of 25 degrees or more; and (f) Conduct periodic soil testing to determine its organic matter and pH structure, and maintain soil fertility.  The customer is MSPO certified and has implemented international best practices to ensure significant contribution to climate objectives and substantially limit harm to the broader environment. Hence, the project financing shall be classified as ‘C1’. Climate Change and Principle-based Taxonomy 27 of 47 Issued on: 30 April 2021 Use case 2: Financing for a broiler chicken house Background  An existing customer is requesting a new project financing from a FI to construct a broiler chicken house (located near residential areas and natural waterways) to supply fresh chickens to surrounding local markets.  The customer has obtained clearance and approval from the Department of Veterinary Services Malaysia (DVS) for its new project (this approval is compulsory for commercial livestock). The customer has also proactively obtained the Malaysian Good Agriculture Practices (myGAP) certification25 in line with its sustainable strategy, even though this is not a mandatory requirement for supply to the domestic market. The scope of myGAP certification is broad and covers a wide range of good practices such as appropriate farm management including comprehensive biosecurity programme, drugs and medication monitoring, water management, workers’ welfare standards and record keeping. Scenario A: Assessment and classification  Feedback from the relevant Government agencies such as Department of Environment (DOE) and Department of Fisheries (DOF) is satisfactory. The customer has also consulted other stakeholders, including environmental groups and community leaders, and has obtained support for the project without adverse comments.  Given the nature of poultry farming and its potential harm to the broader environment (GP3), the customer has installed a manure management system to reduce pollution (GP4).  While the customer has implemented measures to limit harm to the broader environment, the measures do not further contribute to climate mitigation and adaptation. 26 Hence, the project financing shall be classified as ‘C3’. Scenario B: Assessment and classification  In addition to pollution management, the customer has installed a biogas catchment/collection system which enables the conversion of poultry wastes/manure into biogas to generate electricity for own usage. The farm also uses energy-efficient LED light bulbs.  Besides implementing measures to mitigate harm to the broader environment (GP4), the customer is also actively reducing its GHG emissions (GP1). Hence the project financing shall be classified as ‘C2’. 25 myGAP certification is compulsory for export markets. 26 Refer to EU Taxonomy Technical Annex to the TEG Final Report on Livestock Production, page 140 – 154, for additional information on practices that can reduce GHG emissions in livestock farming. Climate Change and Principle-based Taxonomy 28 of 47 Issued on: 30 April 2021 Use case 3: Refinancing a green building Background  A leading property developer in Malaysia has established a special purpose vehicle to construct a green-certified office building for its own use. The borrower is in discussion with a FI to refinance its existing facility totalling RM300 million, which was used to part finance the construction.  The building was constructed over a 2-acre land and was issued with a provisional Green Building Index (GBI) Design Assessment certification. The developer is in the midst of applying for the final GBI award, with a target to achieve Platinum rating (i.e. within the FI’s risk appetite of silver rating at minimum) covering the following six areas: (a) Energy Efficiency (b) Indoor Environmental Quality (c) Sustainable Site Planning and Management (d) Material and Resources (e) Water Efficiency (f) Innovation  The borrower complies with applicable requirements such as EIA, Environmental Management Plan and Occupational Safety & Health Management Plan.  The borrower also adopts a strict policy to ensure compliance with environmental, social and governance standards which includes ensuring no deforestation, forced labour or development-induced displacement of local communities. Based on due diligence, leveraging on external ESG data and analytics platforms, the borrower is free of controversies, fines, penalties and regulatory sanctions in relation to the above. The FI has also verified and obtained assurance on the borrower’s good track record in general with no on- going/past history of high-profile allegations, such as illegal dumping of construction waste by its contractors. Scenario A: Assessment and classification (clean track record)  At a transactional level, the borrower meets GP1 subject to a GBI silver rating at minimum. However, the borrower does not meet GP2 as GBI mainly focuses on evaluating the environmental performance of buildings, not the building’s adaptive capacity to climate-related hazards.  In assessing GP3, the FI conducted rigorous assessment at both the borrower/overall business and transaction/economic activity (project) level to establish the following: Climate Change and Principle-based Taxonomy 29 of 47 Issued on: 30 April 2021 (a) Borrower had meticulously assessed the building’s environmental performance and improved the design to reduce adverse impact on climate change (e.g. increase building energy intensity, encourage use of renewable energy, use recycled content materials); (b) Sustainability due diligence was conducted as part of the FIs approval process; (c) Compliance with the FIs internal real estate and construction sector guides’ requirements, sustainable financing policy and controversy check; and (d) Satisfactory report from EIA (if relevant), Environmental Management Plan and Occupational Safety & Health Management Plan.  Based on the GBI rating with no adverse finding arising from the due diligence, the borrower meets GP3, and thus the transaction shall be classified as ‘C1’. Scenario B: Assessment and classification (allegations of improper waste management)  At a transactional level, the borrower meets GP1 subject to a GBI silver rating at minimum. However, the borrower does not meet GP2 as GBI mainly focuses on evaluating the environmental performance of buildings, not the building’s adaptive capacity to climate-related hazards.  In assessing GP3, the FI conducted rigorous assessments at both the borrower/overall business and transaction/economic activity (project) level and discovered that the borrower is facing allegations of improper waste management. The FI engaged the customer on the allegations and found that the customer has put in place remediation measures. The customer has demonstrated a serious commitment to improve its waste management practices with actionable, time-bound and transparent remediation plans. This includes the development and implementation of a company policy to require recycling and proper disposal of construction waste. In this regard, the transaction will be classified as ‘C2’.  The FI will continue to engage the borrower to evaluate the effectiveness of the remediation plans. In the event of unsatisfactory progress or failure to implement the committed remediation plans, the classification shall be downgraded to ‘C4’. The FI should also consider applying more stringent lending terms such as a shorter tenor, a lower loan limit, increasing the loan pricing, or reassessing its relationship with the customer with a view to exit the relationship. Climate Change and Principle-based Taxonomy 30 of 47 Issued on: 30 April 2021 Use case 4: Financing in fossil-fuel related activities Background  An offshore customer who is involved in both upstream (i.e. exploration and production of crude oil and natural gas) and downstream (i.e. refining, manufacturing, trading and distribution of oil and gas and petroleum-related products) activities within the oil and gas sector is seeking facilities as stated below.  The customer’s overall strategy in addressing climate change and the associated environmental impacts include having a commitment to reduce GHG emissions by 20 million tonnes by 2025, focusing on liquefied natural gas while transitioning towards renewable energy solutions, employing carbon capture utilisation, and sequestration technologies and approaches in upstream activities. Over and above this, the customer has also demonstrated a clear sustainability strategy including plans to achieve net zero carbon emissions by 2050, alongside other key sustainability targets.  In addition, the customer complies not only with the EQA 1974 but has ISO 14001:2003 Environmental Management Systems certification for 80% of its exploration, production and manufacturing facilities with a commitment to obtain 100% certification by end 2022. It has policies, guidelines and response teams in place to manage oil spills, and conducts annual EIAs on key upstream and downstream activities.  The FI has conducted an assessment to ensure that all financial transactions involving the customer and the customer’s overall business activities are not illegal, do not contravene environmental laws and the company does not have any track record in environmentally damaging practices. In addition, the customer has met the FI’s internal oil and gas sector guide requirements, sustainable financing policy and controversy check with adequate supporting documentation. Scenario A: Assessment and classification (back-to-back letter of credit facility)  The main purpose of the credit facility is to facilitate trading of petrochemical products at the international market.  At a transactional level assessment, the customer meets neither GP1 nor GP2, as the nature of transaction and purpose of facility do not contribute to climate change mitigation or adaptation objectives.  In relation to GP3, the customer’s activities indirectly contribute potential negative effects to the environment, e.g. the burning of petrochemicals releases GHG emissions. While petrochemical products can be used to produce Climate Change and Principle-based Taxonomy 31 of 47 Issued on: 30 April 2021 pharmaceutical products for social health and wellbeing, petrochemical products are also widely used to produce a range of other products such as plastics, synthetic rubber, urea fertilisers, etc. Such products may cause harm to the environment as many of these products do not biodegrade, resulting in the accumulation and pollution of water supplies, and impacting ecosystems and soil quality.  Nevertheless, the customer is adopting sustainable practices and has developed concrete long term action plans to transition its business in supporting the shift towards a low carbon and climate resilient economy. In addition, it has also established specific measures to ensure that it only trades petrochemicals products derived through sustainable practices and sourced from facilities with ISO 14001:2003 Environmental Management Systems certification. With the remediation measures in place (at both transactional and business level) and clear commitments towards transitioning, the economic activity meets GP4. Hence, the transaction shall be classified as ‘C3’. Scenario B: Assessment and classification (bond issuance)  The main purpose of the bond issuance is to facilitate diversification initiatives specifically related to renewable energy.  At transactional level assessment, the customer meets GP1 as the purpose of the facility directly supports climate change mitigation through the customer’s involvement in renewable energy.  Although the customer is involved in renewable energy, from an overall business perspective, it engages in other upstream and downstream oil and gas activities that do have potential negative effects on the environment in relation to GP3. However, since the customer has clear plans and practices in place to support transition efforts towards a low carbon and climate resilient economy, these plans meet GP4. Hence, the transaction shall be classified as ‘C2’. Scenario C: Assessment and classification (revolving credit facility)  The main purpose of financing is to facilitate corporate strategies associated with the expansion of upstream business within the region.  At a transactional level assessment, the customer meets neither GP1 nor GP2.  At the overall business level, while the customer’s activities do have potential negative effects on the environment in relation to GP3, the customer has clear plans and is adopting sustainable practices to support the transition efforts towards a low carbon and climate resilient economy such as commitment to reduce GHG emissions and its focus on supplying low carbon fuels. These Climate Change and Principle-based Taxonomy 32 of 47 Issued on: 30 April 2021 remedial efforts to promote transition meet GP4 and hence, the economic activity shall be classified as ‘C3’. Use case 5: Investment in green assets Background  A public listed renewable electricity power generation company has over 26GW of renewable generation capacity in operation and generates almost 50TWh of clean energy annually. Over the past decade, the company has invested over USD90 billion into clean energy infrastructure, resulting in the production of huge volumes of carbon free energy across its operations, and lowering the cost of renewable technology for other market participants. The company has also begun reporting its climate change mitigation impact i.e. carbon emissions avoided due to the generation of renewable energy. The metric shows that its operating portfolio resulted in over 28 million tonnes of avoided CO2 emissions in 2019.  As a responsible investor, the AMC has conducted an assessment on the sustainability metrics and financials of the investee company. Based on its research and analysis, the AMC is satisfied with the environmental attractiveness and future value of renewable energy investments made by the company. Despite the strong performance of the company’s shares, there is prospect for the share price to rise and result in higher returns.  The investee company has also made transparent its strategic roadmap on sustainability in its public disclosures. This allows the AMC to better understand the intrinsic value of the business and its total impact. Assessment and classification  The investee company’s renewable energy business contributes substantially to GHG emissions reduction, thus supporting climate risk mitigation objective (GP1). Upon rigorous due diligence by the AMC, the investee company is found to have a credible track record with no evidence of harm to the broader environment, in line with GP3.  Given the above, the equity investment shall be classified as ‘C1’. Climate Change and Principle-based Taxonomy 33 of 47 Issued on: 30 April 2021 APPENDIX 1 CHARACTERISTICS AND EFFECTS OF CLIMATE CHANGE Characteristics of Climate Change  Far-reaching in breadth and magnitude Climate change will affect all agents in the economy (households, businesses, governments), across all sectors and geographies. The risks will likely be correlated with and, potentially aggravated by tipping points, in a non-linear fashion. This means the impacts could be much larger, and more widespread and diverse than those of other structural changes (NGFS, 2019).  Foreseeable nature While the exact outcomes and time horizon are uncertain, there is a high degree of certainty that some combination of physical and transition risks will materialize in the future (NGFS, 2019).  Irreversibility The impact of climate change is determined by the concentration of GHG emissions in the atmosphere and there is currently no mature technology to reverse the process. Above a certain threshold, scientists have shown with a high degree of confidence that climate change will have irreversible consequences on our planet, though uncertainty remains about the exact severity and time horizon (IPCC, 2019).  Dependency on short-term actions The magnitude and nature of the future impacts will be determined by actions taken today, which thus need to follow a credible and forward-looking policy path. This includes coordinated actions by governments, central banks and supervisors, financial market participants, firms and households. (NGFS, 2019). Causes and Effects of Climate Change The world is getting warmer…  The concentration of carbon dioxide in the earth’s atmosphere has risen 47% since the Industrial Age (NASA, 2019).  In 2005, burning of fossil fuels produced the largest carbon footprint with the power and industry sector combined dominating 60% of global CO2 emissions (IPCC, 2005).  In 2010, 52% of global direct GHG were emitted by industry and waste from Asia region (IPCC, 2014).  In 2020, the global average surface temperature was 1.2°C higher than the pre- industrial baseline (1850-1900) (WMO, 2020). …and so is Malaysia  In the past 46 years, the surface mean temperature average for Malaysia increased by 0.13°C to 0.24°C per decade (Ministry of Environment and Water, 2018).  Peninsular Malaysia is expected to experience a temperature rise of 0.6°C-0.9°C by 2030 and 1.2°C-1.6°C by 2050.  Sabah’s temperature is expected to rise 0.8°C-1°C by 2030 and 1.3°C-1.4°C by 2050.  Sarawak’s temperature is expected to rise 0.6°C-0.8°C by 2030 and 1.3°C-1.6°C by 2050. Climate Change and Principle-based Taxonomy 34 of 47 Issued on: 30 April 2021  Deforestation is linked to a rise in temperatures. The land surface temperature in Kedah (35% forest cover) was 2.4°C higher than Perak (49% forest cover) in 2017 (Jafar et al., 2020). Ice is melting fast and sea levels rising  Every ton of CO2 emissions melts 32 square feet of Arctic ice (National Geographic, 2017b).  In September 2015, the Arctic Sea ice extent was about 825,000 square miles smaller (a loss of about the size of Alaska and California combined) (National Geographic, 2017).  As a result, sea levels could rise three feet (or more) by 2100 with adverse impacts on water resource and coastal habitats; destructive coastal erosion; flooding; and soil contamination (National Geographic, 2017). …and sea level rise is reaching our shores  Productive activities of about 436 million people who live within 100 kilometers of ASEAN’s coasts will be adversely impacted (ASEAN, 2020).  Sea level is expected to rise between 110mm to 210mm in Peninsular Malaysia, 210mm to 620mm in Sabah and 150mm to 220mm in Sarawak by 2050 (Ministry of Environment and Water, 2018). Weather is wreaking havoc  The occurrences of natural hazard disasters (excluding biological and technological hazards) have almost doubled since 1980 worldwide (UNODRR, 2019).  Extraordinary heat wave killed at least 30,000 people in Europe in 2003 (UNISDR).  U.S. Forest Service estimated wildfires will be twice as destructive in US by 2050 with approximately 20 million acres burnt a year (MarketWatch, 2018).  In 2010, the Amazon rainforest experienced the second 100-year drought in 5 years. Combined with deforestation activities and fires, 55% of the Amazon could be destroyed by 2030 (WWF).  A 1-in-20 year annual maximum 24 hour precipitation rate is likely to become a 1-in-5 to 1-in-15 year event by the end of the 21st century [global] (WMO, 2018). …with more rain expected in Malaysia  Average annual rainfall for Peninsular Malaysia is expected to go up between 7%-11% by 2050 (Ministry of Environment and Water, 2018).  9% of the land in Malaysia is at risk from flooding, affecting 4.8 million residents (National Disaster Management Agency, 2017). Biodiversity is being disrupted  Animals and plants are vanishing from their natural habitats that are now too hot  In a 2016 survey, 47% of 976 species had vanished from areas they had previously occupied (Wiens, 2016).  The loss of coral reefs will result in a disruption to fisheries and tourism. Climate Change and Principle-based Taxonomy 35 of 47 Issued on: 30 April 2021 Examples of Financial Impacts  Estimated USD8 trillion in financial losses in 15 US cities due to sea level rise and more frequent extreme weather events (BlackRock, 2019).  Loss in global private sector financial asset value due to direct and indirect impacts of more destructive floods, droughts and severe storms on portfolio growth and returns (NGFS, 2020): o USD4.2 trillion loss with 4°C warming o USD7 trillion loss with 5°C warming o USD13.8 trillion loss with 6°C warming  In January 2019, Pacific Gas and Electricity declared bankruptcy after being hit by the most destructive and deadliest wildfires in California as the company was unable to pay the legal costs associated with the myriad of legal claims (NYT, 2019).  A heatwave in Europe has resulted in low water levels on the River Rhine, the major shipping route for many European countries. The low water level had led to restrictions in industrial production due to higher transportation cost for the raw materials. (CNBC, 2019)  Number of claims on property insurance in the Netherlands is estimated to increase by 131% in 2085 compared to the number in 2016 with 1.5°C - 3.5°C warming (NGFS, 2020).  Insured losses in 2016 amounted to less than one-third of the approximately USD175 billion in total disaster-related losses, leaving a protection gap of USD121 billion. The global protection gap has widened by about 20% over the past 25 years (EESI, 2021; Swiss Re, 2016).  Decline in demand for fossil fuel due to innovation-led cost reduction in renewable energy costs. Wind and solar photovoltaic is projected to meet 56% of world electricity demand in 2050 (70-80% in leading countries), with renewables and batteries estimated to capture 80% of the total USD15.1 trillion invested in new power capacity (BloombergNEF, New Energy Outlook 2020).  The non-performing loan ratio of representative coal-fired power companies could exceed 20% by 2030 due to drop in clean energy costs resulting in downward pressure on the pricing of power assets; rise in carbon prices; decline in demand, and increase in funding costs for pollution and carbon intensive companies (Ma and Sun, 2020).  Estimated 40% to 60% decrease in enterprise valuations EBITDA for major resource global companies (i.e. Shell, BP, Total and Statoil/Equinor) due to un- burnable fossil fuels (NGFS, 2020).  ASEAN is expected to experience a loss of 6.7% of combined GDP losses arising from a 4.8°C scenario by 2100 (ASEAN).  An estimated RM915 million is lost every year due to flooding in Malaysia (Raman et al., 2015). Sources: 1. Agensi Pengurusan Bencana Negara. (2019). “Laporan Tahunan 2019”. 2. ASEAN. “ASEAN Cooperation on Climate Change”. 3. BloombergNEF. (2020). “New Energy Outlook 2020”. 4. CNBC. (2019). “Low water levels in the river Rhine could create havoc for Germany’s economy”. 5. EESI. (2021). “Fact sheet: strengthening financial resilience to climate change”. Climate Change and Principle-based Taxonomy 36 of 47 Issued on: 30 April 2021 6. IPCC. (2005). “Special Report on Carbon Dioxide Capture and Storage”. 7. IPCC. (2014). “Mitigation of Climate Change, Chapter 10: Industry”. Retrieved from: https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter10.pdf. 8. Jafar, et al. (2020). “The Influence of Deforestation on Land Surface Temperature - A Case Study of Perak and Kedah, Malaysia”, Forests, 11(1). 9. Ma, J., & Sun, T. Y. (2020). “Quantitative modelling approaches for climate transition and physical risks and their applications in thermal power sector and mortgage loans”. Tsinghua Financial Review. 10. Market Watch. (2018). “California wildfires could increase by 50% by 2050”. 11. McKinsey and Company. (2021). “Global Energy Perspective 2021”. 12. Ministry of Environment and Water. (2018). “Malaysia Third National Communication and Second Biennial Update Report to the United Nations Framework Convention on Climate Change (UNFCCC)”. 13. Ministry of Environment and Water. (2020). “Third Biennial Update Report to the UNFCC”. 14. NASA. (2019). “The atmosphere: Getting a handle on carbon dioxide”. Retrieved from: https://climate.nasa.gov/news/2915/the-atmosphere-getting-a-handle-on-carbon- dioxide/#:~:text=The%20concentration%20of%20carbon%20dioxide,it%20was%20near %20370%20ppm. 15. National Geographic. (2017). “Seven Things to know about Climate Change”. 16. National Geographic. (2017b). “Artic Ice isn’t doomed yet – here’s how to save it”. 17. National Disaster Management Agency. 2017. “Disaster management in Malaysia”. 18. New York Times (NYT). (2019). “California’s largest utility says its bankrupt. Here’s what you need to know”. 19. NGFS. (2019). “A call for action: Climate change as a source of financial risk”. 20. NGFS. (2019). “First Comprehensive Report: A call for action: Climate change as a Source of Financial Risk”. 21. NGFS. (2020). “Case Studies of Environmental Risk Analysis Methodologies”. 22. NGFS. (2020). “Overview of Environmental Risk Analysis by Financial Institutions”. 23. Raman, M., Ojo, A.O., and Dorasmay, M. (2015). “A stakeholder perspective in managing floods in Malaysia”, Sustainable Development, 2(1). 24. Swiss Re. (2017). “Natural catastrophes and man-made disasters in 2016”. 25. UN Office for Disaster Risk Reduction (UNODRR). (2019). “The Human Cost of Disasters”. 26. UNISDR. “Impacts of summer 2003 heat wave in Europe”. Retrieved from: https://www.unisdr.org/files/1145_ewheatwave.en.pdf. 27. Wiens, J.J. (2016). “Climate-Related Local Extinctions Are Already Widespread among Plant and Animal Species”, Plos Biology, 14(12). 28. WMO. (2018). “July sees extreme weather with high impacts”. Retrieved from: https://public.wmo.int/en/media/news/july-sees-extreme-weather-high-impacts. 29. World Meteorological Organization (WMO). (2020). “The State of the Global Climate 2020” 30. WWF. “Climate Change in the Amazon”. Retrieved from: https://wwf.panda.org/discover/knowledge_hub/where_we_work/amazon/amazon_threat s/climate_change_amazon/?. https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter10.pdf https://climate.nasa.gov/news/2915/the-atmosphere-getting-a-handle-on-carbon-dioxide/#:~:text=The%20concentration%20of%20carbon%20dioxide,it%20was%20near%20370%20ppm https://climate.nasa.gov/news/2915/the-atmosphere-getting-a-handle-on-carbon-dioxide/#:~:text=The%20concentration%20of%20carbon%20dioxide,it%20was%20near%20370%20ppm https://climate.nasa.gov/news/2915/the-atmosphere-getting-a-handle-on-carbon-dioxide/#:~:text=The%20concentration%20of%20carbon%20dioxide,it%20was%20near%20370%20ppm https://www.unisdr.org/files/1145_ewheatwave.en.pdf https://public.wmo.int/en/media/news/july-sees-extreme-weather-high-impacts https://wwf.panda.org/discover/knowledge_hub/where_we_work/amazon/amazon_threats/climate_change_amazon/ https://wwf.panda.org/discover/knowledge_hub/where_we_work/amazon/amazon_threats/climate_change_amazon/ Climate Change and Principle-based Taxonomy 37 of 47 Issued on: 30 April 2021 APPENDIX 2 RELEVANT NATIONAL POLICIES AND PLANS TO ADDRESS CLIMATE CHANGE, BIODIVERSITY, AND ENVIRONMENTAL ISSUES The following is a list of policies and plans relevant to Malaysia’s efforts in tackling climate change and environmental issues: 1. National Policy on Climate Change 2009 identifies 5 policy principles to ensure climate resilient development:  Development on a sustainable path;  Conservation of environment and natural resources;  Coordinated implementation;  Effective participation; and  Common but differentiated responsibilities. The policy also identifies areas important for the mobilization of financing and technical assistance, such as agriculture and food security, natural resources and environment (water, biodiversity, forestry, minerals, soil, coastal and marine and air), public health, transportation, infrastructure, waste management and disaster risk reduction. 2. The 11th Malaysia Plan pursued green growth for sustainability and resilience, focusing on:  Strengthening the enabling environment for green growth;  Adopting sustainable production and consumption;  Conserving natural resources; and  Strengthening resilience against climate change and natural disasters. 3. The 12th Malaysia Plan currently in development aims to accelerate the transition to a green and low carbon economy to support sustainable development. 4. Green Tech Masterplan 2030 focusing on 6 key sectors with high potential to facilitate green growth in the country namely energy, building, manufacturing, transport, water and waste, with the following targets:  Energy – reduction in electricity consumption (residential and commercial) of 10% and 15% by 2025 and 2030, respectively;  Transport – target of 85% of total industry volume for private vehicles to be EEV by 2020 (with a target reduction in CO2 emissions of 199.7 ktCO2e) and 100% by 2030;  Building – 550 green buildings (inclusive of green buildings certified by various agencies and organisations such as MyCREST, Green Building Index, GreenRE, etc.) by 2020 and 1,750 by 2030; and  Manufacturing – increase the percentage and number of green (including improved EE) manufacturing SMEs by 30% (10,200) and 50% (17,000) by 2025 and 2030 respectively. 5. National Land Public Transport Masterplan aims to drive regulatory and industry reform for the sector with a target to increase the public transport modal share for urban areas from 16% in 2011 to 40% in 2030. Climate Change and Principle-based Taxonomy 38 of 47 Issued on: 30 April 2021 6. National Energy Efficiency Action Plan (NEEAP) outlines the strategy to promote energy efficiency by ensuring productive use of energy and minimising waste in order to contribute to sustainable development and increased welfare and competitiveness. 7. Key reports with data on Malaysia’s progress and projections:  Malaysia Third Biennial Update Report to the United Nations Framework Convention on Climate Change (UNFCCC) (2020)  Malaysia Third National Communication and Second Biennial Update Report to the United Nations Framework Convention on Climate Change (UNFCCC) (2018) 8. Other policies:  National Policy on Biological Diversity (2016 –2025)  Malaysia’s Roadmap Towards Zero Single Use Plastics (2018–2030)  National Transport Policy (2019–2030)  National Environmental Policy (2002)  National Strategic Plan for Solid Waste Management (2005)  National Biofuel Policy (2006)  National Green Technology Policy (2009)  Renewable Energy Policy and Action Plan (2010)  Low Carbon Cities Framework (2011)  National Agro-food Policy (2011)  National Water Resources Policy (2012) Climate Change and Principle-based Taxonomy 39 of 47 Issued on: 30 April 2021 APPENDIX 3 EXAMPLES OF ACTIVITIES THAT GENERALLY MEET GP1 Energy Efficiency Real Estate (Commercial and Residential)  Construction of new buildings and/or retrofit of existing buildings: o Buildings certified to an acceptable level under an internationally or domestically recognised green building certification scheme. o Buildings that achieve improvement in energy use and/or carbon emissions compared to baseline emissions. Public Services and Utilities  Improvement of heat efficiency of utilities such as waste heat recovery improvements for district power generation, cooling systems, boilers with energy efficient alternatives, retrofit with renewable energy power.  Retrofit of distribution systems, transmission lines or substations to reduce energy use and/or losses. Energy Efficiency Technology  Energy saving technology such as smart meters and lighting for public, commercial and domestic services (not including real estate).  Manufacture of components to enable energy efficiency. Transportation Infrastructure (for public use) Development and operation of urban mass transit systems:  Electric mass passenger vehicles (trains and buses).  Infrastructure upgrades for electrified rails, trains and buses  Infrastructure for low-carbon and efficient transport (e.g. charging stations for electric vehicles).  Non-motorised transport (enabling bicycle and pedestrian mobility).  Urban planning and development that leads to a reduction in the use of passenger cars e.g. developing car-free city areas, high-occupancy vehicle lanes, road pricing, parking management. Freight transportation  Vehicle, rail or boat fleet retrofit or replacement with technologies including electric or hydrogen technologies.  Development or improvement of railway transport to ensure a modal shift from road to rail.  Development or improvement of water transport to ensure a modal shift from road to waterways. Climate Change and Principle-based Taxonomy 40 of 47 Issued on: 30 April 2021  Fleet optimization and route management (e.g. eliminating backhauls and consolidating loads). Technology  Vehicle fleet energy efficiency technology and logistical software. Green Technology / Manufacturing Development, manufacturing and/or distribution of products or components designed to have a positive environmental impact in terms of reducing either carbon emissions, waste, energy use or water use and material use for circularity and/or adaptive re-use e.g. life cycle analysis.  Smart grid and energy internet.  Energy efficient retail/industrial appliances (e.g. energy efficient fridges, cookers).  Low carbon transport vehicles, equipment and infrastructure, electric rail supply chain (related to electric, hydrogen, hybrid or alternative fuel vehicles).  Energy storage equipment or solutions.  Deployment of Carbon Capture and Utilization (CCU) or Carbon Capture and Storage (CCS) technologies. Note: CCS/CCU can be eligible in any sector/activity if it enables that primary activity to operate in compliance with the threshold - for example, steel, cement or electricity production. Renewable Energy Production, manufacturing, operation and maintenance of renewable energy sources/infrastructure:  Solar generating facilities.  Hydropower electricity generating facilities.  Tidal or wave energy generating facilities.  Geothermal electricity generating facilities.  Production of zero carbon fuels e.g. hydrogen, ammonia, etc.  Bioenergy producing biofuel, biomass, biogas including fuel preparation process facilities, pre-treatment facilities and bio refinery facilities for various purposes (e.g. heating, electricity production and transport). Waste Management  Waste minimisation, collection, management, recycling, re-use, processing, disposal (such as methane capture) infrastructure, technologies and solutions, such as: o Solid waste management (municipal waste management projects that capture or combust methane emissions). o Liquid waste management (waste management projects that capture or combust methane emissions). o Sewage water treatment plant (treatment of wastewater that reduces GHG emissions). Climate Change and Principle-based Taxonomy 41 of 47 Issued on: 30 April 2021 o Biological treatment facilities (anaerobic digestion facilities, composting facilities).  Recycling and utilisation of industrial solid wastes, exhaust gas and effluent. Agriculture, Forests and Land Conservation  Avoidance of GHG emissions (e.g. livestock management, storage and processing of manure and management of permanent forests).  Lowering emissions for each calorie or kilo of food produced.  Maintaining or strengthening land carbon sinks, including: o Afforestation (non-forest to forest). o Reforestation (re-establishment of forest on land classified as forest). o Restoration or rehabilitation of forests, croplands, grasslands and wetlands. o Sustainable forest management. o Forest and peatland conservation.  Regenerative agriculture (e.g. no till or conservation tillage). Note: Based on LULUCF regulation, carbon stocks shall increase above the carbon baseline over a period of 20 years for afforestation and reforestation projects and shall increase over the rotation period for restoration projects, and be maintained or increased in the case of existing forest management and conservation forests. Climate Change and Principle-based Taxonomy 42 of 47 Issued on: 30 April 2021 APPENDIX 4 EXAMPLES OF ACTIVITIES THAT GENERALLY MEET GP2 Activities to increase own resilience and enable others to adapt are generally interrelated and could overlap, depending on the purpose and context within which the activity takes place. Measures to increase own resilience Measures to enable others to adapt to climate change Forestry  Use of early warning systems or wildfire control measures (to reduce damages due to wildfires induced by heatwaves).  Use of regeneration material (species and ecotypes) less sensitive to strong wind or timely management of seedling stand and timely thinning (to reduce damage to forest stands from increased wind).  Adoption of sound forestry practices and use of endemic tree species that are less vulnerable to storms and fires.  Afforestation or restoration of former forest areas utilizing natural seed banks and existing plants.  Adopt sustainable forest management and sound harvesting techniques to reduce soil erosion and vulnerabilities to wildfires.  Conservation of forestry (e.g. to prevent soil erosion which will damage agricultural production, and disrupt local settlements or water supplies) with the primary objective of supporting the adaptation of others. Fisheries  Adoption of sustainable aquaculture, such as fish farming in ponds (worsening availability of fish stocks in natural habitats due to temperature increase).  Mapping changes in the range of fish species and monitoring of fish stocks to understand the impacts of climate change. Climate Change and Principle-based Taxonomy 43 of 47 Issued on: 30 April 2021 Agriculture  Adoption of diversified agricultural production (e.g. growing a mix of different crops or different varieties of each crop).  Soil and water management to increase water availability in areas experiencing increased water stress.  Research, development and commercialisation of drought-resistant crop varieties to increase crop yields. Water Resources  Increase of water storage capacity by building a dam27, practicing aquifer storage and recovery28, removing accumulated sediment in reservoirs or lowering water intake elevation.  Integrated planning and sound management of water resources (water supply, demand and quality).  Water conservation and rainwater harvesting in areas prone to water stress.  Improvement in drainage to cope with increased frequency/severity of floods arising from intense rainfall.  Deployment of early warning system as preemptive measure to reduce damage from flood (especially during monsoon season).  Building of flood barriers such as flood walls and  Development and deployment of technology to treat and recycle wastewater, thus greatly reduce the use of new freshwater resources.  Design and development of flood early warning systems and flood defense systems. 27 EIA must be conducted to ascertain the negative impact to the environment and community before the commissioning of a dam, with solutions in place to address these negative effects. The long term benefits must outweigh the costs to the environment and impacted communities. 28 Aquifer Storage and Recovery (“ASR”) is a method to increase water supply using subsurface reservoirs. It offers an important tool to increase freshwater storage at a nominal cost. Climate Change and Principle-based Taxonomy 44 of 47 Issued on: 30 April 2021 seawalls to protect from future flooding. Construction  Adapting buildings with capability to cope with future climate conditions and extreme weather events.  Special-purpose building e.g. shelters, relief centers or safe buildings for evacuation from flooding. Coastal Areas  Consideration of sea-level rise in the design of a bridge.  Building of sea walls in low- lying islands to stop coastal erosion.  Research on population exposure to sea level rise and related impacts.  Conservation of mangroves and coral reefs to protect coastal zones from weather- related catastrophes (storms and typhoons) and to preserve fish spawning grounds. Health  Development and deployment of heat waves early warning system to reduce associated illnesses and deaths.  Development or enhancement systems for monitoring drinking water, food and air quality (haze related risk), in areas affected by higher temperatures/forest burning, floods and rising sea-level.  Research on food waste data to facilitate the establishment of food waste strategies and baselines, and identify scalable solutions to transition to more sustainable food systems. Climate Change and Principle-based Taxonomy 45 of 47 Issued on: 30 April 2021 Information and Communication  Development of technology for climate- vulnerable farmers to make informed decisions on production and sale of their crops.  Development of technology and information systems to enable national meteorological services to gather, analyze, and disseminate accurate weather information. Transportation  Design and construction of climate resilient/climate- proofed transport network.  Research on technology to improve safety standards and design of rail asset to withstand adverse weather conditions.  Deployment of rail line detector to detect cracks along railway networks. Climate Change and Principle-based Taxonomy 46 of 47 Issued on: 30 April 2021 APPENDIX 5 EXAMPLES OF CERTIFICATION AND INDEPENDENT VERIFICATION Sector Certification and/or Independent Verification General  MS ISO 14001: 2015 – Environmental Management Systems*  MS 1722: 2011 and OHSAS 18001 – Occupational Safety and Health Management Systems*  ISO 50001 Energy Management Certification  EU Ecolabel  Cradle to Cradle Climate  ISO 14064: 2006 – Greenhouse gases  Science Based Targets Initiative  The Carbon Trust Standard  ISO 14067:2019 Greenhouse Gasses – Carbon Footprint of Products  PAS 2050:2011 – Specification for the assessment of the life cycle greenhouse gas emissions of good and services  PAS 2060 Standard for Carbon Neutrality  PAS 2080 Carbon Management in Infrastructure  GHG Protocol Corporate Accounting and Reporting Standard  Verified Carbon Standard  International Sustainability and Carbon Certification Water  AWS International Water Stewardship Standard Corporate context-based water targets Agriculture  Malaysian Standards Palm Oil*  Roundtable on Sustainable Palm Oil  BONSUCRO  Better Cotton Initiative  Global Organic Textile Standard  Common Code for the Coffee Community  Tropical Commodities Coalition for Sustainable Tea Coffee and Cocoa  Ethical Tea Partnership  World Cocoa Foundation  Rainforest Alliance  Roundtable on Sustainable Biomaterials  Sustainable Rice Platform  UTZ Certified  Internal Sustainability & Carbon Certification  Fairtrade Certified  Roundtable for Responsible Soy Fisheries  Marine Stewardship Council  Aquaculture Stewardship Council  Natural Capital Protocol (2016)  ISO 14008: Monetary valuation of environmental impacts and related environmental aspects (2019)  Value Balancing Alliance Climate Change and Principle-based Taxonomy 47 of 47 Issued on: 30 April 2021 Sector Certification and/or Independent Verification  Fairtrade Fisheries Standard Forestry  Malaysian Timber Certification Scheme - Programme for The Endorsement of Forest Certification*  Forest Stewardship Council  Programme for the Endorsement of Forest Certification Mining and Metals  World Gold Council Conflict-free Gold Standard  Kimberley Process Certification Scheme  Aluminium Stewardship Initiative  Initiative for Responsible Mining Assurance  RJC Chain of Custody Certification Infrastructure  Sustainable INFRASTAR*  The Standard for Sustainable and Resilient Infrastructure  GRESB  BREEAM  USGBC LEED  CEEQUAL  Greenroads Certification  Hydropower Sustainability Assessment Protocol  Excellence in Design for Greater Efficiencies  Green Building Index* Tourism  Green Key  Green Globe  Travelife Energy  International Hydropower Association (IHA) Hydropower Sustainability Assessment Protocol (HSAP)  International Atomic Energy Agency (IAEA) Safety Standards and Nuclear Security Series Industrial  Fairtrade Certified  Responsible Care * denotes national certification Examples of certification/standards for investment instruments Instrument Certification/Standard Sukuk  Sustainable and Responsible Investment Sukuk Framework Bond  ASEAN Green Bond Standards  ASEAN Sustainability Bond Standards  Green Bond Principles (International Capital Markets Association)  Sustainability Bond Guidelines (International Capital Markets Association)  Climate Bonds Standards Equities  FTSE4Good Bursa Malaysia Index  MSCI Emerging Markets ESG Leaders Index

Public Notice

23 Mac 2021

Keputusan Majlis Penasihat Shariah BNM mengenai Penggunaan Kadar Bebas Risiko

https://www.bnm.gov.my/-/sac-bnm-mesyuarat-210

https://www.bnm.gov.my/documents/20124/2629002/SAC+Statement+-+210+meeting_bm.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/sac-bnm-mesyuarat-210&languageId=ms_MY

Reading: Keputusan Majlis Penasihat Shariah BNM mengenai Penggunaan Kadar Bebas Risiko Share: 11 Keputusan Majlis Penasihat Shariah BNM mengenai Penggunaan Kadar Bebas Risiko Tarikh Siaran: 23 Mac 2021 Majlis Penasihat Shariah (MPS) Bank Negara Malaysia pada mesyuarat ke-210 bertarikh 23 Disember 2020 telah memutuskan bahawa penggunaan kadar bebas risiko (RFR) sebagai kadar rujukan alternatif atau sandaran bagi menggantikan Kadar Tawaran Antara Bank London (LIBOR) selepas penamatannya secara kekal adalah dibenarkan atas pertimbangan berikut: Kaedah kompaun hanyalah kaedah aritmetik untuk menentukan kadar tempoh yang tidak menjejaskan pematuhan Syariah sesuatu urus niaga; dan Ketidakpastian (gharar) yang berlaku dalam sesuatu kontrak yang terhasil daripada penggunaan kadar purata bebas risiko atau kadar tempoh berasaskan pandang ke belakang (backward-looking) pada waktu pembayaran boleh diatasi. Antaranya melalui penentuan dan pendedahan harga jualan siling dan formula pengiraan pembayaran berkala kepada pelanggan pada awal kontrak. Dalam proses peralihan kepada kadar bebas risiko alternatif, Jawatankuasa Syariah setiap institusi kewangan Islam hendaklah menentukan kesesuaian penggunaan kaedah anggap setuju (deemed consent) dalam memperakui persetujuan pelanggan bagi memasukkan peruntukan sandaran (fallback provision) ke dalam terma dan syarat kontrak. Sila lihat lampiran di sini untuk maklumat lanjut. © 2024 Bank Negara Malaysia. All rights reserved.

Mesyuarat MPS ke-179 Mesyuarat MPS 210 2020 1 Keputusan Majlis Penasihat Shariah Bank Negara Malaysia (MPS) Berhubung Penggunaan Kadar Bebas Risiko (RFR) Sebagai Kadar Rujukan Alternatif atau Sandaran bagi Menggantikan Kadar Tawaran Antara Bank London (LIBOR) Selepas Penamatan LIBOR Secara Kekal Mesyuarat MPS ke-210 bertarikh 23 Disember 2020 Bahagian I: Keputusan MPS, Tarikh Kuat Kuasa dan Pemakaian Menurut seksyen 52 Akta Bank Negara Malaysia 2009, MPS telah memutuskan bahawa penggunaan kadar bebas risiko (RFR) sebagai kadar rujukan alternatif atau sandaran bagi menggantikan Kadar Tawaran Antara Bank London (LIBOR) selepas penamatannya secara kekal adalah dibenarkan atas pertimbangan berikut: i. Kaedah kompaun hanyalah kaedah aritmetik untuk menentukan kadar tempoh yang tidak menjejaskan pematuhan Syariah sesuatu urus niaga; dan ii. Ketidakpastian (gharar) yang berlaku dalam sesuatu kontrak yang terhasil daripada penggunaan kadar purata bebas risiko atau kadar tempoh berasaskan pandang ke belakang (backward-looking) pada waktu pembayaran boleh diatasi. Antaranya melalui penentuan dan pendedahan harga jualan siling dan formula pengiraan pembayaran berkala kepada pelanggan pada awal kontrak. Dalam proses peralihan kepada kadar alternatif bebas risiko, Jawatankuasa Syariah setiap institusi kewangan Islam hendaklah menentukan kesesuaian penggunaan kaedah anggap setuju (deemed consent) dalam memperakui persetujuan pelanggan bagi memasukkan peruntukan sandaran (fallback provision) ke dalam terma dan syarat kontrak. Keputusan ini berkuat kuasa serta merta pada tarikh penerbitannya dalam laman sesawang Bank Negara Malaysia pada 22 Mac 2021 dan terpakai ke atas institusi kewangan Islam (IKI) berikut: (a) orang berlesen menurut Akta Perkhidmatan Kewangan Islam 2013 (APKI); (b) bank berlesen dan bank pelaburan berlesen yang diluluskan di bawah seksyen 15(1) Akta Perkhidmatan Kewangan 2013 (APK) untuk menjalankan perniagaan kewangan Islam; dan (c) institusi yang ditetapkan yang diluluskan di bawah seksyen 33B(1) Akta Institusi Kewangan Pembangunan 2002 (DFIA) untuk menjalankan perniagaan kewangan Islam. Selaras dengan seksyen 28(1) dan (2) APKI atau seksyen 33D(1) dan (2) DFIA, mengikut mana-mana yang berkenaan, IKI dikehendaki mematuhi keputusan ini kerana pematuhan dengan apa-apa keputusan MPS berkenaan dengan sebarang matlamat tertentu dan pengendalian perniagaan, hal ehwal atau aktiviti IKI tersebut adalah disifatkan sebagai pematuhan kepada Syariah. Bahagian II: Latar Belakang  Pada tahun 2017, Financial Conduct Authority United Kingdom (FCA) telah mengumumkan bahawa penerbitan Kadar Tawaran Antara Bank London (LIBOR) akan ditamatkan pada akhir tahun 2021. Kekurangan bilangan urus niaga yang benar-benar berdasarkan LIBOR menjadikan kadar rujukan tersebut tidak lagi tepat bagi menggambarkan keadaan pasaran dan tidak mampan. Oleh itu, semua kontrak sedia ada yang merujuk kepada LIBOR perlu beralih kepada kadar rujukan alternatif sebelum akhir tahun 2021. Mesyuarat MPS 210 2020 2  Berikutan perkembangan ini, di peringkat global, pasaran kewangan telah bersetuju untuk menggunapakai kadar bebas risiko (risk-free rate, RFR) sebagai kadar penanda aras alternatif bagi menggantikan LIBOR. Ini memandangkan ianya berasaskan urus niaga sebenar dan lebih mencerminkan keadaan pasaran.  Perbandingan antara RFR dan LIBOR adalah seperti berikut: Aspek Kadar Bebas Risiko Alternatif (RFR) Kadar Tawaran Antara Bank London (LIBOR) Pentadbir Bank pusat bagi setiap mata wang, kecuali kadar bebas risiko Swiss Average Rate Overnight (SARON) yang ditadbir oleh Swiss Exchange. Intercontinental Exchange (ICE). Kaedah Berdasarkan urus niaga sebenar di pasaran wang. Serahan data harian berdasarkan pandangan bank-bank panel. Kadar Tempoh Hanya mempunyai kadar semalaman Kadar tempoh diperolehi berdasarkan kaedah kompaun secara tertunggak (compounded setting in-arrears). Oleh itu, kadar tempoh sebenar dan jumlah pembayaran tidak diketahui pada awal tempoh pembayaran1. Mempunyai kadar semalaman dan juga kadar tempoh bagi pelbagai jangka masa berdasarkan pendekatan pandang ke hadapan. Pendekatan yang digunapakai membolehkan jumlah pembayaran diketahui pada awal tempoh pembayaran. Premium Risiko Tidak mengandungi spread risiko kredit bank yang menjadikan ia kebiasaannya lebih rendah berbanding LIBOR. Mengandungi spread risiko kredit bank. Turun Naik (Volatility) Lebih stabil kerana pergerakannya yang seiring dengan kadar polisi bank pusat. Turut dipengaruhi komponen spread risiko kredit bank. Pergerakannya mencerminkan perubahan pada risiko kredit tersebut. Rujukan: 1. Financial Stability Board (FSB) (2019), Overnight Risk-Free Rates – A User’s Guide 1 Bagi menukar kadar semalaman kepada kadar tempoh, kaedah kompaun secara tertunggak (compounded setting in-arrears) digunakan seiring dengan pergerakan pembaharuan kadar penanda aras global, seperti Protokol Sandaran yang diterbitkan oleh Persatuan Swap dan Derivatif Antarabangsa (International Swaps and Derivatives Association, ISDA). Kaedah kompaun secara tertunggak ini digunakan dengan mengambil kira pergerakan kadar semalaman pada setiap hari sepanjang tempoh pemerhatian. Kadar ini akan dikompaunkan secara pandang ke belakang bagi memperolehi sesuatu kadar tempoh yang akan digunakan bagi sesuatu urus niaga. Pendekatan pandang ke belakang ini menyebabkan kadar tempoh sebenar bagi urus niaga tersebut dan jumlah pembayaran tidak diketahui pada awal tempoh pembayaran dan ia berpotensi mencetuskan isu Syariah seperti isu gharar. Mesyuarat MPS 210 2020 3 Isu Syariah Berdasarkan maklumat di atas, tiga isu Syariah dikenalpasti seperti berikut:  Adakah kaedah kompaun secara tertunggak yang digunakan untuk menetapkan kadar tempoh dalam komponen keuntungan bagi urus niaga berasaskan jualan dan sewaan mematuhi keperluan Syariah?  Adakah penggunaan kaedah pandang ke belakang dalam urus niaga berasaskan jualan dan sewaan mencetuskan isu ketidakpastian (gharar) memandangkan jumlah pembayaran bagi setiap tempoh pembayaran tidak diketahui pada awal tempoh dan hanya dapat diketahui pada tarikh pembayaran atau beberapa hari sebelumnya?  Adakah kaedah anggap setuju sesuai digunakan bagi menggambarkan persetujuan pelanggan terhadap peruntukan sandaran yang dimasukkan ke dalam terma dan syarat kontrak untuk melakukan peralihan kepada kadar rujukan alternatif? Bahagian III: Perbincangan Utama Penggunaan kaedah kompaun secara tertunggak bagi memperolehi kadar tempoh adalah dibenarkan  Kaedah kompaun dalam konteks ini hanyalah kaedah pengiraan bagi menentukan kadar tempoh RFR yang akan digunakan dalam komponen keuntungan bagi urus niaga patuh Syariah.  Kaedah kompaun yang digunakan dalam RFR tidak menyebabkan caj tambahan dikenakan ke atas pelanggan sehingga melebihi jumlah keberhutangan asal seperti yang diamalkan dalam urus niaga konvensional bagi insiden lewat bayar.  Pandangan ini turut mengambil kira ketiadaan kadar tempoh RFR yang mampan yang diguna pakai secara meluas. Penggunaan kaedah pandang ke belakang dalam RFR tidak mencetuskan isu ketidakpastian (gharar) dalam jumlah pembayaran berkala  Bagi instrumen kewangan berasaskan kontrak jualan yang berkadar boleh ubah, IKI menetapkan harga jualan dengan pelanggan berdasarkan kadar keuntungan siling.2 Melalui mekanisme ini, kadar keuntungan siling dan formula pengiraan kadar keuntungan efektif dimaklumkan kepada pihak-pihak berkontrak dan dipersetujui pada awal kontrak.  Oleh itu, isu ketidakpastian berhubung jumlah pembayaran tidak timbul kerana ia telah diatasi melalui kewujudan dan pendedahan kadar keuntungan siling dan formula pengiraan kadar keuntungan efektif.  Manakala, bagi instrumen kewangan berasaskan kontrak sewaan (ijarah) yang berkadar boleh ubah pula, formula pengiraan kadar sewaan bagi setiap tempoh pembayaran akan dimaklumkan kepada pihak-pihak berkontrak dan dipersetujui pada awal kontrak. Melalui pendedahan formula pengiraan kadar sewaan ini, isu ketidakpastian berhubung kadar sewaan telah diatasi.3 2 Penggunaan kaedah ini telah diluluskan oleh MPS dalam Mesyuarat ke-32 bertarikh 27 Februari 2003. 3 MPS, pada mesyuaratnya ke-33 bertarikh 27 Mac 2003, mesyuarat ke-35 bertarikh 22 Mei 2003 dan mesyuarat ke-38 bertarikh 28 Ogos 2003, telah memutuskan bahawa kadar sewaan dalam kontrak ijarah bagi suatu tempoh tertentu boleh ditetapkan berdasarkan suatu pembolehubah yang dipersetujui secara bersama oleh pihak-pihak berkontrak pada peringkat awal kontrak. Mesyuarat MPS 210 2020 4 Kesesuaian penggunaan kaedah anggap setuju (deemed consent) bagi menggambarkan persetujuan pelanggan terhadap peruntukan sandaran untuk melakukan peralihan kepada kadar rujukan alternatif mesti ditentukan oleh Jawatankuasa Syariah IKI masing-masing  IKI dikehendaki berunding semula kontrak yang ada bagi mendapatkan persetujuan pelanggan untuk memasukkan peruntukan sandaran ke dalam kontrak yang berasaskan LIBOR tersebut. Rangkuman peruntukan sandaran ke dalam kontrak sedia ada membolehkan pelanggan memberi persetujuan duluan (upfront agreement) bagi menggantikan kadar rujukan LIBOR dengan kadar alternatif bebas risiko yang seterusnya akan melancarkan proses peralihan kepada kadar alternatif tersebut.  Ketiadaan peruntukan sandaran atau ketidakcukupan liputannya dalam kontrak sedia ada antara IKI dan pelanggan berpotensi mendedahkan IKI kepada risiko perundangan dan ketidakpatuhan Syariah ekoran ketiadaan persetujuan bersama dalam kontrak. Dalam proses memasukkan peruntukan sandaran tersebut, beberapa IKI bercadang untuk menggunapakai kaedah anggap setuju oleh pelanggan bagi mengatasi kekangan operasi seperti ketiadaan maklum balas daripada pelanggan.  Memandangkan isu tersebut berbeza bagi setiap IKI, dengan mengambil kira profil rakan niaga, saiz dedahan dan toleransi risiko IKI, MPS mengambil pendekatan untuk meletakkan tanggungjawab ini kepada Jawatankuasa Syariah (JKS) IKI masing-masing dalam menentukan kesesuaian penggunaan kaedah anggap setuju dalam memperolehi persetujuan pelanggan melalui peruntukan sandaran. JKS hendaklah memastikan pelanggan diberikan tempoh masa yang sesuai untuk memberikan persetujuan dan maklum balas bagi melakukan peralihan kepada kadar rujukan alternatif. Bahagian IV: Asas Pertimbangan Penggunaan kaedah kompaun secara tertunggak bagi memperolehi kadar tempoh adalah dibenarkan  Syariah tidak menyatakan kaedah yang spesifik bagi menetapkan harga dalam urus niaga patuh Syariah. Oleh itu, sebarang kaedah penetapan harga adalah harus melainkan terdapat pelanggaran terhadap sesuatu keperluan Syariah. Kaedah fiqh menyatakan: العقود والشروط الجواز والصحةاألصل في “Prinsip asas dalam kontrak dan syarat adalah keharusan dan kesahihan.”4  Peralihan ke arah penggunaan RFR sebagai alternatif kepada kadar LIBOR adalah berdasarkan ciri-ciri RFR tersebut yang lebih menggambarkan keadaan pasaran dan sukar untuk dimanipulasi. Perkara ini adalah selari dengan prinsip siyasah syar’iyyah5 dalam kewangan Islam bagi memastikan ketelusan dan keadilan dalam penetapan harga seperti yang dinyatakan dalam hadith berikut: 4 Muhammad Mustafa Al-Zuhayli (2006), Al-Qawa`id al-Fiqhiyyah wa Tatbiqatuha fi al-Mazahib al-`Arba`ah. Damsyik: Dar al-Fikr, j. 2, h. 815 5 Dasar dan pendekatan yang diambil oleh pemerintah demi kepentingan negara dan rakyat yang selari dengan prinsip Syariah Mesyuarat MPS 210 2020 5 عن أنس بن مالك رضي هللا عنھ: قال الناس: یا رسول هللا, غال السعر فسعر لنا. فقال رسول هللا صلى هللا علیھ وسلم: إن هللا ھو المسعر القابض الباسط الرازق وإني ألرجو أن ألقى ربي ولیس أحد یطالبني بمظلمة في دم وال مال “Anas Bin Malik RA meriwayatkan bahawa, orang ramai telah mengadu kepada Rasulullah SAW: Wahai Rasulullah, harga telah meningkat, maka tetapkanlah harga untuk kami. Rasulullah SAW berkata: Sesungguhnya Allah yang menetapkan harga, yang menahan dan yang memberikan rezeki. Dan sesungguhnya aku berharap agar apabila aku bertemu Allah kelak, tidak ada di kalangan kamu yang menuntut keadilan daripadaku berhubung darah dan harta.”6  Hadith di atas mengungkapkan secara tersirat bahawa pergerakan harga pada ketika itu didorong oleh pasaran. Oleh itu, sebarang penanda aras yang menggambarkan keadaan pasaran semasa adalah sesuai untuk dijadikan kadar rujukan bagi urus niaga yang berlaku dalam pasaran tersebut. Penggunaan kaedah pandang ke belakang dalam RFR tidak mencetuskan isu ketidakpastian (gharar) dalam jumlah pembayaran berkala  ‘lllah (sebab) larangan gharar dalam Syariah bertujuan mengelakkan pertikaian dan persengketaan antara pihak-pihak berkontrak. Kaedah fiqh menyatakan: : الجھالة التي ال تفضي إلى المنازعة ال تمنع صحة العقد “Kejahilan yang tidak membawa kepada pertikaian tidak menghalang kesahihan kontrak.”7 الجھالة في المعقود علیھ إذا كانت تفضي إلى المنازعة تمنع صحة العقد “Kejahilan dalam sesuatu kontrak sekiranya membawa kepada pertikaian menghalang kesahihan kontrak tersebut.”8  RFR adalah kadar penanda aras yang digunakan oleh sebahagian besar pemain pasaran, yang bertindak sebagai penunjuk pergerakan pasaran yang boleh dipercayai dan ianya diterbitkan kepada umum untuk rujukan. Oleh itu, pendedahan formula pengiraan jumlah pembayaran berkala adalah mencukupi dan tidak membawa kepada pertikaian kerana RFR tersebut. Di samping itu, pendekatan pandang ke belakang yang digunakan diterima secara meluas sebagai kadar penanda aras dan kaedah bagi memperolehi kadar tempoh dalam kontrak perniagaan.  Penentuan formula pengiraan jumlah pembayaran berkala dilaksanakan melalui perjanjian dua hala dengan pelanggan. Oleh itu, setelah terma dan syarat sesuatu kontrak dipersetujui, pihak- pihak berkontrak mestilah mematuhinya seperti yang dinyatakan dalam hadith berikut: المسلمون على شروطھم إال شرطا أحل حراما أو حرم حالال “Urus niaga antara orang-orang Islam adalah berdasarkan syarat-syarat yang dipersetujui antara mereka, kecuali syarat-syarat yang menghalalkan apa yang haram dan mengharamkan apa yang halal.”9 6 Abu Daud (2009), Sunan Abi Daud, Beirut: Dar Al-Risalah Al-‘Alamiyyah, j. 5, h. 322, no. hadith 3451 7 Al-Sarakhsi (1989), Al-Mabsut, Beirut: Dar Al-Ma’rifah, j. 13, h. 7 & j. 15, h. 166; Abu Al-Harith Al-Ghazzi (2000), Mausu’ah Al-Qawa’id Al-Fiqhiyyah, Beirut: Dar Ibn Hazm, j. 3, h. 39-40 8 Ibid 9 Abu Daud (2009), Sunan Abi Daud, Beirut: Dar Al-Risalah Al-‘Alamiyyah, j. 5, h. 445, no. hadith 3594 Mesyuarat MPS 210 2020 6  Selain itu, penentuan kadar keuntungan efektif bagi setiap tempoh pembayaran berkala dalam instrumen kewangan berasaskan kontrak jualan yang berkadar boleh ubah merupakan komponen sampingan (tabi’) dan ia bukanlah komponen utama (asl) sesuatu kontrak. Oleh itu, ketidakpastian dalam komponen sampingan boleh dimaafkan berdasarkan kaedah fiqh yang menyatakan: یغتفر في التوابع ما ال یغتفر في غیرھا “Sesuatu perkara boleh dimaafkan dalam komponen sampingan tetapi tidak boleh dimaafkan dalam komponen selainnya.”10 Bahagian V: Implikasi Keputusan MPS  Membolehkan peralihan kepada kadar alternatif bebas risiko (termasuk RFR dengan kaedah pandang ke belakang) dilaksanakan dengan lancar oleh institusi kewangan Islam sebelum kadar tempoh bebas risiko berasaskan kaedah pandang ke hadapan yang mantap wujud dan boleh diguna pakai. 10 Al-Suyuti (1983), Al-Ashbah wa Al-Nazair, Beirut: Dal Al-Kutub Al-‘Ilmiyyah, h. 120; Ibn Nujaim (1999), Al- Ashbah wa Al-Nazair, Beirut: Dar Al-Kutub Al-‘Ilmiyyah, h. 103; Muhammad Mustafa Al-Zuhayli (2006), Al- Qawa`id al-Fiqhiyyah wa Tatbiqatuha fi al-Mazahib al-`Arba`ah. Damsyik: Dar al-Fikr, j. 1, h. 447

Public Notice

17 Mac 2021

Senarai Amaran Pengguna Kewangan telah dikemaskini

https://www.bnm.gov.my/-/senarai-amaran-pengguna-kewangan-telah-dikemaskini

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/senarai-amaran-pengguna-kewangan-telah-dikemaskini&languageId=ms_MY

Reading: Senarai Amaran Pengguna Kewangan telah dikemaskini Share: Senarai Amaran Pengguna Kewangan telah dikemaskini Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1230 pada Rabu, 17 Mac 2021 17 Mac 2021 Bank telah mengemas kini Senarai Amaran Pengguna Kewangan. Senarai ini terdiri daripada syarikat dan laman web yang tidak dibenarkan atau diluluskan di bawah undang-undang dan pentadbiran berkaitan yang ditadbir oleh BNM. Sila maklum bahawa senarai ini tidak lengkap dan hanya berfungsi sebagai panduan kepada orang ramai berdasarkan maklumat dan pertanyaan yang diterima oleh BNM. Syarikat berikut ditambahkan ke dalam senarai: Azzad Islamic Investment Scheme Advantage Trader Doo Prime Malaysia Berhad Investment Scheme Euro Trade Co Euro Trade (M) Co Senarai akan dikemas kini secara berkala untuk rujukan orang ramai. Untuk melihat senarai yang dikemas kini, klik pada pautan ini. Bank Negara Malaysia 17 Mac 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

10 Mac 2021

Soalan Lazim Mengenai Langkah-langkah Bantuan Sementara untuk Pemegang Polisi Insurans dan Peserta Takaful

https://www.bnm.gov.my/-/faqs-on-temporary-relief-measures-for-insurance-policyholders-and-takaful-participants-1

https://www.bnm.gov.my/documents/20124/914558/FAQ+for+consumers+%28ITOs+relief+measures%29+BM.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/faqs-on-temporary-relief-measures-for-insurance-policyholders-and-takaful-participants-1&languageId=ms_MY

Reading: Soalan Lazim Mengenai Langkah-langkah Bantuan Sementara untuk Pemegang Polisi Insurans dan Peserta Takaful Share: Soalan Lazim Mengenai Langkah-langkah Bantuan Sementara untuk Pemegang Polisi Insurans dan Peserta Takaful Tarikh Siaran: 10 Mac 2021 Bank telah menerbitkan satu set Soalan Lazim Mengenai Langkah-langkah Bantuan Sementara untuk Pemegang Polisi Insurans dan Peserta Takaful. Klik di sini untuk melihat Soalan Lazim © 2024 Bank Negara Malaysia. All rights reserved.

Guidelines on Product Transparency and Disclosure – FAQ Dikemas kini 10 Mac 2021 UMUM 1 Soalan Lazim Langkah-langkah Bantuan Sementara untuk Pemegang Polisi Insurans dan Peserta Takaful (Ditawarkan oleh syarikat insurans dan pengendali takaful untuk membantu pemegang polisi insurans dan peserta takaful yang terjejas oleh wabak COVID-19) 3 langkah awal yang perlu dibuat Langkah Soalan Tindakan LANGKAH 1 (a) Adakah anda memiliki satu atau lebih daripada satu polisi insurans hayat/sijil takaful keluarga? (contoh. perlindungan insurans hayat/takaful keluarga untuk kematian, penyakit kritikal, perubatan) (b) Adakah anda memiliki satu atau lebih daripada satu polisi insurans am/sijil takaful am? (contoh. perlindungan insurans am/takaful am untuk kenderaan, kebakaran) Jika YA  Teruskan ke LANGKAH 2 Jika TIDAK  Tiada tindakan diperlukan Jika YA  Teruskan ke LANGKAH 3 Jika TIDAK  Tiada tindakan diperlukan LANGKAH 2 Untuk polisi insurans hayat/sijil takaful keluarga Adakah anda terjejas akibat apa-apa situasi berkaitan COVID-19 yang berikut?  Dijangkiti COVID-19/dikenakan kuarantin mandatori di rumah, atau  Kehilangan sumber pendapatan Definisi pemegang polisi insurans/peserta takaful yang terjejas: (a) individu yang dijangkiti COVID-19, dikenakan kuarantin mandatori di rumah atau kehilangan sumber pendapatan; dan (b) PKS yang kehilangan sumber pendapatan akibat kesan ekonomi yang berpunca daripada situasi COVID-19. Contoh kejadian yang menyebabkan kehilangan sumber pendapatan: diberhentikan kerja, waktu bekerja yang lebih pendek serta potongan gaji dan komisen bagi individu; dan kehilangan hasil perniagaan bagi mereka yang bekerja sendiri dan PKS. Jika YA HUBUNGI syarikat insurans hayat/pengendali takaful keluarga anda dari 1 April 2020 – 30 Jun 2021 (lihat Lampiran 1 untuk senarai syarikat insurans hayat/pengendali takaful keluarga) SEMAK dengan syarikat insurans hayat/pengendali takaful keluarga anda bagi memastikan – (a) sama ada anda layak menerima penangguhan bayaran premium/sumbangan selama 3 bulan; dan (b) apa-apa bantuan lain yang boleh ditawarkan oleh syarikat insurans hayat/pengendali takaful tersebut, contohnya: (i) Melanjutkan tempoh iaitu pemegang polisi / peserta takaful boleh menghidupkan semula polisi/sijil yang telah luput akibat tiada pembayaran bagi premium/sumbangan (ii) Pilihan untuk meminda polisi/sijil (iii) Pengecualian fi/caj pindaan polisi/sijil (iv) Pilihan bagi bayaran secara elektronik dan pengecualian daripada penalti/akibat berikutan premium/sumbangan yang lewat dibayar Nota: Hanya untuk premium/sumbangan yang perlu dibayar dari 18 Mac 2020 hingga 30 Jun 2021. Jika TIDAK  Tiada tindakan diperlukan Dikemas kini 10 Mac 2021 UMUM 2 LANGKAH 3 Untuk polisi insurans am/sijil takaful am Adakah anda terjejas akibat mana-mana situasi berkaitan COVID-19 yang berikut?  Dijangkiti COVID-19/dikenakan kuarantin mandatori di rumah, atau  Kehilangan sumber pendapatan Sila rujuk definisi pemegang polisi insurans/peserta takaful yang terjejas dalam LANGKAH 2 Jika YA HUBUNGI syarkat insurans am/pengendali takaful am anda dari 1 April 2020 - 30 Jun 2021 (lihat Lampiran 2 untuk senarai syarikat insurans am/pengendali takaful am)  SEMAK dengan syarikat insurans am/pengendali takaful am anda untuk memastikan sama ada anda layak untuk menerima apa-apa fleksibiliti Nota: Hanya untuk premium/sumbangan yang perlu dibayar antara 18 Mac 2020 hingga 30 Jun 2021. Jika TIDAK  Tiada tindakan diperlukan Dikemas kini 10 Mac 2021 UMUM 3 Gambar rajah ilustrasi bagi 3 langkah awal yang perlu dibuat Dikemas kini 10 Mac 2021 UMUM 4 Soalan Lazim Bil. Soalan Jawapan Soalan berkaitan polisi insurans hayat dan sijil takaful keluarga 1. Apakah maksud penangguhan bayaran 3 bulan premium insurans hayat/sumbangan takaful keluarga? Ia bermaksud pemegang polisi insurans hayat /peserta takaful keluarga boleh menangguhkan sementara pembayaran premium/sumbangan mereka selama 3 bulan, manakala liputan perlindungan insurans/takaful mereka masih diteruskan. 2. Adakah penangguhan premium/sumbangan ini automatik, sama seperti moratorium bayaran balik pinjaman kepada bank yang dibuat secara automatik? Tidak. Anda perlu menghubungi syarikat insurans hayat/pengendali takaful keluarga untuk menyemak kelayakan anda dan memohon untuk “menyertai” penangguhan bayaran premium/sumbangan selama 3 bulan tersebut. 3. Apakah objektif penangguhan bayaran premium insurans hayat/sumbangan takaful keluarga? Penangguhan ini adalah untuk membantu pemegang polisi insurans hayat/peserta takaful keluarga yang menghadapi masalah kewangan sementara untuk membayar premium/sumbangan mereka akibat pandemik COVID-19. Mereka boleh menangguhkan bayaran premium/sumbangan mereka selama 3 bulan dan pada masa yang sama mengekalkan liputan perlindungan insurans/takaful mereka. 4. Siapakah yang layak untuk menangguhkan bayaran premium insurans/sumbangan takaful mereka? Pilihan penangguhan bayaran premium insurans hayat/sumbangan takaful keluarga hanya disediakan untuk “pemegang polisi insurans/peserta takaful yang terjejas”. “Pemegang polisi insurans/peserta takaful yang terjejas” ialah (a) Individu yang telah dijangkiti COVID-19, dikenakan kuarantin mandatori di rumah disebabkan kontak dengan pesakit COVID-19 atau mereka yang kehilangan pendapatan akibat situasi yang berpunca daripada COVID-19; dan (b) PKS yang kehilangan pendapatan akibat situasi yang berpunca daripada COVID-19. Contoh kejadian yang menyebabkan kehilangan pendapatan: (i) Bagi individu: diberhentikan kerja, waktu kerja dipendekkan, dikehendaki bercuti tanpa gaji dan gaji atau komisen dipotong; dan (ii) Bagi mereka yang bekerja sendiri dan PKS: kehilangan pendapatan perniagaan. Dikemas kini 10 Mac 2021 UMUM 5 Bil. Soalan Jawapan Hubungi syarikat insurans hayat atau pengendali takaful keluarga anda untuk mengetahui sama ada anda layak dan memenuhi definisi “pemegang polisi insurans/peserta takaful yang terjejas” yang dinyatakan di atas. 5. Bilakah saya boleh memohon penangguhan bayaran 3 bulan ini untuk premium insurans hayat/sumbangan takaful keluarga saya? Anda boleh memohon untuk “menyertai” penangguhan bayaran premium/sumbangan selama 3 bulan ini dari 1 April 2020 hingga 30 Jun 2021. Penangguhan ini melibatkan semua premium insurans hayat/sumbangan takaful keluarga yang perlu dibayar dari 18 Mac 2020 hingga 30 Jun 2021. Hubungi syarikat insurans hayat/pengendali takaful keluarga anda untuk maklumat lanjut. 6. Syarikat insurans hayat dan pengendali takaful keluarga yang manakah menawarkan pilihan untuk menangguhkan bayaran premium/sumbangan takaful? Semua syarikat insurans hayat dan pengendali takaful keluarga berlesen akan menawarkan pilihan untuk menangguhkan bayaran premium/sumbangan takaful kepada pemegang polisi insurans/peserta takaful yang terjejas. Rujuk Lampiran 1 untuk senarai penuh syarikat insurans hayat dan pengendali takaful keluarga. 7. Adakah saya perlu memohon untuk menangguhkan bayaran premium insurans hayat/sumbangan takaful keluarga ini? Ya. Hubungi syarikat insurans hayat/pengendali takaful keluarga anda untuk maklumat lanjut tentang proses permohonan. 8. Adakah saya perlu pergi ke cawangan/pejabat penanggung insurans hayat/pengendali takaful keluarga untuk memohon penangguhan bayaran premium/sumbangan selama 3 bulan tersebut? Syarikat insurans hayat dan pengendali takaful keluarga boleh menyediakan saluran alternatif, contohnya permohonan secara dalam talian, untuk membantu anda memohon langkah bantuan ini secara mudah dan selamat sepanjang tempoh yang mencabar ini disebabkan oleh Perintah Kawalan Pergerakan. Hubungi syarikat insurans hayat/pengendali takaful keluarga anda untuk mendapatkan maklumat lanjut tentang proses permohonan. 9. Adakah saya perlu menunjukkan bukti/dokumen sokongan bahawa saya merupakan pemegang polisi insurans/peserta takaful yang terjejas? Anda mungkin perlu menunjukkan bukti/dokumen sokongan bahawa anda merupakan pemegang polisi insurans/peserta takaful yang terjejas. Hubungi syarikat insurans hayat/pengendali takaful keluarga anda untuk maklumat lanjut. 10. Bolehkah saya memohon penangguhan kurang daripada 3 bulan untuk bayaran Tidak. Tempoh penangguhan ditetapkan selama 3 bulan sahaja. Dikemas kini 10 Mac 2021 UMUM 6 Bil. Soalan Jawapan premium insurans hayat/sumbangan takaful keluarga saya? 11. Bolehkah saya memohon untuk mendapatkan penangguhan bayaran premium insurans/sumbangan takaful hayat lebih daripada 3 bulan? Tidak. Pilihan yang ada sekarang untuk menangguhkan bayaran premium insurans hayat/ sumbangan takaful keluarga adalah untuk 3 bulan sahaja. Hubungi syarikat insurans hayat/pengendali takaful keluarga sekiranya anda memerlukan tempoh penangguhan yang lebih lama. Mereka boleh memberikan cadangan dan menyediakan penyelesaian yang lebih sesuai dengan keperluan anda. 12. Adakah saya akan dikenakan faedah bagi penangguhan bayaran premium insurans/sumbangan takaful sepanjang tempoh tiga bulan penangguhan tersebut? Tidak. Tiada faedah akan dikenakan atas penangguhan bayaran premium/ sumbangan selama 3 bulan tersebut. 13. Adakah saya akan terus mendapat perlindungan daripada daripada polisi insurans hayat/ sijil takaful keluarga saya sepanjang tempoh 3 bulan penangguhan bayaran premium/ sumbangan? Ya. Anda masih boleh mendapat perlindungan insurans/ takaful sepanjang 3 bulan tempoh penangguhan bayaran. 14. Adakah polisi insurans hayat/ sijil takaful keluarga akan luput sekiranya saya memilih untuk menangguhkan bayaran 3 bulan premium insurans hayat/ sumbangan takaful keluarga? Tidak. Perlindungan insurans hayat/ takaful keluarga akan terus berkuat kuasa/ aktif sepanjang 3 bulan tempoh penangguhan, dengan syarat anda telah menghubungi syarikat insurans hayat/ pengendali takaful anda dalam tempoh 1 April 2020 hingga 30 Jun 2021 untuk memberitahu bahawa anda memilih penangguhan tersebut. Syarikat insurans hayat/ pengendali takaful keluarga akan memastikan polisi insurans hayat/ sijil takaful keluarga masih berkuat kuasa/ aktif melalui mekanisme seperti tempoh penangguhan atau Jaminan Polis/Sijil Tidak Luput (NLG)/ Peruntukan Tidak Luput (NLP). Syarikat insurans hayat/ pengendali takaful keluarga yang berlainan mempunyai terma dan syarat yang berbeza bagi tempoh penangguhan dan NLG/ NLP. Bagi sesetengah jenis polisi (seperti pelan berkaitan pelaburan, hayat am, takaful keluarga), walaupun polisi/sijil anda akan Dikemas kini 10 Mac 2021 UMUM 7 Bil. Soalan Jawapan sentiasa berkuat kuasa/ aktif sepanjang 3 bulan penangguhan, mungkin terdapat kesan jangka panjang kepada kemampanan liputan perlindungan (sustainability of protection coverage) anda. Hubungi syarikat insurans hayat/ pengendali takaful keluarga untuk- (a) maklumat tentang tempoh penangguhan dan/atau cara NLG/ NLP dilaksanakan dan kesannya kepada kemampanan liputan perlindungan dalam jangka masa panjang; dan (b) nasihat mengenai pilihan yang ada bagi untuk menyambung semula bayaran premium/ sumbangan selepas tempoh tiga bulan penangguhan. 15. Saya merupakan pemegang polisi / peserta takaful yang terjejas dan polisi/sijil saya telah pun luput. Adakah saya masih boleh memohon penangguhan bayaran 3 bulan premium/sumbangan ini? Jika tidak, apakah bantuan lain yang boleh saya dapat? Tidak. Anda tidak layak untuk penangguhan 3 bulan bayaran premium/ sumbangan. Walau bagaimanapun, anda mungkin boleh menghidupkan/memasukkan semula polisi/sijil berdasarkan klausa untuk menghidupkan/memasukkan semula polisi insurans/ kontrak takaful anda. Terma dan syarat untuk menghidupkan/memasukkan semula adalah berbeza antara syarikat insurans hayat/pengendali takaful keluarga. Hubungi syarikat insurans hayat/ pengendali takaful keluarga anda untuk maklumat lanjut dan pilihan yang paling sesuai dengan keperluan anda. 16. Apakah pindaan terhadap polisi/sijil dan bagaimanakah saya boleh menggunakannya? Ini merupakan pengubahsuaian yang anda boleh buat terhadap polisi insurans/ sijil takaful anda yang sedia ada, yang akan memberikan kesan kepada premium/ sumbangan yang perlu anda bayar. Sebagai contoh, anda mungkin memilih untuk memendekkan tempoh perlindungan bagi polisi insurans hayat/ sijil takaful keluarga atau mengurangkan jumlah yang diinsuranskan / jumlah perlindungan supaya anda lebih mampu membayar premium/ sumbangan tersebut. Syarikat insurans hayat/ pengendali takaful keluarga yang berlainan mempunyai terma dan syarat yang berbeza bagi pindaan polisi/ sijil. Anda dinasihati supaya menghubungi syarikat insurans hayat/ pengendali takaful keluarga untuk maklumat lanjut dan dapatkan nasihat kewangan tentang cara membuat pindaan khusus terhadap polisi/ sijil anda yang paling sesuai dengan keperluan anda. Dikemas kini 10 Mac 2021 UMUM 8 Bil. Soalan Jawapan 17. Adakah saya perlu membayar apa-apa caj sekiranya memilih penangguhan bayaran 3 bulan bagi premium/ sumbangan; atau sekiranya saya meminda polisi insurans hayat/ sijil takaful keluarga saya? Bagi pemegang polisi/ peserta takaful yang terjejas, syarikat insurans hayat/ pengendali takaful keluarga mengecualikan fi dan caj bagi penangguhan bayaran premium/ sumbangan dan pindaan yang dibuat sepanjang tempoh dari 15 April 2020 hingga 30 Jun 2021. 18. Apakah yang akan terjadi selepas tamat tempoh penangguhan bayaran 3 bulan premium/sumbangan? Anda dikehendaki membayar balik semua premium/ sumbangan yang ditangguhkan. Hubungi syarikat insurans hayat/ pengendali takaful keluarga untuk maklumat lanjut dan nasihat berhubung dengan pilihan bayaran balik. 19. Syarikat insurans hayat/pengendali takaful meluluskan permohonan saya untuk penangguhan bayaran premium/sumbangan selama 3 bulan pada tahun 2020 tetapi hari ini saya masih menghadapi kesulitan kewangan. Bolehkah saya memohon penangguhan bayaran selama 3 bulan lagi pada tahun 2021? Anda dinasihati supaya menghubungi syarikat insurans hayat/pengendali takaful keluarga untuk maklumat lanjut bagi kelayakan untuk memohon penangguhan bayaran selama 3 bulan lagi pada tahun 2021. Syarikat insurans hayat/pengendali takaful keluarga anda akan mempertimbangkan keadaan kewangan semasa menilai permohonan anda. 20. Apakah pilihan pembayaran balik ansuran tanpa faedah selama 6 bulan yang ditawarkan oleh syarikat insurans hayat selepas tamat tempoh penangguhan bayaran premium/sumbangan selama 3 bulan bagi permohonan penangguhan premium yang diterima oleh syarikat insurans hayat dari 29 Januari 2021 hingga 30 Jun 2021? Apabila tamat tempoh penangguhan selama 3 bulan, syarikat insurans hayat akan membenarkan pemegang polisi untuk membayar balik tunggakan premium bagi polisi hayat tradisional (i.e polisi peserta dan bukan peserta sahaja) pada 6 bulan berikutnya melalui ansuran tanpa faedah. Pilihan pembayaran balik ansuran tanpa faedah ini diberikan kepada tunggakan premium yang tertangguh sahaja dan permohonan bagi penangguhan premium tersebut mesti diterima oleh syarikat insurans hayat dari 29 Januari 2021 hingga 30 Jun 2021. Sila hubungi syarikat insurans hayat anda untuk maklumat lanjut. 21. Jika saya mempunyai lebih daripada satu polisi insurans hayat, bolehkah saya menangguhkan bayaran premium bagi kesemua polisi saya? Ya, pilihan untuk menangguhkan bayaran premium/ sumbangan adalah terpakai pada semua premium insurans hayat dan sumbangan takaful keluarga bermula dari 18 Mac 2020 hingga 30 Jun 2021. Hubungi syarikat insurans hayat/ pengendali takaful keluarga anda. Dikemas kini 10 Mac 2021 UMUM 9 Bil. Soalan Jawapan 22. Sekiranya saya kini menggunakan khidmat potongan gaji atau debit langsung, adakah saya perlu membatalkannya sekiranya saya memilih penangguhan 3 bulan bayaran premium/ sumbangan? Ya, anda perlu memberitahu syarikat insurans hayat/ pengendali takaful keluarga dan bank/ majikan anda untuk membatalkan atau memberhentikan sementara potongan automatik yang berkenaan. 23. Sekiranya saya memilih untuk meneruskan bayaran premium insurans hayat/ sumbangan takaful keluarga sepanjang tempoh ini, apakah yang perlu saya buat? Anda tidak perlu berbuat apa-apa. Sekiranya anda berhasrat meneruskan bayaran premium/ sumbangan, teruskan pembayaran seperti biasa. Anda hanya perlu hubungi syarikat insurans hayat anda/ pengendali takaful keluarga sekiranya anda ingin “menyertai” penangguhan bayaran premium/sumbangan 24. Adakah BNM yang menyediakan semua bantuan/ langkah bantuan ini? Tidak. Pilihan untuk menangguhkan bayaran premium/ sumbangan dan bantuan/langkah bantuan lain disediakan oleh syarikat insurans / pengendali takaful. Soalan berkaitan polisi insurans am dan sijil takaful am 25. Adakah penangguhan bayaran premium/ sumbangan selama 3 bulan melibatkan premium insurans am dan sumbangan takaful am? Tidak. Bagi polisi insurans am/ sijil takaful am, anda boleh menghubungi syarikat insurans am/ pengendali takaful am untuk membincangkan pilihan yang ada sekiranya anda menghadapi masalah untuk membayar premium insurans/ sumbangan takaful anda. Syarikat insurans am/ pengendali takaful am anda akan berbincang dengan anda untuk menstruktur semula polisi insurans/ sijil takaful yang lebih sesuai dengan keperluan anda dalam tempoh ini (15 April 2020 hingga 30 Jun 2021). Sila rujuk Lampiran 2 untuk senarai penuh syarikat insurans am dan pengendali takaful am. Dikemas kini 10 Mac 2021 UMUM 10 Bil. Soalan Jawapan Maklumat hubungan 26. Bagaimanakah cara untuk saya hubungi syarikat insurans/ pengendali takaful untuk maklumat lanjut? Persatuan industri insurans telah menyediakan talian telefon syarikat insurans/ pengendali takaful yang menjadi ahli persatuan dalam laman sesawang semua persatuan. (a) Persatuan Insurans Hayat Malaysia (Life Insurance Association Malaysia, LIAM) www.liam.org.my (b) Malaysian Takaful Association (MTA) www.malaysiantakaful.com.my (c) Persatuan Insurans Am Malaysia (General Insurance Association Malaysia, PIAM) www.piam.org.my Selain itu, anda boleh hubungi pusat khidmat pelanggan syarikat insurans/pengendali takaful masing-masing seperti disenaraikan dalam – (i) Lampiran 1 (syarikat insurans hayat dan pengendali takaful keluarga); dan (ii) Lampiran 2 (syarikat insurans am dan pengendali takaful am). Bank Negara Malaysia 10 Mac 2021 Saluran interaksi dengan orang ramai mengenai urusan kewangan Pusat Perhubungan Pelanggan Bank Negara Malaysia (BNMTELELINK) Tel.: 1-300-88-5465 (1-300-88-LINK) / (Luar Negara: 603-2174-1717) Faksimile: 603-2174-1515 SMS: 15888 Pautan: https://telelink.bnm.gov.my/ E-mel: [email protected] Laman sesawang: www.bnm.gov.my Waktu urusan: 9.00 pagi - 5.00 petang. (Isnin – Jumaat) http://www.liam.org.my/ http://www.malaysiantakaful.com.my/ http://www.piam.org.my/ http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=1473 https://telelink.bnm.gov.my/ mailto:[email protected] http://www.bnm.gov.my/ Dikemas kini 10 Mac 2021 UMUM 11 Lampiran 1: Senarai syarikat insurans hayat dan pengendali takaful keluarga Syarikat insurans hayat Pengendali takaful keluarga AIA Berhad AIA PUBLIC Takaful Bhd AXA Affin Life Insurance Berhad AmMetLife Takaful Berhad Allianz Life Insurance Malaysia Berhad Etiqa Family Takaful Berhad AmMetLife Insurance Berhad FWD Takaful Berhad Etiqa Life Insurance Berhad Great Eastern Takaful Berhad Gibraltar BSN Life Berhad Hong Leong MSIG Takaful Berhad Great Eastern Life Assurance (Malaysia) Berhad Prudential BSN Takaful Berhad Hong Leong Assurance Berhad Sun Life Malaysia Takaful Berhad MCIS Insurance Berhad Syarikat Takaful Malaysia Keluarga Berhad Manulife Insurance Berhad Takaful Ikhlas Family Berhad Prudential Assurance Malaysia Berhad Zurich Takaful Malaysia Berhad Sun Life Malaysia Assurance Berhad Tokio Marine Life Insurance Malaysia Bhd Zurich Life Insurance Malaysia Berhad http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aiab&ac=97&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aiab&ac=97&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ing_public_tkf&ac=82&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ing_public_tkf&ac=82&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axalife&ac=68&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axalife&ac=68&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axalife&ac=68&cat=insurance&type=L&lang=en 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http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_am&ac=86&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hsbcamanah&ac=69&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hsbcamanah&ac=69&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqalifeins&ac=92&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqalifeins&ac=92&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqalifeins&ac=92&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge_takaful&ac=80&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge_takaful&ac=80&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_gibraltar&ac=89&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_gibraltar&ac=89&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hltokiomarinetkf&ac=70&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hltokiomarinetkf&ac=70&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge&ac=53&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge&ac=53&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudentialbsntkf&ac=67&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudentialbsntkf&ac=67&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hla&ac=54&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hla&ac=54&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbavivatkf&ac=66&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbavivatkf&ac=66&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_mcis&ac=57&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_mcis&ac=57&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_manulife&ac=4&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_manulife&ac=4&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudential&ac=7&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudential&ac=7&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_maatkf&ac=71&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_maatkf&ac=71&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbaviva&ac=1&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbaviva&ac=1&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_asialife&ac=88&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_asialife&ac=88&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_asialife&ac=88&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malassurance&ac=56&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malassurance&ac=56&cat=insurance&type=L&lang=en Dikemas kini 10 Mac 2021 UMUM 12 Lampiran 1: Maklumat perhubungan syarikat insurans hayat Syarikat insurans hayat Syarikat insurans hayat AIA Berhad 1-300-88-1899 [email protected] / [email protected] www.aia.com.my Gibraltar BSN Life Berhad 1-300-22-6262 [email protected] www.gibraltarbsn.com AXA Affin Life Insurance Berhad 1-300-88-1616 [email protected] www.axa.com.my Great Eastern Life Assurance (Malaysia) Berhad 1-300-1300-88 [email protected] greateasternlife.com/my Allianz Life Insurance Malaysia Berhad 1-300-22-5542 [email protected] www.allianz.com.my Hong Leong Assurance Berhad 03-7650 1288 [email protected] www.hla.com.my AmMetLife Insurance Berhad 1-300-88-8800 [email protected] www.ammetlife.com MCIS Insurance Berhad 03-7652 3388 [email protected] www.mcis.my Etiqa Life Insurance Berhad 1-800-88-9998 (Healthcare) Live chat: http//www.eti.qa/livechat [email protected] http://www.etiqa.com.my Manulife Insurance Berhad 1-300-13-2323 / 03-2719 9112 [email protected] www.manulife.com Prudential Assurance Malaysia Berhad 03-2771 0228 [email protected] www.prudential.com.my Tokio Marine Life Insurance Malaysia Bhd 03-2603 3999 [email protected] www.tokiomarine.com Sun Life Malaysia Assurance Berhad 1-300-88-5055 [email protected] www.sunlifemalaysia.com Zurich Life Insurance Malaysia Berhad 1-300-888-622 [email protected] www.zurich.com.my http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aiab&ac=97&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aiab&ac=97&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_gibraltar&ac=89&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_gibraltar&ac=89&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axalife&ac=68&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axalife&ac=68&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axalife&ac=68&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axalife&ac=68&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge&ac=53&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge&ac=53&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_allianzlife&ac=6&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_allianzlife&ac=6&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hla&ac=54&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hla&ac=54&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_am&ac=86&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_am&ac=86&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_am&ac=86&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_mcis&ac=57&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_mcis&ac=57&cat=insurance&type=L&lang=en http://www.mcis.my/ http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqalifeins&ac=92&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqalifeins&ac=92&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqalifeins&ac=92&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_manulife&ac=4&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_manulife&ac=4&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudential&ac=7&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudential&ac=7&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_asialife&ac=88&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_asialife&ac=88&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_asialife&ac=88&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbaviva&ac=1&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbaviva&ac=1&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malassurance&ac=56&cat=insurance&type=L&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malassurance&ac=56&cat=insurance&type=L&lang=en Dikemas kini 10 Mac 2021 UMUM 13 Lampiran 1: Maklumat perhubungan pengendali takaful keluarga Pengendali takaful keluarga Pengendali takaful keluarga AIA PUBLIC Takaful Bhd 1-300-88-8922 [email protected] www.aia.com.my Prudential BSN Takaful Berhad 03-2053 7188 [email protected] www.prubsn.com.my AmMetLife Takaful Berhad 1-300-88-8800 [email protected] www.ammetlifetakaful.com Sun Life Malaysia Takaful Berhad 1-300-88-5055 [email protected] www.sunlifemalaysia.com Etiqa Family Takaful Berhad 1-300-13-8888 [email protected] http://www.etiqa.com.my Syarikat Takaful Malaysia Keluarga Berhad 1-300-8-TAKAFUL(825 2385) [email protected] www.takaful-malaysia.com.my FWD Takaful Berhad 1-300-13-7988 [email protected] www.fwd.com.my/en/ Takaful Ikhlas Family Berhad 03-2723 9696 [email protected] www.takaful-ikhlas.com.my Great Eastern Takaful Berhad 1-300-13-8338 [email protected] www.greateasterntakaful.com Zurich Takaful Malaysia Berhad 1-300-888-622 [email protected] www.zurich.com.my Hong Leong MSIG Takaful Berhad 03-7650 1800 [email protected] www.hlmtakaful.com.my http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ing_public_tkf&ac=82&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ing_public_tkf&ac=82&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudentialbsntkf&ac=67&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_prudentialbsntkf&ac=67&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amfamily_tkf&ac=84&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amfamily_tkf&ac=84&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amfamily_tkf&ac=84&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbavivatkf&ac=66&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_cimbavivatkf&ac=66&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqatakaful&ac=62&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqatakaful&ac=62&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqatakaful&ac=62&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_malaysia&ac=61&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hsbcamanah&ac=69&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hsbcamanah&ac=69&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ikhlas&ac=65&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge_takaful&ac=80&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_ge_takaful&ac=80&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_maatkf&ac=71&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_maatkf&ac=71&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hltokiomarinetkf&ac=70&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_hltokiomarinetkf&ac=70&cat=insurance&type=TKF&lang=en Dikemas kini 10 Mac 2021 UMUM 14 Lampiran 2: Senarai syarikat insurans am dan pengendali takaful am Syarikat insurans am Syarikat insurans am AIA General Berhad Pacific Insurance Berhad AIG Malaysia Insurance Berhad Progressive Insurance Berhad AXA Affin General Insurance Berhad QBE Insurance (Malaysia) Berhad Allianz General Insurance Company (Malaysia) Berhad RHB Insurance Berhad AmGeneral Insurance Berhad Tokio Marine Insurance (Malaysia) Berhad Berjaya Sompo Insurance Berhad Tune Insurance Malaysia Berhad Chubb Insurance Malaysia Berhad Zurich General Insurance Malaysia Berhad Etiqa General Insurance Berhad Great Eastern General Insurance (Malaysia) Berhad Liberty Insurance Berhad Pengendali takaful am Lonpac Insurance Berhad Etiqa General Takaful Berhad MPI Generali Insurans Berhad Syarikat Takaful Malaysia Am Berhad MSIG Insurance (Malaysia) Bhd Takaful Ikhlas General Berhad Pacific & Orient Insurance Co. Berhad Zurich General Takaful Malaysia Berhad http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aiagb&ac=98&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aiagb&ac=98&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacific&ac=28&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacific&ac=28&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aig&ac=10&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aig&ac=10&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_progressive&ac=30&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_progressive&ac=30&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axa&ac=16&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axa&ac=16&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axa&ac=16&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_axa&ac=16&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_qbe&ac=31&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_qbe&ac=31&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_allianzgeneral&ac=21&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_allianzgeneral&ac=21&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_rhb&ac=32&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_rhb&ac=32&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amg&ac=77&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amg&ac=77&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amg&ac=77&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tokio&ac=38&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tokio&ac=38&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tokio&ac=38&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_berjaya&ac=13&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_berjaya&ac=13&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_united&ac=39&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_united&ac=39&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_acejerneh&ac=83&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_acejerneh&ac=83&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zurichgeneral&ac=93&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zurichgeneral&ac=93&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqains&ac=55&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqains&ac=55&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqains&ac=55&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_overseasassurance&ac=58&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_overseasassurance&ac=58&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_liberty&ac=35&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_liberty&ac=35&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_lonpac&ac=20&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_lonpac&ac=20&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_lonpac&ac=20&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqageneral&ac=91&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqageneral&ac=91&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqageneral&ac=91&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_stmab&ac=94&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_stmab&ac=94&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_msig&ac=36&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_msig&ac=36&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacificorient&ac=27&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacificorient&ac=27&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zgtmb&ac=95&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zgtmb&ac=95&cat=insurance&type=TKF&lang=en Dikemas kini 10 Mac 2021 UMUM 15 Lampiran 2: Maklumat perhubungan syarikat insurans am Syarikat insurans am Syarikat insurans am AIA General Berhad 1-300-88-1899 www.aia.com.my Berjaya Sompo Insurance Berhad 1-899-889-933 [email protected] www.berjayasompo.com.my AIG Malaysia Insurance Berhad 1-800-88-8811 https://www.aig.my/contact-us [email protected] Chubb Insurance Malaysia Berhad 03-2058 3000 / 1800-88-6333 [email protected] www.chubb.com/ AXA Affin General Insurance Berhad 03-2170 8282 [email protected] www.axa.com.my Etiqa General Insurance Berhad 1-300-13-8888 [email protected] www.etiqa.com.my Allianz General Insurance Company (Malaysia) Berhad 1-300-22-5542 [email protected] www.allianz.com.my Great Eastern General Insurance (Malaysia) Berhad 1-300-1300-88 [email protected] www.greateasterngeneral.com/my/en/index.html AmGeneral Insurance Berhad AmAssurance 1-300-80-3030 [email protected] www.amgeneralinsurance.com Kurnia Insurans 1-800-88-6333 [email protected] www.amgeneralinsurance.com Liberty Insurance Berhad 1-300-888-990 customercare@ libertyinsurance.com.my www.libertyinsurance.com.my http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_aiagb&ac=98&cat=insurance&type=G&lang=en 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http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amg&ac=77&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amg&ac=77&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_amg&ac=77&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_liberty&ac=35&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_liberty&ac=35&cat=insurance&type=G&lang=en Dikemas kini 10 Mac 2021 UMUM 16 Lampiran 2: Maklumat perhubungan syarikat insurans am (sambungan) Syarikat insurans am Syarikat insurans am Lonpac Insurance Berhad 03-2262 8688 / 03-2723 7888 [email protected] www.lonpac.com QBE Insurance (Malaysia) Berhad 03-7861 8400 [email protected] www.qbe.com MPI Generali Insurans Berhad 03-2034 9888 [email protected] www.mpigenerali.com RHB Insurance Berhad 1-300-220-007 [email protected] www.rhbinsurance.com.my MSIG Insurance (Malaysia) Bhd 1-800-88-MSIG (6744) [email protected] www.msig.com.my Tokio Marine Insurance (Malaysia) Berhad 03-2603 3999 [email protected] www.tokiomarine.com/my/en/personal/get Pacific & Orient Insurance Co. Berhad 1-800-88-2121 [email protected] www.poi2u.com Tune Insurance Malaysia Berhad 1-800-88-5753 [email protected] www.tuneprotect.com Pacific Insurance Berhad 1-800-88-1629 [email protected] www.pacificinsurance.com.my Zurich General Insurance Malaysia Berhad 1-300-888-622 www.zurich.com Progressive Insurance Berhad 03-2118 8183/ 03-2118 8056 [email protected] https://www.progressiveinsurance.com.my http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_lonpac&ac=20&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_lonpac&ac=20&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_lonpac&ac=20&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_qbe&ac=31&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_qbe&ac=31&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_multipurpose&ac=25&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_rhb&ac=32&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_rhb&ac=32&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_msig&ac=36&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_msig&ac=36&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tokio&ac=38&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tokio&ac=38&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tokio&ac=38&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacificorient&ac=27&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacificorient&ac=27&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_united&ac=39&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_united&ac=39&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacific&ac=28&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_pacific&ac=28&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zurichgeneral&ac=93&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zurichgeneral&ac=93&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_progressive&ac=30&cat=insurance&type=G&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_progressive&ac=30&cat=insurance&type=G&lang=en Dikemas kini 10 Mac 2021 UMUM 17 Lampiran 2: Maklumat perhubungan pengendali takaful am Pengendali takaful am Pengendali takaful am Etiqa General Takaful Berhad 1-300-13-8888 [email protected] www.etiqa.com.my Takaful Ikhlas General Berhad 03-2723 9696 www.takaful-ikhlas.com.my Syarikat Takaful Malaysia Am Berhad 1300-8-TAKAFUL (825 2385) [email protected] www.takaful-malaysia.com.my Zurich General Takaful Malaysia Berhad 1-300-888-622 [email protected] www.zurich.com.my http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqageneral&ac=91&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqageneral&ac=91&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_etiqageneral&ac=91&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_tigb&ac=96&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_stmab&ac=94&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_stmab&ac=94&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zgtmb&ac=95&cat=insurance&type=TKF&lang=en http://www.bnm.gov.my/index.php?ch=li_insurance&pg=li_insurance_zgtmb&ac=95&cat=insurance&type=TKF&lang=en

Public Notice

26 Feb 2021

Policy Document on Operational Risk Integrated Online Network (ORION)

https://www.bnm.gov.my/-/policy-document-on-operational-risk-integrated-online-network-orion-

https://www.bnm.gov.my/documents/20124/938039/Appendix+B+-+ORION+User+Guide+%26+Technical+Specifications_2021.pdf, https://www.bnm.gov.my/documents/20124/938039/Appendix+A+-+ORION+FAQs_2021.pdf

Reading: Policy Document on Operational Risk Integrated Online Network (ORION) Share: 47 Policy Document on Operational Risk Integrated Online Network (ORION) Embargo : For immediate release Not for publication or broadcast before 2305 on Friday, 26 February 2021 26 Feb 2021 Issuance Date: 25 February 2021 Effective Date: 1 March 2021 Summary: Operational Risk Integrated Online Network (ORION) Policy Document is a comprehensive guidance on reporting governance, reporting procedures, mandatory data items, reporting taxonomies of Operational Risk submission in regards to Loss Event, Key Risk Indicators and Scenario Analysis. This document includes the User Guide and Technical Specifications for application accessibility and system functionality navigation, with a set of FAQs tailored specific to the reporting requirement to guide the users in ensuring quality submission. Highlights: The recent revision to ORION Policy and FAQ Documents intends to: Provide clarity on the reporting of Shariah Non-compliance event in ORION; Realign cyber-risk related definitions and terminologies with the Financial Stability Board cyber lexicons; and Enhance the granularity of ORION reporting requirement to improve the accuracy of operational risk reporting. Applicability: Licensed banks Licensed Investment banks Licensed Islamic banks Licensed International Islamic banks Licensed insurers Licensed takaful operators Licensed international takaful operators Prescribed development financial institutions Approved issuers of a designated payment instrument Approved issuers of a designated Islamic payment instrument Section In Charge: ORSU Issuing Department/s: Risk Specialist and Technology Supervision Department Attachment: Operational Risk Integrated Online Network (ORION) ORION Frequently Asked Questions (FAQ) ORION User Guide and Technical Specifications Superseded Policies: Operational Risk Integrated Online Network (ORION) Policy Document issued on 22 June 2018     Bank Negara Malaysia 26 February 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Appendix 1: ORION User Guide and Technical Specifications Issued on: 25 February 2021 2 Table of Contents Glossary ............................................................................................................................. 6 Organisation of this Document ......................................................................................... 8 About This Guide ............................................................................................................... 9 .... OVERVIEW ......................................................................... 10 Introduction ..................................................................................................................... 11 LED Workflow for Online Submission ................................................................................. 12 LED Workflow for Batch Submission .................................................................................. 13 LED Workflow for Viewing Reports .................................................................................... 14 Workflow for Updating Loss Events.................................................................................... 15 Workflow for Submitting KRI Values................................................................................... 16 Workflow for Submitting the KRI Value through Infoport ..................................................... 17 KRI Workflow for Viewing Reports ..................................................................................... 18 SA Workflow for Responding to Scenarios, Workshops and Assessments ......................... 19 SA Workflow for Viewing Reports ...................................................................................... 20 .... TECHNICAL SPECIFICATION ........................................... 21 Supported Browser Version ............................................................................................ 22 Software Requirements for Excel Macros ...................................................................... 23 To Enable Macros in Excel 2010 ..................................................................................... 23 Microsoft Office Driver Requirement .............................................................................. 24 Object Libraries Required in Microsoft Office ................................................................ 25 Validation Rules............................................................................................................... 29 .... GETTING STARTED ........................................................... 31 Logging on to the Application ........................................................................................ 32 Creating a New User ......................................................................................................... 32 Logging on to the Application as an Existing User .............................................................. 36 Basic Elements of the Startup Screen ............................................................................ 39 Infocenters ....................................................................................................................... 40 BNM Message Board Infocenter ........................................................................................ 40 LED Infocenter >> Manage Loss Event Sub-Infocenter ...................................................... 40 KRI Infocenter >> Manage KRIs Sub-Infocenter ................................................................. 41 Scenario Analysis Infocenter >> Manage Scenarios and Workshops Sub-Infocenter .......... 41 .... COMMON FUNCTIONS ...................................................... 42 3 Accessing Assignments through My Tasks Menu ......................................................... 43 Form Tool Bar .................................................................................................................. 44 Multi-Window Interface.................................................................................................... 45 User Interface Options ....................................................................................................... 45 Multi-Window Bar > Context-sensitive Menu Options ......................................................... 46 Advanced RTF Editor ...................................................................................................... 47 Sorting and Filtering the List of Values .......................................................................... 48 .... EMAIL NOTIFICATIONS ..................................................... 50 Key Risk Indicator Emails ............................................................................................... 50 Scenario Analysis Emails ............................................................................................... 51 .... LOSS EVENT DATABASE ................................................. 53 Creating Loss Events ...................................................................................................... 54 Navigation ......................................................................................................................... 54 Loss Event Form > Header Section ................................................................................... 55 Loss Event Form > Loss Event Tab ................................................................................... 56 Loss Event Form > Impact Tab .......................................................................................... 60 Loss Event Form > Additional Details Tab.......................................................................... 65 Form Submission............................................................................................................... 65 Editing Loss Events Details ............................................................................................ 66 Navigation ......................................................................................................................... 66 Form Submission............................................................................................................... 67 Entering Loss Events Details in an Excel Sheet ............................................................ 68 Navigation ......................................................................................................................... 69 Details Form > Basic Details Section ................................................................................. 71 Details Form > Events Details Section ............................................................................... 73 Details Form > Shariah Details Section .............................................................................. 75 Details Form > Loss Categorisation Section ....................................................................... 77 Details Form > Financial Impacted Area Section ................................................................ 79 Details Form > Financial Section ....................................................................................... 82 Details Form > Non Financial Section ................................................................................ 83 Form Submission............................................................................................................... 84 Uploading the Excel Sheet ................................................................................................. 85 Navigation ......................................................................................................................... 85 Data Upload Form ............................................................................................................. 85 Data Upload Form > Uploading the Loss Event .................................................................. 86 Form Submission............................................................................................................... 87 Viewing the Upload Status ................................................................................................. 87 Do’s and Don’ts ................................................................................................................. 88 Entering Loss Events Details (Non-Malaysian REs) ...................................................... 89 Navigation ......................................................................................................................... 89 4 .... KEY RISK INDICATOR ....................................................... 93 Responding to Key Risk Indicator .................................................................................. 94 Navigation ......................................................................................................................... 94 Editing KRI Response ..................................................................................................... 95 Navigation ......................................................................................................................... 95 KRI Data Entry Form (Edit Mode) ...................................................................................... 97 KRI Data Entry Form > Details Tab .................................................................................... 97 Form Submission............................................................................................................... 97 .... SCENARIO ANALYSIS ....................................................... 98 Responding to Scenarios ................................................................................................ 99 Navigation ......................................................................................................................... 99 Scenario Analysis Response Form .................................................................................. 100 Scenario Analysis Response Form > Details Tab ............................................................. 101 Scenario Analysis Response Form > Questions Tab ........................................................ 103 Scenario Form > Additional Details Tab ........................................................................... 104 Scenario Form > Action (On Form Submission) Section ................................................... 105 Form Submission............................................................................................................. 105 Responding to Assessments ........................................................................................ 106 Navigation ....................................................................................................................... 106 Assessment Response Form ........................................................................................... 106 Assessment Response Form > Header Section ............................................................... 107 Assessment Response Form > Scenario Analysis Section ............................................... 107 Tree Structure Context-sensitive Menu Options ............................................................... 108 Assessment Response Form > Scenario Analysis Sub-section ........................................ 112 Assessment Response Form > Comments Section .......................................................... 112 Form Submission............................................................................................................. 113 Task Assignments and Email Notifications ....................................................................... 113 .... REPORTS ......................................................................... 114 Introduction ................................................................................................................... 114 Accessing Reports ........................................................................................................ 115 Report Filters ................................................................................................................... 115 Report Drilldowns ............................................................................................................ 117 Report Options ................................................................................................................ 117 Loss Event Database Reports....................................................................................... 118 Loss Events Reports........................................................................................................ 118 Loss Event List Report ..................................................................................................... 118 Loss Event Filter Fields ................................................................................................... 119 Upload Status Report ...................................................................................................... 121 Upload Status Report Filters ............................................................................................ 121 Overseas Operational Risk Events Reports ..................................................................... 122 Overseas Loss Event List Report ..................................................................................... 122 Overseas Loss Event List Report Filter Fields .................................................................. 122 Key Risk Indicator Reports ........................................................................................... 123 Breaches Peer Comparison ............................................................................................. 123 5 KRI Submission Reports .................................................................................................. 124 Scenario Analysis Reports............................................................................................ 125 Scenario Analysis Response Reports .............................................................................. 125 List of Scenario Response ............................................................................................... 125 Workshop Response Report ............................................................................................ 126 Reporting Entity Scenario Assessment Reports ............................................................... 127 Assessment Response Report ......................................................................................... 127 Downloading Published Reports .................................................................................. 128 Navigation ....................................................................................................................... 128 6 Glossary Infocenter A common and user specific page that appears to users once they log on to the ORION application. The individual items in the infocenter, such as user forms, assignments, and reports appear on this page. Infoport All related objects such as forms, reports and dashboards are grouped under different headings for easy access. One infocenter has one or more infoports. Landing Page The default page, which appears for a user after log on. Key Risk Indicator (KRI) A submission module that contains the values of the required KRIs. Threshold The point that must be exceeded to raise alarm for a probable risk to come in effect. Scenario Scenarios are the foreseen risks which are derived based on past data. Scenario Analysis (SA) Scenario analysis is conducted to study the impact of risk due to future events which will have effect on a company’s business, reputation and financial position. 7 Workshop A list of published scenarios which can be assigned to multiple reporting entities. Assessment Assessment helps in understanding the prevalent risk scenarios in the financial sector, by gathering scenario data from reporting entities. Ad Hoc Scenario A scenario which can be created at any point of time to be assigned to a specific entity Reports A tabular representation of data. Dashboards Representation of data in the form of charts, such as pie, bar, stacking bar, line, and area. Multi List of Value (MLOV) A list that allows a user to select multiple values. Single List of Value (SLOV) A list that allows a user to select a single value. 8 Organisation of this Document The table below summarises the contents of the section contained in this document. Chapter No. Chapter Description of Coverage Overview Provides an introduction to the modules and the functional workflow. Technical Specification Provides the required technical configurations for the usage of ORION. Getting Started Provides information on registering as a new user and logging on to the ORION application. Common Functions Provides descriptions for the common functions that you encounter. Loss Event Database (LED) Provides information on creating and uploading the loss events. Key Risk Indicator (KRI) Provides information on submitting and editing the KRI values. Scenario Analysis (SA) Provides information on responding to the scenarios and assessments. Reports Provides information on the different reports that you can access. 9 About This Guide Preface The BNM — ORION User Guide provides information on using the ORION application for reporting entities. The ORION application is a web-based application. Document Conventions The following conventions are used in the document: Conventions Description Note: Key pointers, in the form of notes, to help you use this application effectively and efficiently are provided throughout this guide. You can recognise a note when you come across a new paragraph in italics with the word ‘Note’ in red at the beginning of the paragraph. For example: Note: Fields marked with a red asterisk (*) are mandatory. Boldface All software references appear in boldface. For example: In the Name field… All acronyms appear in boldface. For example, KRI. Torn Images Torn images do not contain the entire image; they only contain a portion of the image (a torn image). The portion of the image not visible is shown with torn edges as displayed below.  References to different topics within this User Guide. For example:  For more information, refer to the… 10 Overview Read this chapter to get an overview of the ORION application and process flows of the Loss Event Database (LED), Key Risk Indicator (KRI), and Scenario Analysis (SA) modules that are a part of ORION application. This chapter contains the following sections:  Introduction  LED Workflow for Online Submission  LED Workflow for Batch Submission  LED Workflow for Viewing Reports and Dashboards  KRI Workflow for Submitting KRI Values  KRI Workflow for Updating Loss Events  KRI Workflow for Viewing Reports  SA Workflow for Responding to Scenarios and Assessments  SA Workflow for Viewing Reports 11 Introduction The ORION application comprises of the following modules:  LED: This module enables the Reporting Entity (RE) to create, edit and upload loss events. RE can also view the loss event list report and upload status report.  KRI: This module enables the RE to submit and edit the KRI values. RE can also view reports related to KRI.  SA: This module enables the RE to respond to the assigned scenarios, workshops and assessments. RE can also view the associated response reports. 12 LED Workflow for Online Submission Figure 1 LED Workflow for Online Submission < Reporting Entity Name > Executive Login Click on LED Tab Click on Data Upload Link Enter data in online form Field level data validation (E.g. dependent fields) Submit Is there any error message? (Submission validation) Check the error and correct it. Done Loss Event created and Loss ID generated for new event End Click on Manage Loss Events Yes No 13 LED Workflow for Batch Submission < Reporting Entity Name > Executive Login Click on LED Tab Click on Upload Loss Event Link Download excel template Fill new loss event data in the excel file Attach filled excel file in upload loss form Click on Upload View Upload Status Report Correct the erroneous records Retain only the erroneous record in excel Is there any error in report? Loss event created and Loss ID generated for new event End Click on Manage Loss Events Yes No Figure 2 LED Workflow for Batch Submission 14 LED Workflow for Viewing Reports < Reporting Entity Name > Executive, CRO, Group CRO Click on Loss Event Reports View Reports Download Reports Click on LED Tab Login Click on Operational Overseas Risk Report View Reports Download Reports Figure 3 LED Workflow for Viewing Reports and Dashboards 15 Workflow for Updating Loss Events Click on a Loss Event List Report Search for Loss Event that should be updated Field level data validation (Eg dependent fields) Yes No Check the error and correct it Click on Loss Event Tab Login Reporting entity name Executive Click on a Loss Event Name in the report Update loss event data Is there any error message? (Submission validation) Submit Loss event updated by matching Reporting entity ID and Internal Loss Event ID Click on Upload Loss Event Link Modify Upload Type as Update in a new .xls file Attach filled new xls file in upload loss form Click on Upload View Upload status report Is there any error in report? No Check Error template only for the erroneous records Correct the erroneous records Click on Loss Event Tab Login Reporting entity name Executive Loss event updated by matching Reporting entity ID and Internal Loss Event ID Yes Figure 4 Workflow for Updating Loss Events 16 Workflow for Submitting KRI Values Open KRI Provide value for the KRI Submit Login View KRI /KRI Assignment < Reporting Entity Name > Executive, CRO Figure 5 Workflow for Submitting KRI Values 17 Workflow for Submitting the KRI Value through Infoport Figure 6 Workflow for Submitting the KRI Values through Infoport Click Respond to Assigned KRI Link Provide value for the KRI Submit Login Click on KRI tab < Reporting Entity Name > Executive, CRO 18 KRI Workflow for Viewing Reports Figure 7 KRI Workflow for Viewing Reports Click on KRI Reports View Reports Download Reports Login Click on KRI tab < Reporting Entity Name > Executive, CRO, Group CRO 19 SA Workflow for Responding to Scenarios, Workshops and Assessments View scenario assigned for response Open the scenario Submit Login Enter Impact Reporting entity Executive View Assignment Respond to questionnaire Scenario response is now available for analysis and reporting View assessment period /assessment details Open the assessment form Submit Login Enter scenario (with analysis) Reporting entity Executive View Assignment Assessment response is now available for analysis and reporting Submit Reporting entity Executive Respond to questionnaire View workshop assigned for response Open the workshop Login Enter Impact View Assignment Scenario response is now available for analysis and reporting Figure 8 SA Workflow for Responding to Scenarios, Workshops and Assessments 20 SA Workflow for Viewing Reports Click on Scenario Analysis Tab View/ Download Reports Login < Reporting Entity Name > Executive, CRO, Group CRO Click the Reports displayed under the Scenario Analysis Response infoport Figure 9 SA Workflow for Viewing Reports 21 Technical Specification Preface The ORION Technical Specification provides the PC Readiness Checklist and validation rules in-built with the ORION application. The Checklist provides information on the system requirements of the ORION application whilst the validation rules sets out the validation done by the application on the data entered by users. Target Audience This document is intended for the use of Excel template for the batch reporting of loss events. 22 Supported Browser Version The supported browser version is Internet Explorer version 11.0 & Google Chrome Version above 64. Please follow the following steps: 1) Please ensure the F12 developer tool default to IE EDGE/IE11 by following the steps below: a. Open IE11 and click on Toggle button to enable F12 developer tool, change IE9 default to IE EDGE/IE11. 23 Software Requirements for Excel Macros The software requirements for the Excel Macros are as follows: Operating Software Office Driver Windows XP Professional Office 2007 ACE OLEDB Windows 7 Professional Office 2010 ACE OLEDB Windows 7 Professional Office 2013 ACE OLEDB To Enable Macros in Excel 2010 Perform the following steps: a) Click the File tab. b) Click Options. c) Click Trust Center d) Click Trust Center Settings. The Trust Center1 dialog box opens. e) Click Macro Settings. f) Select Disable All macros with notification. g) Click OK 1 When you change the macro settings in Trust Center, they are changed only for the current Office program. The macro settings are not changed for all the Office programs. 24 Microsoft Office Driver Requirement 1. ACEOLEDB 12.0 is the required DLL for the VB code to execute on the client. This driver is part of the standard Microsoft Office package. 2. To identify if the driver is installed on the machine, follow the instructions below: a) On a 64bit OS; (i) If 32bit is installed "ACEOLEDB.DLL" should exist here: C:\Program Files (x86)\Common Files\Microsoft Shared\OFFICE14\ACEOLEDB.DLL (ii) If 64bit is installed "ACEOLEDB.DLL" should exist here: C:\Program Files\Common Files\Microsoft Shared\OFFICE14\ACEOLEDB.DLL b) On a 32bit OS; (i) ACEOLEDB.DLL" should exists here: C:\Program Files\Common Files\Microsoft Shared\OFFICE14\ACEOLEDB.DLL 3. If not present, download the correct version (32bit or 64bit) depending on the Target Platform i.e, (AnyCPU, x64, x86). For example: a) For Office 32 bit installation, download ACE 32 bit [x86] b) For Office 64 bit installation, download ACE 64 bit [x64] 25 Object Libraries Required in Microsoft Office 1. For the excel macro to execute, the standard Microsoft Office installation must contain these libraries: a) Visual Basic for Applications b) Microsoft Excel 14.0 Object Library c) Microsoft Forms 2.0 Object Library d) Microsoft ActiveX Data Objects 2.8 Library 2. Follow these steps to check for the object libraries: a) Open a new Excel File. b) Go to the File menu and click Options. 26 3. In the Excel Options window, click Customize Ribbon. 4. Select the Developer tab in the right pane. If Developer tab is not present in this pane, move the Developer tab from the left pane to the right pane by clicking Add button . 27 5. Click OK. The Developer tab appears in the menu bar. 6. On the Developer menu, click View Code. 7. In the VBA window, click Tools > References. 28 8. In the References dialog box, select the Object Libraries as shown in the image below: 29 Validation Rules The application evaluates data entered in accordance to the following rules2: a) Unknown data column validation: It validates incorrect column names in the Excel template submission, whereby the column names and cases have to be exactly the same as in the ORION application. b) Missing data column validation: It ensures that no columns are left empty in the Excel template submission. c) Data type and size validation: It validates the data types in the columns of the Excel template uploaded. E.g. When sending a string value for a date field, user must not exceed the maximum size for a data type, which is 200 characters for free text field. d) Mandatory field validation: It validates all mandatory columns in the Excel template uploaded. E.g. User must not upload the file without filling mandatory data columns. e) List-of-values (LOV) field values validation: It validates the values entered in the LOV fields in the Excel template uploaded. E.g. User must upload using correct LOV values. f) User access validation: It validates that user can upload data only for the entity he / she has access to. E.g. User from Bank A must not be able to view the access by Bank B. 2 For the purpose of understanding the validation rules, this paragraph should be read together with the Operational Risk Reporting Requirements policy document and users should be familiar with the ORION application and User Manual. 30 g) Conditionally required field validation: It validates that conditionally required values are filled based on selection of certain fields. E.g. If user enters value in field "Events For", user must enter value in field "Payment Instrument", which is conditionally required based on value in field "Event For". h) Conditionally required section validation: It validates that conditionally required values are filled based on selection of certain sections. E.g. If user enters value in “Shariah Non-Compliance” as a “Yes”, a conditionally required Shariah Non Compliance section must be filled. i) Dependent field validation: It validates that fields which LOV is dependent on parent field have values based on the parent field. E.g. Level 2 Business Line will be dependent on Level 1 Business Line field validation. j) Event update ID validation: It validates the event ID and status of an event to be updated by a user. E.g. A user cannot update an event with an incorrect event ID. k) Data fields validation: It validates the date fields in that the date must be in correct sequences or some date must be in the past and some dates must be in the future. E.g. “Event Valid Until” should always be current or future date, “Date of Event Detection” should always be current or in the past, and must not be earlier than “Date of Event Occurred”. l) File error handling validation: It provides prompts if there are any error that occurs during the uploading of the Excel template leading to unsuccessful submission. 31 Getting Started Read this chapter to know about the user interface and infocenters of the ORION application. This chapter contains the following sections:  Logging on to the Application  Basic Elements of the Startup Screen  Infocenters 32 Logging on to the Application Creating a New User Note: The financial institution admin is to create users with the role of ORION-CRO (Oversight), ORION-Submission Officer. To create a new account, do the following: In the address bar, type the BNM Portal URL (http://www.bnm.gov.my/) and press Enter. The BNM Portal page appears. Click the Financial Institutions link. Figure 10 Accessing the Login Page Click the FI@KijangNetPortal link. http://www.bnm.gov.my/ 33 Figure 11 Clicking the Financial Institutions Link. Click the Register as a Member link. Figure 12 FI@KijangNetPortal Page Click the Register tab. 34 Figure 13 FI@KijangNetPortal > Register Page Click the New Account link. Figure 14 FI@KijangNetPortal Page > Create New Account Enter the required details in the fields. Click the Register button. Financial institution admin to approve registration and assign ORION CRO (Oversight) and ORION Submission Officer Roles for each institution. The 35 email addresses used should be the exact email addresses that were provided to BNM under the roles of CRO and submission officer. 36 Logging on to the Application as an Existing User To log on the account, do the following: In the address bar, type the BNM Portal URL (http://www.bnm.gov.my/) and press Enter. Click the Financial Institutions link. Figure 15 Accessing the Login Page Click the FI@KijangNetPortal link. Ensure “show all content” or “display all information” is enabled. http://www.bnm.gov.my/ 37 Figure 16 Accessing the Financial Institutions Link. Enter the Username and Password. Figure 17 FI@KijangNetPortal Page Click the Login button. 38 From the home page of FI@Kijangnet, click on ORION, this will bring you to the ORION page. Figure 18 FI@KijangNetPortal Page 39 Basic Elements of the Startup Screen Once logged in to the application, you will see a page similar to what is shown in the below image. To get familiarised with the application, refer to the basic elements shown in the image. Figure 19 Basic Elements of the Startup Screen Infocenter: This is first level of access in the application. Sub-Infocenter: This second level of access in the application and it is contained within an infocenter. Infocenter Name: This is name of the active infocenter. It changes as you navigate to different infocenters. Infoport: This is third level of access in the application and it is contained within either infocenter or sub-infocenter. These are boxes that contain links to different forms, reports and so on. My Tasks menu: This is an easiest way of accessing the task assignments. Point to the My Tasks menu to expand the task list. Help menu: This menu contains the general information about the application. Logout: To log off the application, click this link. 40 Infocenters BNM Message Board Infocenter This infocenter is used by the Reporting Entity (RE) to view the BNM message board. Figure 20 BNM Message Board Infocenter LED Infocenter >> Manage Loss Event Sub-Infocenter This infocenter is used by the RE to create loss events, upload loss event data and view the loss event list report. Figure 21 LED Infocenter >>Manage Loss Event Sub-Infocenter 41 KRI Infocenter >> Manage KRIs Sub-Infocenter This infocenter is used by the RE to respond to assigned KRI and view reports. Figure 22 KRI Infocenter>> Manage KRIs Sub-Infocenter Scenario Analysis Infocenter >> Manage Scenarios and Workshops Sub-Infocenter This infocenter is used by the RE to respond to scenarios and assessments and view reports. Figure 23 Scenario Analysis Infocenter >> Manage Scenarios and Workshops Sub-Infocenter 42 Common Functions Read this chapter to know about the different methods of accessing application forms related to Loss Event Database (LED), Key Risk Indicator (KRI), and Scenario Analysis (SA) and the functionalities available at different stages of the workflow of the ORION application. This chapter includes the following sections:  Accessing Assignments through My Tasks Menu  Form Tool Bar  Multi-Window Interface  Advanced RTF Editor  Sorting and Filtering the List 43 Accessing Assignments through My Tasks Menu In addition to accessing the assignments from the respective infoports, you can also access event assignments from the My Tasks menu at the top of the ORION home page. Figure 24 My Tasks Menu An event assignment may have one of the following states:  Completed (link appears in black)  Past due date (link appears in red)  New (link appears in green) To access an event assignment from the My Tasks menu, perform the following steps: Point to the My Tasks menu at the top of the ORION home page. The list of assignments appears as a drop-down. Click the assignment you need to work on. The relevant form appears. To navigate to the next page or previous page in the My Tasks menu, click the forward arrow or backward arrow respectively. To refresh and get the latest assignments, click the Refresh icon . Note: To see the latest data, users may refresh the My Tasks periodically. Note: To navigate to a particular page directly, enter the page number in the Page field and press the Enter key on your key board. 44 Form Tool Bar The forms available in the ORION application include a common tool bar, which comprises of a set of icons to perform various actions. The below table provides the list of form tool bar icons and their descriptions. Note: These are the standard form tool bar icons available across all the ORION applications. However, all the icons may not be available in all the forms. The display of these icons is customised based on the function and usage of the form. Click the… To… or Submit Submit the form’s contents and route to the next workflow step based on the action selected. Save Draft Save the form’s contents as a working draft for the user without processing it to the next workflow step and keep the form open. Save Draft & Close Save the form’s contents as a working draft for the user without processing it to the next workflow step and close the form. Note: You can access the form through My Tasks at a later time and continue working. View Reports View the reports related to this form. Note: This is not an action on the form. Note: On clicking this icon, a list of inline reports appears. Click the required report name to view the details. or Cancel Cancel the changes made to the form and close it. 45 Multi-Window Interface Multi-window interface feature enables you to open one or more infocenters, sub- infocenters, forms, reports, or dashboards simultaneously within the main window of the ORION application. This helps you to work on multiple windows without closing the page that is currently open. User Interface Options To work on multi-window interface, the following icons are available in the upper- right corner of the ORION application. Figure 25 User Interface Options  Pin icon : Click this icon to pin a particular form, report, or infocenter.  Unpin icon Click this icon to unpin the pinned form, report, or infocenter. Note: The maximum number of windows that you can pin is 3.  Minimise icon : Click this icon to minimise the window.  Maximise icon : Click this icon to maximise the window.  Close icon : Click this icon to close the window. Figure 26 Multi-Window Interface 46 Pinning and Unpinning Windows: To pin the window that you are currently working on, click the pin icon. The window is now pinned to the bottom of the screen. When a window is pinned, the pin icon changes to the unpin icon. Multi-Window Bar > Context-sensitive Menu Options The context-sensitive options allow you to switch from one window to another. To access the context-sensitive menu, right-click the window name. The different options appear as shown in the following image. Note: To view the pinned window, you may also click the window name in the multi- window bar of the application. Figure 27 Multi-Window Bar > Context-sensitive Menu Options The context-sensitive menu options are available or unavailable based on the function that you perform in the User Interface Options. For example, if you click the Minimise icon, the Minimise option is unavailable in the context-sensitive menu options and vice versa. The options in the context-sensitive menu appear based on the state of the window. For example, if you have already minimised the window, then you can only restore, maximise or close the window. 47 Advanced RTF Editor Advanced Rich Text Format (RTF) editor allows you to:  Enter, edit, and format the information  Enter and edit comments To work on the Advanced RTF Editor, click the rich text icon adjacent to the RTF field. Figure 28 Rich Text Icon The Advanced RTF Editor window appears. Figure 29 RTF Editor Note: If the RTF field is non-editable, the rich text icon adjacent to the RTF form field is greyed out . This icon indicates that you cannot enter any information in the RTF Editor. 48 Sorting and Filtering the List of Values In a list, you can narrow down the scope of search based on your search criteria. Figure 30 Sorting and Filtering the List of Values The following table provides information on the different options available in the list field. To… Do this… Narrow down the list of values based on a keyword Enter a keyword in the Search field with “%” before and after the keyword and click Go. Add the selected the option(s) to the list Select the check box of the option and click Select. Cancel the selected option and close the window Click Cancel. Select all the options in the list Click Check All. Deselect the selected options in the list Click Clear All. Get all the options in one page Click Get All. View only the selected option in the list Click Get Selected. Note: This button is available only if the user has selected an option from the list. Note: When you click Get Selected, it is replaced by Back. You can click Back to 49 To… Do this… go back to the previous list. 50 Email Notifications Read this chapter to know about the email notifications that are sent automatically for every action performed in the ORION application. This chapter contains the following procedures:  Key Risk Indicator Emails  Scenario Analysis Emails Key Risk Indicator Emails Refer to the following table for information on e‐mail notifications that are triggered on submitting the KRI definition form in the KRI module of the ORION application: To Workflow Stage Subject Sent When the… Reporting Entity Executive and CRO Provide KRI Value Provide <KRI> data: <Definition-Name> [<ID>] for <date> KRI form is assigned to provide KRI value. CRO Edited KRI Form KRI <Definition-Name> [<ID>] has been edited KRI value has been edited. CRO and Reporting Entity Executive Overdue KRI Form KRI Response overdue KRI form is overdue. 51 Scenario Analysis Emails Refer to the following table for information on e‐mail notifications that are triggered in the SAM module of the ORION application: To Workflow Stage Subject Sent When the… Reporting Entity Executive Ad-hoc Assignment of Scenario [:Object_ID]: ObjectName has been assigned to you for response. Supervisor assigns an ad-hoc scenario. This e-mail is sent to notify the RE executive to work on ad-hoc assignment. Reporting Entity Executive Workshop Assignment Scenario - [:Object_ID]: ObjectName has been assigned to you for response. Supervisor assigns the workshop assignment. This e-mail is sent to notify the RE executive to work on workshop assignment. Reporting Entity Executive Reminder e-mail: Scenario Scenario - [:Object_ID] :ObjectName response is due in next 24 hrs’ RE executive does not provide a response to the scenario. This e- mail is sent to notify the RE executive that the scenario is due. Reporting Entity Executive Reminder e-mail: Workshop Workshop - [:Object_ID] :[Workshop Name ]response is due in next 24 hrs’ RE executive does not provide a response to the workshop. This e- mail is sent to notify the RE executive that the workshop is due. Reporting Entity Executive Reminder e-mail: Assessment Workshop - [:Object_ID] :[Workshop Name] response is due in next 24 hrs’ RE executive does not provide a response to the assessment. This e-mail is sent to notify the RE executive that the assessment is due. Reporting Entity Executive and CRO Escalation e-mail: Scenario Scenario - [:Object_ID] :[Scenario Name] response overdue RE executive does not provide a response to the scenario. This e- mail is sent to notify the RE executive and CRO that the scenario is overdue. 52 To Workflow Stage Subject Sent When the… Reporting Entity Executive and CRO Escalation e-mail: Workshop Workshop - [:Object_ID] :[Workshop Name]response is overdue RE executive does not provide a response to the workshop. This e- mail is sent to notify the RE executive and CRO that the workshop is overdue. Reporting Entity Executive and CRO Escalation e-mail: Assessment Workshop - [:Object_ID] :[Workshop Name] response is overdue RE executive does not provide a response to the assessment. This e-mail is sent to notify the RE executive and CRO that the assessment is overdue. Reporting Entity Executive Ad-hoc Assessment Scenario - [:Object_ID]: [Assessment Name] has been assigned to you for response BNM user assigns the ad-hoc assessment. This e-mail is sent to notify the RE executive to work on new assessment. Reporting Entity Executive Scenario Published Scenario Published RE executive provides a response to the scenario. This e-mail is sent to the RE executive as an acknowledgement that the scenario response (either by workshop / ad-hoc assignment) has been accepted by BNM user. 53 Loss Event Database Read this chapter to know about the procedures, forms and fields of the Loss Event Database (LED) module of the ORION application. This chapter contains the following procedures:  Creating Loss Events  Editing Loss Events Details  Entering Loss Events Details in an Excel Sheet  Entering Loss Events Details (Non-Malaysian Res) 54 Creating Loss Events The Reporting Entities (REs) can record the loss events. The REs can capture details related to the event, including the nature of the event, type of event, location of the event, and the impact of the event. Note: To create loss events reports, use the Loss Event form. The fields marked with a red asterisk (*) are mandatory. Navigation To access the Loss Event form, do the following: Navigate to the LED Infocenter >> Manage Loss Events Sub-Infocenter >> Create Loss Event infoport. Figure 31 Accessing the Loss Event Form Click the Loss Event Form link. Figure 32 Loss Event Form 55 Figure 33 Loss Event Form (Continued…) Loss Event Form > Header Section Use this section to select high-level details of the loss event. Figure 34 Loss Event Form > Header Section Field Name Description Reporting Entity Name Enter the name of reporting entity. Reporting Entity ID (read-only) This field is populated based on the reporting entity name. It shows the identification number of the reporting entity. Date Of Event Reporting This field is auto-populated. It shows the date when the loss event is created. Nature of Event Select the nature of the loss event. The following options are available:  New  Repeated 56 Field Name Description Event Classification Select the event classification. The following options are available:  Actual Loss  Potential Loss  Near Misses Note: If you select Actual Loss, then the fields such as Board Reporting Date and Shariah Committee Reporting Date become mandatory. Islamic Business check box If the event is related to an Islamic Business, or if the RE has any Islamic products that are used, select the check box. Shariah Non- Compliance Select the Shariah Non-Compliance from the available options:  Yes: If the event is not compliant to Shariah law, select Yes.  No: If the event is compliant to Shariah law, select No. Loss Event Form > Loss Event Tab Use this tab to capture details related to the loss event, such as the Basel categorisations, the location, and the date when it occurred and reported. Figure 35 Loss Event Form > Loss Event Tab 57 Figure 36 Loss Event Form > Loss Event Tab (Continued…) Field Name Description Event Details Loss Event Name Enter the loss event name. Note: You can report multiple loss events with the same name. Internal Loss event ID Enter the internal loss event ID. Level 1 Business Line Select the level 1 business line of the loss event. The values that are available depend on the RE type for the loss event. Note: This field will not appear for the Payment System Regulatees. Level 2 Business Line (appears only if you select the value in the Level 1 Business Line field) Select the level 2 business line of the loss event. The values that are available depend on the RE type and the level 1 business line. Level 3 Business Line (appears only if you select the value in the Level 2 Business Line field) Select the level 1 business line of the loss event. The values that are available depend on the RE type and the level 2 business line. Product/Services (appears only if you select the value in the Level 3 Business Line field) Select the product or service applicable for the loss event. The values that are available depend on the level 3 business line. 58 Field Name Description Delivery Channel Select the delivery channel for the loss event. The values that are available depend on the level 1 business line. Business Line Comments (appears only if Others is selected in the Business Line and Delivery Channel field.) Enter the comments. Level 1 Event Category Select the level 1 event category of the loss event. The values that are available depend on the RE type for the loss event. Note: This field will be auto-populated for Payment System Operators. Level 2 Event Category (appears only if you select the value in the Level 1 Event Category Line field) Select the level 2 event category line of the loss event. The values that are available depend on the RE type and the level 1 event category. Level 3 Event Category (appears only if you select the value in the Level 2 Event Category field) Select the level 3 event category of the loss event. The values that are available depend on the RE type and the level 2 event category. Level 1 Causal Category Select the level 1 causal category of the loss event. The values that are available depend on the RE type for the loss event. Note: This field will not appear for the Payment System Regulatees. Level 2 Causal Category (appears only if you select the value in the Level 1 Causal Category field) Select the level 2 causal category of the loss event. The values that are available depend on the RE type and the level 1 causal category. Level 3 Causal Category (appears only if you select the value in the Level 2 Causal Category field) This field is populated based on RE type and the level 2 causal category. Select the level 1 causal category of the loss event. The values that are available depend on the RE type and the level 2 causal category. Causal Category Comments (appears only if Others is selected in the Level 2 Causal Category field.) Enter the comments related to causal category. 59 Field Name Description Countries Of Event Select one or more countries where the loss event occurred. The value Malaysia appears by default. State Of Event (appears only if you select Malaysia in the Countries Of Event field) Select one or more states where the loss event occurred. Districts Of Events (appears only if you select Malaysia in the Countries Of Event field) Select one or more districts where the event occurred. Date Of Event Occurrence Select the date when the loss event occurred. Date Of Event Detection Select the date when the loss event was reported. Loss Event Description Enter a detailed description for the loss event. Shariah Details Shariah Primary Contract (MLOV) Select the Shariah primary contract. Shariah Supporting Contracts Select the Shariah secondary contracts. You can select multiple contracts. Shariah Source of Detection Select the source of detection. You can select multiple sources. Board Reporting Date Select the date when the non-compliance was detected. Shariah Committee Reporting Date Select the date when the non-compliance was reported to the Shariah committee. Shariah Date Resolved Select the date when it is resolved. Note: The date should be less than or equal to the current date. No of Accounts Involved Enter the number of Shariah accounts involved. Note: This field only accepts numeric inputs. Shariah Decision Enter the decision taken by the Shariah committee. Action Taken Enter the action implemented to abide the decision. Event Validity Event Valid Till Enter the date till when the event was valid. Reason Enter the reason for the end date of the event. 60 Loss Event Form > Impact Tab Use this tab to capture details related to the financial or non-financial impact of the loss event. Apart from the values that appear for the Event Impact field (Financial and Non-Financial), the other field values are dependent on the RE type. Figure 37 Loss Event Form > Impact Tab Field Name Description Event Impact Select the following options :  Financial: If there is a financial impact caused by the loss event, select Financial.  Non- Financial: If there is no financial impact caused by the loss event, select Non-Financial. If there is both a financial and a non-financial impact caused by the loss event, select both. Note: If the event is a near miss, there is neither a financial nor a non-financial impact. Financial Details (appears only if you select the event impact as Financial) Events For Select the event for which the loss is applicable to. The values that appear here depend on the RE type. The following options are available if you are a banking institution, prescribed development FI, or a payment system regulate user:  ATM Acquirer  Banking  Payment Channel  Payment Instrument The following option is available if you are a licensed institution or takaful operator user:  Insurance 61 Insurance Category (appears only if you select Insurance in the Events For field) Select the insurance category. The following options are available:  Assets  Claims  Premium  Re insurance  Intermediaries  Others  NA Boundary Event (appears only if you select Banking in the Events For field) Select the following options:  Yes: If the event is a boundary event, select Yes.  No: If the event is not a boundary event, select No. Note: This field is applicable only for banking institution, prescribed development FI, and payment system regulatee users. Related To (appears only if you select Yes in the Boundary Event field) Select the following options:  Credit Risk: If the event is related to a credit risk, select Credit Risk.  Market Risk: If the event is related to a market risk, select Market Risk. Note: This field is applicable only for banking institution, prescribed development FI, and payment system regulatee users. Payment Instrument (appears only if you select ATM Acquirer or Payment Instrument in the Events For field) Select the type of card that was used. Note: If you choose E-Money in this field and Network Based option in the Modus Operandi field, then Card Brands and Card Types fields will show NA automatically. Card Brands (appears only if you select ATM Acquirer or Payment Instrument in the Events For field) Select the card brand. The values that are available here depend on the value you select in the payment instrument field. Note: This field is applicable only for card-related loss events. Note: If you choose E-Money in Payment Instrument and Network Based option in the Modus Operandi field, then Card Brands will show NA automatically. Card Brands Comments (appears only if you select Others in the Card Brands field) Enter the comments related card brands. 62 Card Types (appears only if you select the value in the Payment Instrument field or if you select Payment Instrument in the Events For field) Select the card type. Note: This field is applicable only for card-related loss events. Note: If you choose E-Money in Payment Instrument and Network Based option in the Modus Operandi field, then Card Types will show NA automatically. Card Types Comments (appears only if you select Others in the Card Types field) Enter the comments related to card types. Source of Detection (appears only if you select Cheque in the Payment Instrument field) Select the source of detection. Source of Detection Comments (appears only if you select Others in the Source of Detection field) Enter the comments related to source of detection. Type of Cheque Issuers (appears only if you select Cheque in the Payment Instrument field) Select the type of cheque issuer. Payment Channel (appears only if you select Payment Channel in the Events For field) Select the payment channel that was used. Account Type (appears only if you select Payment Channel in the Events For field) Select the account type. The following options are available:  Individual  Corporate  Others (Please Specify) Account Type Comments (appears only if you select Others in the Account Type field) Enter the comments related to account type. Business Activity (appears only if you select Payment Instrument in the Events For field) Select the business activity. 63 Business Activity Comments (appears only if you select Others in the Business Activity field) Enter the comments related to business activity. Modus Operandi (appears only if you select Payment Channel or Payment Instrument in the Events For field) Select the modus operandi used. The values that are available here depend on the value you select in the Payment Channel field. Modus Operandi Comments (appears only if you select Others in the Modus Operandi field) Enter the comments related to modus operandi. Amount Involved(In MYR) Enter the amount involved in MYR. Loss By Banks (The value that appears here depends on the value you select in the Events For field.) Incurred By To enter the amounts related to the RE, 3rd party, and customer and others, click the icon in line with the respective entity in the table row. The related fields appear below. The amount that you enter in the fields appear in the table row in line with the entity. Actual Loss(In MYR) Enter the amount of actual loss. Recovery Amount(In MYR) Enter the amount recovered. Potential Loss Amount(In MYR) Enter the potential loss amount. Comments Enter the comments related to loss incurred by the banks. Total Actual Loss This field is populated based on the amount entered in the Actual Loss field. It shows the sum of amounts entered in the Actual Loss field of RE, Customer and 3rd party. Total Recovery Amount This field is populated based on the amount entered in the Recovery Amount field. It shows the sum of amounts entered in the Recovery Amount field of RE, Customer and 3rd party. 64 Total Potential Loss Amount This field is populated based on the amount entered in the Potential Loss field. It shows the sum of amounts entered in the Potential Loss field of RE, Customer and 3rd party. Non Financial Details (appears only if you select the event impact as Non Financial) Impact Select the non-financial impact due to the loss. The following options are available:  Low  Medium  High Comments Enter the comments related to non-financial impact. Note: After adding the loss amount details under Impact tab, fields such as Amount Involved, Net Potential Loss and Net Actual Loss get added in the header section of the form. 65 Loss Event Form > Additional Details Tab Use this tab to attach files related to the loss event. Figure 38 Loss Event Form > Additional Details Tab Field Name Description Created By This field is auto-populated. It shows the name of the RE who has created the loss events details. Created On This field is auto-populated. It shows the date when has entered the loss event details for the first time. Modified By This field is auto-populated. It shows the name of the RE who has updated the loss event details. Modified On This field is auto-populated. It shows the date when the details have been updated. Attach Files To upload the file, click the Browse button, and select the file from your local drive. The file gets attached and the name of the file that you attached appears. To delete an attached file, click the Cancel icon on the right side of the attached file. Form Submission  To take an action on the current form, refer to the Form Tool Bar section. 66 Editing Loss Events Details The REs can edit or update the details of the loss events. Navigation To access the Loss Event form, do the following: Navigate to the LED Infocenter >> Manage Loss Events Sub-Infocenter >> Loss Events Reports infoport. Figure 39 Accessing the Loss Event List Report Click the Loss Event List Report link. Figure 40 Loss Event List Report Click the required Loss Event ID. The Loss Event Form appears. 67 Figure 41 Loss Event Form Edit the details of the required fields.  Refer the Creating Loss Events section to edit the fields of the form. Form Submission  To take an action on the current form, refer to the Form Tool Bar section. 68 Entering Loss Events Details in an Excel Sheet As an RE, you can enter multiple loss event details in an excel sheet. This form contains a predefined data format using which users can enter loss data. There are four worksheets in the excel sheet:  Form  Loss Event Details  Loss by Malaysian Entities  Loss by Foreign Entities RE should enter loss event details in the Form worksheet. After submitting the data in the Form worksheet, click CTRL+S to save the details in the other three worksheets. These worksheets (Loss Event Details, Loss by Malaysian Entities and Loss by Foreign Entities) are used only as a reference while uploading the excel sheet in the ORION application. These worksheets are non-editable. Note: Fields marked with a red asterisk (*) are mandatory. Note: On adding a new record in the second or subsequent row of the excel sheet, fields such as User Name, Institution ID, Licensed Financial Institution and Industry get populated based on the first record of the excel sheet. 69 Navigation To enter the details of the loss event in the excel sheet, perform the following steps: Open the excel sheet. Figure 42 Loss Management Excel Sheet In the column Upload Type, select the option based on the event type: o New: If the loss event has recently occurred, select this. o Update: If you are modifying the details of an existing loss event, select this. 70 Click the Edit Row button. The Details form appears. Figure 43 Details Form Note: If the loss event is new, Loss Event ID field will be non-editable and shows the ID which has been entered in Internal Loss Event ID. Note: If you are updating the details of existing loss event, Loss Event ID field will be editable. You can enter the ID from the ORION application. 71 Details Form > Basic Details Section Use this section to enter the basic details of the loss events Figure 44 Details Form > Basic Details Section Field Name Description User Details User Name Enter the name of the user. Note: It should be same as username which is used to login ORION application. Loss Event ID Loss Event ID (read-only) This loss event ID is used only as a reference. After the excel is uploaded successfully, the ORION system generates a unique loss event ID against each loss event ID provided in the excel sheet for reference. Note: When you update an existing loss event, replace the reference event loss ID with the system-generated loss event ID. Internal Loss Event ID Enter the internal loss event ID. It is used by RE to capture their internal loss event and to identify whether there is any duplicate entry or not. Loss Event Name Enter the name of the loss event. 72 Reporting Entity Type Select the reporting entity type. The following options are available:  Licensed Banking Institution  Licensed Insurance Companies & Takaful Operators  Payment System Regulatees  Prescribed Development Financial Institutions Industry Based on the RE type, the values get populated in the drop-down list. You can select the desired industry from the drop-down list. Name Enter the name of the reporting entity. ID Enter the ID of reporting entity. Amount Involved Amount Involved Enter the amount involved in the loss event. Net Actual Loss (read-only) This field is populated based on the amount entered in the Financial tab. Net Potential Loss (read-only) This field is populated based on the amount entered in the Financial tab. 73 Details Form > Events Details Section Use this section to enter the details of the loss events. Figure 45 Details Form > Events Details Section Field Name Description Event Impact (MLOV) Select the desired value from the list and click the Add button to move the value to the field in the right. This is an MLOV field The following options are available:  Financial: If there is a financial impact caused by the loss event, select Financial.  Non- Financial: If there is no financial impact caused by the loss event, select Non-Financial. If there is both a financial and a non-financial impact caused by the loss event, select both. Based on the selection, Financial or Non-Financial tab appears in the form. Note: You can only select one value at a time. You cannot use the CTRL key to select multiple values. Note: Click Clear to remove the value from the field. 74 Field Name Description Islamic Business Use this field to indicate whether the loss event is related to an Islamic business or not. The following options are available:  Yes: If the event is related to Islamic Business, select Yes.  No: If the event is not related to Islamic Business, select No. Shariah Non- Compliance (appears only if the event is related to Islamic Business) Use this field to indicate whether the loss event is related to Shariah non- compliance or not. The following options are available:  Yes: If the event is not compliant to Shariah law, select Yes.  No: If the event is compliant to Shariah law, select No. Based on the selection, the Shariah Details tab appears in the form. Date of Event Detection Enter the date when the event has been detected. Date of Event Occurrence Enter the date when the event has occurred. Event Classification Select the classification of the event. The following options are available:  Actual Loss  Potential Loss  Near Misses Nature of Event Select the nature of the event. The following options are available:  New  Repeated Loss Event Description Enter the description of the loss event. There is a limitation of maximum number of characters that can be input when entering a loss event Countries of Event (MLOV) Select the desired value from the list and click the Add button to move the value to the field in the right. This is an MLOV field Note: You can only select one value at a time. You cannot use the CTRL key to select multiple values. Note: Click Clear to remove the value from the field. State of Event (MLOV) Select the desired value from the list and click the Add button to move the value to the field in the right. This is an MLOV field Note: You can only select one value at a time. You cannot use the CTRL key to select multiple values. Note: Click Clear to remove the value from the field. Districts of Event (MLOV) Select the desired value from the list and click the Add button to move the value to the field in the right. This is an MLOV field Note: You can only select one value at a time. You cannot use the CTRL key to select multiple values. Note: Click Clear to remove the value from the field. 75 Details Form > Shariah Details Section Use this section to enter the details of the Shariah non-compliance. Figure 46 Details Form > Shariah Details Section Field Name Description This tab appears only if the loss event is related to Shariah Non-Compliance. Shariah Primary Contract (MLOV) Select the Shariah primary contract. Note: Click Clear All to remove the value from the field. Shariah Supporting Contracts (MLOV) Select the desired value from the list and click the Add button to move the value to the field in the right. This is an MLOV field Note: You can only select one value at a time. You cannot use the CTRL key to select multiple values. Note: Click Clear to remove the value from the field. Shariah Source of Detection (MLOV) Select the desired value from the list and click the Add button to move the value to the field in the right. This is an MLOV field Note: You can only select one value at a time. You cannot use the CTRL key to select multiple values. Note: Click Clear to remove the value from the field. Shariah Committee Reporting Date Enter the date when the event has been reported to the Shariah committee. Board Reporting Date Enter the date when the event has been reported to the Shariah committee. 76 Field Name Description Date Resolved Enter the date when the event has been resolved. No of Accounts Involved Enter the number of accounts that have been impacted due to the loss event. Shariah Decision Enter the decision taken by Shariah committee for loss event. Actions Taken Enter the actions taken by Shariah committee for loss event. Event Valid Till Enter the date till when the event was valid. Reason Enter the reason for the end date of the event. 77 Details Form > Loss Categorisation Section Use this section to enter the details of the loss categories. Figure 47 Details Form > Loss Categorisation Section Field Name Description Level 1 Business Line Select the level 1 business line of the loss event. Based on the RE type, the values get populated in the drop-down list. Note: This field will not appear for the Payment System Regulatees. Level 2 Business Line Select the level 2 business line of the loss event. The values that are available depend on the value selected in the Level 1 Business Line field. Level 3 Business Line Select the level 2 business line of the loss event. The values that are available depend on the value selected in the Level 2 Business Line field. Product/Services Select the product or service applicable for the loss event. The values that are available depend on the value selected in the Level 3 Business Line field. Delivery Channel Select the delivery channel from the drop-down list. 78 Field Name Description Business Line/Product Services/Delivery Channel Comments (appears only if Others is selected in the Delivery Channel field) Enter your comments. Level 1 Event Category Select the level 1 event category of the loss event. Based on the RE type, the values get populated in the drop-down list. Level 2 Event Category Select the level 2 event category of the loss event. The values that are available depend on the value selected in the Level 1 Event Category field. Level 3 Event Category Select the level 3 event category of the loss event. The values that are available depend on the value selected in the Level 2 Event Category field. Comments (appears only if Others is selected in the Level 3 Event Category field.) Enter the comments. Level 1 Causal Category Select the level 1 causal category of the loss event. Based on the RE type, the values get populated in the drop-down list. Note: This field will not appear for the Payment System Regulatees. Level 2 Causal Category Select the level 2 causal category of the loss event. The values that are available depend on the value selected in the Level 1 Causal Category field. Level 3 Causal Category Select the level 3 causal category of the loss event. The values that are available depend on the value selected in the Level 2 Causal Category field. Comments (appears only if Others is selected in the Level 3 Causal Category field.) Enter your comments. 79 Details Form > Financial Impacted Area Section Use this section to enter the details of the financial impacted area. Figure 48 Details Form > Financial Impacted Area Section Field Name Description Event For Select the event for which the loss is applicable. The values that appear here depend on the RE type. The following options are available if you are a licensed banking institution or prescribed development financial institutions:  ATM Acquirer  Banking  Payment Channel  Payment Instrument The following options are available if you are a licensed insurance companies & takaful operators:  Insurance & Takaful Operators The following options are available if you are a payment system regulatees:  Payment Channel  Payment Instrument Note: Based on value selected in the Event For field, other fields appear in the form. Payment Instrument Select the payment instrument. 80 Field Name Description Card Brands Select the brand of the card. Card Brands Comments (appears only if Others is selected in the Card Brands field.) Enter the comments related to card brands. Card Types Select the card types. Card Types Comments (appears only if Others is selected in the Card Types field.) Enter the comments related to card types. Boundary of Event (appears only if Banking is selected in the Events For field.) Select the option if it is boundary of event:  Yes  No Payment Channel (appears only if Payment Channel is selected in the Events For field.) Select the payment channel which was used. The following options are available:  Internet Banking  Mobile Banking Account Type Select the type of account. The following options are available:  Individual  Corporate  Others (please specify) Account Type Comments (appears only if you select Others in the Account Type field) Enter the comments related to account type. Modus Operandis Select the modus operandi used. The values that are available here depend on the value you select in the Payment Channel field. The following options are available:  Phishing – SMS  Phishing – Email  Phishing – Telephone  Others (please specify) 81 Field Name Description Modus Operandis Comments (appears only if you select Others in the Account Type field) Enter the comments related modus operandi. Payment Instrument (appears only if you select Payment Instrument in the Event For field) Select the payment instrument. The following options are available:  Charge Card  Cheque  Credit Card  Debit Card  E-Money Business Activity Select the business activity. Modus Operandi Select the modus operandi. Source of Detection (appears only if you select Cheque in the Payment Instrument field) Select the source of detection. Source of Detection Comments (appears only if you select Others in the Source of Detection field) Enter the comments related to source of detection. Type of Cheque Issuers (appears only if you select Cheque in the Payment Instrument field) Select the type of cheque issuer. 82 Details Form > Financial Section Use this section to enter the financial details such as actual loss, potential loss amount etc. Figure 49 Details Form > Financial Section Field Name Description Actual Loss (In MYR) Enter the actual loss amount. Note: The amount entered in this field reflects in the Amount Involved section of the Basic Details tab. Note: Actual loss should be less than or equal to the amount involved. Recovery Amount (In MYR) Enter the amount recovered. Note: Recovery amount should be less than or equal to the amount involved. Potential Loss Amount (In MYR) Enter the potential loss amount. Note: The amount entered in this field reflects in the Amount Involved section of the Basic Details tab. Note: Potential loss amount should be less than or equal to the amount involved. 83 Details Form > Non-Financial Section Use this section to enter the non-financial details. Figure 50 Details Form > Non Financial Section Field Name Description Impact Select the impact:  High  Low  Medium Non Financial Impact Comment Enter the comments related to non financial impact. 84 Form Submission To take an action on the current form, refer to the following table: Click the… To… Submit Submit the form’s contents in the sheet named as “form”. However, the data will not be Note: Press CTRL+S to save the data in the excel sheet. The data appears in the excel sheet only after the form is saved. Close Close the form. Next Go to the next record. On clicking the Next button, a dialog box appears prompting the user to save the changes. If you have already saved the details, click No. It directs you to the next record. If you have not saved the details, click Yes and then click the Submit button. It directs you to the next record. Prev Go to the previous record. On clicking the Prev button, a dialog box appears prompting the user to save the changes. If you have already saved the details, click No. It directs you to the previous record. If you have not saved the details, click Yes and then click the Submit button. It directs you to the previous record. Note: To know more information on entering details in the form, refer to the Creating Loss Event Form section. Note: If a user updates anything in one of the column in the excel sheet, it gets reflected in the form. Similarly, any update done in the form is reflected in the excel sheet. Note: Validation happens only after uploading the excel template in the ORION system. 85 Uploading the Excel Sheet As an RE, you can upload multiple loss events into the ORION application using the Data Upload form. Note: Fields marked with a red asterisk (*) are mandatory. Navigation To upload loss events, perform the following steps: Navigate to the LED Infocenter >> Manage Loss Events Sub-Infocenter >> Create Loss Event infoport. Figure 51 Accessing the Loss Event Form to Create a Loss Event Click the Data Upload link. Data Upload Form Figure 52 Data Upload Form 86 Data Upload Form > Uploading the Loss Event Figure 53 : Data Upload Form > Uploading the Loss Event Field Name Description Upload Type Select the upload type Data Form. The following options are available:  System Entities  Data Form Select Module Select the module. When you select LDM, the following links appear:  Download Banking Template  Download Insurance Template  Download DFI Template  Download Payment Instrument Template You can download the required template, enter values, and upload it back into the ORION application. Select Data Form This field is populated based on the value selected in the Select Module field. Select Profile This field is populated based on the value selected in the Select Module field. Select System Entities (appears only if System Entities is selected in the Upload Type field.) Select the system entities. The following options are available:  Organization  Organization Hierarchy  Organization Locations  Roles  UserOrgRoles  Users 87 Field Name Description Select file to upload To upload the file, click the Browse button, and select the file from your local drive. The file gets attached and the name of the file that you attached appears. To delete an attached file, click the Cancel icon on the right side of the attached file. Download Template Link Click to download the template. Form Submission  To take an action on the current form, refer to the Form Tool Bar section. Viewing the Upload Status Once you click Submit, navigate to the LED Infocenter >> Loss Event Reports Infoport >> Upload Status Report link. Figure 54 Upload Status Report To view the success template, click the Success Template link. To view the error template, click the Error Template link. The description of the error is provided as shown below. 88 Figure 55 Accessing the Error Template Link The error(s) appear as shown below. Figure 56 Viewing the Error Template Note: If any of the mandatory fields are left blank, the system does not allow you to upload the excel sheet. Do’s and Don’ts The following table provides information on the do’s and don’ts which you need to follow while entering details in the excel sheet. Do Don’t Read the PC Readiness Checklist document. Delete first four rows and columns of the sheet. Enter the details in the Form worksheet. Enter the details in Meta Data, Loss Event Details, Loss by Malaysian Entities and Loss by Foreign Entities worksheet. Use correct case for entering username. Username is case sensitive. Press Ctrl key to select MLOV. Select the date from date picker. Enter the date manually in the date field. Follow the tool tip. Add rows above the header in the excel template i.e. Row 1 to 3 should not be edited/modified. Click the Add/Edit button to enter or update the details of the values of the rows Edit the rows manually. 89 Entering Loss Events Details (Non-Malaysian REs) If the branches of Reporting Entities (REs) are located outside Malaysia, they can record the loss events details using the Overseas Subsidiary Form. The REs can capture details related to the event, including the nature of the event, type of event, location of the event, and the impact of the event. Note: To enter the loss events details, use the Overseas Subsidiary Form. The fields marked with a red asterisk (*) are mandatory. Navigation To access the Overseas Subsidiary Form, do the following: Navigate to the LED infocenter >> Manage Loss Events Sub-Infocenter >> Overseas infoport. Figure 57 Accessing the Overseas Subsidiary Form Click the Overseas Subsidiary Form link. Figure 58 Loss Event Form 90 Overseas Subsidiary Form > Header Section Use this section to enter the high-level details of the loss events. Figure 59 Overseas Subsidiary Form > Header Section Field Name Description Date of Event Reporting This field is auto – populated. It shows the date when the loss event is created. Reporting Entity Name Select the name of reporting entity. Reporting Entity ID (read-only) This field is populated based on the reporting entity name. It shows the identification number of the reporting entity. Event Classification Select the event classification. The following options are available:  Actual Loss  Potential Loss  Near Misses Overseas Subsidiary Form > Loss Event Details Tab Use this section to enter the loss events details, such event name, countries, description and so on. 91 Figure 60 Overseas Subsidiary Form > Loss Event Details Tab Field Name Description Event Details: This section is used to fill event name, description and so on. Loss Event Name Enter the name of the loss event. Countries of Event Select the country where the event has occurred. Loss Event Description Enter the description related to the event. Event Impact: This section is used to fill the details related to the financial or non – financial impact of the loss event. Level 1 Business Line Click the magnifying icon to select the level 1 business line. Select the level 1 business line of the loss event. The values that are available depend on the RE type for the loss event. Level 1 Event Category Select the level 1 event category of the loss event. Based on the RE type, the values get populated in the drop-down list. No. of Events Enter the number of loss events occurred Amount Involved Enter the amount involved in the loss event 92 Field Name Description Net Actual Loss Enter the actual loss amount Net Potential Loss Enter the potential loss amount Add Row Link To add row, click this link Delete Last Row Link To delete the last added row, click this link Delete check box To delete a selected row, select the check box. The selected row is deleted on form submission. Overseas Subsidiary Form > Additional Details Tab Use this tab to attach files related to the loss event Figure 61 Overseas Subsidiary Form > Additional Details Tab Field Name Description Created by This field is auto-populated. It shows the name of the RE who has created the loss events details. Created On This field is auto-populated. It shows the date when has entered the loss event details for the first time. Modified By This field is auto-populated. It shows the name of the RE who has updated the loss event details. Modified On This field is auto-populated. It shows the date when the details have been updated. Attach Files To upload the file, click the Browse button, and select the file from your local drive. The file gets attached and the name of the file that you attached appears. To delete an attached file, click the Cancel icon on the right side of the attached file. Form Submission  To take an action on the current form, refer to the Form Tool Bar section. 93 Key Risk Indicator Read this chapter to know about the procedures, forms and fields of the Key Risk Indicator (KRI) module of the ORION application. This chapter contains the following procedures:  Responding to Key Risk Indicator  Editing KRI Response 94 Responding to Key Risk Indicator The Reporting Entity (RE) can submit the current value for KRI. The RE can access the form to submit their response after viewing all the details mentioned in the KRI definition form. Note: To respond to the KRIs, use the Respond to Assigned KRI’s form. The fields marked with a red asterisk (*) are mandatory. Navigation To access the Respond to Assigned KRI’s form, do the following: Navigate to the KRI infocenter >> Manage KRIs sub-infocenter >> Respond to KRI infoport. Figure 62 Accessing the Respond to Assigned KRI’s Form Click the Respond to Assigned KRI’s link. Figure 63 Respond to Assigned KRI’s Enter the value in the Current Value field and click the Submit icon . Alternatively, you can also access the assignment through the My Tasks menu.  For more information, refer to the Accessing Assignments through My Tasks Menu section. 95 Editing KRI Response After submitting the KRI response, reporting entities can also edit the response, if required. They can access the form to edit the KRI response from KRI Definition and Submission Reports infoport. Note: To edit the KRI response, use the KRI Data Entry form. The fields marked with a red asterisk (*) are mandatory. Navigation To access the KRI Data Entry form, do the following: Navigate to the KRI infocenter >> Manage KRIs sub-infocenter >> KRI Definition and Submission Reports infoport. Figure 64 Accessing the KRI Submission Report Click the KRI Submission Report link. Select the required option to narrow down the search result. Figure 65 KRI Submission Report Filter Fields Click the Event ID link to access the KRI Data Entry form. 96 Figure 66 KRI Data Entry Form (Read-only Mode) Click the Edit icon . 97 KRI Data Entry Form (Edit Mode) Figure 67 KRI Data Entry Form (Edit Mode) KRI Data Entry Form > Details Tab Use this section to edit the KRI value. Figure 68 KRI Data Entry Form > Details Tab Form Submission  To take an action on the current form, refer to the Form Tool Bar section. 98 Scenario Analysis Read this chapter to know about the procedures, forms and fields of the Scenario Analysis (SA) module of the ORION application. This chapter contains the following procedures:  Responding to Scenarios  Responding to Assessments 99 Responding to Scenarios Once the scenario has been assigned to the Reporting Entity (RE), the RE accesses the Scenario Analysis Response form to respond. The RE needs to provide details, such as the frequency and severity impact caused by the scenario and the amount recovered as a result of its occurrence (if any). For ad hoc scenario, the RE receives only one assignment to respond. For workshop scenario, the RE receives one assignment for each scenario listed in the workshop. The RE needs to respond to the scenarios individually. Once the RE provides the details in the Scenario Analysis Response form, the assessment appears in List of Scenario Response and Workshop Response report. Note: To respond to the scenarios, use the Scenario Analysis Response form. The fields marked with a red asterisk (*) are mandatory. Navigation To access the Scenario form, do the following: Navigate to the My Tasks menu. Click the Respond to Assigned Scenario link.  For more information, refer to the Accessing Assignments through My Tasks Menu section. 100 Scenario Analysis Response Form Figure 69 Scenario Analysis Response Form Figure 70 Scenario Analysis Response Form (Continued…) 101 Scenario Analysis Response Form > Details Tab Use this tab to provide a response description, response impact, and amount recovered (if any). Figure 71 Scenario Analysis Response Form > Details Tab Field Name Description General Response Description Provide a description for the response. Reputational Impact Select the reputational impact caused by the scenario. The following options are available:  High  Medium  Low Risk Appetite (MYR) Enter the amount to which the organisation can accept the risk. Impact Rating Select the rating of impact. The following options are available:  1  2  3  4  5 Frequency Select the frequency of the scenario occurrence. 102 Field Name Description Severity (MYR) Select the amount that may be lost as a result of the scenario occurrence. Impact on Earnings (MYR) Enter the amount that could impact the earning. Impact On Liquidity (MYR) Enter the amount that could impact the liquidity.. Impact on Economic Value (MYR) Enter the amount that could impact the economic value. Impact on Capital (MYR) Enter the amount that could impact the capital. Recovery Potential Recovery Amount (MYR) Enter the potential recovery amount of a reporting entity to restore the better condition. Insurance Coverage Select the following option:  Yes: Select this option if a reporting entity has insurance.  No: Select this option if a reporting entity does not have insurance. Relationships Are There Any Controls Applicable Select the following option:  Yes: Select this option if the controls are applicable.  No: Select this option if the controls are not applicable Add Row link To add a row, click this link. Delete Last Row link To delete the last added row, click this link. Delete check box To delete a selected row, select the check box. The selected row is deleted on form submission. Control Name Enter the name of the control. Control Description Enter the description of the control. 103 Scenario Analysis Response Form > Questions Tab Use this tab to provide responses to the questions. Figure 72 Scenario Analysis Response Form > Questions Tab Field Name Description Row# 1 Question (read-only) The question provided by the Supervisor appears. Answer Select your response. 104 Scenario Form > Additional Details Tab Use this section to attach files related to the scenario. Figure 73 Scenario Form > Additional Details Tab Field Name Description Documents Attach File(s) To upload the file, click the Browse button, and select the file from your local drive. The file gets attached and the name of the file that you attached appears. To delete an attached file, click the Cancel icon on the right side of the attached file. User Details Created By (read-only) This field shows the name of the BNM users who has created the scenario assignment. Created On (read-only) This field shows the date when the scenario has been created. 105 Scenario Form > Action (On Form Submission) Section Use this section to take an action on the form. Figure 74 Scenario Form > Action (On Form Submission) Section Field Name Description Action (On Form Submission) Action You can select the following action from the drop-down list:  Send Response: To submit the response, select this option. Form Submission  To take an action on the current form, refer to the Form Tool Bar section 106 Responding to Assessments Once the scenario assessment is created, it is assigned to the RE. The RE can access the form to submit the risk scenarios by analysing the possible future events. Note: To submit the risk scenarios, use the Assessment Response form. The fields marked with a red asterisk (*) are mandatory. Navigation To access the Assessment Response form, do the following: 1. Navigate to the My Tasks menu. 2. Click the Respond to Assigned Assessment link.  For more information on the My Tasks Menu, refer to the Accessing Assignments through My Tasks Menu section. Assessment Response Form Figure 75 Assessment Response Form 107 Assessment Response Form > Header Section Figure 76 Assessment Response Form > Header Section Use this section to view the assessment details to respond. Field Name Description Assessment Name (read-only) The assessment name appears. Assessment Objective (read-only) The assessment objective appears. Assessment from (read-only) The date from when the assessment is valid appears. Assessment till (read-only) The date until when the assessment is valid appears. Due By (read-only) The date by when the reporting entity should submit the scenario appears. Assessment Response Form > Scenario Analysis Section Use this section to add scenarios for the assessment. You can define scenarios and related details and controls. Each section must be associated with one scenario. In the Scenario section, the sections and sub-section details are displayed in a tree structure and the tree structure is organised in the following order:  First node – Sections  Second node – Sub-Section 108 Tree Structure Context-sensitive Menu Options The tree structure displays the respective context-sensitive menu options on right- clicking the each node. The following table describes the context-sensitive menu options available in each tree node. Field Name Description First Node  Add Scenario: To add scenario, click the No Data Found option and click the Add icon .  Delete Scenario: To delete the added scenario, click the No Data Found option and click the Minus icon . Note: The scenario node gets added in the tree structure. Note: The No Data Found text get replaced with the scenario name entered in the Scenario Name field. Second Node  Add Sub-section: To add control, click the Scenario Name option and click the Add icon .  Delete Sub-section: To delete the added control, click the No Data Found option and click the Minus icon . Note: You can only add the sub-section if any control is applicable to the scenario. Note: The scenario node gets added in the tree structure. Note: The No Data Found text get replaced with the name entered in the Control Name field. 109 Figure 77 Assessment Response Form> Scenario Analysis Section Field Name Description General Scenario Name Enter the name of the scenario in the field. Note: No Data Found text gets replaced with the scenario name entered in the Scenario Name field. Assessment Approach Details Enter the approach details to assess the scenario. 110 Field Name Description Scenario Description Enter a description in the field to specify more details about the scenario. To enter details, click the Rich Text Function (RTF) icon . The RTF window appears.  For more information on the RTF functions, refer to the Advanced RTF Editor section. Scenario Categorization Level 1 Business Lines Click the magnifying icon to select the level 1 business line of the scenario. The values that are available depend on the RE type for the scenario. Note: Click the Select button to add the selected option in the field. Level 2 Business Lines Select the level 2 business line of the scenario. Level 3 Business Lines Select the level 3 business line of the scenario. Level 1 Event Category Select the level 1 event category of the scenario. Level 2 Event Category Select the level 2 event category of the scenario. Level 3 Event Category Select the level 3 event category of the scenario. Level 1 Causal Category Select the level 1 causal category of the scenario. Level 2 Causal Category Select the level 2 causal category of the scenario. Level 3 Causal Category Select the level 3 causal category of the scenario. Reputation Impact Select the reputational impact on the reporting entity. Risk Appetite Enter the level of risk that an organisation is prepared to accept. Impact Rating Select the rating impact on the reporting entity due to the effect of scenario. Frequency Use this field to schedule the monitoring frequency of the scenario to get data. Note: This field only accepts numeric inputs. Severity (MYR) Enter the severity that can impact a reporting entity due to the scenario. Note: This field only accepts numeric inputs. Impact on Earning (MYR) Enter the impact on earnings due to the scenario. Note: This field only accepts numeric inputs. 111 Field Name Description Impact on Liquidity (MYR) Enter the impact on liquidity of a reporting entity due to the scenario. Note: This field only accepts numeric inputs. Impact on Economic Value (MYR) Enter the impact on economic value of a reporting entity due to the scenario. Note: This field only accepts numeric inputs. Impact on Capital (MYR) Enter the impact on capital of a reporting entity due to the scenario. Note: This field only accepts numeric inputs. Recovery Potential Recovery Amount (MYR) Enter the potential recovery amount of a reporting entity to restore the better condition. Insurance Coverage Select the following option:  Yes: Select this option if a reporting entity has insurance.  No: Select this option if a reporting entity does not have insurance. Relationships Are there Any Controls Applicable? Select the following option:  Yes: Select this option if the controls are applicable.  No: Select this option if the controls are not applicable. 112 Assessment Response Form > Scenario Analysis Sub-section Use this section to enter the details of the controls. Figure 78 Assessment Response Form > Scenario Analysis Sub-section Field Name Description Control Name Enter the name of the control in the field. Note: No Data Found text gets replaced with the name entered in the Control Name field. Control Description Type description in the field to specify more details about the scenario. To enter details, click the Rich Text Function (RTF) icon . The RTF window appears.  For more information on the RTF functions, refer to the Advanced RTF Editor section. Assessment Response Form > Comments Section Use this section to enter the comments in the field. Figure 79 Assessment Response Form > Comments Section Field Name Description History Action (read-only) It displays the action. Comments Enter the comments in the field. 113 Field Name Description Comment History Report link To view the Comments History report, click the Comments History report link. The Comments History report appears. This report displays the comments entered by all the users who worked on this form in a chronological order. Note: Click the Done button to close the report. Form Submission  To take an action on the current form, refer to the Form Tool Bar section. Task Assignments and Email Notifications On submission of the Response Assessment form, the following assignments and emails are generated: When you select the value in the action field Assignment made to the… Form assigned… Email sent to the… Submit BNM Users View Response BNM Users 114 Reports Read this chapter to know about the various reports of the Loss Event Database (LED), Key Risk Indicator (KRI), and Scenario Analysis (SA) modules. This chapter contains the following sections:  Introduction  Accessing Reports  Loss Event Database Reports  Key Risk Indicator Reports  Scenario Analysis Reports  Downloading Published Reports Introduction A report is a tabular representation of meaningful data that you can use to make informed decisions. A report is normally made up of one or more columns. Some reports would provide drilldown reports.  For information on drilldown reports, refer to the Report Drilldowns section. 115 Accessing Reports Based on the role, a user access rights control access to reports. Upon logging on to the system, you will be able to view all the reports that you have access to. To access the report, click the specific report link. You can use filter parameter fields to narrow down the search. For example, as a RE, you can view the following reports: Figure 80 Accessing Reports Report Filters Use the report filters to narrow down your search. You can access report filters by clicking the Filter button on top of the report page. Alternatively, you can access report filters by clicking the downward-pointing arrow as shown in the below screenshot. 116 Figure 81 Accessing Report Filters Once you click the arrow button the related filter window appears. Enter the search criteria as required. Click the Submit button. Based on the criteria that you enter, the report data is displayed. To clear the contents in all filter fields, click the Clear All button. To hide the filters, click the Hide Filters button or upward-pointing arrow at the bottom of the filter fields’ window. Figure 82 Report Filters Note: Search parameters perform the function of filters to refine the output of reports. You may also see report filters above or beside a particular report. In this case you need to select a value in the mandatory fields (and click the Search button if it is available) to display the data that you require. 117 Figure 83 Report Filters Note: Fields marked with a red asterisk (*) are mandatory. Report Drilldowns A few reports can have associated drilldown reports. To access drilldown reports, click a column link in the parent report. A child report appears. Note: It is advisable to access parent reports that provide access to drilldown reports, from the Reports infoport of an infocenter as parent reports may require key field values (parameter entries). To access drilldown reports, click the column value that is hyperlinked. Not all reports have a drilldown report. Report Options To… Click… Send the report as an email Export the report as an excel sheet Export the report as a PDF document Print the report 118 Loss Event Database Reports The reports available in the Loss Event Database (LED) module are grouped based on the category of the report.  Loss Events Reports  Overseas Operational Risk Events Reports Loss Events Reports SL. No. To Answer this Question… Use this Report… 1. How do I view all the loss events created in the system? Loss Event List Report 2. How do I view the status of the loss events uploaded in the system? Upload Status Report Loss Event List Report Figure 84 Loss Event List Report Description Drilldown Report or Form This report provides details on all the loss events triggered in the system. This report provides information such as loss event ID, reporting entity ID, reporting entity name, reporting entity type, industry, loss event impact, loss event classification, nature of business etc. The column value in the Loss Event ID column drills down to the Loss Event Form. 119 Loss Event Filter Fields Figure 85 Loss Event Filter Fields Field Name Description Industry Values in this field are available only if you select a value in the Reporting Entity Type field. Event For Values in this field are available only if you select a value in the Reporting Entity Type field. Level 2 Causal Category Values in this field are available only if you select a value in the Level 1 Causal Category field. Level 3Causal Category Values in this field are available only if you select a value in the Level 2 Causal Category field. Level 2 Event Category Values in this field are available only if you select a value in the Level 1 Event Category field. Level 3 Event Category Values in this field are available only if you select a value in the Level 2 Event Category field. Level 2 Business Line Values in this field are available only if you select a value in the Level 1 Event Category field. 120 Field Name Description Level 3 Business Line Values in this field are available only if you select a value in the Level 2 Event Category field. Delivery Channel Values in this field are available only if you select a value in the Level 1 Business Line field. Product/Services Values in this field are available only if you select a value in the Level 1 Business Line field. States of Event Values in this field are available only if you select Malaysia in the Countries of Event field. Districts of Event Values in this field are available only if you select Malaysia in the Countries of Event field. Card Brands Values in this field are available only if you select a value in the Payment Instrument field. Card Types Values in this field are available only if you select a value in the Payment Instrument field. Payment Instrument Modus Operand Values in this field are available only if you select a value in the Payment Instrument field. 121 Upload Status Report Figure 86 Upload Status Report Description Drilldown Report or Form This report provides the status of the uploaded forms in the system. This report provides information such as form name, upload template name, status, description, created on, success template and error template. Click the Download link in the Success Template column to open or save the template. Upload Status Report Filters Figure 87 Upload Status Report Filters 122 Overseas Operational Risk Events Reports SL. No. To Answer this Question… Use this Report… 1. How do I view all the loss events that have occurred in overseas business units? Overseas Loss Event List Report Overseas Loss Event List Report Figure 88 Overseas Loss Event List Report Description Drilldown Report or Form This report provides details on all the loss events that have occurred in overseas business units. This report provides information such as loss event ID, reporting entity ID, reporting entity name, reporting entity type, the overseas business unit, industry, business lines etc. The column value in the Loss Event ID column drills down to the Loss Event Form. Note: This report is not applicable to all Reporting Entities. It will be only shown if the BNM has published this report to a particular Reporting Entity. Overseas Loss Event List Report Filter Fields Figure 89 Overseas Loss Event List Report Filter Fields 123 Key Risk Indicator Reports The reports available in the Key Risk Indicator (KRI) module are grouped based on the category of the report.  Breaches Peer Comparison  KRI Submission Reports SL. No. To Answer this Question… Use this Report… 1. How do I view all the details of KRI breaches across the reporting entities in the system? Breaches Peer Comparison 2. How do I view all the details of the KRI submission in the system? KRI Submission Reports Breaches Peer Comparison Figure 90 Breaches Peer Comparison Description Drilldown Report or Form This report provides details of KRI breaches across reporting entities. This report provides information such as reporting entity name, tier, no. of KRI, number of submission, number of non-critical breaches, number of critical breaches and so on. The column value in the No. of KRI column drills down to the KRI List Report. 124 KRI Submission Reports Figure 91 KRI Submission Reports Description Drilldown Report or Form This report provides details on all the KRIs submitted in the system. This report provides information such as event ID, frequency, reporting entity name, risk category, data collection type, status, due date and so on. The column value in the Event ID column drills down to the KRI Data Entry Form. 125 Scenario Analysis Reports The reports available in the Scenario Analysis (SA) module are grouped based on the category of the report.  Scenario Analysis Response Reports  Reporting Entity Scenario Assessment Reports Scenario Analysis Response Reports SL. No. To Answer this Question… Use this Report… 1. How do I view the list of scenarios assigned to reporting entities with their response status in the system? List of Scenario Response 2. How do I view the list of workshop assignment with the responses of reporting entities in the system? Workshop Response Report List of Scenario Response Figure 92 List of Scenario Response Description Drilldown Report or Form This report provides details of ad-hoc scenario and workshop assignment by reporting entities based on the user access. This report provides information such as scenario ID, scenario response, scenario name, reporting entity name, level 1 event category, due by and so on. The column value in the Scenario Response ID column drills down to the Scenario Analysis Response form. 126 Workshop Response Report Figure 93 Workshop Response Report Description Drilldown Report or Form This report provides details of the workshop responses triggered in the system. This report provides information such as workshop ID, reporting entity name, scenario name, level 1event category, scenario ID and so on. The column values in the Workshop ID and Scenario Name columns drill down to the Workshop form and Scenario forms respectively. 127 Reporting Entity Scenario Assessment Reports SL. No. To Answer this Question… Use this Report… 1. How do I view the value of all the list of assessment responses in the system? Assessment Response Report Assessment Response Report Figure 94 Assessment Response Report Description Drilldown Report or Form This report provides details of assessment responses by RE in the system. This report provides information such as assessment ID, assessment response ID, reporting entity name, assessment submitted by, severity, frequency and so on. The column value in the Assessment Response ID column drills down to the Scenario Analysis form. 128 Downloading Published Reports The user selected as the recipient can view and download the published report from the BNM Message Board. Note: An e-mail is sent to the user to notify that the reports are published and available to view and download. Navigation To download the published report, do the following: Navigate to the BNM Message Board infocenter >> Industry Report infoport. Figure 95 Downloading the Published Report Click the Download link in line with the <report name> link. The File Download dialog box appears. Figure 96 File Download Dialog Box Click Open to open the report. Note: You can click Save to save the report and click Cancel to cancel the action. ORION Frequently Asked Questions (FAQ) Issued on: 25 February 2021 2 Contents Glossary................................................................................................................................... 3 Registration of ORION user ..................................................................................................... 4 Technical trouble-shooting ....................................................................................................... 5 General .................................................................................................................................... 7 Loss event reporting................................................................................................................. 7 General ................................................................................................................................ 7 Overseas loss event reporting ............................................................................................ 12 Customer information breaches loss event reporting .......................................................... 13 Payment-related loss event reporting ................................................................................. 14 Aggregate loss event reporting ........................................................................................... 15 BDSF–related loss event reporting ..................................................................................... 16 Cyber Threat–related loss event reporting .......................................................................... 17 Shariah non-compliance loss event reporting ..................................................................... 18 Insurance specific loss event reporting ............................................................................... 19 KRI Reporting ........................................................................................................................ 19 Generic KRI ........................................................................................................................ 20 Technology KRI .................................................................................................................. 21 Insurance KRI ..................................................................................................................... 21 Treasury KRI ...................................................................................................................... 22 Scenario Analysis .................................................................................................................. 23 3 Glossary Abbreviation Full phrase BCM Business Continuity Management BNM Bank Negara Malaysia CRO Chief Risk Officer DFI Development Financial Institutions FTP File Transfer Protocol KRI Key Risk Indicators LoD Level of Disruption MTD Maximum Tolerable Downtime ORION Operational Risk Integrated Online Network RE Reporting entities RTO Recovery Time Objective SNC Shariah non-compliance SST Self-Service Terminal 4 Registration of ORION user 1. How many users are allowed in ORION? In the case of REs operating as financial groups, access to ORION will be granted to the GCRO, CRO and Submission Officer. In the case of REs operating on stand-alone basis, access to ORION will be granted to the CRO and Submission Officer. For additional submission officer’s ORION license, each entity is allowed to purchase only ONE licence. To purchase the licence, please email to [email protected] with the following details of your institution: (i) Contact Person: (ii) Business Registration Number: (iii) Phone Number: (iv) Fax Number: 2. What are the details required for registration of new user and/or change of ORION Submission Officer, CRO and/or GCRO? Firstly, users must register at FI@KijangNet portal through their institution’s FI@KijangNet administrator. Upon successful self-registration at FI@KijangNet portal, the printscreen of the new officer’s FI@KijangNet profile and reason for changes must be emailed to [email protected]. Registration of the new user in ORION may take up to five working days after receiving the complete printscreen. Sample of FI@KijangNet profile printscreen is as shown below: 3. What if the registration in FI@KijangNet fails? If registration fails: (i) Check if the email used for both ORION and portal registration are the same; (ii) Check if administrator has assigned the roles; or (iii) Check on the browser version guided by the User Guide and Technical Specification document. 4. Should RE’s administrator for FI@KijangNet portal receive confirmation upon new user registration in ORION? No confirmation email will be generated by FI@KijangNet. mailto:[email protected] mailto:[email protected] 5 Technical trouble-shooting 5. Why am I not able to access ORION using the given link @ http://orion.w2k.bnm.gov.my:80/metricstream/systemi. Please access ORION via FI@KijangNet @ https://kijangnet.bnm.gov.my. Do not use the link @ http://orion.w2k.bnm.gov.my:80/metricstream/systemi. 6. I have logged onto FI@KijangNet portal but am unable to see any ORION tabs within the application / I am encountering an error (404 error). This could be due to the following: (i) Internal Server error, do contact your institution’s IT department to ensure that this can be addressed. (ii) BNM’s Risk Specialist and Technology Supervision Department has not granted access to the new officer. Please ensure that the new officer’s FI@KijangNet profile screenshot and the role of the user (CRO/Submission officer) attempting to access the system has been emailed to BNM at [email protected] . 7. Our CRO / Submission Officer (SO) has tried to log-in to ORION via FI@KijangNet portal but failed due to forgotten password. The CRO / SO has then tried to change the password but failed due to one of the following reasons: (1) there were security questions to be answered, and the user does not have an answer for the questions; or (2) there were no pop-up security questions. What is the next course of action? For forgotten password in ORION, REs must reset their password in FI@Kijangnet. Please do the following: (i) Browse @ https://kijangnet.bnm.gov.my/ and on the landing page, click Reset Password. A new browser window will pop up. (ii) Key in your complete user ID in the User ID field and click Search. If your account is found, it will be listed in the page with name of the account user. (iii) Key in the answer for the security questions. If you have set up the security questions and answers correctly during production setup, you will be prompted to answer your personal security questions. Note: Please type in the exact answer you used during registration. Take note of capital letters, spacing and special characters etc. (iv) If you have forgotten the answers to your FI@Kijangnet security questions, please email [email protected] for assistance. (v) Change the password after successfully answering all the security questions. You will be prompted to change your password. Key in your new password and click Save. 8. Why does a pop-up error message appear when filling up the loss event form? http://orion.w2k.bnm.gov.my/metricstream/systemi https://kijangnet.bnm.gov.my/ http://orion.w2k.bnm.gov.my/metricstream/systemi mailto:[email protected] https://kijangnet.bnm.gov.my/ mailto:[email protected] 6 This could be due to an incompatible browser being used. The supported browsers are Internet Explorer 11 and Google Chrome (64bit) 87.0.4280.88 (Official Build). For Google Chrome, you may go to ‘Help' and click 'About Google Chrome' to update to the latest Google Chrome version. 9. I have been registered by my institution’s FI@KijangNet administrator in the portal and have provided BNM with the details of user. While I can see the ORION tab, I am unable to access it upon clicking. This could be due to internal security settings or firewalls that have been set up based on your institution’s internal IT security policies. Do contact your IT department to ensure that appropriate access has been granted. 10. I am able to navigate through the ORION application, however, when I attempt to download the template and save it to my computer, I am unable to do so due to an unauthorised / insufficient permission error message. As the template is content that is being downloaded from a web based application, your institutions IT policy may not permit such items to be saved to your local machine. Do contact your IT administrator to enable this function. 11. How do we resolve the error message received after the upload of the Loss Event Data template? Depending on the error message received, please do the following to resolve: (i) Upload Completed & Invalid Data Found – Download the error template in the upload status report and refer to the error text under the loss event detail sheet to determine the invalid data input for each loss event submitted. Re- enter the correct value in the field that has been pointed out by the error text and retry submitting the loss events. (ii) Upload Failed – Download a fresh new template and input the data accordingly with the instruction given to avoid corruption of template. Inputs of data directly into excel template cells for each column are not allowed and will result in corruption of the template. 12. I encounter syntax error message while doing submissions to ORION Please DO NOT use any special characters such as: < > \ : ; " & # ^ ' ` ? % in the Loss Event Description, attachment names or any free text fields. If the issue persists, please email [email protected] to receive the instruction to capture your network logs for further investigation. 13. Will there be any email notification upon a successful submission? No, emails will not be generated upon a successful submission. The submission status can be validated against the Master List Reports. 14. Will there be an audit trail of the changes made in previous submissions? Yes, REs can view the date, fields and user of the last change made. 15. How do REs amend previous submissions? (i) To amend a reported loss event in ORION to reflect any changes to its content / classification etc., users may do so by retrieving the said report using “Loss Event ID”. mailto:[email protected] 7 (ii) Duplicated events can be amended by deactivating one of the reports by filling up the “Event Valid Till” field with the current date. (iii) If a reported suspected fraud event was concluded as a case of genuine transaction, the event can be removed from ORION by filling up the “Event Valid Till” field with the current date. 16. Do REs need to inform BNM of the changes to previous submissions made in ORION? No. General 17. How do we communicate to BNM on any enquiries pertaining to ORION? All queries/communication can be directed to [email protected] . 18. Is there a “maker-checker” function in ORION for validation purposes? No. ORION is strictly a submission system. REs internal governance process must be cleared outside the system prior to the submission. 19. Please clarify on the period of the data collection to be reported for monthly reporting. Examples based on the timeline are as follows; (i) Monthly submission of aggregate reporting - by the 15th calendar day of the following month or earlier. This means that all events that occurred from 1 January to 31 January must be reported by 15 February or earlier (1 to 14 February). (ii) Quarterly KRIs by the 15th calendar day of the following month. This means that all instances that occurred from 1 January to 31 March must be reported by 15 April or earlier (1 to 14 April). 20. How to change RE’s Kijang Administrator? Please email your change request along with details of the new administrator such as Name, Email Address and Contact Number to [email protected] . 21. Our institution’s FI@KijangNet administrator has forgotten his password to login to the portal. What is the next course of action? Please email your request to reset password to [email protected] . Loss event reporting General 22. There is a high volume of data this month. Can we request for an extension of the loss event submission deadline? There will be no extension granted. Nevertheless, please email to [email protected] to notify us of the late submission and reason. mailto:[email protected] mailto:[email protected] mailto:[email protected] mailto:[email protected] 8 23. How to report high reputational impact events to ORION? For event that may threaten the RE’s reputation, RE must first assess the event according to RE’s internal policy (e.g. Reputational risk framework etc.). Should the assessment conclude that the event poses high reputational impact to the RE, the event must be submitted to ORION within 1 working day. 24. How do REs assess non-financial impact (Low, Medium, High)? REs shall determine the impact based on their internal policy (e.g. Reputational risk framework etc.) considering the nature of the event and REs size, nature and complexity of their respective entities. 25. What does ‘Date of Event Confirmation’ refer to? RE is to determine own “point of confirmation”. Confirmation of an event is to be done by RE’s appropriate line of governance. 26. What does the event classification of “Actual Loss” in ORION signify for general OR events, SNC events, BDSF events and Cyber threat incidents? FIs must be mindful of the event classification when reporting general operational risk events, SNC events, BDSF events and Cyber threat events. The significance of “Actual Loss” event classification for different types of events are as stated below: (i) General OR events - To classify as ‘Actual Loss’ when there is a financial loss impacting the P&L i.e. Write-off or provision. (ii) SNC events - ‘Actual loss’ refers to Actual SNC status as confirmed by the Shariah Committee (SC) regardless of whether there is financial loss or not. E.g., the bank’s SC has confirmed the event is an SNC event, however the amount that is required to be purified has yet to be determined – to classify as “Actual Loss” as the event is an Actual SNC. (iii) BDSF events – To classify as ‘Actual Loss’ when a critical BDSF event (as outlined in the guide) occurred at the Res. (iv) Cyber incidents – To classify as 'Actual Loss' when there is a cyber event that:  jeopardizes the cyber security of an information system or the information the system processes, stores or transmits; or  violates the security policies, security procedures or acceptable use policies, whether resulting from malicious activity or not. 27. Does financial losses parked in Sundries / Transitory / Suspense account required to be reported to ORION as ‘Actual Loss’? A financial loss booked temporarily in the sundries / transitory / suspense account and yet to be written-off or provisioned for in the P&L, is not considered as an 'Actual Loss' event. However, if the financial loss booked temporarily in the sundries / transitory / suspense account is ≥ RM1 million, the event would need to be reported to ORION under the category of Critical Events – actual / potential losses ≥ RM1 million as 9 ‘Potential Loss’ first and subsequently updated to reflect any ‘Actual Loss’ or ‘Recovery’. In the case of loss and chargeback, these must be reported as ‘Actual Loss’ event with losses tied to the merchant (Refer to FAQ No. 58). 28. Previous submission of loss event(s) does not appear in the loss event list report in ORION’s default landing page? By default, the loss event list report in the landing page will show only the current month loss event submission. For any previous submission, you can search the loss events submitted via these 2 methods: i) Field ‘Loss Event ID’ – Institution Internal Loss Event ID / ORION generated Loss Event ID can be used to search for previous loss event ii) Field “Update from” & “Update till” – This field requires you to input the duration of reporting date for any previous submitted loss event. 29. I have tried to search for a loss event that has been reported to ORION previously via the Loss Event ID field and nothing appears. Why? There might be a possibility that the loss event has been end dated (a date has been inputted in the “Event Valid Till” field) or the event was not successfully uploaded via the Excel template. Please re-submit the event to ORION indicating ‘[Re-submission]’ in the “Loss Event Name” and the reason for re-submission along with the details/executive summary of the event itself in the “Loss Event Description”. 30. What is the function of the “Event Valid Till” field? The field is meant to remove a loss event from ORION. Please be noted that inputting a date value in this field does not signify the closure of the event. 31. How to determine the success of the batch excel uploading for LED? Kindly refer to the Upload Status Report under LED. 32. Is there a threshold for reporting loss event? No threshold to ensure sufficient industry data is collected to determine industry analysis, reports and trending. However, please be noted on the requirements of aggregate reporting for: (i) Card related fraud ≤ RM5, 000 (ii) Actual loss ≤ RM1, 000 (iii) All physical cash shortages 33. When do REs report suspected fraud cases to ORION? All suspected fraud events (apart from card fraud – refer to FAQ No. 53) must be reported upon confirmation of suspected fraud by the Fraud Investigation Unit, Claim Unit or similar functions although the exact loss amount is yet to be ascertained. Subsequently, the suspected fraud must be re-assessed and updated to reflect changes to the ORION loss event classification (e.g. from Potential to Actual) and latest loss description (e.g. confirmed actual loss amount). 10 34. Does application fraud “near miss” needs to be reported as loss events? No. Application fraud events (e.g. banking facilities / financing application, opening of account) are not required to be reported to ORION as loss event unless if it is a new MO to the bank. Nonetheless, the number of these occurrences would need to be reported as KRI. 35. Please elaborate on New and Repeated events.  New – New type of MO that impacted the REs for the first time (it does not refer to every new submission of events  Repeated – MO that has occurred previously at REs. 36. Do REs report Code of Ethics cases to ORION? Code of Ethics cases are required to be reported as loss events only if there are actual / potential financial losses incurred (e.g. claims from customer on mis- selling). Should the potential financial loss be less than RM1mil, the loss event can be submitted when the loss is charged to P&L. If the potential loss is ≥ RM1mil, REs are required to report as ‘Potential Loss’ to ORION. 37. Do events occurred outside REs premises need to be reported too? Yes. As long as the Operational Risk event is within the context of Table 2: ORION reporting types and timelines, as stated in the ORION policy document. 38. In an event which causes / involves two different operational risk ‘Event Types’ in ORION, should REs report as one or two events? The loss event must be reported separately as follows: Scenario A: Hacking on internet banking database system that causes customers’ data leakage. (i) Event 1 (for hacking) – Event Category: External Fraud > Systems Security > Hacking Damage. (ii) Event 2 (for customers’ data leakage) – Event Category: CPBP > Suitability, disclosure and fiduciary > Breach of Privacy. Event 1 shall record the LED ID number of Event 2 in the Loss Event Description and vice versa. Another similar separate reporting required is for case in FAQ No. 39. 39. Does the cost incurred from repair / replacement resulted from Self-Service Terminals robbery and theft is included in the loss event reporting? Yes. Please report the event as TWO separate events to ORION. Guiding examples are as follows: 11 Scenario A: Attempted robbery with no cash loss (no cash stolen from the Self- Service Terminals as the robbery was unsuccessful but there was some loss due to damage). (i) Event 1 (for robbery event) – Loss Event Name: Attempted Self-Service Terminals robbery. Event Category: External fraud > Theft and fraud > Theft/robbery. Event Classification: Near miss. (ii) Event 2 (for repair work if the loss has been charged to P&L) - Loss Event Name: Attempted Self-Service Terminals robbery repair cost. Event Category: Damage to physical assets > Natural disaster & other losses > Vandalism. Event Classification: Actual loss. Scenario B: Successful robbery with cash loss (stolen cash from the Self-Service Terminal with loss due to damage) 1) Event 1 (for robbery event) Loss Event Name: Self-Service Terminal robbery. Event Category: External fraud > Theft and fraud > Theft/robbery. Event Classification: Potential Loss (if the loss has yet to be charged to P&L) Actual Loss (if the loss has been charged to P&L). 2) Event 2 (for repair work if the loss has been charged to P&L) - Loss Event Name: Attempted ATM/CDM robbery repair cost. Event Category: Damage to physical assets > Natural disaster & other losses > Vandalism. Event Classification: Actual loss. 40. Should cash shortages for Self-Service Terminal outsourced to vendor be reported to ORION despite losses being absorbed by a third party? All Self-Service Terminals cash shortages either at the bank’s branch, offsite Self- Service Terminal including those outsourced to vendor irrespective of whether the losses are borne by the bank or third party, has to be reported – to record the losses in aggregated amount. Please refer to Appendix 10: Aggregate Reporting Requirements. 41. Do REs need to report gains? No. 42. The BCM Guideline specifies that escalation of major disruption must be reported to BNM within 2 hours, which is less than the ORION requirement. Which one prevails? REs must notify any major disruption (LoD 2 and above) within 2 hours to the relevant stakeholders in BNM (Relationship Managers and/or Supervisors) as stipulated in the BCM Guideline. Nonetheless, reporting of BDSF events to ORION must be in accordance with Table 2: ORION Reporting Types and Timelines. 43. How do we map the event type, business lines or causal categories? 12 The principle is that the taxonomies must be mapped to the closest ORION taxonomies for event type, business line or causal categories. This includes the following circumstances: (i) The existing taxonomies in the reporting entities are not as granular. (ii) The event that occurred impacted several business lines/ branches. In this case REs must establish a principle of allocating the loss, e.g. to the most impacted business activity like deposit hence allocated to commercial banking. (iii) The use of “Others” must be done after REs have tried to exhaust all possible options in the taxonomies. If it is genuinely new e.g. new modus operandi for fraud, BNM must be immediately notified. Overseas loss event reporting 44. What are the types of entities subjected to overseas operational risk event reporting? Only banking and insurance-related foreign and offshore subsidiaries or branches of the REs are subjected to this requirement. 45. How to report losses incurred by overseas branches and/or overseas subsidiaries to ORION? (i) Please use the Overseas Subsidiary Form to report losses incurred by overseas branches and/or overseas subsidiaries. (ii) There is no excel template available for the purpose of reporting overseas losses. (iii) Only Actual Loss events are required to be reported. (iv) Losses must be reported by Country of loss. (v) Monthly submission of overseas losses reporting - by the 15th calendar day of the following month or earlier. (vi) Reporting of these losses must be in accordance with the reporting requirement as set out in Appendix 11: Overseas loss event reporting requirements - Table 15: a. Events with amount < RM1 million must be aggregated by country. b. Events with amount that are ≥ RM1 million must NOT be aggregated and must be reported as a single event by country in ORION. 46. How to report losses incurred by overseas branches and/or subsidiaries that are ≥ RM1 million to ORION? For events ≥ RM1 million, to submit loss event individually by country. e.g., There were 3 loss events ≥ RM1 million that occurred from 1 January to 31 January as per below:  Thailand – RM2.5 million  Singapore – RM1.5 million  Singapore – RM1.7 million 13 RE must submit 3 reports to ORION by 15 February or earlier (1 to 14 February).  Report 1: Thailand RM2.5million;  Report 2: Singapore RM1.5 million;  Report 3: Singapore RM1.7 million. In ORION, to select the relevant Level 1 ‘Business Line’ and Level 1 ‘Event Type’. The chronology of the event detailing how the event happened, root cause along with the remedial actions and mitigation action plans must be included in the ‘Loss Event Description’ field. 47. How are losses incurred by overseas branches and/or subsidiaries that are < RM1 million reported to ORION? For events < RM1 million, to submit the loss event aggregated by country. e.g., There were 5 loss events < RM 1 million that occurred from 1 January to 31 January as per below:  Thailand – RM20k  Singapore – RM2k  Singapore – RM3k  Vietnam – RM3k  Vietnam – RM1k RE must submit 3 reports to ORION by 15 February or earlier (1 to 14 February).  Report 1: Thailand RM20k;  Report 2: Singapore RM5k;  Report 3: Vietnam RM4k In ORION, Level 1 ‘Business Line’ and Level 1 ‘Event Type’ are not required for the aggregate reporting of events < RM1 million. However, due to the mandatory field setting of the Business Line and Event Category, RE is to select any from the drop down list. For Loss Event Description field, please put ‘N/A’. Customer information breaches loss event reporting 48. Should customer information details be included in ORION when reporting a customer information breach event? The reporting of customer information breach in ORION must include an executive summary of the case, covering the areas specified in Appendix 6 of the ORION policy document. Confidential information of the affected customer or any other individuals (e.g. name, I/C number, account number and other personal information) must not be included. 49. Should customer information details be included in the detailed investigation report submitted to BNM’s Jabatan Konsumer dan Amalan Pasaran? The investigation report must include all the details as set out in Appendix I of the policy document on Management of Customer Information and Permitted Disclosures. 50. The ORION reporting requirements state that customer information breaches must be reported within 1 working day upon completion of investigation tabled to the Board. Where do we input the date in ORION? 14 For the purpose of reporting customer information breaches in ORION, please use ‘Date of detection’ field in reference to ‘Date of investigation tabled to Board’. Payment-related loss event reporting 51. What is e-money? As stated in the E-money Guidelines and in accordance with the Payment Systems (Designated Payment Instruments) Order 2003, e-money refers to a payment instrument, whether tangible or intangible that; (i) stores funds electronically in exchange of funds paid to the issuer; and (ii) is able to be used as a means of making payment to any person other than the issuer. Example of e-money is Touch n' Go card scheme and International brand prepaid card issued by banking institutions. 52. Do cases of forged / counterfeit notes need to be reported? Yes. All fraud cases must be reported to ORION irrespective of the event classification of actual, potential or near miss. Any counterfeit Malaysian currency notes accepted via Cash Deposit Machine (CDM) and Cash Recycler Machines (CRM) must be reported under BDSF when the system fails to detect and reject the counterfeit notes. The incident must be reported in ORION even if there is no loss incurred. 53. Please elaborate on ‘attempted fraud’ in terms of payment-related transactions. Attempted fraud refers to an event whereby the issuer managed to detect the fraudulent transaction and managed to stop the transaction from going through (no loss and no charge back). 54. If a customer disputes 10 credit card transactions, should it be reported to ORION on a per transaction basis or per customer basis? The reporting must be per transaction basis. Transactions with amount involved ≤ RM5k must be aggregated for reporting to ORION. Transactions with amount involved > RM5k threshold must be submitted as a single event to ORION. Please refer to Appendix 10: Aggregate reporting requirements. 55. At what stage should the RE report a Card fraud? At the point of detection. 56. For events involving fraudulent altered cheque which the collecting Bank has tagged as Non Conformance Flag in CTCS and fraud did not take place, are these “near miss” events required to be reported to ORION? No, unless there is additional mitigation actions (e.g. calling up customers to verify the cheques that are suspected to be fraudulent) taken by the issuing Bank to verify if these altered cheques that have been tagged as Non Conformance by collecting Bank are fraud or genuine. 15 57. Who should report cheque fraud events? Issuing banks or collecting banks? The issuing bank must report cheque fraud irrespective of whether the loss is borne by the issuing bank or collecting bank.  If the loss is borne by issuing bank, please input the amount accordingly as per below - Incurred by Actual Loss / Potential Loss (In RM) Recovery Amount (In RM) Comments RE / Issuing Bank Xx Collecting Bank Customer Others  If the loss is borne collecting bank, issuing will be reporting the loss on collecting bank’s behalf by inputting the amount accordingly as per below - Incurred by Actual Loss / Potential Loss (In RM) Recovery Amount (In RM) Comments RE / Issuing Bank Collecting Bank xx To input the name of the bank that is absorbing the loss Customer Others 58. How do I report credit card cases (loss and chargeback) whereby the RE can fully recover losses from the Acquirer / Merchant (if it complies with the relevant requirements of Visa / MasterCard)? Report as “Actual Loss” with losses tied to merchant accordingly as per below – Incurred by Actual Loss (In RM) Recovery Amount (In RM) Comments RE / Issuer xx Card holder / Customer Acquirer / Merchant xx Aggregate loss event reporting 59. How should REs report aggregate card-related fraud ≤ RM5k? Aggregate reporting for card-related fraud event is based on the Amount Involved per Table 14 in ORION Policy Document. For example, a credit card fraud with amount involved of RM3,500 would be reported on an aggregated basis (by card type) as the amount involved is ≤ RM5k. Whereas, a credit card fraud with amount involved of RM7,500 must not be aggregated as the amount involved is > RM5k. Instead, this event must be reported as a single event to ORION. 60. What is the basis of reporting aggregate loss events ≤ RM1k? Aggregate reporting for loss events is based on Net Actual Loss. 16 BDSF–related loss event reporting 61. What are the critical business functions or systems subjected to ORION reporting for critical BDSF events? a. Any system failure or system execution failure occurred at REs or outsourced service provider affecting the critical business functions or systems listed below irrespective of breaching or not breaching RTO timeline must be reported to ORION. This includes but not limited to: (i) Core Banking System (ii) Core Insurance System (iii) Payment Systems  eSpick  RENTAS  Interbank Fund Transfer (IBFT, MEPS IBG) (iv) Treasury System (v) Self-Service Terminals (SSTs include CRM, CDM & ATM) (vi) Internet Banking System (Retail and Corporate) (vii) Mobile Banking System (viii) Call Centre (ix) Insurance eCover note (x) Internet Insurance System (for public and agents, e.g.: motor & travel insurance) (xi) Card System (xii) SWIFT Note: The list of critical systems above is not exhaustive and REs should assess whether other systems should be considered as critical, with consideration that the application system supports the provision of critical banking, insurance or payment services, where failure of the system has the potential to significantly impair the financial institution’s provision of financial services to customers or counterparties, business operations, financial position, reputation, or compliance with applicable laws and regulatory requirements b. Any counterfeit Malaysian currency notes accepted via Cash Deposit Machine (CDM) and Cash Recycler Machines (CRM) must be reported under BDSF when the system fails to detect and reject the counterfeit notes. The incident must be reported in ORION even if there is no loss incurred. 62. If a system disruption has impacted both conventional and Islamic entities, how would the reporting of such event be done in ORION? Please submit two separate LED reporting for each entity. Any financial loss resulted from the event must be split accordingly. 63. What are the parameters to define business disruption? Does this include disruption of just 5 to 10 minutes (or less)? Any business disruption must be reported irrespective of the duration of disruption. However, event severity must be confirmed in accordance to: 17 (i) Any business disruption of LoD 1 event involving failure at main branch or processing hub irrespective of breaching or not breaching MTD timeline including network. (ii) Any business disruption of LoD 2 and above irrespective of breaching or not breaching MTD timeline including network. 64. Is critical system failure/outage with low severity level required to be reported? Any system failure is to be reported irrespective of event severity as long as the systems are listed in FAQ No. 61. 65. Are ‘minimal’ system failures resulting from batch overruns for few minutes required to be reported in ORION? Yes, system failures resulting from batch overruns regardless of short or long duration, is required to be reported in ORION. 66. What is the definition of ‘Main Branch’ or ‘Processing Hub’ in reporting a business disruption event in ORION? Any business disruption involving the RE’s main branch and where there are significant business operations taking place to support the functionality of the RE’s operations i.e. centralised operations centres. 67. What is the definition of ‘New’ and ‘Repeated’ in the context of IT incidents Select “New” if New MO is applied. I.e. The first DDoS attack was impacting bank’s network by flooding it with data packets, and the second DDoS attack MO is by affecting the bank’s system application instead of the network Select “Repeated” if the same MO has been applied in previous attack. Cyber Event–related loss event reporting 68. How do REs classify cyber incidents and events in ORION? All cyber incidents and events must be reported to ORION as per below: (i) Cyber incident > Event classification: Actual Loss Defined as a cyber event that:  jeopardizes the cyber security of an information system or the information the system processes, stores or transmits; or  violates the security policies, security procedures or acceptable use policies, whether resulting from malicious activity or not. (ii) Cyber event > Event classification: Near Miss Defined as any observable occurrence of cyber threat in an information system. Cyber events sometimes provide indication that a cyber incident is occurring (i.e. cyber threat which could potentially compromise REs IT equipment, system, operations, data, services or users). 18 Shariah non-compliance loss event reporting 69. Do REs still need to declare nil SNC as per the previous requirements? No. 70. Is the officer in charge (OIC) mentioned in Appendix 8 - SNC event reporting requirements, the same as the ORION submission officer mention in the main document? No. The ORION submission officer is responsible to consolidate and liaise with relevant parties, including the OIC in matters pertaining to submission to BNM. 71. Illustration on reporting actual loss and potential loss for SNC. It should be highlighted that actual loss and potential loss are operational risk categorisation hence are NOT the same as actual SNC and potential SNC. REs must be mindful of the operational risk loss category when reporting SNC events. SNC events can be differentiated by flagging the Islamic Business and Actual SNC boxes (selected as “Yes”) in the system. (i) Actual SNC is reported when Shariah Committee confirmed that the event is SNC. Regardless of whether the SNC event is with or without financial losses, the SNC event is to be reported to ORION as “Actual Loss” under the event classification field and to select “Yes” in the SNC box. Non- financial impact must be reported for actual SNC with nil financial loss. Scenario 1: SC has confirmed that the event is an SNC event but there was no financial loss as FI managed to rectify the matter within 30 days (i.e. new contract was issued before income was recognised). FI is to classify the event as “Actual Loss” to reflect that it is an Actual SNC although there was no financial loss. Scenario 2: SC has confirmed that the event is an SNC event and there was financial loss (estimate) but the actual amount is yet to be ascertained and has not impacted the FI’s P&L. FI is to classify the event as “Actual Loss” to reflect that it is an Actual SNC. (ii) Potential SNC is reported immediately (T+1 working day) upon event confirmation by an officer within the control function regardless if the event has been tabled to Shariah Committee or not. In ORION, to select “Yes” in SNC box and event classified as “Potential loss”. (iii) If the Shariah Committee decided that a potential SNC is a not an SNC event, FI must assess if the event is operational risk related or not: a. If the event is an operational risk event, the event must be reported as such by amending the SNC field previously selected as “Yes” to “No”. The details of the event must be retained for the purpose of reporting to BNM. b. If the event is neither an operational risk event, the event must be removed from ORION by inputting a date in the “Event Validity” field to end date the event. 19 72. On the requirement to conduct ad-hoc Board meeting to meet the 30-day period to obtain Board’s approval on the rectification plan, can it be in the form of circularisation? No. A formal meeting or discussion session must take place. Board’s approval in the form of circularisation and/or memorandum is not permissible. 73. On the requirement to submit rectification plan approved by the Board within 30 calendar days, can it be a principle based / brief plan? In order to meet the 30-day period, the rectification plan that is to be submitted does not have to be a full blown plan and it can be of a principle based plan approved by the Board. However, the detailed rectification plan must be submitted and updated in ORION later. 74. Must SNC events be reported at entity level? Yes, SNC issues must be reported by the entity where the business belonged to. I.e. Investment bank A have SNC issues of which the loss is impacting the GL in Islamic bank A. In this case, Islamic bank A is required to report the SNC event to ORION and indicate in the Loss Event Description that the loss occurred at Investment bank A. 75. Can RE request for extension should they fail to table the potential SNC event to Shariah Committee within the 14 working days timeline? RE is strictly required to observe the timeline of the 14 working days. However, any request for time extensions need to be supported with strong justifications and it has to be through a formal request to the Bank. Insurance specific loss event reporting 76. Misappropriation of insurance premium by Agent – how shall REs select business line level 2 as the premium owed by the agent encompasses various classes of policies? The business line level 2 is to be reported under each affected class of business. 77. For "Ordinary Life Investment" under business line level 2 for Life business, does it meant for with-profit business/participating fund? Yes. 78. Does the ORION Policy Document and FAQ supersede other insurance related policies and guidelines? No. ORION Policy Document and FAQ does not supersede the Guidelines on Claims Settlement Processes and other insurance related policy document unless otherwise stated in the ORION Policy Document and FAQ. Insurance companies and Takaful operators must continue to ensure compliance with the Guidelines on Claims Settlement Processes and other insurance related policy documents as well as refer to the supervision department. KRI Reporting 20 79. How to amend previously submitted KRI to ORION? Only the latest submission (latest quarterly/monthly/yearly submission) can be edited. To amend, click on the KRI module tab, select KRI Submission Report and then select your Reporting Entity Type and Reporting Entity Name accordingly. From the list of KRIs submitted populated, select the KRI that you would like to amend. Click on the pencil icon on your top right to edit and submit. On historical data, however, all amendments must be emailed to [email protected] . 80. Will BNM be sharing the industry threshold for KRIs? No. Generic KRI 81. What is the scope to report ‘Number of application fraud near-miss’? For Banking Sector: Remittance/cheque book/trading bill applications must not be included in the KRI. For Insurance Sector: (i) “Application” here refers to insurance proposal (proposal form); (ii) The KRI includes new policy, upgraded policy application, reinstatement of insurance, endorsement, claim applications etc.; (iii) The KRI only captures confirmed fraud cases; (iv) New agent application / registration or employee application / staff recruitment must not be included in this KRI. 82. What type of reprimands needs to be reported as KRI? Only severe formal and/or official written reprimands that are substantiated with documentation are to be reported as KRI in ORION irrespective of monetary or non- monetary penalty imposed. Reprimands received directly from BNM (e.g. Statistical Department, Consumer Market Conduct) are not required to be reported in this KRI. 83. What is the scope of reporting the KRI on “Number of New Litigation Cases Initiated against the FI”? (i) Where FI was served with Letter of Demand (LOD), to report in the KRI; (ii) Where the reported LOD is translated into a real litigation, FIs are not required to include in the following quarter; (iii) Where FI was served with court order without prior LOD, FIs are to report in the KRI; (iv) Industrial Court related -For case initiated by staff/ex-staff, only cases where unable to be resolved through reconciliation proceedings and subsequently referred to the Court are deemed litigation case that has to be reported under this KRI; (v) Insurance claims-related litigation are not required to be reported. 84. Is the turnover rate calculation includes deceased and/or staff that has retired in “Staff Attrition Rate” KRI? Yes mailto:[email protected] 21 85. Are supervisory / regulatory findings required to be reported in the “New Audit Findings” KRI? No. Technology KRI 86. Please elaborate on the KRI “Number of incidents relating to transactional reporting or updating errors of critical system”. The KRI is to capture incidents related to errors caused by production system. Any errors caused by human intervention shall not be included in this KRI. For example: (i) Erroneous financial or transactional reporting caused by system which could affect decision making, analysis or general understanding of the business by anyone who have access to the report. (ii) Errors in computation or processing of financial transactions which result in customers' account being wrongly credited or debited. (iii) Material errors in the total outstanding loans figures or total premiums income reported in the annual report. (iv) Material errors in the financial reporting to BNM as at a specific reporting period. (v) Customers' statements (whether in electronic or paper form) showing wrong account balances or transaction history - if this is due to programming errors, this can be reported as one incident even though it affects many customers. (vi) Incorrect interest or dividend amounts were credited into customers' accounts due to errors in batch jobs - this is also treated as one incident although the erroneous crediting of interest or dividend payments affected many customers (vii) Customers' policy/statements (whether in electronic or paper form) showing wrong sum insured, premium amount or transaction history of payments made - if this is due to programming errors, this can be reported as one incident even though it affects many customers. 87. What is the definition of Critical Systems vs. Critical Services? Critical services = critical business function. Critical systems are those systems supporting the critical services. 88. Please elaborate the KRI “Number of instances response time for critical services exceeded SLA”. Response time here refers to system response time (from the moment an instruction is entered into the system until the user gets the system response). This KRI intends to capture delay in response time for SLA between the bank and their customers (outsourcing contracts SLA are excluded). Insurance KRI 89. What is the scope of reporting the KRI “Instances of delay in issuance of policies” for number of policy issuance exceeding 30 days for Motor and 60 days for Non-motor from the acceptance of risk until issuance of policies? 22 (i) For Motor, acceptance of risk refers to the date cover note was issued. (ii) For Non-motor, acceptance of risk refers to policy inception date. (iii) The 30 days for Motor and 60 days for Non-motor refers to calendar days. (iv) FIs are expected to track all policies issued including by franchise. 90. What is the scope of reporting the KRI “Instances of delay in payment of claims” for payment of claims > 35 working days from receipt of the last supporting document for assessment for example medical report and / or final adjuster’s report until issuance of payment voucher? (i) Issuance of claim advice can be the last checkpoint if it is regarded same as payment voucher. (ii) The KRI is applicable to all recipient of claims paid out, including third party claimants (except payment made by medical claim administrator) (iii) The KRI includes Life and Personal Accident Death claim cases. 91. On the number of replacement of life policy / certificate (ROP / ROC) KRI, is the indicator meant for internal or external ROP? Both internal and external ROP / ROC must be recorded under the KRI. 92. Would the KRI “Number of replacement of life policy / certificate” be applicable to banks that engage in bancassurance / bancatakaful activity i.e. marketing insurance on behalf of 3rd parties? Yes. 93. What is the scope of reporting the KRI “Number of delay in death claims” where number of death claims paid > 60 days after the notification date? (i) This is only applicable to Life and Personal Accident Death claims including Foreign Workers Compensation Scheme. (ii) The 60 calendar day timeline will commence upon receipt of notification of the claim irrespective complete documentation received or not. [Please refer to Schedule 10 Section 130 Paragraph 12(1) Financial Services Act 2013] [Please refer to Schedule 10 Section 142 Paragraph 12.1 Islamic Financial Services Act 2013] 94. What is the scope of reporting the KRI “Instances of delay in appointing licensed / in-house adjuster” that was done >7 working days from receipt of completed claims documents? The decision whether to appoint adjusters is as defined by REs’ internal policy and procedure. The definition of completed claims documents is as defined by REs’ internal policy and procedure and to comply with the requirements as set out in BNM/RH/GL/003- 9 Guideline on Claims Settlement Practices (Consolidated) and BNM/RH/GL/004- 17 Guideline on Claims Settlement Practices (Consolidated) Takaful. Treasury KRI 95. On the number of trade / deal cancellations and amendments KRI 23 a) What is the definition of a deal/trade in this KRI? The deal/trade is defined from the point of dealer/trader capture/input data in the Treasury system. Hence, any deal/trade amendment/cancellation made by trader/dealer subsequent to the deal creation, need to be captured as this KRI. The following are scenarios below required reporting in ORION for this Treasury KRI: b) Any cancellations or amendments made by trader/dealer due to customer’s instruction; The KRI is meant to monitor traders’ and/or dealers' behaviour. Hence, any cancellations due to customer’s instruction are not required to be reported as those are genuine cancellation. c) Any cancellations or amendments that have suspicious / fraud elements; Cancellations or amendments due to suspicious / fraud elements are required to be reported only upon confirmation of fraud as a Loss Event. d) Any cancellations or amendments due to human error / unintentional ; Cancellations or amendments due to unintentional human error are required to be reported. e) Any cancellations or amendments without reasoning / justifications. Cancellations without reasoning / justification has to be reported under this KRI. Scenario Analysis 96. Please define the scenario analysis that BNM is referring to. The scenario analysis will be initiated as an instruction to REs. The instruction can be categorised as follows: (i) Assessment – An assessment initiated by BNM for REs to conduct scenario analyses on the top risks that are unique to the RE. (ii) Assignments – A detailed instruction to perform specific scenario analysis on one specific risk area. (iii) Workshops – A detailed instruction to perform analysis on a few scenarios.

Public Notice

30 Jan 2021

Senarai Amaran Pengguna Kewangan telah dikemaskini

https://www.bnm.gov.my/-/senarai-amaran-pengguna-kewangan-kemaskini-jan2021

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/senarai-amaran-pengguna-kewangan-kemaskini-jan2021&languageId=ms_MY

Reading: Senarai Amaran Pengguna Kewangan telah dikemaskini Share: 9 Senarai Amaran Pengguna Kewangan telah dikemaskini Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 2315 pada Sabtu, 30 Januari 2021 30 Jan 2021 Bank telah mengemas kini Senarai Amaran Pengguna Kewangan. Senarai ini terdiri daripada syarikat dan laman web yang tidak dibenarkan atau diluluskan di bawah undang-undang dan pentadbiran berkaitan yang ditadbir oleh BNM. Sila maklum bahawa senarai ini tidak lengkap dan hanya berfungsi sebagai panduan kepada orang ramai berdasarkan maklumat dan pertanyaan yang diterima oleh BNM. Syarikat berikut ditambahkan ke dalam senarai: UK Trade Online Net Trade Global Trading Sdn Bhd Waheed Ventures New Tycoon Plus Senarai akan dikemas kini secara berkala untuk rujukan orang ramai. Untuk melihat senarai yang dikemas kini, klik pada pautan ini.   Bank Negara Malaysia 30 Januari 2021 © Bank Negara Malaysia, 2021. All rights reserved.

Public Notice

19 Jan 2021

Buletin RINGGIT (Keluaran Bil. 1/2021) kini boleh dimuat turun

https://www.bnm.gov.my/-/buletin-ringgit-keluaran-bil.-1/2021-kini-boleh-dimuat-turun

https://www.bnm.gov.my/documents/20124/2342260/Ringgit_01_2021.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=185&redirect=/-/buletin-ringgit-keluaran-bil.-1/2021-kini-boleh-dimuat-turun&languageId=ms_MY

Reading: Buletin RINGGIT (Keluaran Bil. 1/2021) kini boleh dimuat turun Share: Buletin RINGGIT (Keluaran Bil. 1/2021) kini boleh dimuat turun Tarikh Siaran: 19 Jan 2021 Artikel utama pada keluaran ini ialah Pendidikan Kewangan Dalam Sistem Persekolahan. Antara topik lain yang menarik termasuk : Pendidikan Kewangan Melalui Lensa Anak Muda Kesihatan Kewangan Pekerja Gig Perlindungan bagi Pemegang Sijil Takaful dan Polisi Insurans RINGGIT merupakan penerbitan usaha sama di antara Bank Negara Malaysia dan FOMCA dan ia diterbitkan dua bulan sekali bermula 2019. Buletin ini diterbitkan di dalam Bahasa Malaysia sahaja. Klik pada pautan di bawah untuk muat turun: Issue - Bil 5/2020 [PDF] © 2024 Bank Negara Malaysia. All rights reserved.

R A K A N K E W A N G A N A N D A B I L . 1/2021 Perlindungan bagi Pemegang Sijil Takaful dan Polisi Insurans Kesihatan Kewangan Pekerja Gig Pendidikan Kewangan Melalui Lensa Anak Muda Sila imbas kod QR untuk muat turun Buletin Ringgit PERCUMA | PP 16897/05/2013 (032581) Pendidikan Kewangan Dalam Sistem Persekolahan Menyemai Nilai Murni Sejak Usia Muda Layari /amaranpenipuan https://www.bnm.gov.my/ http://www.fomca.org.my/v1/ https://www.facebook.com/amaranpenipuan/ Sesi persekolahan 2021 yang akan bermula tidak lama lagi sememangnya amat dinanti oleh semua. Masyarakat amat mengharapkan agar sesi persekolahan dapat berjalan dengan lancar pada tahun ini demi kesinambungan pendidikan generasi muda kita dalam membangunkan sahsiah mahupun untuk menyemai nilai murni dalam diri murid- murid. Antara nilai yang diketengahkan oleh Kementerian Pendidikan Malaysia termasuklah sederhana dalam berbelanja, jimat cermat, bijak buat keputusan, amanah, jujur, bertanggungjawab, rasional dan bersyukur. Nilai murni yang dipupuk akan seterusnya menjelmakan sikap yang baik dalam generasi akan datang. Antara wadah yang diguna pakai untuk memupuk nilai-nilai murni ini termasuklah melalui penerapan elemen celik kewangan dalam kurikulum sekolah. Bagi tujuan ini, murid- murid sekolah mula didedahkan dengan kemahiran dan ilmu yang berkaitan pendidikan kewangan seawal peringkat pra-sekolah, sekolah rendah sehingga sekolah menengah, di antara usia 5 hingga 17 tahun. Pendedahan pada usia sebegini adalah amat bertepatan dan tidaklah terlalu awal. Berdasarkan kajian yang dijalankan oleh Universiti Putra Malaysia1, kanak-kanak di Malaysia didapati telahpun menjalankan transaksi kewangan secara aktif pada usia 10 tahun. Antaranya, mereka telah menguruskan wang saku yang diberikan oleh ibu bapa dan mula membentuk tabiat kewangan seperti menyimpan dan berbelanja. Kanak-kanak ini juga mempunyai kesedaran tentang tabiat pengurusan kewangan ibu bapa mereka dan menyatakan ibu bapa mereka sebagai pengaruh utama dalam tabiat perbelanjaan mereka. Oleh itu, usaha oleh Kementerian Pendidikan Malaysia ini sememangnya amat bertepatan dan diharapkan akan dapat melahirkan masyarakat yang celik wang dan bijak dalam mengurus kewangan dengan bertanggungjawab. Usaha ini telah dijalankan secara sistematik dengan mengintegrasikan elemen pendidikan kewangan dalam Pendidikan Kewangan Dalam Sistem Persekolahan Menyemai Nilai Murni Sejak Usia Muda kurikulum persekolahan secara berperingkat sejak 2014. Proses ini lengkap sepenuhnya dengan pengenalan elemen kewangan dalam mata pelajaran baru tingkatan lima yang diperkenalkan pada tahun ini. Melalui kurikulum yang dibangunkan, pendidikan kewangan dilaksanakan semasa proses pengajaran dan pembelajaran merentasi tema, mahupun bidang atau tajuk yang bersesuaian dalam sesuatu mata pelajaran. Murid-murid didedahkan kepada elemen ini melalui mata pelajaran teras seperti Bahasa Melayu, Bahasa Inggeris, Matematik, Pendidikan Islam, Pendidikan Moral dan juga mata pelajaran elektif seperti Sains Rumah Tangga, Ekonomi, Perniagaan dan Prinsip Perakaunan. Pendedahan ini dapat mendidik murid tentang pengurusan kewangan peribadi seharian secara berhemat seperti berbelanja, menyimpan, meminjam, melabur dan dalam menguruskan risiko kewangan. Seterusnya, pengetahuan dan kemahiran pendidikan kewangan yang dipelajari di dalam bilik darjah ini diperkasakan pula melalui aktiviti ko-kurikulum. Kementerian Pendidikan Malaysia juga telah menjalankan pelbagai aktiviti dan inisiatif pendidikan kewangan yang melibatkan warga Kementerian Pendidikan Malaysia di peringkat pusat, negeri, daerah dan juga sekolah. Ini termasuklah penganjuran ceramah simpanan dan pelaburan, pertandingan pidato pelaburan, kuiz celik kewangan, ceramah pengurusan kewangan, pertandingan menulis esei, membina infografik dan aplikasi bertemakan pendidikan kewangan serta penyiaran Wacana Ilmu: Pengintegrasian Elemen Pendidikan Kewangan dalam Kurikulum Persekolahan. Sektor swasta, terutamanya penyedia perkhidmatan kewangan, juga menjalin kerjasama dengan pihak sekolah bagi memperkukuhkan ilmu pengetahuan, kemahiran dan keyakinan yang mantap dalam pengurusan kewangan peribadi murid. Aktiviti bertemakan pengurusan kewangan seperti ceramah berkaitan simpanan dan asas pengurusan kewangan, kuiz pendidikan kewangan, pertandingan melukis 1 Literasi, sosialisasi, tingkah laku dan kompetensi kewangan dalam kalangan kanak-kanak, Jurnal Pengguna Malaysia, Disember 2013. 2 | RINGGIT Sidang Redaksi Penasihat Prof Datuk Dr. Marimuthu Nadason Presiden FOMCA Ketua Sidang Pengarang Dato’ Dr. Paul Selva Raj Editor Mohd Yusof bin Abdul Rahman Sidang Pengarang Maizatul Aqira Ishak Baskaran Sithamparam Nur Asyikin Aminuddin Ringgit merupakan penerbitan usaha sama antara Bank Negara Malaysia dan FOMCA. Ia diterbitkan secara berkala sebanyak enam edisi mulai tahun 2019. Untuk muat turun Ringgit dalam format “PDF“, sila layari laman sesawang www.fomca.org.my dan www.bnm.gov.my Gabungan Persatuan-Persatuan Pengguna Malaysia No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7876 2009 Faks: 03-7877 1076 E-mel : [email protected] Sesawang : www.fomca.org.my Bank Negara Malaysia Jalan Dato’ Onn 50480 Kuala Lumpur Tel : 03-2698 8044 Diurus terbit oleh: Pusat Penyelidikan dan Sumber Pengguna (CRRC) No. 24, Jalan SS1/22A 47300 Petaling Jaya Selangor Darul Ehsan Tel : 03-7875 2392 E-mel : [email protected] Sesawang : www.crrc.org.my Dicetak oleh: Percetakan Asas Jaya (M) Sdn Bhd No. 5B, Tingkat 2, Jalan Pipit 2 Bandar Puchong Jaya 47100 Puchong Jaya Selangor Darul Ehsan Artikel yang disiarkan dalam Ringgit tidak semestinya mencerminkan pendirian dan dasar Bank Negara Malaysia atau FOMCA. Ia merupakan pendapat penulis sendiri. komik pendidikan kewangan, aktiviti membuat tabung serta permainan interaktif pendidikan kewangan telah dijalankan secara bersemuka, mahupun atas talian. Pendekatan sebegini dapat mengukuhkan lagi penguasaan pengetahuan dan kemahiran kewangan yang dipelajari oleh murid sehingga berjaya mengubah tingkah laku mereka semasa melaksanakan aktiviti secara hands-on. Pembelajaran ilmu pendidikan kewangan merupakan proses yang berterusan dan tidak terhenti di sekolah sahaja, malahan perlu diteruskan di luar sekolah. Ibu bapa dan masyarakat umumnya disarankan agar dapat memainkan peranan masing- masing dalam menyokong usaha meningkatkan pengetahuan, kemahiran dan nilai dalam kalangan generasi muda. Ibu bapa dan masyarakat merupakan model kepada generasi muda dalam membentuk tabiat kewangan mereka. Oleh itu, mereka haruslah peka dengan inisiatif yang telah dilaksanakan ini dan memainkan peranan bagi memastikan pendidikan kewangan dapat diterapkan dalam generasi muda secara efektif. Janganlah mengambil sikap lepas tangan kepada pihak sekolah serta memandang enteng bahawa anak anda masih kecil dan tidak akan terkesan dengan tindak tanduk kewangan anda. Malahan, kajian Universiti Putra Malaysia juga mendapati kanak-kanak seringkali memperoleh maklumat tentang kewangan menerusi pemerhatian dan penglibatan secara tidak langsung dalam aktiviti seharian bersama keluarga. Sehubungan itu, ibu bapa perlu menunjukkan contoh yang baik kepada anak-anak dalam tabiat pengurusan kewangan termasuklah semasa membuat keputusan dalam pembelian mahupun transaksi pembayaran. FOMCA berpendapat bahawa pengetahuan tentang kewangan adalah aspek yang amat penting bagi pendidikan untuk generasi muda, terutamanya dalam fasa pembentukan diri mereka. Pendekatan pendidikan kewangan secara terancang dalam sistem pendidikan di Malaysia adalah satu usaha jangka panjang yang dapat menyemai nilai murni berkaitan pengurusan kewangan dalam diri. Pembelajaran tentang cara menyimpan, berbelanja dan hal-hal lain yang berkaitan dengan pengurusan kewangan dapat membantu mereka sebagai persiapan untuk menguruskan kewangan dengan lebih baik apabila dewasa kelak. Malahan, pendekatan ini juga membantu mereka untuk mendapatkan pendidikan dan mengamalkan tabiat kewangan yang lebih baik untuk mencapai matlamat kehidupan mereka pada masa hadapan. Oleh itu, FOMCA menyeru agar masyarakat Malaysia, terutamanya ibu bapa, dapat memberi sokongan kepada usaha ini demi membina masyarakat Malaysia yang celik kewangan dan mengamalkan tingkah laku kewangan yang sihat pada masa hadapan. Sumber: Kementerian Pendidikan Malaysia Adakah anda mempunyai sebarang komen mengenai RINGGIT? Sila imbas kod QR untuk tinjauan bagi Buletin Ringgit. bil. 1/2021 | 3 Pengalaman mengajar di sekolah berkeperluan tinggi di seluruh Malaysia yang kebanyakan murid-muridnya daripada golongan berpendapatan rendah telah membuka mata empat orang guru muda untuk memperbaiki taraf kehidupan anak murid mereka. Impian tersebut telah mendorong guru-guru ini untuk menjalankan inisiatif bagi membina generasi celik kewangan. Tahap literasi kewangan seseorang individu akan memberi impak ke atas taraf kehidupan bukan sahaja pada murid itu sendiri, tetapi juga ahli keluarganya dalam jangka panjang. Dengan kesedaran ini, pada tahun 2019, sebuah program literasi kewangan Fun(d) for Life, yang berdasarkan konsep permainan simulasi kehidupan sebenar mula diperkenalkan. Di dalam program simulasi ini, para peserta berpeluang untuk mencuba membuat keputusan kewangan dalam kehidupan sebenar seperti: memilih pekerjaan, kawasan tempat tinggal, jenis kenderaan dan gaya hidup. Tidak ketinggalan, para peserta juga perlu mengambil kira faktor lain seperti bilangan anak, kos sara hidup anak, perlindungan takaful dan pelaburan simpanan yang mereka inginkan serta cabaran hidup seperti kemalangan, jatuh sakit atau kematian. Lebih kurang 100 orang peserta di kalangan murid sekolah rendah dan sekolah menengah seluruh Malaysia telah melalui simulasi permainan ini di mana mereka dapat merasai sendiri kesan pilihan mereka di sepanjang permainan ini. Pilihan yang dibuat di awal usia memungkinkan peserta melalui kehidupan yang selesa dengan keadaan tahap kewangan yang mampu untuk menampung kehendak hidup mereka di kemudian hari ataupun mereka mungkin jatuh bankrap dan diselubungi hutang. Setelah tamatnya simulasi permainan Fun(d) for Life ini, sahutan gembira bersilang kesalan sedih dapat dilihat di kalangan para peserta. Peserta juga dapat memahami “Alangkah seronoknya kalau kita diajar kemahiran kewangan sejak dari kecil lagi dalam satu pendekatan yang menarik sehingga dapat mempengaruhi tabiat pengurusan kewangan apabila dewasa kelak” Pendidikan Kewangan Melalui Lensa Anak Muda 4 | RINGGIT Tips! 1 Dapat mengenali dan mengira mata wang Malaysia. 2 Dapat membezakan antara keperluan dan kehendak. 3 Menyedari manfaat mempunyai wang simpanan. Lakukan aktiviti bersama yang ringkas dan seronok. Fokuskan didikan kewangan melalui visual atau aktiviti. Kurangkan terlalu banyak mengajar melalui kata-kata. Kemahiran Utama Yang Perlu Dipupuk Di Usia Ini Aktiviti Mudah Gunakan aktiviti “Kenali Duit Malaysia” kami sebagai inspirasi. Ajar beza semua jenis wang kertas & syiling Malaysia1 Terangkan apa yang perlu anda lakukan apabila tiba di kaunter pembayaran. Sebaiknya, gunakan wang tunai dan bukannya kad kredit atau debit supaya mereka boleh mengenali nilai wang. Libatkan anak anda semasa membeli barang keperluan1 Beri peluang anak anda memilih sesuatu barangan yang tidak bernilai tinggi di kedai atau restoran. Minta mereka membuat bayaran untuk barangan tersebut menggunakan wang kecil (RM1-RM5). Latih anak anda membeli barangan di kedai atau restoran 2 Pilih mainan di sekitar rumah anda dan letak “tanda harga” di atasnya. Ambil giliran untuk menjadi “pemilik kedai” atau “pelanggan”. Beri peluang untuk mereka berlatih membuat pengiraan harga yang betul sama ada sebagai pemilik kedai atau pelanggan. Bermain “Pasaraya Mama & Anak”3 Kanak-kanak di usia ini lebih senang mengikut apa yang kita lakukan berbanding dengan apa yang kita katakan. Mulakan tabung simpanan lutsinar untuk diri anda sendiri 4 Tonton video ini bersama-sama di Portal Fun(d) for Life (Kategori Murid > 7-9 tahun). Kongsikan apakah antara keperluan dan kehendak bagi diri anda sendiri. Tonton video “Perbezaan Keperluan & Kehendak"5 Galakkan anak anda menyimpan baki daripada wang saku harian atau duit raya. Gunakan tabung lutsinar untuk membantu melihat pertambahannya supaya dapat membakar semangat menabung anak anda. Galakkan tabiat menabung2 Pilih 10 barang sedia ada yang ada di dalam rumah. Minta anak anda untuk bahagikan barang-barang tersebut kepada kategori keperluan dan kehendak dan bincangkan pilihannya. Ajar beza antara keperluan & kehendak3 Ada Masa Ekstra? 2 + 9 = 11 abah adik www.fundfor.life Untuk mendapatkan lebih banyak tips & aktiviti kewangan menarik sesuai untuk mereka yang berusia 7 -18 tahun, layari: IbuBapa untuk Jika Anak Anda Berusia kepentingan literasi kewangan dan perlindungan takaful dalam membuat keputusan hidup. Ini telah membuktikan betapa berkesannya sebuah program literasi kewangan yang dapat mendidik peserta melalui cara yang interaktif dan seronok dengan keperluan pembelajaran di usia ini. Ekoran itu, sejak awal tahun 2020, program Fun(d) for Life kini telah dikembangkan lagi melalui www.fundfor.life, selaras dengan objektif program untuk membina generasi celik kewangan. Melalui program ini, faktor pengaruh luaran seperti ibu bapa dan guru juga diambil kira, di samping menyediakan kandungan secara langsung untuk murid berusia 7 hingga 18 tahun. Kandungan portal dibahagikan berdasarkan umur bagi menyampaikan maklumat kewangan yang bersesuaian dalam kategori Tonton, Main, Belajar dan Buat. Kategori Tonton menyediakan video seperti ‘Bezakan Keperluan & Kehendak’, manakala kategori Main menyediakan permainan seperti ‘Pak Pandir di Bandar’ atau ‘Simbol Mata Wang’. Selain itu, murid juga boleh Belajar melalui maklumat berbentuk infografik seperti ‘Gol-Gol Kewangan’ dan membuat aktiviti secara langsung melalui kategori Buat menggunakan panduan seperti ‘Mempelajari Cara Menggunakan Perkhidmatan Dalam Talian dengan Selamat’. Portal ini juga menyediakan komik berunsur kewangan yang menyelitkan kisah yang mencuit hati sambil mencapai objektif dalam memberi pendidikan kewangan. Sebuah siri video “Kecil-Kecil, Celik Duit” turut membincangkan topik dan persoalan duit daripada perspektif anak-anak muda dalam cara yang santai. Selain kandungan secara langsung untuk anak muda, portal ini menyediakan panduan aktiviti, tips dan kemahiran yang wajar diambil kira oleh ibu bapa mengikut usia anak mereka. Antara tip penting yang dikongsikan termasuklah memberikan peluang pada anak muda untuk melakukan urusniaga mudah sendiri di kedai seawal 7 tahun dan memperkasakan kemahiran hidup seperti kemahiran memasak, menjual dan menguruskan sesuatu. Kemahiran sebegini penting untuk menjadi asas dalam membina literasi kewangan di masa hadapan, selain mampu membantu anak-anak membina hobi yang produktif dan mungkin dapat menjana pendapatan kelak. Selain ibu bapa, guru juga merupakan pengaruh kuat kepada murid di usia ini. Selaras dengan Panduan Pelaksanaan Pendidikan Kewangan yang disediakan oleh Kementerian Pendidikan Malaysia, portal Fun(d) for Life juga menyediakan pelan pengajaran dan aktiviti berdasarkan enam elemen celik kewangan yang merentas empat mata pelajaran bagi sekolah rendah dan sekolah menengah: Bahasa Melayu, Matematik, Pendidikan Islam dan Pendidikan Moral. Dengan pendekatan interaktif, mudah dibaca dan diakses, program ini diharap dapat membantu membina generasi celik kewangan. Usaha ini juga memerlukan sokongan daripada pelbagai pihak, untuk mendidik anak-anak muda secara berterusan dengan topik pengurusan kewangan. Sumber: www.fundfor.life “Lebih kurang 100 orang peserta di kalangan murid sekolah rendah dan sekolah menengah seluruh Malaysia telah melalui simulasi permainan ini ...” bil. 1/2021 | 5 Seiring dengan transformasi teknologi yang pantas, peluang pekerjaan dalam sektor ekonomi gig mengalami pertumbuhan pesat dewasa ini. Malaysia yang sedang giat membangunkan ekonomi digital tidak terkecuali daripada perubahan drastik landskap ekonomi tersebut. Menurut laporan Kumpulan Wang Simpanan Pekerja, ekonomi gig berkembang 31% pada tahun 2017, mengalahkan tenaga kerja konvensional. Data Pertubuhan Buruh Antarabangsa (International Labour Organization) juga menunjukkan bahawa penduduk yang bekerja sendiri merangkumi 25% daripada 15 juta tenaga kerja di Malaysia pada tahun 2020, bersamaan dengan hampir empat juta orang. Pekerja gig adalah sebahagian daripada mereka yang dikategorikan sebagai bekerja sendiri. Memandangkan pertumbuhan yang pesat ini, Rancangan Malaysia ke-12 (2021-2025) akan memberi tumpuan khas kepada ekonomi gig sebagai salah satu teras utama ekonomi negara. Ekonomi gig didefinisikan sebagai sebuah model ekonomi berasaskan permintaan dan penawaran perkhidmatan jangka masa pendek atau berdasarkan tugasan, dengan dipacu aplikasi teknologi. Berbeza dengan pekerjaan konvensional yang tertakluk kepada kontrak pekerjaan jangka sederhana/ panjang, penjanaan pendapatan dalam sektor ekonomi gig adalah melalui kerja yang dapat diselesaikan dalam jangka pendek dan dengan kontrak kerja yang bersifat sementara serta terhad. Di samping itu, pekerja gig menikmati kebebasan untuk mengatur jadual kerja dan memilih pelanggan atau kerja, berbeza dengan pekerja konvensional yang mempunyai skop kerja dan jadual kerja yang tetap. Contoh pekerja gig termasuklah pemandu Grab yang menghantar pelanggan ke destinasi pilihan, rakan kerja foodpanda yang menghantar makanan kepada pelanggan, pemberi khidmat pembersihan yang diupah melalui aplikasi mudah alih untuk membersihkan rumah dan pengasuh kanak-kanak yang dipilih melalui aplikasi yang memadankan pengasuh dengan ibu bapa. Perkembangan ekonomi gig telah membuka peluang kepada orang ramai untuk menjana pendapatan di samping menikmati keanjalan waktu pekerjaan. Sifat ekonomi gig yang inklusif juga membolehkan penyertaan kumpulan yang mungkin dipinggirkan daripada bekerja dalam sektor ekonomi konvensional seperti wanita, belia, dan warga emas. Selain penjanaan peluang pekerjaan, perkembangan ekonomi gig turut mendatangkan impak positif terhadap pelbagai aspek kehidupan seharian kita, daripada pengangkutan dan santapan sehinggalah kepada urusan membeli barangan keperluan. Kesihatan Kewangan Pekerja Gig 6 | RINGGIT Kesihatan Kewangan Pekerja Gig Memandangkan pentingnya sektor ekonomi gig dalam m e m a c u p e r t u m b u h a n ekonomi negara, Kumpulan Wang Pembangunan Modal Pertubuhan Bangsa-Bangsa Bersatu (United Nations Capital Development Fund, UNCDF) telah menjalankan Tinjauan Kesihatan Kewangan Pekerja Gig2 yang meliputi empat platform gig di Malaysia (GoGet, FastJobs, Grab, dan foodpanda) pada Mac hingga Ogos 2020 untuk meneliti aspirasi dan kesihatan kewangan pekerja gig. Secara spesifik, kajian tersebut bertujuan untuk menilai tahap keselamatan dan daya tahan kewangan serta kemampuan menikmati kebebasan kewangan di kalangan pekerja gig. D a p a t a n k a j i a n U N C D F menunjukkan bahawa waktu kerja yang fleksibel, autonomi dalam menentukan jadual kerja dan memilih pelanggan/kerja, serta penjanaan pendapatan tambahan menjadi daya tarikan utama ekonomi gig di kalangan tenaga kerja yang memilih untuk menyertai sektor ekonomi tersebut. Namun, keanjalan yang ditawarkan ekonomi gig juga mengakibatkan pekerja gig berdepan dengan ketidaktentuan pendapatan dan tiadanya faedah pekerjaan, seperti cuti berbayar dan perlindungan kesihatan, yang menjadi dua punca utama kerisauan mereka. Kajian tersebut juga mendedahkan pelbagai cabaran kesihatan kewangan yang dihadapi oleh pekerja gig. 80% pekerja gig tidak dapat atau merasa sukar untuk menyediakan RM1,000 sekiranya berlaku kecemasan. Dapatan tersebut lebih tinggi, berbanding Kaji Selidik Keupayaan dan Rangkuman Kewangan Bank Negara Malaysia pada tahun 2018 yang menunjukkan bahawa 52% rakyat Malaysia merasa sukar untuk menyediakan RM1,000 bagi menangani kecemasan. Di samping itu, tiga daripada empat pekerja gig tidak mempunyai amalan menyimpan atau menabung hanya sekali- sekala, dan satu daripada dua pekerja gig mempunyai baki simpanan bawah RM500. Tinjauan Tingkah Laku Kewangan 2018 oleh Agensi Kaunseling dan Pengurusan Kredit turut memperolehi hasil kajian yang serupa, di mana hanya 29% daripada dewasa bekerja dapat menyimpan lebih daripada 10% daripada pendapatan mereka. Menurut pekerja gig yang tidak mempunyai amalan menyimpan secara berkala, dua punca utama mereka gagal menyimpan adalah sumber pendapatan terhad (64%) dan terjadinya perbelanjaan tidak terjangka yang menghalang mereka daripada menabung (57%). Dapatan kajian UNCDF juga menunjukkan bahawa walaupun majoriti pekerja gig menggunakan perkhidmatan kewangan peringkat asas seperti akaun simpanan biasa (84%), penggunaan produk kewangan yang lebih kompleks adalah terhad - insurans (25%), kad kredit (15%) dan produk pelaburan (10%). Selain itu, hanya 17% daripada pekerja gig mempunyai pinjaman dengan pihak bank, yang menandakan kesukaran akses pembiayaan di kalangan pekerja gig akibat daripada ketidakpastian pekerjaan mereka. 2 The Gig Economy and Financial Health - A snapshot of Malaysia and China’, Center for Financial Health, UNCDF and i3 Programme, December 2020 bil. 1/2021 | 7 Perkhidmatan Kewangan Digital untuk Pekerja Gig Memandangkan perkembangan trend pekerjaan dalam sektor ekonomi gig masih agak baru di Malaysia, aspek perlindungan sosial serta keselamatan kewangan yang lain untuk pekerja gig masih belum matang dan memerlukan perhatian khusus daripada semua pihak. Melalui kerjasama dengan beberapa rakan kongsi tempatan, UNCDF sedang melaksanakan beberapa in i s iat i f untuk meningkatkan taraf kesihatan kewangan pekerja gig di Malaysia melalui penawaran produk simpanan, pinjaman, perlindungan insurans, pelaburan, dan lain-lain perkhidmatan kewangan yang disesuaikan dengan keperluan unik pekerja gig. Selain itu, panduan untuk meningkatkan kesejahteraan kewangan melalui perkhidmatan seperti skor kredit percuma juga akan disediakan. Inisiatif-inisiatif tersebut diharapkan dapat membantu pekerja gig untuk menyimpan dan mengembangkan wang serta mencapai matlamat kewangan mereka di samping dapat mengurus risiko kewangan secara efektif. Sumber: United Nations Capital Development Fund (UNCDF) Pekerjaan Gig Pekerjaan Konvensional Kontrak dengan pengelola platform atau pengupah yang bersifat sementara dan terhad kepada kerja/projek masing-masing Kontrak pekerjaan dengan majikan yang mengikat untuk jangka sederhana/ panjang, daripada beberapa bulan hingga puluhan tahun lamanya Penjanaan pendapatan melalui kerja yang dapat diselesaikan dalam jangka pendek dan dengan waktu kerja yang fleksibel Skop kerja dan waktu kerja yang tetap seperti yang telah dipersetujui dalam kontrak pekerjaan dengan majikan Pendapatan tidak menentu dan tergantung kepada jenis dan jumlah kerja yang diselesaikan Pendapatan yang tetap seperti yang telah dipersetujui dalam kontrak pekerjaan dengan majikan Tiada faedah pekerja seperti cuti tahunan/umum/ sakit/bersalin berbayar, perlindungan kesihatan dan caruman skim persaraan wajib Faedah pekerja seperti cuti tahunan/umum/sakit/bersalin berbayar, perlindungan kesihatan, dan caruman skim persaraan wajib terjamin di sisi undang-undang Kebebasan mengatur jadual kerja sendiri serta memilih pelanggan dan/atau kerja/ projek yang ingin dikerjakan Jadual kerja, pelanggan yang dilayani, serta kerja/projek yang dikerjakan ditetapkan oleh majikan Simpanan dan Belanjawan Pinjaman Perancangan Temuan kajian UNCDF • 3 daripada 4 pekerja gig tidak mempunyai amalan menyimpan atau menabung hanya sekali-sekala. • 1 daripada 2 pekerja gig mempunyai baki simpanan bawah RM500. • 3 daripada 4 pekerja gigi meminjam wang daripada keluarga/rakan mereka apabila timbul keperluan. • Hanya 1 daripada 6 pekerja gig mempunyai pinjaman dengan bank. • 4 daripada 5 pekerja gig berasa sukar untuk menyediakan RM1,000 sekiranya berlaku kecemasan. • 3 daripada 4 pekerja gig tidak dilindungi mana-mana produk insurans. Ciri-ciri produk perkhidmatan kewangan yang dapat membantu pekerja gig • Memberi peringatan secara berkala kepada pekerja gig agar menyisihkan sejumlah daripada pendapatan mereka untuk tujuan simpanan, terutama pada saat mereka menerima wang pendapatan mereka. • Membantu pekerja gig membuat pelaburan walaupun dalam jumlah kecil untuk pulangan yang lebih tinggi berbanding akaun simpanan biasa. • Membantu menyimpan rekod kerja dan pendapatan bagi memenuhi syarat kelayakan pinjaman institusi kewangan berlesen. • Perkhidmatan pinjaman dalam jumlah kecil dan tanpa faedah atau dengan kadar faedah yang rendah. • Tempoh bayaran balik yang fleksibel dan dapat disusun semula sesuai dengan kemampuan dan keadaan kewangan semasa pekerja gig. • Produk insurans mikro yang menyediakan perlindungan untuk jangka pendek, sama ada harian, mingguan atau bulanan sesuai dengan keperluan pekerja gig. • Kadar premium yang terjangkau, dengan pembayaran hanya apabila perlindungan diperlukan. • Prosedur pembelian/pendaftaran dan kaedah pembayaran serta proses tuntutan yang mudah. Contoh penyedia perkhidmatan kewangan Perkhidmatan kewangan digital untuk pekerja gig 8 | RINGGIT Telekomunikasi kini telah menjadi keperluan asas bagi setiap pengguna di Malaysia tanpa mengira umur dan jantina. Ianya menjadi nadi untuk perhubungan, platform untuk transaksi membeli atau menempah barangan atas talian dan juga sumber penyebaran maklumat. Pada tahun 2019, sebanyak 4,950 aduan diterima daripada para pengguna terhadap perkhidmatan telekomunikasi di Malaysia. Salah satu masalah yang mendapat aduan paling tinggi adalah rungutan terhadap bil telekomunikasi yang mencatatkan sebanyak 17.11% atau 847 daripada jumlah aduan. Antara isu yang diketengahkan oleh para pengguna adalah caj yang dikenakan untuk perkhidmatan yang tidak dilanggani. Malah ada juga yang mengadu mereka masih dikenakan caj walaupun mereka sudah menamatkan perkhidmatan tersebut. Segelintir pengguna mengadu bahawa mereka terpaksa membayar kepada pihak penyedia perkhidmatan walaupun mereka tidak memerlukan perkhidmatan tersebut. Malahan, perkhidmatan yang ditawarkan seringkali terputus, mengalami gangguan jaringan atau liputan. Para pengguna juga tidak berpuas hati kerana mereka terpaksa membayar untuk perkhidmatan SMS yang diterima daripada pihak ketiga yang tidak langgani oleh pengguna. Aduan yang kedua tertinggi melibatkan kualiti perkhidmatan jaringan internet jalur lebar yang mencatatkan sebanyak 16% daripada jumlah aduan. Pengguna seringkali mengalami gangguan internet dan bayaran yang dikenakan untuk kelajuan data yang dilanggani tidak setimpal dengan perkhidmatan yang ditawarkan. Malahan, pengguna tidak dapat menggunakan perkhidmatan e-dompet kerana gangguan perkhidmatan internet di lokasi tertentu. Para pengguna yang membayar bil yang tinggi berasa terpedaya kerana mendapat perkhidmatan yang tidak setimpal dengan bayaran yang dikenakan. Di samping itu, perkhidmatan pelanggan pula menerima aduan sejumlah 10.51% daripada keseluruhan aduan. Rata-rata pengadu bersungut tentang perkhidmatan pelanggan yang mengambil masa yang terlalu lama. Malahan, terdapat juga situasi di mana tiada tindakan yang diambil sehingga pengguna perlu menunggu berbulan-bulan lamanya. Ada juga pengadu yang dimaklumkan bahawa tiada rekod aduan, walaupun aduan telah dibuat sebelumnya. Bagi kes sebegini, FOMCA menasihatkan para pengguna supaya sentiasa mencatatkan maklumat yang lengkap dengan siapa dan tarikh perbualan dengan penyedia perkhidmatan itu berlangsung. Simpan sebarang resit atau salinan borang untuk rujukan dan bukti sekiranya diperlukan kelak. Apabila pengguna mendapati perkhidmatan yang diberikan oleh sesebuah penyedia perkhidmatan telekomunikasi tidak memuaskan, mereka akan segera menamatkan perkhidmatan tersebut dan bertukar kepada penyedia perkhidmatan telekomunikasi yang baru. Walau bagaimanapun, proses ini bukanlah mudah memandangkan 8% daripada aduan yang diterima adalah mengenai penamatan perkhidmatan. Ada pengadu yang ingin menamatkan perkhidmatan dipaksa untuk membayar penalti walaupun alasan yang munasabah diberikan. Antaranya, pihak penyedia perkhidmatan tidak menerima alasan seperti liputan tidak begitu baik di kawasan tempat tinggal atau kerja, walaupun isu sebegini boleh diperiksa kesahihannya dengan mudah. Terdapat juga kes pengguna dikenakan bayaran walaupun perkhidmatan mereka sudah ditamatkan dengan alasan mereka tidak mempunyai surat yang mengesahkan penamatan perkhidmatan. Pengguna terpaksa menjelaskan bayaran yang tertunggak dan sekiranya tidak dijelaskan, rekod kredit pengguna berkemungkinan akan terjejas. FOMCA ingin mengingatkan para pengguna supaya menyimpan segala dokumen atau surat penamatan kontrak dengan baik untuk melindungi para pengguna daripada dikenakan bayaran tunggakan. Pihak Suruhanjaya Komunikasi dan Multimedia Malaysia (SKMM) juga harus lebih tegas dalam melindungi pengguna dengan mewajibkan semua penyedia perkhidmatan telekomunikasi untuk mengeluarkan surat penamatan kontrak sebaik saja pengguna menamatkan perkhidmatan telekomunikasi tersebut. Aduan mengenai perkhidmatan yang tidak dilanggani pula mencatatkan 7.78% daripada jumlah aduan. Pengguna mengadu bahawa mereka dikenakan bayaran untuk penambahan automatik (auto reload) dan juga nada panggilan yang mereka tidak langgani. Para pengguna juga dikenakan bayaran oleh penyedia perkhidmatan untuk SMS, permainan atas talian serta lain-lain perkhidmatan oleh pihak ketiga tanpa kebenaran para pengguna. Yang menghairankan, pihak ketiga boleh berurusan dengan pihak penyedia perkhidmatan tanpa bertanya pada pelanggan untuk mendapatkan nombor telefon pengguna. Pihak SKMM perlu memainkan peranan yang lebih penting dalam menjamin kepentingan para pengguna. SKMM perlu mengambil tindakan yang sewajarnya terhadap pihak ketiga yang mendapatkan nombor telefon tanpa kebenaran pengguna. FOMCA menasihatkan para pengguna supaya melaporkan kepada SKMM sekiranya mereka masih dikenakan bayaran untuk perkhidmatan yang tidak dilanggani. Aduan mengenai maklumat yang mengelirukan turut mencatatkan sebanyak 6% daripada jumlah aduan. Rata-rata pengguna mengadu iklan penyedia perkhidmatan mengelirukan pengguna dengan beberapa pakej untuk meningkatkan langganan mereka. Setelah pengguna melanggani pakej tersebut, mereka sedar maklumat yang terdapat dalam iklan adalah berlainan dengan maklumat yang terdapat dalam laman sesawang penyedia perkhidmatan. Selain itu, aduan mengenai tuntutan pemulangan bayaran dan isu kawasan liputan, masing-masing mencatatkan 5.78% dan 5.56% daripada jumlah aduan. FOMCA sangat mengharapkan agar pihak SKMM dapat mengawasi semua penyedia perkhidmatan telekomunikasi di Malaysia agar perkhidmatan yang mereka berikan adalah berkualiti dan setaraf dengan yuran bulanan yang dikenakan. Pengguna pula hendaklah memainkan peranan sebagai pengguna bijak dengan meneliti syarat pakej telekomunikasi yang ditawarkan dan melayari laman sesawang mereka terlebih dahulu sebelum membuat perjanjian langganan. Sumber: Pusat Khidmat Aduan Pengguna Nasional (NCCC) Suara Pengguna: Penyedia Perkhidmatan Telekomunikasi bil. 1/2021 | 9 Pengendali Takaful dan syarikat insurans kini semakin inovatif dengan menawarkan pelbagai pakej untuk disesuaikan dengan segmen masyarakat yang berbeza berdasarkan kepada keperluan dan pendapatan. Tujuan mereka adalah sama iaitu menyediakan perlindungan sekiranya berlaku sesuatu yang tidak dijangka. Tetapi bagaimana jika sesuatu yang tidak dijangka menimpa penyedia takaful atau insurans anda? Jangan khuatir! Perbadanan Insurans Deposit Malaysia (PIDM) menyediakan perlindungan automatik kepada pemilik polisi insurans dan sijil takaful di bawah Sistem Perlindungan Manfaat Takaful dan Insurans untuk manfaat yang layak sehingga RM500,000 sekiranya ahli penginsurans PIDM muflis. Ahli penginsurans PIDM terdiri daripada syarikat insurans yang dilesenkan di bawah Akta Perkhidmatan Kewangan (FSA) 2013 dan pengendali takaful yang dilesenkan di bawah Akta Perkhidmatan Kewangan Islam (IFSA) 2013. Untuk layak mendapat perlindungan, sijil takaful atau polisi insurans mesti dikeluarkan di Malaysia oleh ahli penginsurans dan didenominasi dalam Ringgit Malaysia. Jadual di bawah menunjukkan contoh manfaat takaful atau insurans yang dilindungi PIDM: Tuntutan pihak ketiga yang layak, dividen tunai, anuiti/ pendapatan persaraan, pendapatan hilang upaya dan bayaran balik sumbangan/premium prabayar juga dilindungi. Manfaat yang dilindungi di bawah sijil atau polisi seseorang individu, dan sijil atau polisi kumpulan dikira secara berasingan dalam mencapai had maksimum, dengan itu menambah nilai manfaat bagi pemilik sijil dan polisi. Selain daripada itu, manfaat takaful dan insurans yang sama dengan ahli penginsurans berbeza juga dilindungi secara berasingan. Manfaat Yang Dilindungi Had Maksimum Kematian dan manfaat berkaitan RM500,000 Hilang upaya kekal RM500,000 Penyakit kritikal RM500,000 Perbelanjaan perubatan 100% daripada perbelanjaan yang ditanggung Nilai serahan RM500,000 Kehilangan atau kerosakan kepada harta benda RM500,000 bagi setiap harta Perlindungan bagi Pemegang Sijil Takaful dan Polisi Insurans 10 | RINGGIT Berdasarkan jadual, jumlah yang dilindungi adalah RM700,000 kerana amaun yang diinsuranskan oleh Polisi Kemalangan Peribadi dan Polisi Hayat Encik Lim dengan XYZ Insurance digabungkan berdasarkan kepada “penginsurans, pemilik polisi, peristiwa risiko dan orang diinsuranskan yang sama”. Sekiranya Encik Lim ingin mendapatkan perlindungan penuh bagi manfaat takaful atau insuransnya, beliau boleh membeli sijil takaful atau polisi insurans daripada ahli penginsurans yang berbeza. PIDM melindungi manfaat takaful dan insurans anda sekiranya sesebuah ahli penginsurans muflis dengan dua cara: • PIDM akan membuat pembayaran bagi manfaat yang dilindungi kepada pemilik sijil atau polisi apabila berlaku tuntutan, kematangan atau serahan sijil takaful atau polisi insurans. Sebarang tuntutan adalah tertakluk kepada syarat-syarat dan had yang dinyatakan dalam kontrak takaful atau polisi. • PIDM juga boleh menguruskan pemindahan sijil takaful atau polisi insurans daripada ahli penginsurans yang muflis kepada ahli penginsurans lain bagi memastikan kesinambungan perlindungan bagi pemilik sijil takaful atau polisi insurans. Walaupun anda tidak perlu memohon atau membayar untuk mendapatkan perlindungan PIDM, adalah penting untuk mengetahui batasan had dan manfaat, supaya anda boleh membuat pilihan yang tepat mengenai produk takaful dan insurans. Untuk mengetahui sama ada sesebuah syarikat insurans atau pengendali takaful adalah ahli PIDM, semak untuk tanda keahlian PIDM. Senarai ahli penginsurans PIDM juga boleh didapati di laman web PIDM. Hubungi PIDM untuk maklumat lanjut tentang PIDM dan sistem perlindungan yang ditadbir di talian 1800-88-1266 atau layari www.pidm.gov.my. Sumber: Perbadanan Insurans Deposit Malaysia (PIDM) Polisi Kemalangan Peribadi Kumpulan Polisi Hayat Polisi Kemalangan Peribadi Pemilik Polisi Syarikat A Encik Lim Encik Lim Syarikat insurans XYZ Insurance XYZ Insurance XYZ Insurance Peristiwa risiko Kematian Kematian Kematian Orang yang diinsuranskan Encik Lim Encik Lim Encik Lim Jumlah yang diinsuranskan RM200,000 RM300,000 RM300,000 Amaun yang dilindungi oleh PIDM RM200,000 Terhad pada RM500,000 Jumlah yang dilindungi oleh PIDM RM700,000 Jadual di bawah menerangkan perkara ini dengan lebih lanjut: “Manfaat yang dilindungi di bawah sijil atau polisi seseorang individu, dan sijil atau polisi kumpulan dikira secara berasingan dalam mencapai had maksimum, dengan itu menambah nilai manfaat bagi pemilik sijil dan polisi.” bil. 1/2021 | 11 . PERLINDUNGAN FINANCIAL NETWORK F E N EDUCATION . . MAMPU 8: MUDAH Bijak Wang Pilihan Saya PERLINDUNGAN YANG MAMPU DAN MUDAH UNTUK SEMUA Perlindungan Tenang menawarkan perlindungan kepada pemegang polisi serta keluarga dalam menghadapi peristiwa yang tidak dijangka JADIKAN PERLINDUNGAN TENANG SEBAHAGIAN DARIPADA PENGURUSAN KEWANGAN PERIBADI ANDA MUDAH MAMPU I Mudah difahami I Premium/caruman _ Bayaran tuntutan serendah RM1.00 sebulan terus kepada I Pelan boleh diperbaharui pemegémg ponsi setiap tahun atau penama PROSES TUNTUTAN F E R , "G YANG MUDAH & RINGKAS ' n Tuntutan yanfl Ilcienrjlglégg) akan dibayar dalam tempo hari bekerja SENANG UNTUK DIBELI/DISERTAI - -; _ I Beli terus daripada syarikat insurans / pengendali takaful, melalui internet atau wakil I Juga boleh didapati di cawangan bank terpilih, kaunter Pos Malaysia dan melalui syarikat pengendali telefon mudah alih PERLINDUNGAN TENANG MENYEDIAKAN JARINGAN KESELAMATAN KEWANGAN MAMPU MILIK UNTUK ANDA SEISI KELUARGA Untuk maklumat Ianjut, sila Iayari www.mycoverage.my Sumber: Jaringan Pendidikan Kewangan (FEN) Infografik Bernama

Public Notice

30 Dis 2022

Draf Pendedahan Perniagaan Insurans/Takaful Perubatan & Kesihatan

https://www.bnm.gov.my/-/draf-pendedahan-perniagaan-insurans/takaful-perubatan-kesihatan

https://www.bnm.gov.my/documents/20124/948107/ED-MHIT-202212.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/draf-pendedahan-perniagaan-insurans/takaful-perubatan-kesihatan&languageId=ms_MY

Reading: Draf Pendedahan Perniagaan Insurans/Takaful Perubatan & Kesihatan Share: Draf Pendedahan Perniagaan Insurans/Takaful Perubatan & Kesihatan Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1100 pada Jumaat, 30 Disember 2022 30 Dis 2022 Draf pendedahan ini menetapkan cadangan keperluan dan panduan Bank dalam menjalankan perniagaan insurans/takaful perubatan dan kesihatan (medical and health insurance/takaful, MHIT). Cadangan tersebut bertujuan untuk menangani perkembangan dalam perniagaan MHIT serta mempromosikan model perniagaan MHIT yang lebih inovatif, inklusif dan mampan untuk bertindak balas dengan lebih baik kepada keperluan pengguna dan persekitaran operasi semasa. Bank menjemput maklum balas bertulis mengenai draf pendedahan ini, termasuk penjelasan dan/atau cadangan alternatif. Maklum balas hendaklah disokong oleh rasional yang jelas dan bukti yang sesuai jika berkaitan. ITO berlesen juga dijangka menjawab soalan khusus dalam draf pendedahan ini. Semua maklum balas hendaklah dihantar kepada [email protected] sebelum 15 Mac 2023. Maklum balas yang diterima boleh didedahkan kepada umum melainkan kerahsiaan diminta secara khusus untuk keseluruhan atau mana-mana bahagian maklum balas. Dalam menyediakan maklum balas anda, anda boleh mengarahkan sebarang pertanyaan kepada [email protected]. Tarikh Pengeluaran 30 Disember 2022 Jabatan Penerbit Pembangunan Kewangan dan Inovasi Keterpakaian Penanggung insurans berlesen Pengendali takaful berlesen Dokumen Draf Pendedahan mengenai Perniagaan Insurans/Takaful Perubatan dan Kesihatan   Bank Negara Malaysia 30 Disember 2022 © Bank Negara Malaysia, 2022. All rights reserved.

Public Notice

30 Dis 2022

Dokumen Dasar Wang Elektronik (E-Wang)

https://www.bnm.gov.my/-/dokumen-dasar-wang-elektronik-e-money-

https://www.bnm.gov.my/documents/20124/943361/FS-eMoney-202212.pdf, https://www.bnm.gov.my/documents/20124/943361/FAQ-eMoney-202212.pdf, https://www.bnm.gov.my/documents/20124/943361/PD-eMoney-202302.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/dokumen-dasar-wang-elektronik-e-money-&languageId=ms_MY

Reading: Dokumen Dasar Wang Elektronik (E-Wang) Share: Dokumen Dasar Wang Elektronik (E-Wang) Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1000 pada Jumaat, 30 Disember 2022 30 Dis 2022 Dokumen dasar ini menetapkan keperluan kawal selia Bank Negara Malaysia (BNM) dan panduan untuk penerbit wang elektronik (EMI) yang diluluskan menurut seksyen 11 Akta Perkhidmatan Kewangan 2013 (FSA) atau Akta Perkhidmatan Kewangan Islam 2013 (IFSA). Dokumen dasar ini menggariskan keperluan yang bertujuan untuk: memastikan keselamatan dan kebolehpercayaan e-wang yang dikeluarkan oleh EMI; dan memelihara keyakinan pelanggan dan peniaga dalam menggunakan atau menerima e-wang untuk pembayaran barangan dan perkhidmatan. Selain itu, BNM turut mengeluarkan Pernyataan Maklum Balas, untuk memberi respons terhadap maklum balas dan cadangan utama yang diterima semasa tempoh perundingan, dan Soalan Lazim (FAQ) untuk meningkatkan pemahaman orang ramai tentang keperluan dan menjelaskan isu tafsiran dalam melaksanakan keperluan dokumen dasar e-wang. Lihat lagi: Dokumen Dasar Pernyataan Maklum Balas Soalan Lazim   Bank Negara Malaysia 30 Disember 2022 © Bank Negara Malaysia, 2022. All rights reserved.

Electronic Money (E-Money) Feedback Statement 1 Policy Document on Electronic Money (E-Money): Summary of Key Feedback Received and the Bank’s Responses Introduction In June 2021, Bank Negara Malaysia (the Bank) issued an exposure draft on E-Money for public consultation. The Bank received feedback from more than 70 entities and wishes to record its appreciation to all respondents for providing valuable insights and constructive feedback that have in turn assisted the Bank in finalising the requirements in the policy document. The E-Money policy document issued today has incorporated, where appropriate, feedback and proposals received during the consultation period. Additionally, certain issues raised by the respondents on the policy requirements and the overall key feedback received and the Bank’s responses are summarised in the FAQs and this document, respectively, for greater clarity. Bank Negara Malaysia 30 December 2022 2 1. Revision of minimum capital fund (MCF) Feedback received: Some respondents queried on the necessity to increase the MCF given that there are already sufficient safeguards to protect customers’ interest such as the requirement to place customers’ funds in a designated account, in particular a trust account, and maintenance of a liquidity ratio of one. Clarification is also sought on the Bank’s expectation with respect to compliance with the MCF requirement based on 8% of outstanding e-money liabilities (OEML). There was also a suggestion for the computation of the MCF to include intangible assets such as goodwill, licenses and intellectual properties, given that innovation is a key component of EMI’s assets. The Bank’s response: The revised MCF is an important requirement to ensure an EMI has the necessary capacity to operate and perform its function effectively at entry and on an on-going basis, thus an indicator of business sustainability. The revised MCF is reflective of the growing prominence of e-money in the financial landscape amid increased product offerings by EMIs. For the purpose of fulfilling the MCF requirement based on 8% of OEML, the EMI shall calculate the MCF based on the monthly average of OEML in the preceding six consecutive months. In the event the EMI is required to increase the existing MCF, the adjustment to the minimum capital amount shall be reflected on timely basis no later than the following month end. With regard to the computation of MCF, it already considers the initial investment incurred particularly the technology investments. Nonetheless, the Bank has decided to exclude intangible assets given the likely challenge to liquidate such assets as a means to generate funds. This treatment is generally also consistent with how the Bank approaches capital requirements for other regulatees. 2. Flexibility on safeguarding of funds Feedback received: Some respondents queried the possibility of using alternative methods beyond trust accounts to safeguard customers’ funds and the potential to invest such funds in assets beyond the list prescribed by the Bank. The Bank’s response: The use of trust accounts is the default method for safeguarding of funds by EMIs, given the protection it provides by ringfencing the funds from potential 3 misuse* and ensuring proper distribution of funds to the respective beneficiaries. For bank EMIs, they may also retain customers’ funds in a designated account in line with current practices. Cognisant of the cost involved in setting up and managing trust accounts, the Bank may consider allowing EMIs with outstanding e-money liabilities of less than RM1 mil to use alternative methods comparable to trust accounts to safeguard customers’ funds. While an EMI is allowed to invest customers’ funds to generate income, these funds must be invested in low risk assets to safeguard customers’ interests. Based on our assessment, only assets prescribed by the Bank in the policy document are considered acceptable and qualify for high quality assets to protect customers’ interest. *Funds maintained in trust accounts can only be used for specific purposes as outlined in the E-Money PD (e.g. payment to merchants, refund to customers). 3. Risk-based authentication method for online payment transactions Feedback received: Some respondents suggested for the Bank to either increase the threshold for use of the risk-based authentication method for online payment transactions or allow EMIs to set their own thresholds based on internal risk controls and criteria. The Bank’s response: A risk-based authentication method provides EMIs with an option not to authenticate online payment transactions that are deemed to be low risk. Such flexibility is given to enhance user experience when performing a low risk online payment transaction. Based our assessment, the threshold of RM250 remains appropriate, particularly in light of rising fraud attempts. An EMI may however also adopt risk-based authentication for online payment transactions below RM10,000, where the EMI has authenticated its customer using a strong authentication method for first time use. Notwithstanding, the Bank highly encourages EMIs to authenticate all online transactions as part of security measures to foster continued public confidence in the use of e-money. 4. Timeline for compliance with IT requirements Feedback received: Some respondents requested for a longer period of up to 3 years to comply with all relevant IT requirements in view of the investments and additional resources 4 required for purposes of system upgrades, hiring of requisite subject matter experts, among other things. The Bank’s response: Based on our assessment the 1-year transition period remains a reasonable timeline considering the criticality of the enhanced IT requirement for the EMI’s business activities. The timeline also considers that the majority of industry respondents agreed that the 1-year transition period was sufficient. 5. Requirement to obtain the Bank’s approval prior to conducting e-money business Feedback received: Some respondents sought clarification on the types of products that are not deemed as e-money. The Bank’s response: Any payment instrument that satisfies the e-money definition under FSA/IFSA is required to be approved by the Bank. The FSA/IFSA defines e-money as any payment instrument, whether tangible or intangible, that- (a) stores funds in exchange of funds paid to the issuer; and (b) can be used to make payment to other person than the issuer. In this regard, any products that do not fulfil the above criteria will not be deemed as e-money. Some of the examples of payment instruments that do not constitute e-money include a payment instrument that stores funds where the funds originate from the issuer of the payment instrument, or the funds can only be used to make payment to the issuer of the payment instrument itself (issuer and merchant are from the same entity) i.e “closed loop”. 1 Frequently Asked Questions (FAQs) Electronic Money (E-Money) Last updated: 30 December 2022 This document supplements the policy document on Electronic Money (E-Money PD) and is intended to enhance public understanding on the requirements and to clarify interpretation issues likely to be faced by e-money issuers (EMIs) in implementing the requirements of the E-Money PD. 1. What are the key objectives of this E-Money PD? Given the increasing prominence of e-money coupled with the proliferation of e- money players and business models in the Malaysian payment landscape, the revisions in the e-money regulatory framework aim to strengthen the safety and reliability of EMIs as well as to preserve public confidence in using e-money. This is achieved via enhanced requirements on several key areas under the E-Money PD, namely- (i) re-categorisation of EMIs based on the nature of their business model and risk profile; (ii) revised minimum capital fund requirements to strengthen business resilience of the EMIs; (iii) enhanced prudential requirements on safeguarding of customers’ funds, governance and other operational risk management proportionate to the category of EMIs and the potential risks they pose. 2. What are the categories of EMIs in Malaysia? Previously, EMIs were categorised into small or large schemes based on their wallet size and outstanding e-money liabilities (OEML). With the issuance of this E-Money PD, EMIs are now classified into the following categories- (i) Standard EMI: Default category of EMI upon approval under Section 11 or Section 15(1)(e) of the Financial Services Act 2013 (FSA) or Section 11 of 2 the Islamic Financial Services Act 2013 (IFSA), where it does not meet the criteria of an eligible EMI; (ii) Limited Purpose EMI: Standard EMI which business fulfils the criteria of limited purpose e-money in Appendix 2 of the E-Money PD. Generally, LP EMI will not be subject to this PD other than as stated in paragraph 2.2 of the E-Money PD, pending the issuance of Exemption Order. Further updates on the Exemption Order on LP EMI will be made in due course; and (iii) Eligible EMI: EMI that has substantial market presence and meets the criteria as stated in the E-Money PD. This category of EMI is subjected to higher regulatory expectations. 3. Is an EMI required to self-determine its status as an eligible EMI? Yes, in determining its status, an EMI may refer to aggregated data on e-money transaction volume, transaction value and OEML available on the Bank’s website1. If an EMI fulfils any of the criteria for an eligible EMI, such EMI shall notify the Bank within three (3) months of its status. A newly upgraded eligible EMI will be given a 12-month transitional period (from the date the EMI fulfils the criteria as an eligible EMI) to comply with the additional requirements applicable to eligible EMIs (e.g., compliance with the policy documents on Risk Management in Technology and Interoperable Credit Transfer Framework). The detailed criteria to determine an eligible EMI are also listed in the Financial Services (Minimum Amount of Capital Funds) Gazette Order 2022.2 4. Can an eligible EMI who no longer satisfies the eligibility criteria be re- categorised as standard EMI and what are the processes involved? An eligible EMI who no longer fulfils all the eligibility criteria for any given calendar year and no longer intends to be categorised as an eligible EMI may notify the Bank in writing of its intention. 1 Payment Statistics published on the Bank’s website: https://www.bnm.gov.my/payment-statistics 2 All Gazette Orders are published on the Bank’s website: https://www.bnm.gov.my/gazette-order 3 The Bank upon receipt of such written notice and is satisfied that the eligible EMI no longer fulfils all the eligibility criteria for any given calendar year, may consider to re-categorise the eligible EMI as a standard EMI. The Bank shall inform in writing its decision for the EMI to cease being categorised as an eligible EMI on the date of the written confirmation or such other date specified by the Bank. 5. How often should periodic independent reviews be conducted on outsourcing and fraud risk management? The frequency of periodic independent reviews as set out in paragraphs 18.8 (outsourcing risk management) and 19.3 (fraud risk management) shall be determined by the individual EMIs considering the nature, scale and complexity of their business and corresponding risk profile. 6. Is the Bank’s approval required if EMIs intend to increase their e-money wallet size up to RM5,000? No, EMIs shall only notify the Bank prior to increasing the wallet size to any amount below the RM5,000 provided there are no material changes in the functionality and product features of the e-money, as stated in paragraph 20.9. Examples of material changes to the e-money’s functionality and product features include the introduction of new services such as peer-to-peer (P2P) transfer, cross-border payments or any other changes that may heighten the risk profile of the EMI. The following illustrations provide further examples of potential scenarios: Scenario Action required An EMI increases its wallet size to RM4,000 and increases its maximum limit of P2P transfer service from RM100 to RM300. To notify the Bank as the wallet size remains below RM5,000 and there is no material change in the functionality of the e-money. An EMI currently does not offer P2P transfer services. The EMI plans to To seek the Bank’s prior written approval as there is a material 4 increase the wallet size to RM4,000 and introduce P2P transfer services. change in the functionality of the e- money although the new wallet limit is still below RM5,000. 7. What are examples of significant changes that would require the Bank’s approval? EMIs shall seek the Bank’s approval on any proposed changes to their e-money business model that results in a significant change in its risk profile from a financial soundness, reputational or operational perspective. This includes significant variations to the EMIs’ approved business plan, offering of new products or services and the imposition of new or higher fees and charges. 8. Do non-bank EMIs need to obtain the Bank’s approval to promote or cross- sell financial products and services on their platform or system? Yes, non-bank EMIs need to obtain the Bank’s approval prior to using its e-money platform or system to promote or cross-sell any financial products and services. Examples of financial products and services include, but are not limited to, insurance or takaful products, money market funds, capital market products and derivatives. In offering such products or services, the EMIs’ responsibilities shall include ensuring that the platform used to facilitate purchase and payment transactions is secure, performing e-KYC to on-board their customers, providing timely customer service and support as well as establishing clear roles and responsibilities between EMIs and their cross-selling partners in managing complaints. For avoidance of doubt, such approval is required even for cross-selling via a platform or system of a non-bank EMI’s white-label partner. In this case, the EMIs shall also be responsible for ensuring potential risks from the mis-selling of financial products and services on the white-label partner’s platform or system are mitigated. 5 9. Is e-money subjected to the Unclaimed Moneys Act 1965? Yes, balances in e-money accounts that have been inactive for a period of seven (7) consecutive years, or any other period as may be specified by the Accountant General's Department, shall be treated as unclaimed moneys and lodged with the Registrar of Unclaimed Moneys. 10. When would an e-money account be considered inactive? In line with best practice, an e-money account is typically deemed as inactive if the customer has not made any financial transaction, such as reloading, fund transfer or purchase transaction, within a period of one (1) year or more from the last date of transaction. 11. How can customers enquire or make a complaint on e-money? Members of the public are encouraged to refer to the Bank’s website for information pertaining to the regulatory framework for e-money. Further queries or complaints on e-money or EMIs can be channelled to the Bank at 1-300-88- 5465 or https://telelink.bnm.gov.my. Electronic Money (e-Money) Policy Document Issued on: 30 December 2022 BNM/RH/PD 029-57 Electronic Money (E-Money) Applicable to: Approved issuers of e-money Electronic Money Issued on: 30 December 2022 TABLE OF CONTENTS PART A OVERVIEW .................................................................................................. 1 1 Introduction .................................................................................................. 1 2 Applicability .................................................................................................. 1 3 Legal provisions ........................................................................................... 2 4 Effective date ............................................................................................... 2 5 Interpretation ................................................................................................ 2 6 Related legal instruments and policy documents ......................................... 7 7 Policy documents superseded ..................................................................... 8 PART B GOVERNANCE ............................................................................................ 9 8 Governance arrangements .......................................................................... 9 9 Board of directors ......................................................................................... 9 10 Senior management ....................................................................................12 11 Control function ...........................................................................................14 12 Shariah governance ....................................................................................17 13 Fit and proper ..............................................................................................18 PART C OPERATIONAL AND RISK MANAGEMENT REQUIREMENTS .............. 19 14 Local incorporation ......................................................................................19 15 Minimum capital funds for non-bank EMI ....................................................19 16 Safeguarding of funds .................................................................................19 17 Business continuity management ...............................................................20 18 Outsourcing arrangement ...........................................................................21 19 Fraud risk management ..............................................................................26 20 Account management .................................................................................29 21 White labelling .............................................................................................31 22 Other business or activity ............................................................................32 23 Specific requirements for registered merchant acquirers ............................34 24 Exit plan ......................................................................................................34 25 Winding down or cessation of e-money business .......................................36 26 Prohibitions .................................................................................................37 PART D INFORMATION TECHNOLOGY (IT) REQUIREMENTS ............................ 38 27 Technology risk management .....................................................................38 28 Technology operations management ..........................................................39 29 Cybersecurity management ........................................................................55 30 Technology audit .........................................................................................60 31 Internal awareness and training ..................................................................61 Electronic Money Issued on: 30 December 2022 PART E REGULATORY PROCESS ........................................................................ 62 32 Approval and notification .............................................................................62 33 Submission requirements............................................................................62 34 Membership in the Financial Ombudsman Scheme ....................................63 APPENDICES ............................................................................................................. 64 Appendix 1 Criteria for eligible EMI ......................................................................64 Appendix 2 Limited purpose e-money ..................................................................65 Appendix 3 Responsibilities of board committees ................................................67 Appendix 4 Computation of capital funds .............................................................68 Appendix 5 Examples of arrangements excluded from the scope of outsourcing .69 Appendix 6 Minimum requirements on the outsourcing agreement ......................70 Appendix 7 Other exit triggers ..............................................................................72 Appendix 8 Storage and transportation of sensitive data in removable media .....73 Appendix 9 Control measures on mobile application and devices ........................74 Appendix 10 Control measures on QR code ..........................................................75 Appendix 11 Control measures on cybersecurity ...................................................76 Electronic Money 1 of 76 Issued on: 30 December 2022 PART A OVERVIEW 1 Introduction 1.1 E-money serves as a payment instrument that can be used to make payments for purchases of goods and services to merchants who accept e-money as a mode of payment. E-money users may also send or receive funds to or from another user’s e-money or bank account, respectively, through person-to-person (P2P) fund transfer service if the e-money issuer (EMI) is allowed to offer such service. 1.2 Over the past decade, e-money has evolved and grown significantly due to the proliferation of mobile technology such as Quick Response (QR) codes and mobile applications (apps), digitalization of financial services and shift in consumer behaviour. In addition, the form of e-money has evolved from the traditional stored value cards to network-based solutions such as online accounts or e-wallets. 1.3 Due to the growing prominence of e-money in the financial landscape, enhancements to the e-money regulatory framework are needed to ensure e- money continues to be a safe and reliable payment instrument amid the advancement in functionalities and evolution in the enabling technology. This is important to ensure the safety of the e-money funds1 and the soundness of EMI to manage potential risk of loss to customers, hence fostering continued public confidence in the use of e-money. 1.4 This policy document outlines requirements aimed to– (a) ensure the safety and reliability of e-money issued by EMI; and (b) preserve customers’ and merchants’ confidence in using or accepting e- money for the payment of goods and services. 2 Applicability 2.1 This policy document is applicable to EMI as defined in paragraph 5.2. 2.2 Notwithstanding paragraph 2.1, an EMI that only issues e-money described in Appendix 2 (known as limited purpose EMI) is not subject to this policy document except for paragraph 15, Policy Document on Anti-Money Laundering, Counter Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs) as well as relevant requirements pursuant to FSA and IFSA. 1 As reflected in the outstanding e-money liabilities. Electronic Money 2 of 76 Issued on: 30 December 2022 3 Legal provisions 3.1 The requirements in this policy document are specified pursuant to– (a) sections 47(1), 123(1) and 143 of the FSA; and (b) sections 29(2), 57(1), 135(1) and 155 of the IFSA. 3.2 The guidance in this policy document is issued pursuant to section 266 of the FSA and section 277 of the IFSA. 4 Effective date 4.1 This policy document comes into effect on 30 December 2022, except for paragraphs 15, 16.2 to 16.4, 18, 19.6 to 19.15, 27, 28, 29, 30 and 31 which come into effect on 30 December 2023. 5 Interpretation 5.1 The terms and expressions used in this policy document shall have the same meanings assigned to them in the FSA or IFSA, as the case may be, unless otherwise defined in this policy document. 5.2 For the purpose of this policy document– “S” denotes a standard, an obligation, a requirement, specification, direction, condition and any interpretative, supplemental and transitional provisions that must be complied with. Non-compliance may result in enforcement action; “G” denotes guidance which may consist of statements or information intended to promote common understanding and advice or recommendations that are encouraged to be adopted; “active politician” refers to an individual who- (a) is a member of any national or state legislative body; or (b) is an office bearer of, or holds any similar position in a political party, in or outside Malaysia; “affiliate”, in relation to an entity, refers to any corporation that controls, is controlled by, or is under common control with, the entity; “Bank” refers to Bank Negara Malaysia; Electronic Money 3 of 76 Issued on: 30 December 2022 “banking institution” refers to a licensed bank, a licensed Islamic bank, and a prescribed institution as defined under the Development Financial Institutions Act 2002 (DFIA); “business continuity management” or “BCM” refers to an enterprise-wide framework that encapsulates policies, processes and practices that ensure the continuous functioning of an EMI during an event of disruption. It also prepares the EMI to resume and restore its operations and services in a timely manner during an event of disruption, thus minimising any material impact to the EMI; “control function” refers to a function that has a responsibility independent from business lines to provide objective assessments, reporting and assurance on the effectiveness of an EMI’s policies and operations, and its compliance with legal and regulatory obligations. This includes the risk management function, the compliance function, and the internal audit function; “counterparty information” refers to any information relating to the affairs or the account of any counterparty of the EMI; “credit transfer” refers to a payment service which allows a payor to instruct the institution at which the payor’s bank account or e-money account is held to transfer funds to a beneficiary in another bank account or e-money account, irrespective of any underlying obligation between the payor and the beneficiary. For the avoidance of doubt, any reference to “credit transfer” in this policy document shall include a reference to both a fund transfer transaction and a purchase transaction regardless of the technology used to facilitate the transaction including QR code; “critical system” refers to any application system that supports the provision of EMI services, where failure of the system has the potential to significantly impair the EMI’s provision of financial services to customers or counterparties, business operations, financial position, reputation, or compliance with applicable laws and regulatory requirements; “cross-selling” refers to an act of an EMI offering to its customers either complementary or related financial products or services. This includes an EMI acting as an agent to provide the financial products or services; “customer” or “user” refers to any person to whom e-money has been issued or any person who uses e-money to make payment or any other transaction allowed by EMI; Electronic Money 4 of 76 Issued on: 30 December 2022 “customer information” refers to any information relating to the affairs or the account of any customer of the EMI in whatever form including in the form of a record, book, register, correspondence, other document or material; “cyber resilience” refers to the ability of people, processes, IT systems, applications, platforms or infrastructures to withstand adverse cyber events; “cyber risk” refers to threats or vulnerabilities emanating from the connectivity of internal technology infrastructure to external networks or the Internet; “digital services” refers to the provision of payment services delivered to customers via electronic channels and devices including internet and mobile devices, self-service terminals and point-of-sale terminals; “electronic money” or “e-money” refers to any payment instrument or Islamic payment instrument, whether tangible or intangible, that– (a) stores funds electronically in exchange of funds paid to the issuer; and (b) is able to be used as a means of making payment to any person other than the issuer; “eligible EMI” refers to an EMI described in Appendix 1; “e-money issuer” or “EMI” refers to any person approved by the Bank under section 11 or section 15(1)(e) of the FSA or section 11 of the IFSA to issue e- money; “executive director” refers to a director of an EMI who has management responsibilities in the EMI or any of its affiliates; “Financial Ombudsman Scheme (FOS)” refers to a scheme that functions as an alternative dispute resolution channel to resolve disputes between financial institutions and consumers. The Ombudsman for Financial Services (OFS) is the operator of the FOS approved by the Bank pursuant to section 126(2) of the FSA and section 138(2) of the IFSA; “independent director” refers to a director who is described as being independent in accordance with paragraph 9.14; “internal control framework” refers to the set of rules and controls governing an EMI’s organisational and operational structure, including reporting processes and control functions; Electronic Money 5 of 76 Issued on: 30 December 2022 “licensed bank” refers to any person licensed under section 10 of the FSA to carry on banking business; “licensed Islamic bank” refers to any person licensed under section 10 of the IFSA to carry on Islamic banking business and includes a licensed international Islamic bank; “limited purpose EMI” refers to an EMI that issues e-money described in Appendix 2; “material outsourcing arrangement” refers to an outsourcing arrangement which– (a) in the event of a service failure or security breach, has the potential to significantly impact EMI’s provision of financial services to customers, business operations, financial position, reputation, or compliance with applicable laws and regulatory requirements; (b) involves customer information where in the event of unauthorised access, disclosure, modification, loss or theft of the information, has a material impact on the customer or EMI; or (c) where the arrangement involves control functions or customer funds management. “material technology project” refers to projects which involve critical systems, the delivery of essential services to customers or counterparties, or compliance with regulatory requirements; “merchant” refers to a person or an entity that accepts e-money for sale of goods or services; “non-bank EMI” refers to an EMI which is not a licensed bank, licensed Islamic bank, or a prescribed institution as defined under the DFIA; “OTP” or “one-time password” refers to an alphanumeric or numeric code represented by a minimum of six characters or digits which is valid only for single use to validate a specific transaction; “outsourcing arrangement” refers to an arrangement in which a service provider performs an activity on behalf of EMI on a continuing basis2, where the activity would otherwise be undertaken by the EMI but does not include activities set out in Appendix 5; 2 For the avoidance of doubt, an agreement which is time-bound does not preclude the activity from being considered as being performed on a continuing basis. Electronic Money 6 of 76 Issued on: 30 December 2022 “outstanding e-money liabilities” refers to– (a) the unutilised amount of e-money which has been issued; and (b) the utilised amount of e-money which is pending payment to merchants; “payment instrument” refers to any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services or to make any payment; “production data centre” refers to any facility which hosts active critical production application systems irrespective of location; “purchase transaction” refers to any transaction between a customer and a merchant for the purchase of goods and services; “registered merchant acquirer” refers to any person who is registered by the Bank pursuant to sections 17(1) and 18 of the FSA to provide merchant acquiring services and fulfils the criteria under paragraph 2.1 of the policy document on Merchant Acquiring Services as amended from time to time; “risk-based authentication” refers to a dynamic and data-driven authentication method, where information about each transaction is evaluated to determine the transaction’s risk in order to prevent fraud and provide better customer experience; “senior management” refers to the Chief Executive Officer (CEO) and senior officers; “senior officer” refers to a person, other than the CEO or a director, having authority and responsibility for planning, directing or controlling the activities of an EMI, including the Chief Operating Officer, Chief Financial Officer, members of decision-making committees and other persons performing key functions such as risk management, compliance or internal audit; “service provider” refers to an entity, including an affiliate, providing services to an EMI under an outsourcing arrangement; “shareholder” refers to any person who holds an aggregate of 5% or more interest in shares3 of an EMI; 3 Interest in shares shall be construed as set out in section 2(1) and Schedule 3 of the FSA or IFSA. Electronic Money 7 of 76 Issued on: 30 December 2022 “Shariah compliant e-money” refers to any designated Islamic payment instrument that is structured based on appropriate Shariah contracts, whether tangible or intangible, that– (a) stores funds electronically in exchange of funds paid to the issuer; and (b) is able to be used as a means of making payment to any person other than the issuer; “standard EMI” refers to an EMI other than an eligible EMI; “sub-contractor” refers to any entity, including an affiliate, which performs the whole or a part of the outsourced activity for the primary service provider; “technology service provider” refers to a group affiliate or external entity providing technology-related functions or services that involve the transmission, processing, storage or handling of confidential information pertaining to the EMI or its customers. This includes cloud computing software, platform and infrastructure service providers; “wallet limit” refers to the maximum monetary value that can be stored in an e- money; and “white labelling” refers to an arrangement between an EMI and a partner or other entity to allow such partner or entity to offer e-money to their customers under their own brand, while the ultimate responsibility remains with the EMI in managing the e-money funds and operations. 6 Related legal instruments and policy documents 6.1 This policy document must be read together with other relevant legal instruments, policy documents and guidelines issued by the Bank, as amended from time to time, in particular– (a) Policy Document on Anti-Money Laundering, Counter Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions (AML/CFT and TFS for FIs); (b) Guidelines on Complaints Handling; (c) Policy Document on Fair Treatment of Financial Consumers; (d) Policy Document on Fit and Proper Criteria for Approved Person; (e) Guidelines on Product Transparency and Disclosure; (f) Policy Document on Management of Customer Information and Permitted Disclosures; (g) Policy Document on Interoperable Credit Transfer Framework; (h) Policy Document on Merchant Acquiring Services; Electronic Money 8 of 76 Issued on: 30 December 2022 (i) Policy Document on Risk-Based Authentication for Online Payment Card Transaction; (j) Policy Document on Payment Cards Framework; (k) Policy Document on Risk Management in Technology (RMiT); (l) Policy Document on Electronic Know-Your-Customer (e-KYC); (m) Policy Document on Business Continuity Management; (n) Policy Document on STATsmart Reporting Requirements on Data Submission for Reporting Entities; (o) Policy Document on Wakalah; (p) Policy Document on Wadi’ah; (q) Policy Document on Qard; and (r) Shariah Advisory Council of Bank Negara Malaysia (SAC) Ruling on E- Money as a Shariah Compliant Payment Instrument. 7 Policy documents superseded 7.1 This policy document supersedes the following documents on the corresponding dates shown below– Documents Date superseded Guideline on Electronic Money (E-money) issued on 31 July 2008 (except paragraphs 8.5 to 8.8 and 10.2 (a), (b), (c), (d), (e), 10.3 and 10.4). 30 December 2022 Paragraphs 8.5 to 8.8, 10.2 (a), (b), (c), (d), (e), 10.3 and 10.4 of the Guideline on Electronic Money (E-money) issued on 31 July 2008. 30 December 2023 Paragraph 11.2 and paragraph 12 of the policy document on Interoperable Credit Transfer Framework issued on 23 December 2019. 30 December 2022 (only as much as it is applicable to non- bank EMIs) Electronic Money 9 of 76 Issued on: 30 December 2022 PART B GOVERNANCE 8 Governance arrangements S 8.1 An EMI shall establish appropriate governance arrangements, which are effective and transparent, to ensure the continued integrity of its e-money scheme, which include, among others, the following– (a) a board of directors (the board) and senior management that consists of people with calibre, credibility and integrity; (b) clearly defined and documented organisational arrangements, such as ownership and management structure; and (c) segregation of duties and control function to reduce potential mismanagement and fraud. 9 Board of directors S 9.1 The board responsibilities outlined in this policy document shall be read together with section 56 of the FSA and section 65 of the IFSA. S 9.2 The board must have a board charter that sets out the mandate, responsibilities and procedures of the board and its committees (if any), including the matters reserved for the board’s decision. S 9.3 The board has the overall responsibility for promoting the sustainable growth and financial soundness of an EMI, and for ensuring reasonable standards of fair dealing, without undue influence from any party. This includes consideration of the long-term implications of the board’s decisions on the EMI and its customers, employees, officers and the general public. In fulfilling this role, the board must– (a) approve the risk appetite, business plans and other initiatives which would, individually or collectively, have a material impact on the EMI’s risk profile4; (b) oversee the selection, performance, remuneration and succession plans of the CEO, control function heads and other members of senior management, such that the board is satisfied with the collective competence of senior management to effectively lead the operations of the EMI; (c) oversee the implementation of the EMI’s governance framework and internal control framework, and periodically review whether these remain appropriate in light of material changes to the size, nature and complexity of the EMI operations; 4 This would include initiatives, which affect the financial soundness, reputation or key operational controls of the EMI. Electronic Money 10 of 76 Issued on: 30 December 2022 (d) promote, together with senior management, a sound corporate culture within the EMI, which reinforces ethical, prudent and professional conduct and behaviour; (e) oversee and approve business continuity plans, as well as exit plan, and ensure such plans are updated, particularly as and when there are material changes to the size, nature and complexity of the EMI operations that can significantly affect the said plans; and (f) promote timely and effective communication between the EMI and the Bank on matters affecting or that may affect the safety and soundness of the EMI. S 9.4 The chairman, in leading the board, is responsible for the effective overall functioning of the board. In fulfilling this role, the chairman must– (a) ensure that appropriate procedures are in place to govern the board’s operations; (b) ensure that decisions are taken on a sound and well-informed basis, including by ensuring that all strategic and critical issues are considered by the board, and that directors receive the relevant information in a timely manner; (c) encourage healthy discussion and ensure that dissenting views can be freely expressed and discussed; and (d) lead efforts to address the board’s developmental needs. S 9.5 For the board of an EMI approved by the Bank under section 15(1)(e) of the FSA or section 11 of the IFSA, the overall responsibility outlined in paragraph 9.3 includes the responsibility to promote Shariah compliance in accordance with requirements set out under paragraph 12 and to ensure its integration with the EMI business and risk strategies. Board appointments S 9.6 A director must fulfil the minimum requirements set out in paragraphs 9.7 to 9.8 at the time of his appointment and on a continuing basis throughout the appointment period. S 9.7 An EMI shall only appoint as its director, a person who is not disqualified under section 59(1) of the FSA or section 68(1) of the IFSA, and has been assessed by the EMI to have complied with the fit and proper requirements specified by the Bank. S 9.8 A director of an EMI must not be an active politician. Electronic Money 11 of 76 Issued on: 30 December 2022 Composition of the board S 9.9 The board and its committees (if any) must be of a size and composition that promotes effective deliberation and encourages active participation of all directors. S 9.10 An EMI shall ensure board members collectively possess the necessary skill sets or business knowledge required to effectively support the board. These criteria and skill sets shall be reviewed regularly by the board to ensure alignment with the strategic direction of, and emerging challenges faced by the EMI. S 9.11 The chairman of the board must be a non-executive director. S 9.12 An EMI5 shall ensure no less than two-thirds of the board members are non- executive directors. S 9.13 For an eligible EMI, no less than one-third of the board members shall be independent directors. S 9.14 The board must determine whether an individual to be appointed as an independent director is independent in character and judgment, and free from associations or circumstances that may impair the exercise of his independent judgment. An individual must not be considered to be an independent director if he– (a) is or had been an executive director in the EMI or any of its affiliates in the last two (2) years; (b) is a substantial shareholder, or acting on behalf of the substantial shareholder, of the EMI or any of its affiliates; or (c) had a significant business or other contractual relationship with the EMI or any of its affiliates in the last two (2) years. S 9.15 For the purpose of paragraph 9.14, the board must clearly define what constitutes a “significant business or other contractual relationship”, taking into account the nature, size and complexity of the EMI’s operations. Board meetings S 9.16 The board must meet regularly, whereby the number and frequency of board meetings must commensurate with the size and complexity of the EMI’s operations, to review the EMI’s performance, including the status of its compliance with regulatory requirements and to deal with any issues pertaining to the operations of the EMI. 5 For the avoidance of doubt, this requirement applies to all eligible and standard EMI. Electronic Money 12 of 76 Issued on: 30 December 2022 S 9.17 A director must devote sufficient time to prepare for and attend board meetings and maintain a sound understanding of the business of the EMI, as well as, relevant market and regulatory developments. S 9.18 In respect of the quorum for board meetings, an EMI must require at least half of the board members to be present. S 9.19 The board must ensure that clear and accurate minutes of board meetings are maintained to record the decisions of the board, including key deliberations, rationale for each decision made, and any significant concerns or dissenting views. The minutes must indicate whether any director abstained from voting or excused himself from deliberating on a particular matter. S 9.20 For eligible EMIs, a director must attend at least 75% of the board meetings held in each financial year. Board committees (applicable to eligible EMIs only) S 9.21 At a minimum, an eligible EMI shall establish the following board committees– (a) board audit committee; and (b) board risk management committee. G 9.22 An eligible EMI may combine its board audit committee and board risk management committee. S 9.23 Each board committee shall– (a) not be chaired by the chairman of the board; (b) have at least three (3) directors of the EMI as members of the board committee; (c) have at least one-third of independent directors of the EMI as members of the board committee; and (d) be chaired by an independent director. S 9.24 For purposes of paragraphs 9.23(b) and (c), the directors shall be among those who have the skills, knowledge and experience relevant to the responsibilities of the board committee. S 9.25 Each board committee shall have its Terms of Reference and shall assume the specific responsibilities enumerated for it in Appendix 3. 10 Senior management S 10.1 An EMI shall only appoint as its senior management, a person who is not disqualified under section 59(1) of the FSA or section 68(1) of the IFSA, and has Electronic Money 13 of 76 Issued on: 30 December 2022 been assessed by the EMI to have complied with the fit and proper requirements specified by the Bank. S 10.2 An eligible EMI shall not appoint its substantial shareholder as its senior management. This serves to preserve an appropriate separation between ownership and management of an EMI in line with the broader responsibilities of EMIs towards its customers and merchants. S 10.3 A CEO must devote the whole of his professional time to the service of the EMI and shall have his principal or only place of residence within Malaysia unless the Bank approves otherwise in writing under section 55(3) of the FSA and section 64(3) of the IFSA. S 10.4 An EMI that is involved in other business or activity, other than issuing e-money, shall appoint a dedicated senior officer with relevant expertise and experience to assume the role of the Head of e-money business. S 10.5 The senior management of an EMI is responsible for ensuring the following– (a) effective policies and procedures are established and implemented for, among others, the following areas– (i) risk management and appropriate controls to manage and monitor risks; (ii) due diligence and oversight to manage arrangements with service providers supporting the e-money operations; (iii) sufficient and timely reporting or escalation of issues to the board; (b) overseeing the formulation and effective implementation of any business or strategic plan, including the strategic technology plan and associated technology policies and procedures; (c) robust decision making processes with adequate consideration on customers’ interests; and (d) a robust assessment is conducted to approve any deviation from policies and procedures, including technology-related policies. Material deviations must be reported to the board. S 10.6 The senior management shall consist of individuals with the appropriate skill set and experience to support and manage the e-money business. This includes individuals with technology background to provide guidance on the EMI’s technology plans and operations. S 10.7 For the purpose of paragraph 10.6, an eligible EMI shall ensure that a designated staff who does not engage in day-to-day technology operations shall be responsible for the identification, assessment and mitigation of technology risks. Electronic Money 14 of 76 Issued on: 30 December 2022 11 Control function G 11.1 The board and senior management are encouraged to create an environment, which- (a) ensures that the EMI and its officers comply with legal and regulatory requirements; (b) adopts relevant risk management practices; and (c) encourages ethical conduct that underlies the legal and regulatory requirements. S 11.2 The board is responsible for overseeing the management of an EMI’s control function. The board shall– (a) ensure an effective risk management framework that is appropriate to the nature, scale and complexity of its activities is in place; (b) ensure that the control functions are established and sufficiently resourced, with the officers6 accorded with appropriate stature, authority and independence; (c) ensure the appointment of officers who have adequate working knowledge in e-money business and the legal and regulatory framework, and can effectively support the EMI’s internal control framework; (d) provide the relevant officers with direct and unimpeded access to the board; and (e) where the risk management officer and compliance officer is the same person or performs the responsibilities of other control functions except for internal audit, be satisfied that a sound overall control environment will not be compromised by the combination of responsibilities performed by the officer. S 11.3 The senior management is collectively responsible for the effective management of an EMI’s internal control framework. In discharging this responsibility, senior management shall– (a) establish a written policy for the control function and ensure that it is kept up to date; (b) establish a control function commensurate with the size, nature of operations and complexity of the EMI, having regard to the requirements in paragraphs 11.4 to 11.17; (c) provide sufficient resources for the control function, including officers with the appropriate competencies and experience; (d) ensure that the person performing the control function is kept informed of any organisational developments to facilitate the timely identification of compliance risk; 6 Compliance, risk management and internal audit officer. Electronic Money 15 of 76 Issued on: 30 December 2022 (e) report to the board regularly on compliance or risk issues, and promptly on any material incidents of non-compliance; and (f) report to the board at least annually on the effectiveness of the EMI’s overall compliance and risk management. S 11.4 An EMI shall organise its control function in a manner that allows compliance and risk management to be managed effectively, taking into account the size, nature of operations and complexity of the EMI’s business. S 11.5 The control function must be independent of business lines in order to carry out its role effectively. As such, an EMI must ensure that the control function is not placed in a position where there are real or potential conflicts in respect of its scope of responsibilities, reporting lines or remuneration. S 11.6 Where two or more control function responsibilities (excluding internal audit) are performed by one officer, senior management must ensure that officer has the capacity and expertise to deliver his broader mandates while providing adequate focus to his control function responsibilities. S 11.7 Where two or more control function responsibilities (excluding internal audit) are performed by one officer, the said officer must ensure that his independence, ability to provide sufficient time, focus and commitment to his responsibilities in respect of the control function are not impaired. Compliance S 11.8 The compliance officer shall identify and assess the compliance risk associated with an EMI’s activities. This requires the compliance officer to have adequate knowledge and exposure to key business processes of the EMI and keep up to date with material changes in the EMI’s business. S 11.9 The compliance officer must report to senior management on a regular basis the findings and analyses of compliance risk. The report shall include at a minimum– (a) the results of the compliance risk assessment undertaken during the assessment period, highlighting key changes in the compliance risk profile of an EMI, as well as, areas where greater attention by senior management would be needed; (b) a summary of incidents of non-compliance and deficiencies in the management of compliance risk in various parts of the EMI; (c) an assessment of the impact (both financial and non-financial) of such incidents of non-compliance and deficiencies on the EMI (for example, fines, administrative enforcement or disciplinary actions taken by any regulatory authority against the EMI or its officers); Electronic Money 16 of 76 Issued on: 30 December 2022 (d) recommendations of corrective measures to address incidents of non- compliance and deficiencies in the management of compliance risk; and (e) a record of corrective measures already taken and an assessment of the adequacy and effectiveness of such measures. S 11.10 The compliance officer shall ensure that the reports referred to in paragraph 11.9 are readily available to the internal audit function of the EMI, the Bank and other relevant regulatory authorities upon request. Risk management S 11.11 An EMI shall establish a risk management framework that enables the identification, measurement, and continuous monitoring of all relevant and material risks. The framework shall be supported by a robust management information system (MIS) that facilitates timely and reliable reporting of risks. S 11.12 An EMI shall establish risk monitoring and reporting requirements, which include the development and use of key risk indicators to provide early warnings on adverse risk developments to ensure the EMI is able to manage and mitigate its risks in a timely manner. S 11.13 The risk management officer must report to the board and senior management on a regular basis on the assessment of material risks affecting the EMI and ensure the material risks are mitigated and periodically monitored. The report must be readily available to the internal audit function of the EMI, the Bank and other regulatory authorities upon request. Internal Audit S 11.14 An EMI shall ensure that there is clear separation of the internal audit function and other control functions, e.g. compliance and risk management function. S 11.15 Compliance and risk management functions and the framework for such functions shall be included in the risk assessment methodology of the internal audit function, and an audit programme that covers the adequacy and effectiveness of the compliance and risk management functions’ responsibilities shall be established, including testing of controls commensurate with the perceived level of risk. S 11.16 The internal audit function shall report regularly to the board and senior management on the effectiveness and adequacy of the risk management and compliance functions and assess whether the said functions are working effectively. Electronic Money 17 of 76 Issued on: 30 December 2022 S 11.17 The internal audit function shall inform senior management, including the compliance or risk management officer, of any incidents of non-compliance or material risks that it discovers. 12 Shariah governance S 12.1 Paragraphs 12.2 to 12.8 shall only apply to EMIs approved by the Bank under section 15(1)(e) of the FSA or section 11 of the IFSA. S 12.2 An EMI that issues Shariah compliant e-money shall comply with the rulings of the Shariah Advisory Council of Bank Negara Malaysia and relevant Shariah standards issued by the Bank. S 12.3 The board shall be responsible for ensuring the EMI’s Shariah compliant e- money complies with Shariah at all times. S 12.4 Senior management shall ensure the operationalisation of Shariah compliant e-money complies with Shariah at all times. S 12.5 An EMI that issues Shariah compliant e-money shall appoint a qualified individual, a company or an existing Shariah committee7 within its group affiliate as a Shariah advisor, who is responsible to provide objective and sound advice to ensure that the EMI complies with Shariah at all times. S 12.6 For purposes of paragraph 12.5, the individual Shariah advisor or the representative of a company appointed as the Shariah advisor of an EMI shall– (a) be a Muslim individual; (b) not be an active politician; (c) hold a bachelor’s degree in Shariah, which includes study in Usul Fiqh (principles of Islamic jurisprudence) or Fiqh Muamalat (Islamic transaction/commercial law); and (d) possess solid knowledge in Shariah with reasonable knowledge and experience in Islamic finance. S 12.7 An EMI shall notify the Bank in writing on– (a) new appointment of the Shariah advisor within fourteen (14) days from the date of such appointment; or (b) existing appointment of the Shariah advisor within fourteen (14) days from the effective date of this policy document. S 12.8 An EMI must ensure the robustness of its internal control functions for effective management of Shariah non-compliance risk. This shall include, but is not limited to, the EMI conducting an annual assessment on the compliance of its 7 Which has been approved by the Bank under section 31 of the IFSA. Electronic Money 18 of 76 Issued on: 30 December 2022 Shariah compliant e-money issued by it with the relevant Shariah requirements. 13 Fit and proper S 13.1 An EMI shall ensure its directors, CEO and individual Shariah advisor are people with calibre, credibility, integrity, and fulfil the fit and proper criteria as stipulated in the policy document on Fit and Proper Criteria for Approved Person as amended from time to time8. S 13.2 Where the Shariah advisor appointed is a company, an EMI shall ensure that the company’s executive director, senior management and representative of a company appointed as the Shariah advisor of an EMI fulfil the fit and proper criteria as stipulated in the policy document on Fit and Proper Criteria for Approved Person as amended from time to time. 8 For the avoidance of doubt, references to “key responsible persons” in the policy document on Fit and Proper Criteria for Approved Person as amended from time to time, shall be deemed to include references to a “Shariah Advisor” for purposes of this policy document. Electronic Money 19 of 76 Issued on: 30 December 2022 PART C OPERATIONAL AND RISK MANAGEMENT REQUIREMENTS 14 Local incorporation S 14.1 An EMI shall be a company incorporated under the Companies Act 2016. 15 Minimum capital funds for non-bank EMI S 15.1 A non-bank EMI shall maintain the required minimum amount of capital funds as prescribed by the Bank under section 12(1) of the FSA and IFSA. S 15.2 For purposes of paragraph 15.1, the required minimum capital funds shall be computed in accordance with Appendix 4. 16 Safeguarding of funds S 16.1 An EMI shall ensure any funds collected in exchange of e-money issued are maintained separately in a separate account from other funds be it the EMI’s working capital or any funds maintained for the EMI’s other business or activity. S 16.2 A non-bank EMI shall deposit the funds collected in exchange of e-money issued in a trust account with a banking institution after receiving it from a customer in accordance with the following requirements– (a) the trust account shall be established in accordance with the Trustee Act 1949; (b) the funds can only be used for the following– (i) refund to customers; (ii) payment to merchants for settlement of transaction conducted by the customer, including for repayment of any advance settlement by relevant intermediaries (e.g. payment system operator, acquirer) involved in making the payment to merchants; or (iii) payment to another e-money account or bank account arising from a credit transfer transaction conducted by the customer. (c) the funds can only be invested in high quality liquid ringgit assets, which are limited to– (i) deposits placed with banking institutions; (ii) debt securities issued or guaranteed by the Federal Government or the Bank; (iii) Cagamas debt securities; and (iv) other instruments as may be specified by the Bank; Electronic Money 20 of 76 Issued on: 30 December 2022 (d) any revenue earned from the investment of the funds in the trust account can only be used for activities specified under paragraph 16.2(b) unless the funds are in excess of the total outstanding e-money liabilities; and (e) payment for any costs, charges and expenses incurred in connection with the administration of the trust account can be made from the trust account only if the balance in the trust account after deduction of the cost, charges and expenses is sufficient to cover all outstanding e-money liabilities. S 16.3 A non-bank EMI shall ensure that funds in the trust account are at all times sufficient to cover the total outstanding e-money liabilities. G 16.4 Where a non-bank EMI’s total outstanding e-money liabilities are greater than the funds in the trust account, a non-bank EMI is encouraged to deposit funds into the trust account within one (1) working day to ensure paragraph 16.3 is complied with. G 16.5 Notwithstanding paragraph 16.2, a non-bank EMI with total outstanding e- money liabilities of less than RM1 million may safeguard the funds collected in exchange of e-money issued using– (a) a bank guarantee; or (b) other methods subject to the following conditions: (i) effectiveness of the method must be at par with a bank guarantee or trust account; and (ii) the non-bank EMI obtains the Bank’s prior written approval. G 16.6 An EMI is recommended to spread out the placement of the funds received in exchange of e-money issued, in bank accounts maintained at several banking institutions to mitigate risk exposure to any single banking institution. S 16.7 A non-bank EMI shall ensure that it has sufficient liquidity for its daily operations. At a minimum, an EMI shall maintain a liquidity ratio9 of one (1). 17 Business continuity management10 S 17.1 The board and senior management are responsible for ensuring identification and implementation of an effective BCM framework within the EMI. S 17.2 An EMI must undertake a structured risk assessment process to– (a) identify potential threats that could cause material business disruptions, resulting in inability to fulfil business obligations; and 9 Liquidity ratio refers to current ratio of the EMI (i.e. current asset / current liabilities). 10 For the avoidance of doubt, eligible EMIs and EMIs that are banking institutions shall comply with the requirements under the policy document on Business Continuity Management as amended from time to time. Electronic Money 21 of 76 Issued on: 30 December 2022 (b) assess the likelihood of the identified threats occurring and determine the impact on the EMI. G 17.3 For purposes of paragraph 17.2, the EMI is encouraged to carry out a business impact analysis (BIA) on an annual basis and whenever there are material changes to the EMI’s business activity, as this forms the foundation of developing the business continuity plan (BCP). S 17.4 An EMI shall determine the maximum tolerable downtime (MTD) and recovery time objectives (RTO) for each critical business function. The goal is to develop a BCP that details the procedures and the minimum level of resources required to recover the critical business functions within the recovery timeframe and maintain services at an acceptable level. S 17.5 An EMI shall develop an effective BCP and disaster recovery plan (DRP) for at least all critical business functions. S 17.6 To ensure the comprehensiveness of its BCM, an EMI shall ensure its service provider has an effective BCP and DRP, and implements relevant safeguards to ensure continuity of the material outsourcing arrangements, with the objective to minimise the EMI’s business disruptions. S 17.7 The BCP and DRP of an EMI and its service provider must be tested regularly to ensure the functionality and effectiveness of the recovery strategies and procedures, preparedness of staff and other recovery resources. 18 Outsourcing arrangement S 18.1 An EMI shall remain responsible and accountable for any services outsourced to a service provider under an outsourcing arrangement. S 18.2 An EMI shall obtain the Bank’s prior written approval before– (a) entering into a new material outsourcing arrangement; or (b) making material changes to an existing material outsourcing arrangement. S 18.3 For the purpose of paragraph 18.2, in assessing whether an outsourcing arrangement is material, an EMI shall take into consideration the following factors: (a) significance of the outsourcing activity in facilitating the EMI to achieve its strategic and business objectives; (b) impact on the EMI’s continuing ability to meet its obligations to its customers and counterparties in the event the service provider fails to provide the service or encounters a breach of data confidentiality or security; Electronic Money 22 of 76 Issued on: 30 December 2022 (c) aggregate exposure to a particular service provider in cases where the EMI, including any affiliates, outsources multiple activities to the same service provider; or (d) complexity of the outsourcing arrangement and number of parties involved, in particular where the service is sub-contracted or where more than one service provider collaborates to deliver an end-to-end outsourcing solution. S 18.4 The board shall review and approve any new material outsourcing arrangement considered by the EMI or any material changes to an existing material outsourcing arrangement, before the proposal is submitted to the Bank for approval. S 18.5 Prior to entering into any outsourcing arrangement, an EMI shall, at a minimum, ensure the following– (a) availability of sufficient expertise within the EMI to oversee and manage11 the outsourcing relationship; and (b) the scope and nature of services and operations to be outsourced would not compromise the controls and risk management of the EMI services. An EMI shall ensure the following– (i) the outsourcing of such processes does not take away the critical decision making function of the EMI; (ii) the outsourcing of such processes does not threaten strategic flexibility and internal control framework of the EMI; (iii) the outsourcing of such processes would not impair the reputation, integrity and credibility of the EMI; and (iv) processes are in place for the EMI to retain the continuous ability to comply with the regulatory and supervisory requirements on the outsourced functions. S 18.6 An EMI shall have a contingency plan or arrangements to secure business continuity in the event the outsourcing arrangement is suddenly terminated. This is to mitigate any major business disruption that may occur as a result of the termination of the outsourcing arrangement. The contingency plan shall be reviewed from time to time to ensure that the plan is current and ready for implementation in the event of sudden termination of the outsourcing arrangement. 11 For the avoidance of doubt, an EMI may leverage on group resources to meet this requirement provided there is a clear mandate that the function of the shared group service includes the oversight of affiliates’ outsourcing arrangements, and that access to these group resources is always available upon the EMI’s request for internal use or for supervisory purposes. Electronic Money 23 of 76 Issued on: 30 December 2022 S 18.7 An EMI shall require the service provider to report to the EMI and the EMI shall monitor the service provider to ensure that the integrity and quality of work conducted by the service provider is maintained. S 18.8 An EMI shall ensure periodic independent reviews are conducted on the outsourced arrangement to monitor the performance of service providers. The reviews shall be done either by the EMI’s internal and/or external auditors, or independent reports shall be made available by the service providers, with the same scope of review as if the said operations are conducted in-house. S 18.9 An EMI shall ensure that any weaknesses highlighted during the review under paragraph 18.8 are well documented and promptly rectified by the service provider, especially where such weaknesses may affect the integrity of the internal controls of the EMI. Assessment of service provider S 18.10 An EMI shall conduct appropriate due diligence of a service provider at the point of considering new outsourcing arrangements, and upon renewing or renegotiating existing arrangements. The due diligence must cover, at a minimum– (a) capacity, capability, financial strength and business reputation. This includes an assessment whether the service provider is a going concern and has strong governance structures to manage the outsourced activity throughout the duration of the arrangement; (b) risk management and internal control capabilities, including physical and IT security controls, and BCM. This includes the ability of the service provider to respond to service disruptions or problems resulting from natural disasters and physical or cyber-attacks, within an appropriate timeframe; (c) the location of the outsourced activity (e.g. city and country), including primary and back-up sites; (d) access rights of the EMI and the Bank to the service provider; (e) measures and procedures to ensure data protection and confidentiality; (f) reliance on sub-contractors, if any, in particular where the sub-contracting adds further complexity to the operational chain of the outsourcing arrangement; (g) undue risks12 resulting from similar business arrangements, if any, between the service provider and the EMI; (h) the extent of concentration risk to which the EMI is exposed with respect to a single service provider and mitigation measures to address this 12 For instance, concentration risk to a systemic service provider in the industry or where the service provider’s fee structure or relationship with the EMI may create potential conflict of interest issues. Electronic Money 24 of 76 Issued on: 30 December 2022 concentration. This does not apply to a service provider that is an affiliate and is supervised by a financial regulatory authority; and (i) ability of the service provider to comply with relevant laws, regulations and requirements in this policy document. S 18.11 In performing due diligence on an affiliate, an EMI shall make an objective assessment of the affiliate’s ability to perform the outsourced activity guided by the considerations listed in paragraph 18.10. S 18.12 An EMI shall ensure that the outcomes of the due diligence process are well- documented and included in the outsourcing arrangement proposal to the board, for approval. Outsourcing agreement S 18.13 An EMI shall ensure that the outsourcing arrangement is governed by a written agreement that is legally enforceable and shall include the minimum requirements specified in Appendix 6. S 18.14 The outsourcing agreement must also contain provisions which– (a) enable the Bank to have direct, timely and unrestricted access to the systems and any information or documents relating to the outsourced activity; (b) enable the Bank to conduct on-site supervision of the service provider where the Bank deems necessary; (c) enable the Bank to appoint an independent party to perform a review of the relevant systems, information or documents of the service provider relating to the outsourced activity, where the Bank deems necessary; and (d) allow the EMI the right to modify or terminate the arrangement when the Bank issues a direction to the EMI to that effect under the FSA or IFSA, as the case may be. Protection of data confidentiality S 18.15 An EMI shall ensure that appropriate controls are in place and are effective in safeguarding the security, confidentiality and integrity of any information shared with the service provider. In meeting this requirement, an EMI shall ensure that– (a) information disclosed to the service provider is limited to the extent necessary to provide the contracted service, and only on a need-to-know basis; (b) all locations (e.g. city and country) where information is processed or stored by the service provider, including back-up locations, are made known to the EMI; Electronic Money 25 of 76 Issued on: 30 December 2022 (c) where the service provider is located, or performs the outsourced activity outside Malaysia, the service provider is subject to data protection standards that are at a minimum comparable to Malaysia; (d) where the service provider provides services to multiple clients, the EMI’s information must be segregated13 from the information of other clients of the service provider; (e) the service provider maintains compliance with applicable security requirements and established security standards14 at all times; and (f) the service provider undertakes measures to safeguard customer information of the EMI at all times and reports any customer information breach to the EMI within an agreed timeframe. Outsourcing outside Malaysia S 18.16 In conducting the due diligence process in respect of outsourcing arrangements where the service provider is located or performs the outsourced activity outside Malaysia, an EMI shall ensure that such assessment addresses the added dimensions of risks associated with outsourcing outside Malaysia, and the ability of the EMI or service provider to implement appropriate responses to emerging risk events in a timely manner. S 18.17 An EMI shall ensure that the outsourcing arrangements undertaken outside Malaysia are conducted in a manner which does not affect– (a) the EMI’s ability to effectively monitor the service provider and execute its BCM; (b) the EMI’s ability to promptly recover data in the event of the service provider’s failure, having regard to the laws of the particular jurisdiction; and (c) the Bank’s ability to exercise its supervisory powers, in particular the Bank’s timely and unrestricted access to systems, information or documents relating to the outsourced activity. Outsourcing involving cloud services S 18.18 In relation to the EMI’s ability to conduct audits and inspections on the cloud service provider and sub-contractors, an EMI may rely on third party certification and reports made available by the cloud service provider for the audit, but such certifications or reports shall not substitute the EMI’s right to conduct on-site inspections where necessary. This is provided that such reliance must be supported by an adequate understanding and review of the scope of the audit and methods employed by the third party, and access by the 13 Either logically or physically. 14 Any relevant local or international standards commonly applied by the relevant industry. Electronic Money 26 of 76 Issued on: 30 December 2022 EMI to the said third party and cloud service provider to clarify matters relating to the audit. S 18.19 In relation to the testing of a cloud service provider’s BCP, an EMI must be able to access information on the state of robustness of the controls instituted by such cloud service providers arising from the BCP testing. 19 Fraud risk management S 19.1 An EMI shall ensure risk management processes, procedures, systems and controls are in place to enable effective fraud risk mitigation and management. S 19.2 An EMI shall establish effective procedures on fraud detection, analysis, investigation and reporting, which include– (a) fraud detection and transaction monitoring that can facilitate timely identification and mitigation of suspicious transactions; (b) regular analysis to understand fraud trends and modus operandi. This includes the ability to be vigilant of evolving trends and taking into account material changes in the business strategy, which may increase exposure to potential fraud risk; and (c) reporting of fraud incidents to senior management and the board on a regular basis. S 19.3 An EMI shall conduct periodic reviews on the adequacy of its fraud risk mitigation measures. S 19.4 In the event of fraud occurrences, the EMI shall take appropriate and immediate corrective measures to address gaps and vulnerabilities in order to strengthen the security features of its e-money scheme. S 19.5 An EMI shall implement relevant safeguards to prevent unauthorized reloading and usage of an e-money account, in particular if auto reloading and peer-to- peer transfer services are allowed. Risk-based authentication for online payment transactions S 19.6 An EMI shall authenticate its customer for online payment transactions using strong authentication methods, such as multi-factor authentication (MFA)15, to mitigate the risk of fraudulent online payment transactions. G 19.7 Notwithstanding paragraph 19.6, an EMI may adopt risk-based authentication for low risk online payment transactions. 15 Based on three (3) basic authentication factors, namely, something the user knows (e.g. PIN, personal information), something the user possesses (e.g. identity card, registered mobile number) and something the user is (e.g. biometric characteristics) which are mutually exclusive. Electronic Money 27 of 76 Issued on: 30 December 2022 S 19.8 For the purpose of paragraph 19.7, low risk online payment transactions shall consist of the following– (a) online payment transactions below RM250 per transaction; or (b) recurring or card-on-file16 transactions below RM10,00017 per transaction, where an EMI has authenticated its customer using strong authentication for first time use. S 19.9 In applying risk-based authentication for low risk online payment transactions under paragraph 19.7, an EMI shall– (a) ensure the use of effective risk analysis tools and establish a set of criteria or factors that appropriately reflect the nature, size and characteristics of the online payment transactions. Such criteria or factors must be consistent with the EMI’s risk appetite and tolerance level; and (b) periodically review the risk assessment criteria or factors to ensure its continued relevance, having regard to latest developments in cybersecurity risks and authentication technologies, as well as, fraud trends and incidents. G 19.10 An EMI is encouraged to identify a tolerable aggregate amount of low risk online payment transactions eligible for risk-based authentication to mitigate against high fraud losses. S 19.11 An EMI shall notify the Bank at least fourteen (14) days prior to first-time implementation of risk-based authentication for low risk online payment transactions under paragraph 19.7. S 19.12 Where an EMI adopts risk-based authentication that enables customers to make unauthenticated online payment transactions, the EMI shall– (a) provide customers with an option to opt-out or disable the function that allows unauthenticated online payment transactions, and the option shall be made available through convenient means; (b) set a maximum daily cumulative limit for both the amount and number of unauthenticated online payment transactions for a customer; (c) ensure that customer uses a strong authentication method once the online payment transactions exceed the maximum daily cumulative limit; and (d) not hold a customer liable for fraud losses arising from unauthenticated online payment transactions in situations where the EMI has decided not to apply authentication methods, unless the EMI can prove with sufficient evidence that the customer has acted fraudulently. 16 Refers to a transaction where the cardholder has authorised the merchant to store the cardholder’s card payment information securely for future purchases. 17 For open third party fund transfer and open payment transactions with a value of RM10,000 and above, an EMI shall deploy multi-factor authentication solutions with stronger security controls as per paragraph 28.71 to 28.73 of this policy document. Electronic Money 28 of 76 Issued on: 30 December 2022 S 19.13 An EMI shall provide convenient means to customers to reduce the limits applied under paragraphs 19.8 or the maximum daily cumulative limit as set under paragraph 19.12(b). S 19.14 An EMI shall undertake efforts to raise awareness among customers on an on- going basis to ensure customers understand the functionalities of risk-based authentication, potential risks of unauthenticated transactions, as well as, measures that may be taken by customers to limit such risks (e.g. opt-out). Such efforts shall be made using– (a) mediums or channels which enable communications to be displayed prominently and easily accessible to customers, such as in mobile phone applications, e-mails and application notifications; and (b) communication methods that can facilitate easy understanding by customers such as by being multi-lingual, publishing frequently-asked- questions and providing clarity in explanation by call-centres. S 19.15 An EMI shall immediately provide transaction alerts to customers, including customers with foreign-registered mobile numbers after every successful online payment transaction that is not authenticated as per paragraph 19.6. Contactless verification requirement S 19.16 Paragraphs 19.17 to 19.20 shall only apply to an EMI that issues international scheme prepaid cards. S 19.17 An EMI shall set a maximum amount for each contactless transaction, as well as, an appropriate cumulative limit for contactless transactions, which do not entail any customer verification. S 19.18 To promote confidence in the use of contactless prepaid cards, an EMI shall provide customers with the ability to manage the cumulative transaction limit by undertaking the following– (a) provide customers with convenient means to set a lower cumulative transaction limit for contactless transactions; (b) provide customers with convenient means to turn off the contactless functionality in contactless prepaid cards; and (c) raise awareness among customers about the facilities set out in paragraphs (a) and (b), at a minimum via the EMI’s websites and product disclosure sheet. Electronic Money 29 of 76 Issued on: 30 December 2022 Opt-in requirement for card-not-present and overseas transactions S 19.19 An EMI must by default disable customers from making– (a) any card-not-present transaction that is not authenticated via a strong authentication method such as a dynamic password; and (b) any overseas transaction using a prepaid card, and inform the customers on the risks of such transactions. S 19.20 An EMI shall only allow customers to make the transactions listed in paragraph 19.19 where the customers have expressly opted-in to conduct such transactions. Where customers have opted-in to conduct such transactions, the EMI shall provide the customers with the option to disable such transactions. G 19.21 Notwithstanding paragraph 19.16, an EMI that facilitates cross-border payment via its network-based e-money is also encouraged to observe the requirements in paragraphs 19.19 (b) and 19.20, where relevant. 20 Account management S 20.1 An EMI shall ensure all e-money transactions in Malaysia are in ringgit. S 20.2 An EMI shall ensure e-money transactions comply with the prevailing foreign exchange rules, including but not limited to those related to investments in foreign currency assets by residents and payment in foreign currency between residents, through the implementation of robust internal controls and procedures. S 20.3 An EMI shall ensure any physical cash withdrawal outside Malaysia using e- money, is undertaken in foreign currency only. S 20.4 An EMI that facilitates withdrawal of e-money balances into a bank account shall ensure any withdrawal of funds from the e-money account is paid into the customer’s own bank account with a banking institution only, unless the EMI participates in the Real-time Retail Payments Platform (RPP) and offers credit transactions where withdrawal of e-money balances18 may be made to other bank or e-money accounts. S 20.5 An EMI shall ensure proper recording, management and monitoring of the accounts of all its customers, at all times. 18 Subject to compliance with the relevant AML/CFT requirements. Electronic Money 30 of 76 Issued on: 30 December 2022 Wallet limit S 20.6 An EMI shall ensure the wallet limit adopted for its e-money is commensurate with the purpose and size of customer transactions. S 20.7 An EMI shall ensure adequate security and operational safeguards are in place to mitigate any risks associated with the use of e-money within the specified wallet limit. S 20.8 An EMI shall obtain the Bank’s prior written approval if the increase in wallet limit will result in the following– (a) the wallet limit to be RM5,000 or more; or (b) changes in the functionality and product features of the e-money. S 20.9 An EMI shall notify the Bank at least fourteen (14) days prior to any increase in wallet limit below the RM5,000 threshold and where the increase does not involve any changes in functionality and product features of the e-money. Refund of e-money balances S 20.10 An EMI shall provide refunds of e-money balances in its customers’ accounts in the event a customer decides to close their account, was wrongly charged or due to disputed transactions. S 20.11 The refund shall be made without any additional costs and shall be done within fourteen (14) days from the date the claim is made by the customer except for complex refund cases. G 20.12 Notwithstanding paragraph 20.11, in cases where a customer requests for the refund of e-money balances to be remitted overseas, an EMI may charge the customer the actual costs incurred by the EMI. The EMI is encouraged to also disclose clearly in the terms and conditions of the e-money product, the circumstances under which a fee will be imposed for the refund of e-money balances and the applicable fee. S 20.13 For complex refund cases that cannot be completed within fourteen (14) days, the EMI shall communicate the reason for such delays to customers in a timely manner and complete the cases within thirty (30) days. S 20.14 An EMI shall provide customers with options for the method of refund and shall not limit refunds only via the crediting of funds back into the customer’s e- money account. Electronic Money 31 of 76 Issued on: 30 December 2022 Unclaimed e-money balances S 20.15 An EMI shall manage any unclaimed e-money balances in accordance with the Unclaimed Moneys Act 1965. 21 White labelling S 21.1 An EMI shall obtain the Bank’s prior written approval before– (a) entering into a white labelling arrangement for the first time; or (b) making material changes to existing white labelling arrangements. S 21.2 After obtaining the Bank’s written approval under paragraph 21.1(a), an EMI shall notify the Bank on any subsequent white labelling arrangement, at least fourteen (14) days prior to entering into the said arrangement. S 21.3 Prior to obtaining the Bank’s approval, the board shall review and approve the EMI’s plan to offer the white labelling arrangement and ensure that the EMI has sufficient resources and capacity to offer such solution. This includes, but is not limited to, having in place a framework, policy and operational procedures, manpower and system infrastructure to support the white labelling solution offered to the partner or other entity. S 21.4 Senior management shall ensure adequate oversight on the implementation of the EMI’s white labelling arrangement. S 21.5 By providing white labelling solutions to the partner or another entity, it does not absolve the EMI’s responsibility to ensure that the said solution complies with the requirements under this policy document and other applicable standards including those specified in paragraph 6.1. S 21.6 An EMI must not engage in white labelling arrangements with a partner or entity with dubious or illegal activities. S 21.7 At a minimum, an EMI that provides white labelling of its e-money shall ensure– (a) proper due diligence is conducted on the partner or entity that it plans to offer the white labelling solution to, which includes assessments on their credibility and capability; (b) an agreement with the partner or entity involved in the white-labelling arrangement is in place and clearly indicates the following– (i) the rights and responsibilities of each party; (ii) responsibilities of the partner or entity on controls and measures to ensure information security; (iii) dispute resolution process in the event of default or non- performance of obligations, including remedies and indemnities where relevant; Electronic Money 32 of 76 Issued on: 30 December 2022 (iv) ability of the EMI and its external auditor19 to conduct audits and on- site inspections on the partner or entity in relation to the white labelling arrangement; (c) partner or other entity involved in the white-labelling arrangement provide adequate system safeguards for the installation and use of the white labelling solution; and (d) partner or other entity involved in the white-labelling arrangement have appropriate policies and procedures for customer and merchant on- boarding. S 21.8 The EMI shall provide clear and prominent disclosure to customers on the roles and responsibilities of the partner or entity, as well as, the EMI for the e-money issued, including in managing any disputes or issues faced by the customers. S 21.9 The EMI shall disclose the name and brand of the partner and other entity that is using its white labelling solution on the EMI’s website and any other relevant platform. S 21.10 The EMI shall maintain proper records with appropriate level of granularity of funds tagged to each partner or entity and their individual customers, including but not limited to, records of funds collected from customers, the e-money transactions, complaints and resolutions, as well as, refunds made to its customers or payment to its merchants. S 21.11 For purposes of paragraph 21.10, a non-bank EMI shall ensure that the trustee who manages the trust account as required under paragraph 16.2 also has clarity on the funds tagged to the customer and merchants of each partner or entity to ensure proper distribution of funds. 22 Other business or activity Promoting or cross-selling financial products or services S 22.1 A non-bank EMI shall not use its e-money platform or system to promote or cross-sell any financial products or services20 except with the Bank’s prior written approval. S 22.2 The board shall review and approve any arrangement to promote or cross-sell any financial products or services before the proposal is submitted to the Bank for approval. 19 Including an agent appointed by the EMI. 20 For the avoidance of doubt, this shall include any financial products or services regardless if it is offered by a regulatee of the Bank or otherwise. Electronic Money 33 of 76 Issued on: 30 December 2022 S 22.3 Prior to entering into any arrangement to promote or cross-sell any financial products or services on its e-money platform or system, a non-bank EMI shall, at a minimum, ensure the following– (a) the scope and nature of such arrangement would not significantly increase the risk exposure to the non-bank EMI and would not impair the reputation, integrity and credibility of the non-bank EMI; and (b) the necessary controls and risk management are in place to manage any risks from such arrangement. S 22.4 A non-bank EMI shall ensure the agreement to promote or cross-sell any financial products or services on its e-money platform or system clearly sets out the accountabilities of each party in the arrangement. S 22.5 A non-bank EMI shall provide clear communication to its customers on the demarcation of roles between the non-bank EMI for the e-money business and the provider of the products or services promoted or cross-sold on its e-money platform or system. S 22.6 A non-bank EMI shall inform customers on who is responsible to manage complaints or disputes pertaining to the products or services promoted or cross- sold on its e-money platform or system, including appropriate avenues for customers to seek redress. S 22.7 A non-bank EMI shall notify the Bank at least fourteen (14) days prior to entering into an arrangement to promote or cross-sell non-financial products or services. Other business of EMI S 22.8 A non-bank EMI that carries on any other business or activity within the same entity, which is not in connection with or for the purposes of its e-money business, shall– (a) establish clear segmentation between the e-money business and the other business or activity, which shall include but is not limited to, establishing and maintaining segmented financial reports21 on e-money business; (b) establish clear segregation of policies and procedures between the e- money business and the other business or activity; (c) establish clear roles, responsibilities and accountability of the board, senior management and staff for each business or activity; (d) ensure no comingling of e-money funds with its working capital or funds of the other business or activity; and 21 May be segmented in the management accounts. Electronic Money 34 of 76 Issued on: 30 December 2022 (e) demonstrate a strong financial position to mitigate the potential that the other business or activity may pose higher risk to the sustainability of the non-bank EMI. S 22.9 A non-bank EMI shall notify the Bank in a timely manner on the following– (a) prior to operationalising other business or activities that may potentially be of high risk, the potential impact of such business or activities on the financial viability or reputation of the non-bank EMI; and (b) if there is potential risk or issues arising from its existing non-e-money business or activities which may significantly impact the financial viability or reputation of the non-bank EMI. 23 Specific requirements for registered merchant acquirers S 23.1 An EMI that acquires merchants for the purpose of accepting payment instruments including its own e-money shall be registered pursuant to section 17(1) and 18 of the FSA. S 23.2 For the purpose of paragraph 23.1, the EMI which is a registered merchant acquirer shall also refer to the requirements specified in the policy document on Merchant Acquiring Services as amended from time to time. 24 Exit plan S 24.1 A non-bank EMI shall be prepared to exit the e-money business in the event its business proves to be unsustainable or can no longer support its operations in a reliable manner. S 24.2 A non-bank EMI shall maintain an exit plan, which will enable the non-bank EMI to unwind its business operations voluntarily without any regulatory intervention and in an orderly manner without causing disruption to its customers, merchants and the payment ecosystem where it operates. S 24.3 For the purpose of paragraph 24.2, a non-bank EMI shall establish an exit plan valid for a three (3)-year period, which can be operationalised, if needed. At a minimum, the exit plan must include the following– (a) plausible internal triggers22 for exiting the business, which demonstrate unsustainable business, inability to fulfil the value proposition for its e- money business or materialisation of risks beyond the non-bank EMI’s own risk appetite; 22Refer to paragraph 24.4 (b). Electronic Money 35 of 76 Issued on: 30 December 2022 (b) likely options and related measures to be taken for exit that minimises disruption to its customers, merchants and the payment ecosystem23 where it operates; (c) potential impediments to the execution of identified exit options and measures to mitigate the impact of such impediments; (d) sources of funding and liquidity for exit (in addition to safeguarding customer funds) and the estimated timeframe to exit the business; (e) the necessary capabilities required to extract and aggregate data on customers and/or merchants in a timely manner, upon request, including up-to-date contact information and refund/payment mechanism; and (f) the necessary capabilities and resources required to ensure continuity of services throughout the implementation of the exit plan, including the continuity of services under outsourcing arrangements. S 24.4 In relation to paragraph 24.3, a non-bank EMI shall provide to the Bank, a comprehensive description of its exit plan which includes the following– Table 1: Content of an exit plan Requirement Details (a) Governance to support informed decision making in the activation of exit plan • Well-defined roles and responsibilities of the board, senior management and business unit. • Policies, procedures and MIS to inform and support decision-making and smooth execution of exit plan. (b) Exit triggers • Identification of exit triggers, i.e. factors and indicators/thresholds that will prompt activation/execution of the exit plan. • The exit triggers at a minimum shall include compliance-related indicators, in particular on minimum capital funds, liquidity ratio and the safeguarding of customer funds. • Processes for continuous monitoring of factors and indicators/thresholds. (c) Measures to enable an orderly exit from the business while minimizing disruption to third parties, in • Identification of possible actions that can be undertaken under different scenarios. • Identification of possible funding sources to credibly implement the exit plan. 23For example, if the e-money is used for transportation purposes, whether its exit will cause the transportation community to be significantly disrupted. Electronic Money 36 of 76 Issued on: 30 December 2022 particular customers and counterparties • Description of operational dependencies on external parties and its associated costs throughout the exit phase to ensure smooth operational continuity throughout the exit phase. (d) Communication and engagement strategy (including to the Bank) to mitigate unintended consequences • Identification of key stakeholders, including customers, merchants, relevant regulators and authorities, counterparties, service providers, etc. • Information needs of respective stakeholders. • Medium, timing and frequency of communication. • Person responsible for ensuring the effective coordination and execution of the communication and engagement strategy. G 24.5 A non-bank EMI is encouraged to consider other exit triggers as listed in Appendix 7 to be included in the exit plan. S 24.6 A non-bank EMI shall submit an exit plan, together with an undertaking to the Bank within one (1) year from the effective date of this requirement, or upon submission of application to issue e-money. The subsequent exit plan and undertaking shall be endorsed by the board and submitted to the Bank within one (1) month after it being endorsed. The undertaking shall cover the non- bank EMI’s commitment to its exit plan if its internal triggers are met within the stipulated period. S 24.7 The exit plan and undertaking shall be reviewed every three (3) years or as and when there are material changes to the non-bank EMI’s structure or operations. S 24.8 The full implementation of the exit plan shall result in the cessation of the e- money business by the non-bank EMI. 25 Winding down or cessation of e-money business S 25.1 An EMI shall wind-down its existing e-money operations upon the date of revocation of its e-money approval or cessation of business or operations. The winding down procedures shall be commensurate with the nature, size and complexity of the EMI’s e-money business and be made in accordance with relevant regulatory requirements. Electronic Money 37 of 76 Issued on: 30 December 2022 S 25.2 In line with sections 23(2)(b) of the FSA and 20(2)(b) of the IFSA, where the approval to issue e-money is either revoked by the Bank or the EMI has ceased its business or operations, such EMI shall continue to discharge its obligations which includes but is not limited to the following– (a) refund the funds collected from customers and settle the outstanding amount with the merchants and relevant beneficiaries of its e-money scheme at a reasonably practicable time; (b) contact and periodically provide reminders to relevant stakeholders, which includes but is not limited to customers and merchants, for them to claim any unclaimed balances of e-money from the EMI; (c) provide adequate notice to the relevant stakeholders on its winding down or cessation of e-money business or operations and that it no longer has the approval under the FSA or IFSA to issue e-money; and (d) ensure customer information continues to be safeguarded and/or disposed appropriately in accordance with statutory records retention requirements. S 25.3 An EMI shall maintain relevant records and accounts to identify the beneficiaries of the e-money funds to enable the EMI to clearly identify and distinguish the funds maintained under paragraph 16,1, 16.2 or 16.5 from other working capital funds of the EMI. S 25.4 For purposes of paragraph 25.3, a non-bank EMI shall ensure these records and information are made available to the trustee who manages the trust account required under paragraph 16.2 to facilitate proper distribution of funds upon winding down or cessation of business or operations. 26 Prohibitions S 26.1 An EMI shall not– (a) issue e-money at a premium or discount, i.e. issue e-money that has a monetary value different than the funds received; (b) use the funds collected in exchange of e-money issued to extend loans or financing to any person; (c) extend credit to the customer or any other person, or pay interest, profit or any other form of returns on the e-money balances, that would add to the monetary value of the e-money; and (d) associate, link or use the e-money scheme or platform to conduct dubious or illegal activities. Electronic Money 38 of 76 Issued on: 30 December 2022 PART D INFORMATION TECHNOLOGY (IT) REQUIREMENTS24 27 Technology risk management S 27.1 An EMI shall establish the Technology Risk Management Framework (TRMF), which is a framework to safeguard the EMI’s information infrastructure, systems and data as an integral part of the EMI’s risk management framework. G 27.2 An EMI is encouraged to include the following in the TRMF– (a) clear definition of technology risk; (b) clear responsibilities assigned for the management of technology risk across different levels and functions, with appropriate governance and reporting arrangements; (c) identification of technology risks to which the EMI is exposed, including risks from the adoption of new or emerging technology; (d) risk classification of all information assets/systems based on its criticality; (e) risk measurement and assessment approaches and methodologies; (f) risk controls and mitigations; and (g) continuous monitoring to timely detect and address any material risks. G 27.3 An EMI is encouraged to establish an independent enterprise-wide technology risk management function which is responsible for– (a) implementing the TRMF and Cyber Resilience Framework (CRF) as provided under paragraph 29; (b) advising on material technology projects and ensuring critical issues that may have an impact on the EMI’s risk tolerance are adequately deliberated by or escalated to senior management in a timely manner; and (c) providing independent views to the board and senior management on third party assessments25, where necessary. G 27.4 An EMI is encouraged to designate a Chief Information Security Officer (CISO), or by whatever name called, to be responsible for the technology risk management function of the EMI. The EMI is encouraged to ensure that the 24 For the avoidance of doubt, eligible EMIs and EMIs that are banking institutions shall comply with the requirements under the policy document on Risk Management in Technology as amended from time to time. 25 Relevant third party assessments may include the Data Centre Risk Assessment (DCRA), Network Resilience and Risk Assessment (NRA) and independent assurance for introduction of new or enhanced digital services. Electronic Money 39 of 76 Issued on: 30 December 2022 CISO has sufficient authority, independence and resources26. It is recommended that the CISO– (a) be independent from day-to-day technology operations; (b) keep apprised of current and emerging technology risks which could potentially affect the EMI’s risk profile; and (c) be appropriately certified. G 27.5 An EMI is encouraged to make the CISO responsible for ensuring the EMI’s information assets and technologies are adequately protected, which includes– (a) formulating appropriate policies for the effective implementation of TRMF and CRF; (b) enforcing compliance with policies in paragraph (a) above, frameworks and other technology-related regulatory requirements; and (c) advising senior management on technology risk and security matters, including developments in the EMI’s technology security risk profile in relation to its business and operations. 28 Technology operations management Technology Project Management S 28.1 An EMI shall establish appropriate governance requirements commensurate with the risk and complexity27 of technology projects undertaken. This shall include establishing project oversight roles and responsibilities, authority and reporting structures, and risk assessment throughout the project life cycle. G 28.2 It is recommended that the risk assessment identify and address the key risks arising from the implementation of technology projects. These include the risks that could threaten successful project implementation and the risks that a project failure will lead to a broader impact on the EMI’s operational capabilities. It is recommended that due regard be given to the following areas– (a) the adequacy and competency of resources including those of the service provider to effectively implement the project. This should also take into consideration the number, size and duration of material technology projects undertaken concurrently by the EMI; 26 An EMI’s CISO may take guidance from the expertise of a group-level CISO, in or outside of Malaysia, and may also hold other roles and responsibilities. Such designated CISO shall be accountable for and serves as the point of contact with the Bank on, the EMI’s technology-related matters, including managing entity-specific risks, supporting prompt incident response and reporting to the EMI’s board. 27 For example, large-scale integration projects or those involving critical systems should be subject to more stringent project governance requirements such as more frequent reporting to the board and senior management, more experienced project managers and sponsors, more frequent milestone reviews and independent quality assurance at major project approval stages. Electronic Money 40 of 76 Issued on: 30 December 2022 (b) the complexity of systems to be implemented such as the use of unproven or unfamiliar technology and the corresponding risks of integrating the new technology into existing systems, managing multiple service provider-proprietary technologies, large-scale data migration or cleansing efforts and extensive system customisation; (c) the adequacy and configuration of security controls throughout the project life cycle to mitigate cybersecurity breaches or potential leaks of confidential data; (d) the comprehensiveness of user requirement specifications to mitigate risks from extensive changes in project scope or deficiencies in meeting business needs; (e) the robustness of system and user testing strategies to reduce risks of undiscovered system faults and functionality errors; (f) the appropriateness of system deployment and fallback strategies to mitigate risks from prolonged system stability issues; and (g) the adequacy of disaster recovery operational readiness following the implementation of new or enhanced systems. G 28.3 The board and senior management are encouraged to receive and review timely reports on the management of key risks arising from the implementation of material technology projects on an ongoing basis throughout the implementation of material technology projects. System Development and Acquisition G 28.4 An EMI is encouraged to establish an Enterprise Architecture Framework (EAF) that provides a holistic view of technology throughout the EMI. The EAF is an overall technical design and high-level plan that describes the EMI’s technology infrastructure, systems’ inter-connectivity and security controls. The EAF facilitates the conceptual design and maintenance of the network infrastructure, related technology controls and policies and serves as a foundation on which the EMI’s plan and structure system development and acquisition strategies to meet business goals. S 28.5 An EMI shall establish clear risk management policies and practices for the key phases of the system development life cycle (SDLC) encompassing system design, development, testing, deployment, change management, maintenance and decommissioning. Such policies and practices shall also embed security and relevant enterprise architecture considerations into the SDLC to ensure confidentiality, integrity and availability of data28. The policies and practices shall be reviewed at least once every three (3) years to ensure that they remain relevant to the EMI’s environment. 28 The security considerations shall include ensuring appropriate segregation of duties throughout the SDLC. Electronic Money 41 of 76 Issued on: 30 December 2022 G 28.6 An EMI is encouraged to deploy automated tools for software development, testing, software deployment, change management, code scanning and software version control to support more secure systems development. G 28.7 An EMI is encouraged to consider the need for diversity29 in technology to enhance resilience by ensuring critical systems infrastructure are not excessively exposed to similar technology risks. S 28.8 An EMI shall establish a sound methodology for rigorous system testing prior to deployment. The testing shall ensure that the system meets user requirements and performs robustly. Where sensitive test data is used, the EMI shall ensure proper authorisation procedures and adequate measures to prevent their unauthorised disclosure are in place. G 28.9 It is encouraged that the scope of system testing referred to in paragraph 28.8 includes unit testing, integration testing, user acceptance testing, application security testing, stress and regression testing, and exception and negative testing, where applicable. S 28.10 An EMI shall ensure any changes to the source code of critical systems are subject to adequate source code reviews to ensure the code is secure and developed in line with recognised coding practices prior to introducing any system changes. S 28.11 Where critical systems are developed and maintained by a service provider, an EMI shall ensure the source code continues to be readily accessible and secured from unauthorised access. S 28.12 An EMI shall physically segregate the production environment from the development and testing environment for critical systems. Where an EMI is relying on a cloud environment, it shall ensure that these environments are not running on the same virtual host. S 28.13 An EMI shall establish appropriate procedures to independently review and approve system changes. An EMI shall also establish and test contingency plans in the event of the unsuccessful implementation of material system changes to minimise any business disruption. S 28.14 Where an EMI’s IT systems are managed by technology service providers, the EMI shall ensure, including through contractual obligations, that the technology 29 Diversity in technology may include the use of different technology architecture designs and applications, technology platforms and network infrastructure. Electronic Money 42 of 76 Issued on: 30 December 2022 service providers provide sufficient notice to the EMI before any changes are undertaken that may impact the IT systems. G 28.15 When decommissioning critical systems, an EMI is encouraged to ensure minimal adverse impact on customers and business operations. This includes establishing and testing contingency plans in the event of unsuccessful system decommissioning. Cryptography G 28.16 An EMI is encouraged to adopt strong cryptographic controls for protection of important data and information which include– (a) adoption of industry standards for encryption algorithms, message authentication, hash functions, digital signatures and random number generation; (b) adoption of robust and secure processes in managing cryptographic key lifecycles which include generation, distribution, renewal, usage, storage, recovery, revocation and destruction; (c) periodic review, at least every three (3) years, of existing cryptographic standards and algorithms in critical systems, external linked or customer- facing applications to prevent exploitation of weakened algorithms or protocols; and (d) development and testing of compromise-recovery plans in the event of a cryptographic key compromise. This should set out the escalation process, procedures for keys regeneration, interim measures, changes to business-as-usual protocols and containment strategies or options to minimise the impact of a compromise. G 28.17 An EMI is encouraged to conduct due diligence and evaluate the cryptographic controls associated with the technology used in order to protect the confidentiality, integrity, authentication, authorisation and non-repudiation of information. Where an EMI does not generate its own encryption keys, the EMI is encouraged to undertake appropriate measures to ensure robust controls and processes are in place to manage encryption keys. Where this involves reliance on third party assessment30, the EMI is encouraged to consider whether such reliance is consistent with the EMI’s risk appetite and tolerance. An EMI is encouraged to also give due regard to the system resources required to support the cryptographic controls and the risk of reduced network traffic visibility of data that has been encrypted. 30 For example, where the EMI is not able to perform its own validation on embedded cryptographic controls due to the proprietary nature of the software or confidentiality constraints. Electronic Money 43 of 76 Issued on: 30 December 2022 G 28.18 An EMI is encouraged to ensure cryptographic controls are based on the effective implementation of suitable cryptographic protocols. It is recommended that the protocols include secret and public cryptographic key protocols, both of which should reflect a high degree of protection to the applicable secret or private cryptographic keys. It is recommended that the selection of such protocols be based on recognised international standards and tested accordingly. Commensurate with the level of risk, storage of secret cryptographic key and private-cryptographic key, and encryption/ decryption computation should be undertaken in a protected environment, supported by a hardware security module (HSM) or trusted execution environment (TEE). G 28.19 An EMI is encouraged to store public cryptographic keys in a certificate issued by a certificate authority as appropriate to the level of risk. Such certificates associated with customers should be issued by recognised certificate authorities. The EMI is encouraged to ensure that the implementation of authentication and signature protocols using such certificates are subject to strong protection to ensure that the use of private cryptographic keys corresponding to the user certificates are legally binding and irrefutable. The initial issuance and subsequent renewal of such certificates should be consistent with industry best practices and applicable legal/ regulatory specifications. Data Centre Infrastructure S 28.20 An EMI shall ensure proper management of data centres and specify the resilience and availability objectives31 of its data centres which are aligned with its business needs. S 28.21 An EMI shall ensure its network infrastructure is designed to be resilient, secure and scalable proportionate to the EMI’s business risk and model. Potential data centre failures or disruptions shall not significantly degrade the delivery of its financial services or impede its internal operations. G 28.22 An EMI is encouraged to ensure production data centres are concurrently maintainable. This includes ensuring that production data centres have redundant capacity components and distribution paths serving the computer equipment. G 28.23 An EMI is encouraged to host critical systems in a dedicated space intended for production data centre usage. The dedicated space should be physically secured from unauthorised access and is not located in a disaster-prone area. 31 Availability objectives refer to the level of availability of the data centre, which needs to be specified as an internal policy. Electronic Money 44 of 76 Issued on: 30 December 2022 An EMI is also encouraged to ensure there is no single point of failure (SPOF) in the design and connectivity for critical components of the production data centres, including hardware components, electrical utility, thermal management and data centre infrastructure. S 28.24 An EMI shall establish proportionate controls, ensure adequate maintenance, and holistic and continuous monitoring of the critical components of the production data centres aligned with the EMI’s risk appetite. G 28.25 An EMI is encouraged to appoint a technically competent external technology service provider to carry out a production data centre risk assessment and set proportionate controls aligned with the EMI’s risk appetite. The assessment should consider all major risks associated with the production data centre and should be conducted periodically or whenever there is a material change in the data centre infrastructure. The assessment should, at a minimum, include a consideration of whether paragraphs 28.22 to 28.24 have been adhered to. In appointing a technology service provider to manage the data centre, an EMI may rely on independent third party assurance reports provided such reliance is consistent with the EMI’s risk appetite and tolerance, and the independent assurance has considered similar risks and meets the expectations in this paragraph for conducting the assessment. The designated board-level committee should deliberate the outcome of the assessment. Data Centre Operations S 28.26 An EMI shall ensure its capacity needs are well-planned and managed with due regard to business growth plans. This includes ensuring adequate system storage, central processing unit (CPU) power, memory and network bandwidth. G 28.27 An EMI is encouraged to involve both the technology stakeholders and the relevant business stakeholders within the EMI in its development and implementation of capacity management plans. S 28.28 An EMI shall establish appropriate monitoring mechanisms to track capacity utilisation and performance of key processes and services32. These monitoring mechanisms shall be capable of providing timely and actionable alerts to administrators. 32 For example, batch runs and backup processes for the EMI’s application systems and infrastructure. Electronic Money 45 of 76 Issued on: 30 December 2022 S 28.29 An EMI shall segregate incompatible activities33 in the data centre operations environment to prevent any unauthorised activity34. Where service providers’ or programmers’ access to the production environment is necessary, these activities shall be properly authorised and monitored. S 28.30 An EMI shall establish adequate control procedures for its data centre operations. These control procedures shall include procedures for batch processing management to ensure timely and accurate batch processes, implementing changes in the production system, error handling, as well as, management of other exceptional conditions. G 28.31 An EMI is encouraged to undertake an independent risk assessment of its end- to-end backup storage and delivery management to ensure that existing controls are adequate in protecting sensitive data at all times. S 28.32 An EMI shall maintain a sufficient number of backup copies of critical data, the updated version of the operating system software, production programs, system utilities, all master and transaction files and event logs for recovery purposes. Backup media shall be stored in an environmentally secure and access-controlled backup site. G 28.33 In complying with paragraph 28.32, an EMI is encouraged to adopt the controls as specified in Appendix 8 or their equivalent to secure the storage and transportation of sensitive data in removable media. G 28.34 Where there is a reasonable expectation for immediate delivery of service, an EMI is encouraged to ensure the relevant systems are designed for high availability. Network Resilience G 28.35 An EMI is encouraged to design a reliable, scalable and secure enterprise network that is able to support its business activities, including future growth plans. G 28.36 An EMI is encouraged to ensure the network services for its critical systems are reliable and have no SPOF in order to protect the critical systems against potential network faults and cyber threats. 33 This includes security administration covering management of user access rights, security operations and network security. 34 This includes segregating system development activities from data centre operations. Electronic Money 46 of 76 Issued on: 30 December 2022 G 28.37 An EMI is encouraged to establish real-time network bandwidth monitoring processes and corresponding network service resilience metrics to flag any over utilisation of bandwidth and system disruptions due to bandwidth congestion and network faults. This includes traffic analysis to detect trends and anomalies. S 28.38 An EMI shall ensure network services supporting critical systems are designed and implemented to ensure the confidentiality, integrity and availability of data. G 28.39 An EMI is encouraged to establish and maintain a network design blueprint identifying all of its internal and external network interfaces and connectivity. The blueprint should highlight both physical and logical connectivity between network components and network segmentations. S 28.40 An EMI shall ensure sufficient and relevant network device logs are retained for investigations and forensic purposes for at least three (3) years. S 28.41 An EMI shall implement appropriate safeguards to minimise the risk of a system compromise in one entity affecting other entities within the group. Safeguards implemented may include establishing logical network segmentation for the EMI from other entities within the group. G 28.42 An EMI is encouraged to appoint a technically competent external technology service provider to carry out regular network risk assessments and set proportionate controls aligned with its risk appetite. The assessment should be conducted periodically or whenever there is a material change in the network design. The assessment should consider all major risks and determine the current level of resilience. Technology Service Provider Management S 28.43 In addition to the requirements in paragraph 18 on outsourcing arrangements, an EMI and its board and senior management shall comply with the requirements under paragraphs 28.44 to 28.50 for IT related technology service providers. S 28.44 The board and senior management of an EMI shall exercise effective oversight and address associated risks when engaging technology service providers for critical technology functions and systems. Engagement of technology service providers, including engagements for independent assessment, does not in any way reduce or eliminate the principal accountabilities and responsibilities of the EMI for the security and reliability of technology functions and systems. Electronic Money 47 of 76 Issued on: 30 December 2022 S 28.45 An EMI shall conduct proper due diligence on the technology service provider’s competency, system infrastructure and financial viability as relevant prior to engaging its services. In addition, an assessment shall be made on the technology service provider’s capabilities in managing the following specific risks– (a) data leakage such as unauthorised disclosure of customer information and counterparty information; (b) service disruption including capacity performance; (c) processing errors; (d) physical security breaches; (e) cyber threats; (f) over-reliance on key personnel; (g) mishandling of confidential information pertaining to the EMI or its customers in the course of transmission, processing or storage of such information; and (h) concentration risk. S 28.46 At a minimum, the agreement between the EMI and its technology service providers shall contain arrangements for disaster recovery and backup capability, where applicable, and critical system availability. S 28.47 An EMI shall ensure its ability to regularly review any agreements with its technology service providers taking into account the latest security and technological developments in relation to the services provided. S 28.48 An EMI shall ensure data residing in technology service providers are recoverable in a timely manner. The EMI shall ensure clearly defined arrangements with the technology service provider are in place to facilitate the EMI’s immediate notification and timely update to the Bank and other relevant regulatory bodies in the event of a cyber-incident. S 28.49 An EMI shall ensure the storage of its data is at least logically segregated from the other clients of the technology service provider. There shall be proper controls implemented including periodic review of the access provided to authorised users. S 28.50 An EMI shall ensure critical systems hosted by technology service providers have adequate recovery and resumption capability and provisions to facilitate an orderly exit in the event of failure or unsatisfactory performance by the technology service provider. Electronic Money 48 of 76 Issued on: 30 December 2022 Cloud Services S 28.51 An EMI shall fully understand the inherent risk of adopting cloud services. In this regard, an EMI is required to conduct a comprehensive risk assessment prior to cloud adoption which considers the inherent architecture of cloud services that leverages on the sharing of resources and services across multiple tenants over the internet. The assessment shall specifically address risks associated with the following– (a) sophistication of the deployment model; (b) migration of existing systems to cloud infrastructure; (c) location of cloud infrastructure; (d) multi-tenancy or data co-mingling; (e) service provider lock-in and application portability or interoperability; (f) ability to customise security configurations of the cloud infrastructure to ensure a high level of data and technology system protection; (g) exposure to cyber-attacks via cloud service providers; (h) termination of a cloud service provider including the ability to secure the EMI’s data following the termination; (i) demarcation of responsibilities, limitations and liability of the cloud service provider; and (j) ability to meet regulatory requirements and international standards on cloud computing on a continuing basis. S 28.52 The risk assessment required under paragraph 28.51 shall be documented and made available for the Bank’s review as and when requested by the Bank. S 28.53 An EMI shall demonstrate that specific risks associated with the use of cloud services for critical systems have been adequately considered and addressed. The risk assessment shall address the risks outlined in paragraph 28.51, as well as, the following areas– (a) the adequacy of the over-arching cloud adoption strategy of the EMI including– (i) board oversight over cloud strategy and cloud operational management; (ii) senior management roles and responsibilities on cloud management; (iii) conduct of day-to-day operational management functions; (iv) management and oversight by the EMI of cloud service providers; (v) quality of risk management and internal control functions; and (vi) strength of in-house competency and experience; (b) the availability of independent, internationally recognised certifications of the cloud service providers, at a minimum, in the following areas– Electronic Money 49 of 76 Issued on: 30 December 2022 (i) information security management framework, including cryptographic modules such as those used for encryption and decryption of user data; and (ii) cloud-specific security controls for protection of customer information and counterparty information or proprietary information including payment transaction data in use, in storage and in transit; (c) the degree to which the selected cloud configuration adequately addresses the following attributes– (i) geographical redundancy; (ii) high availability; (iii) scalability; (iv) portability; (v) interoperability; and (vi) strong recovery and resumption capability including appropriate alternate internet paths to protect against potential internet faults. G 28.54 An EMI is encouraged to consider the need for a third party pre-implementation review on cloud implementation that also covers the areas set out in paragraph 28.53. S 28.55 An EMI must implement appropriate safeguards on customer information and counterparty information and proprietary data when using cloud services to protect against unauthorised disclosure and access. This shall include retaining ownership, control and management of all data pertaining to customer information and counterparty information, proprietary data and services hosted on the cloud, including the relevant cryptographic keys management. Access Control S 28.56 An EMI must implement an appropriate access control policy for identification, authentication and authorisation of users (internal and external users such as technology service providers). This must address both logical and physical technology access controls which are commensurate with the level of risk of unauthorised access to its technology systems. G 28.57 In observing paragraph 28.56, an EMI is encouraged to consider the following in its access control policy– (a) adopt a “deny all” access control policy for users by default unless explicitly authorised; (b) employ “least privilege” access rights or on a “need-to-have” basis where only the minimum sufficient permissions are granted to legitimate users to perform their roles; Electronic Money 50 of 76 Issued on: 30 December 2022 (c) employ time-bound access rights which restrict access for a specific period including access rights granted to technology service providers; (d) employ segregation of incompatible functions to ensure that no single person is responsible for an entire operation that may provide the ability to independently modify, circumvent, and disable system security features. This may include a combination of functions such as– (i) system development and technology operations; (ii) security administration and system administration; and (iii) network operation and network security; (e) employ dual control functions which require two or more persons to execute an activity; (f) adopt stronger authentication for critical activities including for remote access; (g) limit and control the use of the same user ID for multiple concurrent sessions; (h) limit and control the sharing of user ID and passwords across multiple users; and (i) control the use of generic user ID naming conventions in favour of more personally identifiable IDs. S 28.58 An EMI must employ robust authentication processes to ensure the authenticity of identities in use. Authentication mechanisms shall commensurate with the criticality of the functions and adopt at least one (1) or more of these three (3) basic authentication factors, namely, something the user knows (e.g. password, PIN), something the user possesses (e.g. smart card, security device) and something the user is (e.g. biometric characteristics, such as a fingerprint or retinal pattern). S 28.59 An EMI shall periodically review and adapt its password practices to enhance resilience against evolving attacks. This includes effective and secure generation of passwords. There shall be appropriate controls in place to check the strength of the passwords created. G 28.60 Authentication methods that depend on more than one factor typically are more difficult to compromise than a single factor system. In view of this, an EMI is encouraged to properly design and implement (especially in high-risk or ‘single sign-on’ systems) MFA that are more reliable and provide stronger fraud deterrents. G 28.61 An EMI is encouraged to adopt dedicated user domains for selected critical functions, separate from the broader enterprise-wide user authentication system. Electronic Money 51 of 76 Issued on: 30 December 2022 S 28.62 An EMI shall establish a user access matrix to outline access rights, user roles or profiles, and the authorising and approving authorities. The access matrix must be periodically reviewed and updated. S 28.63 An EMI shall ensure the following– (a) access controls to enterprise-wide systems are effectively managed and monitored; and (b) user activities in critical systems are logged for audit and investigations. Activity logs shall be maintained for at least three (3) years and regularly reviewed in a timely manner. Patch and End-of-Life System Management S 28.64 An EMI shall ensure that critical systems are not running on outdated systems with known security vulnerabilities or end-of-life (EOL) technology systems. In this regard, an EMI shall clearly assign responsibilities to identified functions– (a) to continuously monitor and implement latest patch releases in a timely manner; and (b) identify critical technology systems that are approaching EOL for further remedial action. G 28.65 An EMI is encouraged to establish a patch and EOL management framework which addresses among others the following requirements– (a) identification and risk assessment of all technology assets for potential vulnerabilities arising from undeployed patches or EOL systems; (b) conduct of compatibility testing for critical patches; (c) specification of turnaround time for deploying patches according to the severity of the patches; and (d) adherence to the workflow for end-to-end patch deployment processes including approval, monitoring and tracking of activities. Security of Digital Services S 28.66 An EMI shall implement robust technology security controls in providing digital services which assure the following– (a) confidentiality and integrity of customer information and counterparty information and transactions; (b) reliability of services delivered via channels and devices with minimum disruption to services; (c) proper authentication of users or devices and authorisation of transactions; (d) sufficient audit trail and monitoring of anomalous transactions; Electronic Money 52 of 76 Issued on: 30 December 2022 (e) ability to identify and revert to the recovery point prior to incident or service disruption; and (f) strong physical control and logical control measures. G 28.67 An EMI is encouraged to implement controls to authenticate and monitor all financial transactions. These controls, at a minimum, should be effective in mitigating man-in-the-middle attacks, transaction fraud, phishing and compromise of application systems and information. S 28.68 An EMI must implement additional controls to authenticate devices and users, authorise transactions and support non-repudiation and accountability for high- risk transactions or transactions above RM10,000. These measures must include, at a minimum, the following– (a) ensure transactions are performed over secured channels such as the latest version of Transport Layer Security (TLS); (b) both client and host application systems must encrypt all confidential information prior to transmission over the network; (c) adopt MFA for transactions; (d) if OTP is used as a second factor, it must be dynamic and time-bound; (e) request users to verify details of the transaction prior to execution; (f) ensure secure user and session handling management; (g) be able to capture the location of origin and destination of each transaction; (h) implement strong mutual authentication between the users’ end-point devices and EMI’s servers, such as the use of the latest version of Extended Validation SSL certificate (EV SSL); and (i) provide timely notification to customers that is sufficiently descriptive of the nature of the transaction. S 28.69 An EMI must ensure the MFA solution used to authenticate financial transactions are adequately secure, which includes the following– (a) binding of the MFA solution to the customer’s account; (b) activation of MFA must be subject to verification by the EMI; and (c) timely notification to customers of any activation of and changes to the MFA solution via the customers’ verified communication channel. G 28.70 An EMI is encouraged to deploy MFA technology and channels that are more secured than unencrypted short messaging service (SMS). S 28.71 An EMI shall deploy MFA solutions with stronger security controls for open third party fund transfer and open payment transactions with a value of RM10,000 and above. Electronic Money 53 of 76 Issued on: 30 December 2022 S 28.72 Such stronger MFA solutions shall adhere to the following requirements– (a) payor/sender must be made aware and prompted to confirm details of the identified beneficiary and amount of the transaction; (b) authentication code must be initiated and generated locally by the payor/sender using MFA; (c) authentication code generated by payor/sender must be specific to the confirmed identified beneficiary and amount; (d) secure underlying technology must be established to ensure the authentication code accepted by the EMI corresponds to the confirmed transaction details; and (e) notification must be provided to the payor/sender of the transaction. S 28.73 Where an EMI deploys OTP as part of its stronger MFA solutions, the following features must be implemented– (a) binding of the transaction details to the OTP generated by the device (e.g. beneficiary account number, amount of transaction); (b) generation of the OTP from the customer’s device and not from the EMI’s server; and (c) requiring the customer to physically enter the generated OTP into the application. S 28.74 For financial transactions below RM10,000, an EMI may decide on proportionate controls and authentication methods for transactions assessed by the EMI to be of low risk. In undertaking the assessment, the EMI must establish a set of criteria or factors that reflect the nature, size and characteristics of a financial transaction. Such criteria or factors must be consistent with the EMI’s risk appetite and tolerance. The EMI must periodically review the risk assessment criteria to ensure its continued relevance, having regard to the latest developments in cybersecurity risks and authentication technologies, as well as, fraud trends and incidents. S 28.75 Where an EMI decides not to adopt MFA for financial transactions that are assessed to be of low risk, the EMI must nevertheless implement adequate safeguards for such transactions which shall include at a minimum the following measures– (a) set appropriate limits on a per-transaction basis, and on a cumulative basis; (b) provide convenient means for customers to reduce the limits described in paragraph (a) or to opt for MFA; (c) provide convenient means for its customers to temporarily suspend their account in the event of suspected fraud; and (d) provide its customers with adequate notice of the safeguards set out in sub-paragraphs (a) to (c). Electronic Money 54 of 76 Issued on: 30 December 2022 S 28.76 An EMI shall ensure sufficient and relevant digital service logs are retained for investigations and forensic purposes for at least three (3) years. S 28.77 An EMI shall ensure that critical online payments35 services or transactions have high availability with reasonable response time to customer actions. G 28.78 An EMI is encouraged to ensure the use of more advanced technology to authenticate and deliver digital services such as biometrics, tokenisation and contactless communication36 comply with internationally recognised standards where available. The technology should be resilient against cyber threats37 including malware, phishing or data leakage. G 28.79 An EMI is encouraged to undertake a comprehensive risk assessment of the advanced technologies and the algorithms deployed in its digital services. Algorithms should be regularly reviewed and validated to ensure they remain appropriate and accurate. Where third party software is used, an EMI may rely on relevant independent reports provided that the reliance of reports is consistent with the EMI’s risk appetite and tolerance as well as the nature of digital services provided by the EMI which leverage on the technologies and algorithms. G G 28.80 An EMI is encouraged to ensure authentication processes using biometric technology are secure, highly resistant to spoofing and have a minimal false acceptance rate to ensure confidentiality, integrity and non-repudiation of transactions. 28.81 An EMI is encouraged to perform continuous surveillance to assess the vulnerability of the operating system and the relevant technology platform used for its digital delivery channels to security breaches and implement appropriate corresponding safeguards. It is recommended that an EMI implements sufficient logical and physical safeguards for the following channels/ devices– (a) QR code; (b) internet application; and (c) mobile application and devices. In view of the evolving threat landscape, these safeguards should be continuously reviewed and updated to protect against fraud and to secure the confidentiality and integrity of customer information and counterparty information and transactions. 35 For example, Internet and mobile application. 36 Such as Quick Response (QR) code, Bar Code, Near Field Communication (NFC), Radio Frequency Identification (RFID). 37 For example, in respect of QR payments, an EMI shall implement safeguards within its respective mobile applications to detect and mitigate risks relating to QR code that may contain malware or links to phishing websites. Electronic Money 55 of 76 Issued on: 30 December 2022 G 28.82 An EMI should ensure the adequacy of security controls implemented for internet applications, which include to– (a) ensure the internet application only runs on secured versions of web browsers that have continued developer support for security patches to fix any vulnerabilities; and (b) put in place additional authentication protocols to enable customers to identify the EMI’s genuine websites. G 28.83 An EMI is encouraged to adopt the controls specified in the following Appendices for the respective digital delivery channel– (a) Appendix 9: Control Measures on Mobile Application and Devices; and (b) Appendix 10: Control Measures on QR Code. 29 Cybersecurity management Cyber Risk Management G 29.1 An EMI is encouraged to ensure that there is an enterprise-wide focus on effective cyber risk management to reflect the collective responsibility of business and technology lines for managing cyber risks. S 29.2 An EMI shall develop a CRF which articulates the EMI’s governance for managing cyber risks, its cyber resilience objectives and its risk tolerance, with due regard to the evolving cyber threat environment. Objectives of the CRF includes ensuring operational resilience against extreme but plausible cyber- attacks. G 29.3 It is encouraged that the CRF be able to support effective identification, protection, detection, response, and recovery (IPDRR) of systems and data hosted on-premise or by technology service providers from internal and external cyber-attacks. It is recommended that the CRF consists of, at a minimum, the following elements– (a) development of an institutional understanding of the overall cyber risk context in relation to the EMI’s businesses and operations, its exposure to cyber risks and current cybersecurity posture; (b) identification, classification and prioritisation of critical systems, information, assets and interconnectivity (with internal and external parties) to obtain a complete and accurate view of the EMI’s information assets, critical systems, interdependencies and cyber risk profile; (c) identification of cybersecurity threats and countermeasures including measures to contain reputational damage that can undermine confidence in the EMI; Electronic Money 56 of 76 Issued on: 30 December 2022 (d) layered (defense-in-depth) security controls to protect its data, infrastructure and assets against evolving threats; (e) timely detection of cybersecurity incidents through continuous surveillance and monitoring; (f) detailed incident handling policies and procedures and a crisis response management playbook to support the swift recovery from cyber-incidents and contain any damage resulting from a cybersecurity breach; and (g) policies and procedures for timely and secure information sharing and collaboration with other EMIs and participants in financial market infrastructure to strengthen cyber resilience. Cybersecurity Operations G 29.4 An EMI is encouraged to establish clear responsibilities for cybersecurity operations which include implementing appropriate mitigating measures in the EMI’s conduct of business that correspond to the following phases of the cyber- attack lifecycle– (a) reconnaissance; (b) weaponisation; (c) delivery; (d) exploitation; (e) installation; (f) command and control; and (g) exfiltration. G 29.5 Where relevant, an EMI is encouraged to adopt the control measures on cybersecurity as specified in Appendix 11 to enhance its resilience to cyber- attacks. G 29.6 An EMI is encouraged to deploy effective tools to support continuous and proactive monitoring and timely detection of anomalous activities in its technology infrastructure. The scope of monitoring should cover all critical systems including the supporting infrastructure. S 29.7 An EMI shall ensure that its cybersecurity operations continuously prevent and detect any potential compromise of its security controls or weakening of its security posture. S 29.8 An EMI shall conduct annual penetration tests on its internal and external network infrastructure, as well as, critical systems including web, mobile and all external-facing applications. The penetration testing shall reflect extreme but plausible cyber-attack scenarios based on emerging and evolving threat Electronic Money 57 of 76 Issued on: 30 December 2022 scenarios. An EMI shall engage suitably accredited penetration testers and technology service providers to perform this function. S 29.9 An EMI shall establish standard operating procedures (SOP) for vulnerability assessment and penetration testing (VAPT) activities. The SOP shall outline the relevant control measures including ensuring the external penetration testers are accompanied on-premises at all times, validating the event logs and ensuring data purging. S 29.10 An EMI shall ensure the outcome of the penetration testing exercise is properly documented and escalated in a timely manner to senior management to identify and monitor the implementation of relevant remedial actions. Distributed Denial of Service (DDoS) G 29.11 An EMI is encouraged to ensure its technology systems and infrastructure, including critical systems outsourced to or hosted by technology service providers, are adequately protected against all types of DDoS attacks (including volumetric, protocol and application layer attacks) through the following measures– (a) subscribing to DDoS mitigation services, which include automatic “clean pipe” services to filter and divert any potential malicious traffic away from the network bandwidth; (b) regularly assessing the capability of the service provider to expand network bandwidth on-demand including upstream service provider capability, adequacy of the service provider’s incident response plan and its responsiveness to an attack; and (c) implementing mechanisms to mitigate against Domain Name Server (DNS) based layer attacks. Data Loss Prevention (DLP) G 29.12 An EMI is encouraged to establish a clear DLP strategy and processes in order to ensure that proprietary and customer information and counterparty information is identified, classified and secured. It is recommended for an EMI to– (a) ensure that data owners are accountable and held responsible for identifying and appropriately classifying data; (b) undertake a data discovery process prior to the development of a data classification scheme and data inventory; and (c) ensure that data accessible by third parties is clearly identified and policies should be implemented to safeguard and control third party Electronic Money 58 of 76 Issued on: 30 December 2022 access. This includes having in place adequate contractual agreements to protect the interests of the EMI and its customers. G 29.13 An EMI is encouraged to design internal control procedures and implement appropriate technology in all applications and access points to enforce DLP policies and trigger any policy violations. The technology deployed should cover the following– (a) data in-use – data being processed by IT resources; (b) data in-motion – data being transmitted on the network; and (c) data at-rest – data stored in storage mediums such as servers, backup media and databases. G 29.14 An EMI is encouraged to implement appropriate policies for the removal of data on technology equipment, mobile devices or storage media to prevent unauthorised access to data. Security Operations Centre (SOC) S 29.15 An EMI shall have in place an SOC – whose functions can either be performed in-house or by technology service providers – with adequate capabilities for proactive monitoring of its technology security posture. This shall enable the EMI to detect anomalous user or network activities, flag potential breaches and establish the appropriate response supported by skilled resources based on the level of complexity of the alerts. The outcome of the SOC activities shall also inform the EMI’s review of its cybersecurity posture and strategy. G 29.16 The SOC is encouraged to be able to perform the following functions– (a) log collection and the implementation of an event correlation engine with parameter-driven use cases such as Security Information and Event Management (SIEM); (b) incident coordination and response; (c) vulnerability management; (d) threat hunting; (e) remediation functions including the ability to perform forensic artifact handling, malware and implant analysis; and (f) provision of situational awareness to detect adversaries and threats including threat intelligence analysis and operations, and monitoring indicators of compromise (IOC). This includes advanced behavioural analysis to detect signature-less and file-less malware and to identify anomalies that may pose security threats including at endpoints and network layers. G 29.17 An EMI is encouraged to ensure that the SOC provides a regular threat assessment report, which should include, at a minimum, the following– Electronic Money 59 of 76 Issued on: 30 December 2022 (a) trends and statistics of cyber events and incidents categorised by type of attacks, target and source IP addresses, location of data centres and criticality of applications; and (b) intelligence on emerging and potential threats including tactics, techniques and procedures (TTP). G 29.18 An EMI is encouraged to subscribe to reputable threat intelligence services to identify emerging cyber threats, uncover new cyber-attack techniques and support the implementation of countermeasures. S 29.19 An EMI shall ensure the following– (a) the SOC is located in a physically secure environment with proper access controls; and (b) the SOC operates on a 24x7 basis with disaster recovery capability to ensure continuous availability. Cyber Response and Recovery S 29.20 An EMI shall establish comprehensive cyber crisis management policies and procedures that incorporate cyber-attack scenarios and responses in the organisation’s overall crisis management plan, escalation processes, business continuity and disaster recovery planning. This includes developing a clear communication plan for engaging shareholders, regulatory authorities, customers and employees in the event of a cyber-incident. G 29.21 An EMI is encouraged to establish and implement a comprehensive Cyber Incident Response Plan (CIRP). The CIRP should address the following– (a) Preparedness: Establish a clear governance process, reporting structure and roles and responsibilities of the Cyber Emergency Response Team (CERT), as well as, invocation and escalation procedures in the event of an incident; (b) Detection and analysis: Ensure effective and expedient processes for identifying points of compromise, assessing the extent of damage and preserving sufficient evidence for forensics purposes; (c) Containment, eradication and recovery: Identify and implement remedial actions to prevent or minimise damage to the EMI, remove the known threats and resume business activities; and (d) Post-incident activity: Conduct post-incident review incorporating lessons learned and develop long-term risk mitigations. G 29.22 An EMI is encouraged to conduct an annual cyber drill exercise to test the effectiveness of its CIRP, based on various current and emerging threat scenarios (e.g. social engineering), with the involvement of key stakeholders including members of the board, senior management and relevant technology Electronic Money 60 of 76 Issued on: 30 December 2022 service providers. The test scenarios should include scenarios designed to test– (a) the effectiveness of escalation, communication and decision-making processes that correspond to different impact levels of a cyber-incident; and (b) the readiness and effectiveness of CERT and relevant technology service providers in supporting the recovery process. S 29.23 An EMI shall immediately notify the Bank of any cyber-incidents38 affecting the EMI. Upon completion of the investigation, the EMI is also required to submit a report on the incident to the Bank through the relevant Operational Risk Reporting (ORR) system or any other channel as specified by the Bank. S 29.24 An EMI shall collaborate and cooperate closely with relevant stakeholders and authorities in combating cyber threats and sharing threat intelligence and mitigation measures. 30 Technology audit S 30.1 An EMI shall ensure that the scope, frequency and intensity of technology audits are commensurate with the complexity, sophistication and criticality of technology systems and applications. S 30.2 The internal audit function shall be adequately resourced with relevant technology audit competencies and sound knowledge of the EMI’s technology processes and operations. G 30.3 An EMI is encouraged to ensure its technology audit staff are adequately conversant with the developing sophistication of the EMI’s technology systems and delivery channels. S 30.4 An EMI shall establish a technology audit plan that provides appropriate coverage of critical technology services, technology service providers, material external system interfaces, delayed or prematurely terminated material technology projects and post-implementation reviews of new or material enhancements of technology services. G 30.5 The internal audit function under paragraph 30.2 may be enlisted to provide advice on compliance with, and adequacy of, control processes during the planning and development phases of new major products, systems or 38 Examples include (but not limited to) phishing, ransomware, malware, DDoS and brute force attack, network intrusion, advance persistent threats, insider threats, data exfiltration and compromised credentials. Electronic Money 61 of 76 Issued on: 30 December 2022 technology operations. In such cases, the technology auditors participating in this capacity should carefully consider whether such an advisory or consulting role would materially impair their independence or objectivity in performing post-implementation reviews of the products, systems and operations concerned. 31 Internal awareness and training S 31.1 An EMI shall provide adequate and regular technology and cybersecurity awareness education for all staff in undertaking their respective roles and measure the effectiveness of its education and awareness programmes. This cybersecurity awareness education shall be conducted at least annually by the EMI and shall reflect the current cyber threat landscape. G 31.2 An EMI is encouraged to provide adequate and continuous training for staff involved in technology operations, cybersecurity and risk management in order to ensure that the staff are competent to effectively perform their roles and responsibilities. G 31.3 An EMI is encouraged to provide its board members with regular training and information on technology developments to enable the board to effectively discharge its oversight role. Electronic Money 62 of 76 Issued on: 30 December 2022 PART E REGULATORY PROCESS 32 Approval and notification S 32.1 An EMI shall seek the Bank’s prior written approval on any proposed changes to its e-money business model that are significant or that changes the risk profile of its business model. S 32.2 An EMI shall notify the Bank fourteen (14) days prior to establishing or relocating its offices in or outside Malaysia39. S 32.3 An EMI shall notify the Bank fourteen (14) days prior to the appointment of an auditor40. S 32.4 An EMI shall notify the Bank on the appointment of its chairman, director or CEO, within fourteen (14) days from the date of appointment. 33 Submission requirements S 33.1 An EMI shall submit monthly statistics on the operation of its e-money business to the Bank no later than the 15th day of the month following the reporting month using the format provided by the Bank via the STATsmart online submission system. S 33.2 An EMI shall submit independent audit reports of its e-money business, including IT audit, as and when required by the Bank. S 33.3 An EMI shall submit to the Bank its audited financial statement on an annual basis no later than three (3) months after the financial year-end. S 33.4 A bank EMI is deemed to fulfil the requirement under paragraph 33.3 upon submission to the Bank of its audited financial statements in accordance with the requirements in the policy document on Financial Reporting for Financial Institutions, the policy document on Financial Reporting for Development Financial Institutions or any other documents as may be specified by the Bank and as amended from time to time. S 33.5 A non-bank EMI shall submit written assurance from its external auditor on the adequacy of controls for its safeguarding methods in accordance with paragraph 16. At a minimum, the written assurance shall include a review of the following– 39 Pursuant to section 25(2) of the FSA or section 22(2) of the IFSA. 40 Pursuant to section 67(3) of the FSA or section 76(3) of the IFSA. Electronic Money 63 of 76 Issued on: 30 December 2022 (a) the separation of funds collected from customers, from other funds be it the working capital funds of the non-bank EMI or funds for its other business; (b) ensure the balance of funds maintained by the non-bank EMI under paragraph 16.2 or 16.5, is greater than or at least equal to the non-bank EMI’s outstanding e-money liabilities; (c) the effectiveness of the controls put in place by a non-bank EMI to ensure that the funds maintained by the non-bank EMI under paragraph 16.2 or 16.5 are topped up in a timely manner if the outstanding e-money liabilities of the non-bank EMI are greater than the said funds; and (d) ensure the funds maintained by the non-bank EMI under paragraph 16.2 or 16.5 are only used for purposes permitted under this policy document. S 33.6 The written assurance specified in paragraph 33.5 from the external auditor shall include the method of assessment and basis of opinion on the compliance level. A non-bank EMI shall ensure that the written assurance, together with details of the action plans and timelines to address any gaps identified, are deliberated at its board or board audit committee and submitted to the Bank on an annual basis no later than three (3) months after its financial year-end. 34 Membership in the Financial Ombudsman Scheme S 34.1 An EMI shall be a member of an approved FOS pursuant to regulation 3 of the Financial Services (Financial Ombudsman Scheme) Regulation 2015. S 34.2 The membership of an EMI in the FOS shall commence on the date it begins its operation. An EMI shall notify the OFS on the commencement of its operations within seven (7) days from the date it begins its operations. S 34.3 An EMI shall comply at all times with the terms of membership as set out in the terms of reference for the OFS. S 34.4 For disputes within the OFS’ jurisdiction, an EMI shall attach a copy of the OFS pamphlet41 and include the following statement in the letter conveying the EMI’s final decision on a dispute to the customer so that the customer may pursue the next course of action: “If you are not satisfied with our decision, please refer your dispute to the Ombudsman for Financial Services (OFS) within six months from the date of our decision. The procedure for lodging a dispute with OFS is provided in the attached pamphlet on “Resolution of Financial Disputes”. 41 Available in OFS official website. Electronic Money 64 of 76 Issued on: 30 December 2022 APPENDICES Appendix 1 Criteria for eligible EMI 1. An eligible EMI refers to an EMI which fulfils any of the following criteria– (a) the EMI has at least 500,000 active users42 for a consecutive period of six (6) months beginning 2017; (b) the EMI has a market share of at least 5% of the total e-money transaction volume in Malaysia for a given year beginning 2017; (c) the EMI has a market share of at least 5% of the total e-money transaction value in Malaysia for a given year beginning 2017; or (d) the EMI has a market share of at least 5% of the total outstanding e-money liabilities in Malaysia for a given year beginning 2017. 2. An eligible EMI which did not fulfil all criteria specified in paragraph 1 for any given year may make an application in writing to the Bank for the written approval of the Bank for the EMI to cease from being categorised as an eligible EMI. 3. The Bank may, upon receipt of an application under paragraph 2 and being satisfied that the eligible EMI did not fulfil all criteria specified in paragraph 1 for any given year, issue a written approval for the EMI to cease from being categorised as an eligible EMI effective on the date of the written approval or such other date determined by the Bank. 4. Any EMI who ceases to be categorised as an eligible EMI under paragraph 3 shall be recategorised as an eligible EMI if the EMI fulfils again any of the criteria specified in paragraph 1. 42 An active user refers to a user who conducts at least one financial transaction per month to make payment or funds transfer using e-money or to reload e-money into the e-money account. Electronic Money 65 of 76 Issued on: 30 December 2022 Appendix 2 Limited purpose e-money 1. A limited purpose EMI refers to an EMI that issues e-money as described below and complies with all conditions set out in paragraph 2. (a) E-money which– (i) can only be used within– A. a network of merchants in Malaysia which operate under a single business network and a single brand; or B. a single premises in Malaysia; (ii) for each EMI, both the average daily outstanding e-money liabilities and average monthly transaction value conducted by all its users do not exceed RM1,000,000 respectively; (iii) has a wallet limit not exceeding RM500 per user; (iv) can solely be used for purchase of goods or services; and (v) can solely be withdrawn into the user’s bank account with a banking institution. (b) E-money which– (i) is funded by a person (funder) who is under an arrangement with the issuer as rewards; (ii) can solely be used for purchase of goods or services to any person other than the funder; (iii) can solely be withdrawn into the user’s bank account with a banking institution; and (iv) is separated from the user’s e-money account. (c) E-money which– (i) is issued by the issuer only for the purpose of providing a refund to the user by the issuer or on behalf of any other person who is under an arrangement with the issuer; (ii) can solely be used for purchase of goods or services to any other person who is under an arrangement with the issuer; and (iii) can solely be withdrawn into the user’s bank account with a banking institution. (d) E-money which– (i) is issued by an issuer which is a telecommunication service provider; (ii) is only used for the purchase of digital goods or services from any other person who is under an arrangement with the issuer where the digital goods or services– A. have low value amounts such as applications for music, videos, software, games and ringtones; Electronic Money 66 of 76 Issued on: 30 December 2022 B. are paid for through any telecommunication, digital or information technology device; C. are delivered to, and used by, the user through any telecommunication, digital or information technology device; and (iii) can solely be withdrawn into the user’s bank account with a banking institution subject to the terms and conditions of the telecommunication service provider. 2. Conditions to be complied by limited purpose EMI– (a) The EMI shall comply with the requirements under the Personal Data Protection Act 2010 (PDPA) and subsidiary legislation made under the PDPA; (b) The EMI shall provide users or potential users with a mechanism for complaint and dispute resolution; and (c) The EMI that issues e-money described in paragraph 1(a) shall, on an annual basis– (i) submit a notification and undertaking to the Bank, that the e-money issued satisfies the description under paragraph 1; and (ii) submit statistical information which is attested by an external auditor to the Bank, on its business of issuing e-money including total outstanding e- money liabilities, number of registered and active users, total e-money transaction volume, total electronic money transaction value and any information as the Bank may specify. Notwithstanding the above, if the Bank is of the opinion that an EMI which issues e-money described in paragraph 1 poses high risk which may have an impact on the stability or affect public confidence on payment systems in Malaysia, the Bank may specify that the requirements of this policy document shall apply to the said EMI. Electronic Money 67 of 76 Issued on: 30 December 2022 Appendix 3 Responsibilities of board committees Board risk management committee 1. Support the board in overseeing the implementation of the EMI’s risk management framework. Board audit committee 1. Support the board in ensuring that there is a reliable and transparent financial reporting process within the EMI. 2. Oversee the effectiveness of the internal audit function of the EMI. At a minimum, this must include– (a) reviewing and approving the audit plan, scope, procedures and frequency; (b) reviewing audit reports and ensuring that senior management is taking necessary corrective actions in a timely manner to address control weaknesses, non-compliance with laws, regulatory requirements, policies and other problems identified by the internal audit and other control functions; and (c) establishing a mechanism to assess the performance and effectiveness of the internal audit function. 3. Foster quality audits of the EMI by exercising oversight over the external auditor. At a minimum, this must include– (a) making recommendations to the board on the appointment, removal and remuneration of the external auditor; (b) monitoring and assessing the independence of the external auditor including by approving the provision of non-audit services by the external auditor; (c) monitoring and assessing the effectiveness of the external audit, including by meeting with the external auditor without the presence of senior management at least annually; (d) maintaining regular, timely, open and honest communication with the external auditor, and requiring the external auditor to report to the board audit committee on significant matters; and (e) ensuring that senior management is taking necessary corrective actions in a timely manner to address external audit findings and recommendations. 4. Review and update the board on all related party transactions. 5. Review third-party opinions on the design and effectiveness of the EMI’s internal control framework. Electronic Money 68 of 76 Issued on: 30 December 2022 Appendix 4 Computation of capital funds Share capital which includes– Paid-up ordinary shares/common stock Paid-up irredeemable non-cumulative preference shares plus Reserves which includes– General reserve fund less Intangible Assets43 plus Retained Profit (or less Accumulated Losses) plus Audited Profit for the period (or less Unaudited Loss for the period) 43 Including goodwill, capitalised development costs, licenses and intellectual properties. Electronic Money 69 of 76 Issued on: 30 December 2022 Appendix 5 Examples of arrangements excluded from the scope of outsourcing 1. Arrangements which entail procurement of services which are not performed by an EMI by itself in the ordinary course of its e-money business, leveraging common industry-wide infrastructure driven by regulatory requirements, and involvement of third parties due to legal requirements, are generally not considered as outsourcing arrangements. These include– (a) services for the transfer, clearing and settlement of funds or securities provided by an operator of a designated payment system or an approved operator of payment system under the FSA or IFSA; (b) global financial messaging network services provided by an operator that is owned by its member financial institutions and is subject to the oversight of relevant regulators; (c) independent consultancy service (e.g. legal opinions, tax planning and valuation); (d) independent audit assessment; (e) clearing and settlement arrangement between clearing houses and settlement institutions and their members; (f) agent banking; (g) trustee arrangement; (h) credit or market information services; (i) repair, support and maintenance of tangible assets; (j) purchase or subscription of commercially available software; (k) maintenance and support of licensed software; (l) marketing and advertising; (m) telecommunication, postal and courier service; (n) physical security, premise access and guarding services; and (o) catering, cleaning and event services. Electronic Money 70 of 76 Issued on: 30 December 2022 Appendix 6 Minimum requirements on the outsourcing agreement 1. The outsourcing agreement shall, at a minimum, provide for the following– (a) duration of the arrangement with date of commencement and expiry or renewal date; (b) responsibilities of the service provider, with well-defined and measurable risk and performance standards in relation to the outsourced activity. Commercial terms tied to the performance of the service provider must not create incentives for the service provider to take on excessive risks that would affect the EMI; (c) controls to ensure the security of any information shared with the service provider at all times, covering at a minimum− (i) responsibilities of the service provider with respect to information security; (ii) scope of information subject to security requirements; (iii) provisions to compensate the EMI for any losses and corresponding liability obligations arising from a security breach attributable to the service provider; (iv) notification requirements in the event of a security breach; and (v) applicable jurisdictional laws; (d) continuous and complete access by the EMI to its data held by the service provider in the event of a dispute with the service provider, or termination of the arrangement; (e) ability of the EMI and its external auditor44 to conduct audits and on-site inspections on the service provider and its sub-contractors, and to obtain any report or finding made in relation to the outsourced activity; (f) notification to the EMI of adverse developments that could materially affect the service provider’s ability to meet its contractual obligations; (g) measures that the service provider would take to ensure continuity of the outsourced activity in the event of an operational disruption or failure on the part of the service provider; (h) regular testing of the service provider’s BCP, including specific testing that may be required to support the EMI’s own BCP testing, and a summary of the test results to be provided to the EMI with respect to the outsourced activity; (i) the dispute resolution process in the event of default or non-performance of obligations, including remedies and indemnities where relevant; (j) circumstances that may lead to termination of the arrangement, the contractual parties’ termination rights and a minimum period to execute the termination provisions, including providing sufficient time for an orderly transfer of the outsourced activity to the EMI or another party; 44 Including an agent appointed by the EMI. Electronic Money 71 of 76 Issued on: 30 December 2022 (k) where relevant, terms governing the ability of the primary service provider to sub-contract to other parties. Sub-contracting should not dilute the ultimate accountability of the primary service provider to the EMI over the outsourcing arrangement, and the EMI must have clear visibility over all sub-contractors45. Therefore, the outsourcing agreement between the EMI and primary service provider must stipulate the following– (i) the accountability of the primary service provider over the performance and conduct of the sub-contractor in relation to the outsourcing arrangement; (ii) the rights of the EMI to terminate the outsourcing agreement in the event of excessive reliance on sub-contracting (e.g. where the sub- contracting materially increases the risks to the EMI); (iii) the requirement for the sub-contractor and its staff to be bound by confidentiality provisions even after the arrangement has ceased; and (iv) use of information shared with the service provider is limited to the extent necessary to perform the obligations under the outsourcing agreement. 45 In this respect, the primary service provider must provide sufficient notice to the EMI before entering into an agreement with the sub-contractor. Electronic Money 72 of 76 Issued on: 30 December 2022 Appendix 7 Other exit triggers For the purpose of paragraph 24.5, an EMI may take into consideration the following factors in determining the exit triggers– (a) Financial-related indicators which include but not limited to– (i) Significantly low return on equity for a continuous time period; or (ii) Significantly high cost-to-income ratio for a continuous time period. (b) Operational-related indicators which include but not limited to– (i) Prolonged and/or frequent unscheduled downtime of e-money system. (ii) Multiple successful cyber-attack incidences; or (iii) Breaches of customer information with monetary impact to customer. Electronic Money 73 of 76 Issued on: 30 December 2022 Appendix 8 Storage and transportation of sensitive data in removable media An EMI should ensure adequate controls and measures are implemented for the storage and transportation of sensitive data in removable media, including– 1. Deploying the industry-tested and accepted encryption techniques; 2. Implementing authorised access control to sensitive data (e.g. password protection, user access matrix); 3. Prohibiting unauthorised copying and reading from the media; 4. Should there be a need to transport the removable media to a different physical location, EMIs should– (a) strengthen the chain of custody process for media management which includes– (i) the media should not be under single custody at any point of time; (ii) the media should always be within sight of the designated custodians; and (iii) the media should be delivered to its target destination without unscheduled stops or detours; (b) use secure and official vehicle for transportation; and (c) use strong and tamper-proof containers for storing the media with high- security lock (e.g. dual key and combination lock); 5. Ensuring technology service providers comply with the requirements in paragraphs 1 to 4 of this Appendix, in the event outsourced services are required in undertaking the storage management or transportation process of sensitive data in removable media. Electronic Money 74 of 76 Issued on: 30 December 2022 Appendix 9 Control measures on mobile application and devices 1. An EMI should ensure digital payment services involving sensitive customer information and counterparty information offered via mobile devices are adequately secured. This includes the following– (a) ensure mobile applications run only on the supported version of operating systems and enforce the application to only operate on a secure version of operating systems which have not been compromised, jailbroken or rooted (i.e. the security patches are up-to-date); (b) design the mobile application to operate in a secure and tamper-proof environment within the mobile devices. The mobile application shall be prohibited from storing customer information and counterparty information used for authentication with the application server such as PIN and passwords. Authentication and verification of unique key and PIN shall be centralised at the host; (c) undertake proper due diligence processes to ensure the application distribution platforms used to distribute the mobile application are reputable; (d) ensure proper controls are in place to access, maintain and upload the mobile application on application distribution platforms; (e) activation of the mobile application must be subject to authentication by the EMIs; (f) ensure secure provisioning process of mobile application in the customer’s device is in place by binding the mobile application to the customer’s profile such as device ID and account number; and (g) monitor the application distribution platforms to identify and address the distribution of fake applications in a timely manner. 2. In addition to paragraph 1 of this Appendix, an EMI should also ensure the following measures are applied specifically for applications running on mobile devices used by the EMIs, appointed parties or intermediaries for the purpose of processing customer information and counterparty information– (a) mobile device to be adequately hardened and secured; (b) ensure the capability to automatically wipe data stored in the mobile devices in the event the device is reported stolen or missing; and (c) establish safeguards that ensure the security of customer information and counterparty information (e.g. Primary Account Numbers (PAN), Card Verification Value Numbers (CVV), expiry dates and Personal Identification Numbers (PIN) of payment cards), including to mitigate risks of identity theft and fraud46. 46 This includes risks associated with malwares that enable keystroke logging, PIN harvesting and other malicious forms of customer information and counterparty information downloading. Electronic Money 75 of 76 Issued on: 30 December 2022 Appendix 10 Control measures on QR code 1. Ensure QR code authenticity which among others include– (a) QR codes are securely generated by the host server, unique for each merchant/ customer/ transaction, where dynamic QR codes should have a reasonable expiry time; (b) block QR code applications from operating on unsecured (e.g. rooted or jail- broken) devices; (c) any fake QR code shall be rejected upfront and the merchant/ customer shall be automatically notified of the authenticity of the scanned QR code; and (d) bind the QR code to the respective customer or merchant ID and transaction amount. 2. Ensure QR codes do not contain any confidential data and are not stored in endpoint devices. 3. Ensure all relevant risks associated with the use of static QR codes at participating merchants are mitigated, including but not limited to the following– (a) all information from the scanned QR codes shall be transmitted to the payment instrument’s host server for authentication; (b) educate merchants on fraud risk related to static QR codes and the preventive measures to effectively mitigate such risk (e.g. merchants shall regularly inspect the displayed static QR code to ensure it has not been tampered with); and (c) enforce masking of sensitive customer information and counterparty information when displayed on mobile devices. Electronic Money 76 of 76 Issued on: 30 December 2022 Appendix 11 Control measures on cybersecurity 1. Conduct periodic review on the configuration and rules settings for all security devices. Use automated tools to review and monitor changes to configuration and rules settings. 2. Update checklists on the latest security hardening of operating systems. 3. Update security standards and protocols for web services encryption regularly. Disable support of weak ciphers and protocols in web-facing applications. 4. Ensure technology networks including mobile and wireless networks are segregated into multiple zones according to threat profile. Each zone shall be adequately protected by various security devices including firewalls and Intrusion Prevention Systems (IPS). 5. Ensure security controls for server-to-server external network connections include the following– (a) server-to-server authentication such as Public Key Infrastructure (PKI) certificate or user ID and password; (b) use of secure tunnels such as Transport Layer Security (TLS) and Virtual Private Network (VPN) IPSec; and (c) deploying staging servers with adequate perimeter defences and protection such as firewall, IPS and antivirus. 6. Ensure security controls for remote access to server include the following– (a) restrict access to only hardened and locked down end-point devices; (b) use secure tunnels such as TLS and VPN IPSec; (c) deploy “gateway” server with adequate perimeter defences and protection such as firewall, IPS and antivirus; and (d) close relevant ports immediately upon expiry of remote access. 7. Ensure overall network security controls are implemented including the following– (a) dedicated firewalls at all segments. All external-facing firewalls must be deployed on High Availability (HA) configuration and “fail-close” mode activated. Deploy different brand name/model for two firewalls located in sequence within the same network path; (b) IPS at all critical network segments with the capability to inspect and monitor encrypted network traffic; (c) web and email filtering systems such as web-proxy, spam filter and anti- spoofing controls; (d) end-point protection solution to detect and remove security threats including viruses and malicious software; (e) solution to mitigate advanced persistent threats including zero-day and signatureless malware; and (f) capture the full network packets to rebuild relevant network sessions to aid forensics in the event of incidents. 8. Synchronise and protect the Network Time Protocol (NTP) server against tampering. PART A OVERVIEW 1 Introduction 2 Applicability 3 Legal provisions 4 Effective date 5 Interpretation 6 Related legal instruments and policy documents 7 Policy documents superseded PART B GOVERNANCE 8 Governance arrangements 9 Board of directors 12 Shariah governance 13 Fit and proper PART C OPERATIONAL AND RISK MANAGEMENT REQUIREMENTS 14 Local incorporation 15 Minimum capital funds for non-bank EMI 16 Safeguarding of funds 17 Business continuity management9F 18 Outsourcing arrangement 19 Fraud risk management 20 Account management 21 White labelling 22 Other business or activity 23 Specific requirements for registered merchant acquirers 24 Exit plan 25 Winding down or cessation of e-money business 26 Prohibitions PART D INFORMATION TECHNOLOGY (IT) REQUIREMENTS23F 27 Technology risk management 28 Technology operations management 29 Cybersecurity management 30 Technology audit 31 Internal awareness and training PART E REGULATORY PROCESS 32 Approval and notification 33 Submission requirements 34 Membership in the Financial Ombudsman Scheme APPENDICES Appendix 1 Criteria for eligible EMI Appendix 2 Limited purpose e-money Appendix 3 Responsibilities of board committees Appendix 4 Computation of capital funds Appendix 5 Examples of arrangements excluded from the scope of outsourcing Appendix 6 Minimum requirements on the outsourcing agreement Appendix 7 Other exit triggers Appendix 8 Storage and transportation of sensitive data in removable media Appendix 9 Control measures on mobile application and devices Appendix 10 Control measures on QR code Appendix 11 Control measures on cybersecurity

Public Notice

28 Dis 2022

Senarai Dealer Prinsipal dan Dealer Prinsipal Islam

https://www.bnm.gov.my/-/senarai-dealer-prinsipal-dan-dealer-prinsipal-islam

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/senarai-dealer-prinsipal-dan-dealer-prinsipal-islam&languageId=ms_MY

Reading: Senarai Dealer Prinsipal dan Dealer Prinsipal Islam Share: Senarai Dealer Prinsipal dan Dealer Prinsipal Islam Tarikh Siaran: 28 Dis 2022 List of Principal Dealers and Islamic Principal Dealers for 1 January 2021 to 31 December 2022:   List of Principal Dealers AmBank (M) Berhad CIMB Bank Berhad Citibank Berhad Hong Leong Bank Berhad HSBC Bank Malaysia Berhad P. Morgan Chase Bank Berhad Malayan Banking Berhad OCBC Bank (Malaysia) Berhad Public Bank Berhad RHB Bank Berhad Standard Chartered Bank Malaysia Berhad United Overseas Bank (Malaysia) Berhad   List of Islamic Principal Dealers Affin Islamic Bank Berhad AmBank Islamic Berhad Bank Islam Malaysia Berhad CIMB Islamic Bank Berhad Hong Leong Islamic Bank Berhad Maybank Islamic Berhad RHB Islamic Bank Berhad © 2024 Bank Negara Malaysia. All rights reserved.

Public Notice

22 Dis 2022

Dokumen Dasar mengenai Pengendali Sistem Pembayaran

https://www.bnm.gov.my/-/dokumen-dasar-menenai-pengendali-sistem-pembayaran

https://www.bnm.gov.my/documents/20124/943361/FS-PSO-22122022.pdf, https://www.bnm.gov.my/documents/20124/943361/PD-PSO-22122022.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/dokumen-dasar-menenai-pengendali-sistem-pembayaran&languageId=ms_MY

Reading: Dokumen Dasar mengenai Pengendali Sistem Pembayaran Share: 3 Dokumen Dasar mengenai Pengendali Sistem Pembayaran Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1037 pada Khamis, 22 Disember 2022 22 Dis 2022 Dokumen dasar ini menetapkan keperluan dan panduan Bank Negara Malaysia (BNM) untuk pengendali sistem pembayaran (Payment System Operators, PSO). Ia terpakai kepada pengendali yang diluluskan di bawah seksyen 11 Akta Perkhidmatan Kewangan 2013 (FSA) atau seksyen 11 Akta Perkhidmatan Kewangan Islam 2013 (IFSA). Ia juga terpakai kepada pengendali sistem pembayaran yang ditetapkan di bawah seksyen 30 FSA atau seksyen 39 IFSA.  Dokumen dasar ini menggariskan keperluan kawal selia yang perlu dipenuhi oleh pengendali sistem pembayaran yang diluluskan untuk: memastikan keselamatan, kecekapan dan kebolehpercayaan sistem pembayaran; memelihara keyakinan orang ramai terhadap sistem pembayaran dan penggunaan instrumen pembayaran; dan memastikan sistem pembayaran diselaraskan dengan piawaian antarabangsa yang berkaitan, seperti Prinsip untuk Infrastruktur Pasaran Kewangan yang dikeluarkan bersama oleh Committee on Payments and Market Infrastructures dan International Organization of Securities Commissions. BNM juga telah mengeluarkan kenyataan maklum balas untuk menangani maklum balas yang diterima daripada industri semasa tempoh perundingan untuk dokumen dasar PSO. Selanjutnya: Dokumen Dasar Penyata Maklum BalasBank Negara Malaysia 22 Disember 2022 © Bank Negara Malaysia, 2022. All rights reserved.

Feedback Statement - Payment System Operator Policy 1 Response to feedback received Payment System Operator Introduction The Bank has finalised and issued the policy document on Payment System Operator (PSO PD) with the main objective of ensuring the safety, efficiency and reliability of payment systems in Malaysia. To ensure the objectives set out in the PSO PD are met and to facilitate effective implementation, the Bank had continuously engaged the industry for feedback. Based on the feedback received, the Bank had undertaken further refinements to the regulatory requirements as reflected in the final PSO PD. Further clarification on these revisions as well as the Bank’s responses on other areas raised by the industry players are set out in this document. The Bank wishes to record its appreciation to all respondents for providing valuable insights and constructive inputs that have helped the Bank in finalising this PSO PD, which will take effect immediately. Bank Negara Malaysia 22 December 2022 2 1. Demonstration of compliance 1.1 Some respondents have proposed for the policy document to recognise the operating structures and business practices of PSOs which leverage on its parent and/or foreign related entities to offer its services in Malaysia, in order to minimise compliance burden. This includes areas relating to a PSO’s governance, risk management and operations. 1.2 In the finalised PD, the Bank has acknowledged the different structures and practices of PSOs operating in Malaysia which comprise of both domestic and foreign-owned PSOs. Therefore, in meeting the requirements of the PD, the PSOs may demonstrate their compliance based on their existing group structures and practices of individual PSOs, where relevant, supported by documentary evidence1. These documentary evidence may include audit reports, assessments from home regulators, attestation of compliance and other relevant documents as may be requested by the Bank. 1.3 A PSO must ensure that such documents are verified and signed off by an authorised senior officer for submission to the Bank. 2. Business risk and credit risk Adequacy of liquid net assets funded by equity and financial resources 2.1 A few respondents have sought clarity on whether PSOs are allowed to self- determine the adequacy of liquid net assets funded by equity as well as financial resources to cover its credit exposure to each participant. They also enquired on whether the minimum amount of liquid net assets funded by equity required should be determined based on a PSO’s Malaysian operations only. 2.2 At minimum, a PSO shall maintain liquid net assets funded by equity equal to at least six months of its current operating expenses. Notwithstanding, a PSO shall also ensure that its overall adequacy of liquid net assets funded by equity is reflective of its business risk profile and is sufficient to support its operations as a going concern under normal and stressed operating conditions. 2.3 In computing the current operating expenses, it should generally be made in reference to the Malaysian operations of a PSO. In cases where the 1 For the avoidance of doubt, documentary evidence and justification shall be submitted to Jabatan Pemantauan Perkhidmatan Pembayaran (JPP) 3 calculations of operating expenses are prepared on a consolidated basis covering operations of activities outside of Malaysia as well, a PSO may justify and demonstrate its compliance to the Bank based on its existing practices. 2.4 Unlike liquid net assets funded by equity, a PSO may self-determine the sufficiency of financial resources to cover its credit exposure to each participant, based on its risk assessment on the participant. 3. Outsourcing arrangement The Bank’s power on the PSO’s outsourcing arrangement 3.1 Respondents have expressed concern on the Bank’s right to access information or documents relating to a PSO’s outsourcing arrangements. This is in view that foreign-owned PSOs typically execute their outsourcing arrangements at group/regional level and therefore, information may cover activities beyond the PSO’s Malaysian operations. 3.2 The Bank wishes to clarify that the primary objective of requiring access to information on a PSO’s outsourcing arrangement is to ensure the soundness of the PSO’s Malaysian operations. While the focus is only on outsourcing arrangements related to the PSO’s Malaysian operations, it is essential for the Bank to have access to other outsourcing arrangements that could potentially disrupt the PSO’s Malaysian operations, for effective supervision or intervention. Cognizant of the concern raised, the Bank may accept such information in the form of the PSO’s independent assessment of the outsourcing arrangements and/or information from the outsourced service provider. Payment System Operator Policy Document Issued on: 22 December 2022 BNM/RH/PD 029-54 Payment System Operator Applicable to− 1 Approved operators of payment systems 2 Operators of designated payment systems Payment System Operator Issued on: 22 December 2022 TABLE OF CONTENTS PART A OVERVIEW ............................................................................................. 1 1 Introduction ........................................................................................... 1 2 Applicability ........................................................................................... 1 3 Legal provisions .................................................................................... 1 4 Effective date ........................................................................................ 2 5 Interpretation ......................................................................................... 2 6 Related legal instruments and policy documents .................................. 5 PART B GENERAL REQUIREMENTS ................................................................. 6 7 Demonstration of compliance ................................................................ 6 8 Submission requirements ...................................................................... 6 PART C GOVERNANCE ...................................................................................... 8 9 Governance arrangement ..................................................................... 8 10 Board of directors .................................................................................. 8 11 Senior management .............................................................................. 9 12 Control functions ................................................................................. 10 PART D RISK MANAGEMENT AND OPERATIONAL REQUIREMENTS ......... 13 13 Risk management framework .............................................................. 13 14 Business risk ....................................................................................... 13 15 Liquidity risk ........................................................................................ 14 16 Credit risk ............................................................................................ 14 17 Operational risk ................................................................................... 15 18 Technology risk and information security ............................................ 16 19 Cybersecurity ...................................................................................... 18 20 Business continuity management ........................................................ 19 21 Outsourcing arrangement ................................................................... 20 22 Interlinkages ........................................................................................ 21 23 Recovery and orderly exit ................................................................... 22 24 Access and participation ..................................................................... 23 25 Efficiency ............................................................................................. 23 26 Transparency ...................................................................................... 24 Payment System Operator 1 of 24 Issued on: 22 December 2022 PART A OVERVIEW 1 Introduction 1.1 An operator of a payment system (PSO) performs the role of processing, clearing and settlement of payment transactions. It facilitates public and private entities, as well as consumers to transfer funds either directly from one account to another, or through the use of a payment instrument. In Malaysia, PSOs consist of both domestic and foreign-owned entities. While each of these entities may have unique characteristics depending on their different market segments and operational setups, all PSOs are regulated by Bank Negara Malaysia. 1.2 A well-functioning payment system is crucial for the efficient operation of the financial system as well as to support the needs of the economy as any disruptions may have broader system-wide implications. Therefore, effective oversight of the PSOs to ensure the safety and efficiency of all payment systems in Malaysia is fundamental to promote financial stability. 1.3 This policy document outlines requirements aimed to– (a) ensure the safety, efficiency and reliability of payment systems; (b) preserve public confidence in the payment systems and the use of payment instruments; and (c) ensure payment systems are aligned with relevant international standards, such as the Principles for Financial Market Infrastructures issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO). 2 Applicability 2.1 This policy document is applicable to PSO as defined in paragraph 5.2. 3 Legal provisions 3.1 The requirements in this policy document are specified pursuant to− (a) sections 33(1), 47(1) and 143 of the Financial Services Act 2013 (FSA); and (b) sections 43(1), 57(1) and 155 of the Islamic Financial Services Act 2013 (IFSA). 3.2 The guidance in this policy document is issued pursuant to section 266 of the FSA and section 277 of the IFSA. Payment System Operator 2 of 24 Issued on: 22 December 2022 4 Effective date 4.1 This policy document comes into effect on 22 December 2022. 5 Interpretation 5.1 The terms and expressions used in this policy document shall have the same meanings assigned to them in the FSA or IFSA, as the case may be, unless otherwise defined in this policy document. 5.2 For the purposes of this policy document− “S” denotes a standard, an obligation, requirement, specification, direction, condition and any interpretative, supplemental and transitional provisions that must be complied with. Non-compliance may result in enforcement action; “G” denotes guidance which may consist of statements or information intended to promote common understanding and advice or recommendations that are encouraged to be adopted; “approved operator of a payment system” refers to a person approved under section 11 of the FSA or section 11 of the IFSA to operate a payment system set out in paragraph 1 of Division 1 of Part 1 of Schedule 1 of the FSA or paragraph 1 of Part 1 of Schedule 1 of the IFSA respectively; “Bank” refers to Bank Negara Malaysia; “Board” refers to the board of directors of a PSO, including a committee of the board where responsibilities of the board as set out in this policy document have been delegated to such a committee; “business continuity management” or “BCM” refers to an enterprise-wide framework that encapsulates policies, processes and practices that ensure the continuous functioning of a PSO during an event of disruption. It also prepares the PSO to resume and restore its operations and services in a timely manner during an event of disruption, thus minimising any material impact to the PSO; “business continuity plan” or “BCP” refers to a comprehensive action plan that documents the processes, procedures, systems and resources necessary to resume and restore the operations and services of a PSO in the event of a disruption; Payment System Operator 3 of 24 Issued on: 22 December 2022 “business risk” refers to risks related to the administration and operation of the PSO as a business enterprise, which result in the potential impairment1 of the financial condition (as a business concern) of the PSO and require the losses to be charged against capital. This excludes risks relating to the default of participants or other relevant parties, such as settlement banks or other PSO; “control function” refers to a function that has a responsibility independent from business lines to provide objective assessments, reporting and assurance on the effectiveness of a PSO’s policies and operations, and its compliance with legal and regulatory obligations. This includes the risk management function, the compliance function and the internal audit function or equivalent functions that perform similar roles of risk management, compliance and internal audit, by whatever name called; “critical business functions” refer to business functions undertaken by a PSO, where the failure or discontinuance of such business functions is likely to– (a) critically impact the PSO financially or non-financially; and (b) disrupt the provision of essential services to its participants; “cyber resilience” refers to the ability of people, processes, IT systems, applications, platforms or infrastructures to withstand adverse cyber events; “cyber resilience framework” or “CRF” refers to a framework that ensures the PSO’s cyber resilience; “cyber risk” refers to threats or vulnerabilities emanating from the connectivity of internal technology infrastructure to external networks or the Internet; “direct participant” refers to a participant that has access to a PSO’s payment, clearing or settlement facilities. For avoidance of doubt, a direct participant is directly bound by all the rules and procedures established by the PSO that is made applicable to the participant; “disaster recovery plan” or “DRP” refers to a comprehensive action plan that documents the procedures and processes that are necessary to recover and restore information technology (IT) systems, applications and data of a PSO in the event of a disruption; 1 Potential impairment may result from poor execution of business strategy, ineffective response to competition, adverse reputational effects, or other business factors. Payment System Operator 4 of 24 Issued on: 22 December 2022 “essential services” refers to financial services that are essential to support the authorisation, clearing and/or settlement of payment transactions, which must continue to be provided by a PSO in the event of a disruption; “executive director” refers to a director of a PSO who has management responsibilities in the PSO; “independent director” refers to a director of a PSO who is independent in character and judgement, and free from associations or circumstances that may impair the exercise of his independent judgement; “indirect participant” refers to a participant that has a contractual relationship with another entity (at times referred to as a sponsor institution) that is a direct participant of the PSO, and therefore has access to a PSO’s payment, clearing or settlement facilities. An indirect participant may not be directly bound by certain rules and procedures established by the PSO; “maximum tolerable downtime” or “MTD” refers to the timeframe allowable for a recovery to take place before a disruption compromises the critical business functions of a PSO; “operator of a designated payment system” refers to a person who operates a payment system prescribed as a designated payment system under subsection 30(1) of the FSA or subsection 39(1) of the IFSA; “operator of a payment system” or “PSO” refers to an approved operator of a payment system and operator of a designated payment system; “outsourced service provider” refers to an internal group affiliate or external entity providing services to the PSO under an outsourcing arrangement. This could include, but is not limited to, technology-related functions or services that involve the transmission, processing, storage or handling of confidential information pertaining to the PSO; “outsourcing arrangement” refers to an arrangement in which an outsourced service provider performs an activity on behalf of the PSO on a continuing basis2, where the activity would otherwise be undertaken by the PSO3; 2 For the avoidance of doubt, an agreement which is time-bound does not preclude the activity from being considered as being performed on a continuing basis. 3 For the avoidance of doubt, system or application leveraging, data center hosting, data center operations, data storage, cloud computing services and back-up location(s) are considered as outsourcing arrangements. Payment System Operator 5 of 24 Issued on: 22 December 2022 “outsourcing risk” refers to risk emanating from outsourcing arrangements that could result in a disruption to business operations, financial loss or reputational damage to the PSO4; “recovery time objective” or “RTO” refers to the timeframe required for systems and applications of a PSO to be recovered and operationally ready to support its critical business functions after a disruption. A recovery time objective has the following two components: (a) the duration of time from the disruption to the activation of the BCP; and (b) the duration of time from the activation of the BCP to the recovery of the business operations; “senior management” refers to the Chief Executive Officer (CEO) and senior officers of the PSO; “Technology Risk Management Framework” or “TRMF” refers to a framework that safeguards the PSO’s information infrastructure, system and data; and “tiered-participation arrangement” refers to an arrangement where an indirect participant relies on the services provided by the direct participant of a PSO in order to access the PSO’s payment, clearing or settlement facilities. 6 Related legal instruments and policy documents 6.1 This policy document must be read together with other relevant 5 legal instruments and policy document that have been issued by the Bank, and any subsequent review on such documents, in particular – (a) Business Continuity Management; (b) Fit and Proper Criteria for Approved Person; (c) Interoperable Credit Transfer Framework; (d) Management of Customer Information and Permitted Disclosures; (e) Operational Risk Reporting; (f) Payment Cards Framework; and (g) Risk Management in Technology (RMiT). 4 This includes strategic risk, reputational risk, compliance risk, operational risk, exit strategy risk, counterparty risk, country risk, contractual risk, information security risk and concentration risk. 5 For the avoidance of doubt, where relevant, a PSO shall also comply with specific requirements of the Bank’s policy document on areas such as Business Continuity Management, RMiT and any subsequent enhancements to these policy documents issued thereafter. Payment System Operator 6 of 24 Issued on: 22 December 2022 PART B GENERAL REQUIREMENTS 7 Demonstration of compliance S 7.1 The requirements set out in this policy document shall apply to PSOs on an ongoing basis. G 7.2 For PSOs that leverage on its parent and/or other foreign related entities to support the offering of its services in Malaysia, the PSO may demonstrate its compliance with the requirements in the policy document based on the existing arrangements/practices adopted by the PSO. S 7.3 For purposes of paragraph 7.2, a PSO shall demonstrate its compliance with the requirements in the policy document by submitting relevant documentary evidence and justification6 to the Bank which shall be signed off by a senior officer who is authorised by the PSO for the Bank’s assessment. For the avoidance of doubt, submission of documentary evidence and justification alone does not automatically result in full compliance by the PSO. S 7.4 A PSO shall notify the Bank and submit updated documentary evidence and justification, if relevant, as and when there are material changes that affect compliance with the requirements of this policy document. S 7.5 In relation to paragraphs 7.3 and 7.4– (a) a PSO shall submit additional information and/or documentary evidence to the Bank upon request to facilitate the Bank’s review of the PSO’s demonstration of its compliance; and (b) the Bank reserves the right to review and assess whether the documentary evidence submitted by the PSO adequately fulfils the expectations of the policy document. 8 Submission requirements S 8.1 The following information7 shall be made available to the Bank upon request to facilitate the Bank’s ongoing supervisory oversight– (a) incident reports; (b) system and service availability reports; (c) audit reports8; 6 Documentary evidence may include audit reports, assessments from home regulators, attestation of compliance and any other relevant documents. 7 Subject to the Bank’s approval, a PSO may submit relevant attestation in lieu of the information requested. 8 Refer to both internal and external audit reports. Payment System Operator 7 of 24 Issued on: 22 December 2022 (d) annual audited financial statements9; and (e) any other information as may be required by the Bank. [The remainder of this page is intentionally left blank] 9 Annual audited financial statements may be prepared in accordance with accounting standards applied in the respective home jurisdiction of a PSO. Payment System Operator 8 of 24 Issued on: 22 December 2022 PART C GOVERNANCE 9 Governance arrangement S 9.1 A PSO shall establish appropriate governance arrangements which are clear and transparent. To ensure resilient and efficient operations of the payment systems that support overall financial stability and other relevant public interest considerations, governance arrangements shall include, among others, the following– (a) board of directors (the board) and senior management that consist of persons with calibre, credibility and integrity; (b) clearly defined and documented organisational and operational arrangements, such as reporting lines between management and the board, ownership, management structure and control functions; and (c) segregation of duties and internal controls to promote good corporate culture that reinforces ethical, prudent and professional behaviour, as well as reduces the chances of mismanagement and fraud. 10 Board of directors S 10.1 The board must have a board charter that sets out the mandate, responsibilities and procedures of the board and its committees (if any), including matters reserved for the board’s decision. G 10.2 Board committees10 should be established to assist the board in executing its duties and responsibilities. A board is encouraged to have, among others, a risk committee, an audit committee and a remuneration committee, or equivalents. S 10.3 The board shall have the overall responsibility for promoting the safety, efficiency and reliability of the payment system which include– (a) approving the strategic objectives, business plans and significant policies, including its risk appetite; (b) overseeing the selection, performance, remuneration and succession plans of senior management, such that the board is satisfied with the collective competence of senior management to effectively lead the operations of the PSO; (c) ensuring clear lines of responsibility and accountability are established and communicated throughout the organisation; (d) establishing and providing oversight to the risk management function and material risk decisions, which include ensuring appropriate risk 10 Board committees should be composed mainly of, and led by, non-executive or independent directors. Payment System Operator 9 of 24 Issued on: 22 December 2022 management policies, processes and infrastructure to manage the various types of risks, are in place and effectively implemented; (e) ensuring the independence and effectiveness of internal control functions (refer to detailed requirements in paragraph 12); (f) oversee and approve business continuity plans and ensure such plans are updated, particularly as and when there are material changes to the size, nature and complexity of the PSO operations that can significantly affect the said plans; (g) promote timely and effective communication between the PSO and the Bank on matters affecting or that may affect the safety, efficiency and reliability of the PSO; and (h) ensuring compliance with legal and regulatory obligations, including institution-specific supervisory requirements and expectations. S 10.4 The board shall be composed of suitable members with appropriate mix of skills, experience and knowledge to effectively carry out their responsibilities. S 10.5 The board shall include non-executive directors, including independent directors. S 10.6 The board must be able to devote sufficient time to their roles and maintain a sound understanding of the business of the PSO as well as relevant market and regulatory developments. 11 Senior management S 11.1 The senior management shall be responsible for the following– (a) implement business and risk strategies and other strategic plans, such as technology plans and the associated technology policies and procedures, in accordance with the direction given by the board; (b) establish and implement effective policies and procedures, among others, in the following areas– (i) risk management and appropriate controls to manage and monitor risks (refer to detailed requirements in paragraph 12); (ii) due diligence and oversight to manage outsourced arrangements supporting the payment system operations; and (iii) sufficient and timely reporting or escalation of issues to the Board; and (c) ensure a robust assessment is conducted on any deviations11 from legal and regulatory requirements as well as internal policies and procedures. This includes addressing any supervisory concerns and the progress of 11 For avoidance of doubt, the requirement is applicable to both internal policies and procedures as well as policy documents issued by the Bank. Payment System Operator 10 of 24 Issued on: 22 December 2022 remedial actions taken to address them, with material information to be reported to the board in a timely manner. S 11.2 The senior management shall consist of individuals with the necessary skill set, competencies and experience to adequately support the operation and risk management of the PSO. This shall include individuals with appropriate technology background to provide guidance on the PSO’s technology plans and operations. S 11.3 For the purpose of paragraph 11.2, a PSO shall ensure that a designated staff who does not engage in the day-to-day technology operations shall be responsible for the identification, assessment and mitigation of technology risks. 12 Control functions G 12.1 The board and senior management should create an environment which: (a) ensure the PSO and its officers comply with legal and regulatory requirements that are applicable; (b) adopt appropriate risk management practices; and (c) encourage ethical conduct that underlies the above-mentioned requirements. S 12.2 The board is responsible for the effectiveness of a PSO’s control functions. The board shall– (a) ensure the PSO’s overall risk profile is consistent with the business strategy and risk appetite; (b) ensure a clear, well-documented and effective risk management framework that is appropriate to the nature, scale and complexity of its activities is in place; (c) ensure the internal control functions are established and allocated with sufficient resources, and ensure that the said functions and officers are provided with appropriate stature, authority and independence; (d) ensure the internal control functions are resourced by officers who have appropriate skills and knowledge to effectively support the PSO’s internal control framework; and (e) provide relevant officers with direct and unimpeded access to the board. S 12.3 In managing the technology and cybersecurity risks, the board shall– (a) establish and approve the technology risk appetite which is aligned to the PSO’s overall risk appetite statement. The board shall approve the corresponding risk tolerance for technology-related events and ensure key performance indicators are in place to monitor the PSO’s technology risk against its approved risk tolerance; Payment System Operator 11 of 24 Issued on: 22 December 2022 (b) ensure senior management provides regular updates on the status of these indicators, key technology risks and critical technology operations to facilitate strategic decision-making; and (c) ensure the adequacy of the PSO’s IT and cybersecurity strategic plans. These plans shall address the PSO’s requirements on infrastructure, control measures to mitigate IT and cyber risk as well as financial and non- financial resource needs. The plans shall be commensurate with the complexity of the PSO’s operations and may require refinements in response to changes in the risk profile and business environment. These plans shall be periodically reviewed. G 12.4 Given the rapidly evolving cyber threat landscape, the board should allocate sufficient time to discuss cyber risks and related issues, including the strategic and reputational risks associated with such cyber-incidents. The board should ensure it is kept abreast of developments on cyber threats and cybersecurity preparedness through on-going education and training. The PSO should ensure that these efforts are also supported by engagements with external experts where relevant. S 12.5 The senior management is responsible for the effective management of a PSO’s internal control framework. In discharging its responsibility, senior management shall– (a) establish a control function commensurate with the size, nature of operations and complexity of the PSO; (b) provide sufficient resources for the control function, including officer(s) with appropriate competencies and experience; (c) report periodically to the board on compliance or risk issues and promptly on any material incidents of non-compliance; and (d) report periodically to the board on the effectiveness of the PSO’s overall management of compliance and risk management. S 12.6 The board and senior management shall ensure that the risk management and control framework is periodically reviewed for continued effectiveness. This includes ensuring an audit by an independent party is conducted with reasonable frequency to detect weaknesses and enable corrective measures to be taken in a timely manner. S 12.7 The control function must be independent of the business lines in order to carry out its role effectively. As such, a PSO must ensure that the control function is not placed in a position where there are real or potential conflicts in respect of, amongst others, scope of responsibilities, reporting lines or compensation. Payment System Operator 12 of 24 Issued on: 22 December 2022 S 12.8 The compliance function shall identify and assess the compliance risk associated with the PSO’s activities. A designated compliance officer shall report to senior management on a regular basis the findings and analyses of compliance risk. The reports must be readily available to internal audit function of the PSO, the Bank and other relevant authorities upon request. S 12.9 The internal audit function shall inform senior management, including the risk or compliance officer (or equivalent), of any incidents of non-compliance or material risks that it discovers. [The remainder of this page is intentionally left blank] Payment System Operator 13 of 24 Issued on: 22 December 2022 PART D RISK MANAGEMENT AND OPERATIONAL REQUIREMENTS 13 Risk management framework S 13.1 A PSO shall establish a risk management framework, which includes policies, procedures and systems, that enables the identification, measurement, control and continuous monitoring of all relevant and material risks, including risks that a PSO bears from and poses to its participants and other relevant parties12 as a result of interdependencies. S 13.2 In establishing the risk management framework, the PSO shall– (a) align the framework with the PSO’s risk appetite; (b) clearly assign responsibilities and accountabilities for risk decisions; and (c) ensure the framework facilitates efficient decision making in crises. S 13.3 The framework shall be periodically reviewed for continued effectiveness and be supported by a robust management information system that facilitates the timely and reliable monitoring and reporting of risks. S 13.4 A PSO shall establish risk monitoring and reporting requirements, which include periodic reporting to the board and senior management on the assessment of material risks affecting the PSO, to ensure risks are managed and mitigated in a timely manner. The reports must be readily available to the internal audit function of the PSO, the Bank and other relevant authorities upon request. 14 Business risk S 14.1 A PSO shall establish robust management and control systems to identify, monitor and manage its business risk and hold adequate liquid net assets funded by equity13 which are commensurate with its business risk profile and is sufficient to support its operations as a going concern under normal and stressed operating conditions. G 14.2 A PSO may consider using a combination of tools such as risk management and internal control assessments, scenario analysis, and sensitivity analysis to identify business risks that may affect the PSO. S 14.3 A PSO shall, at a minimum, maintain liquid net assets funded by equity equal to at least six months of current operating expenses. 12 This may include other PSOs, settlement banks, liquidity providers, and service providers. 13 This may include ordinary shares, disclosed reserves, and retained earnings. Payment System Operator 14 of 24 Issued on: 22 December 2022 G 14.4 In determining the appropriate level of liquid net assets funded by equity to be maintained internally, a PSO should consider its general business risk profile and the length of time required for a recovery or orderly exit that is appropriate to the critical business functions of the PSO in the event such action is taken. 15 Liquidity risk S 15.1 A PSO shall establish a liquidity risk management framework to effectively identify, measure, monitor and manage liquidity risks faced by the PSO, including risks from its participants and other relevant parties. S 15.2 A PSO shall measure and monitor its settlement and funding flows as well as maintain adequate liquid resources in all relevant currencies to ensure smooth settlement under normal or stressed operating conditions. G 15.3 In determining the sufficiency of liquid resources including in terms of type and amount, a PSO should regularly conduct stress testing14 which considers a range of relevant scenarios. Stress test results should be reported to the board and senior management to facilitate effective decision making on a timely basis and these results may also be used to validate the risk mitigation plans of a PSO, where relevant. S 15.4 A PSO shall establish clear rules and procedures to address any unforeseen and potentially uncovered liquidity shortfalls, including the process of replenishing liquidity resources it may employ during a stress event, in order to continue operating in a safe and sound manner. 16 Credit risk S 16.1 A PSO shall establish a credit risk management framework to effectively measure, monitor and manage its credit exposures to participants and other relevant parties15 from its payment, clearing and settlement processes as well as to maintain sufficient financial resources16 to cover its credit exposure to each participant. G 16.2 A PSO should establish adequate processes to effectively manage its credit concentration risks, including through the establishment of exposure limits which 14 A PSO may also conduct reverse stress testing or simulations to identify scenarios and/or extreme market conditions in which a PSO’s liquid resources would be insufficient. For the avoidance of doubt, reverse stress testing is derived from a known adverse outcome and deduces possible forward- looking scenarios that could lead to such an outcome materialising for a PSO. 15 Other relevant parties may include settlement banks and custodians. 16 Financial resources may include collateral and other equivalent financial resources. Payment System Operator 15 of 24 Issued on: 22 December 2022 are determined based on potential losses that can jeopardise the solvency of, or public confidence in, the PSO. G 16.3 In determining the amount and assessing the sufficiency of financial resources, a PSO should regularly conduct stress testing17 which considers a range of relevant scenarios. Stress test results should be reported to the board and senior management to facilitate effective decision making on a timely basis and the results may also be used to validate the risk mitigation plans of a PSO, where relevant. S 16.4 A PSO shall establish clear rules and procedures to address any credit losses as a result of default among its participants with respect to their obligations to the PSO. This includes the process a PSO must employ to replenish financial resources during a stress event, for it to continue operating in a safe and sound manner. S 16.5 A PSO shall establish appropriate collateral management practices which include processes and procedures to support robust and reliable valuation, adequate monitoring of the collateral’s condition and timely liquidation. G 16.6 For purposes of paragraph 16.5, a PSO may, as appropriate– (a) establish concentration limits for holdings of certain collateral, such as for collateral which are susceptible to high price volatility; and (b) regularly mark-to-market the collateral and develop appropriate haircuts that are regularly validated, taking into account stressed market conditions to ensure sufficiency of collateral in the event of liquidation. G 16.7 A PSO should be supported with a robust collateral management system to facilitate ongoing monitoring and management of collateral. 17 Operational risk S 17.1 A PSO shall establish a robust management and control systems to identify, measure, monitor and manage sources of operational risk. S 17.2 A PSO shall identify and assess the potential vulnerabilities from the operational risk it faces on an ongoing basis and ensure appropriate mitigation measures are implemented to address such risks on a timely basis. S 17.3 A PSO shall ensure sufficient resources with appropriate competencies and experience are employed to effectively manage the operational risk of a PSO, 17 A PSO may also conduct reverse stress testing or simulations to identify scenarios and/or extreme market conditions in which a PSO’s financial resources would be insufficient to cover tail risks. Payment System Operator 16 of 24 Issued on: 22 December 2022 which include operating its systems safely and efficiently during normal and stressed periods. System and service availability S 17.4 A PSO shall establish adequate controls and measures to ensure the reliability, efficiency and smooth operation of the payment system with minimal disruption and to achieve high availability of the payment system and service. S 17.5 For purposes of paragraph 17.4, the PSO shall define the service level objectives and set minimum service-level targets for the operation of the payment system. S 17.6 A PSO shall ensure that the payment system has adequate capability and capacity to effectively manage its operations at all times including under stressed scenarios18. S 17.7 A PSO shall regularly monitor and test the actual capacity and performance of the payment system19, as well as, plan for changes in volume or business patterns. The PSO shall also regularly conduct stress testing to verify whether the payment system can handle huge volumes of transactions under extreme circumstances. G 17.8 In conducting stress testing as specified under paragraph 17.7, a PSO should ensure at minimum, the following– (a) detailed approach and methodology of stress testing scenarios are adequately established and tested to ensure comprehensive coverage; (b) participants’ involvement in stress testing to identify weak system linkages and bottlenecks; and (c) stress testing results are reviewed and updated as and when is required to ensure continued relevance and effectiveness of approach and scenarios. 18 Technology risk and information security S 18.1 A PSO shall establish a technology risk management framework, to safeguard the PSO’s information infrastructure, systems and data, which shall be an integral part of the PSO’s risk management framework. 18 E.g. high volume or erratic transaction, and prolonged disruption. 19 For the avoidance of doubt, this should include monitoring and testing of the backup or recovery system, to ensure that the system is able to resume operations in the event of main system outage. Payment System Operator 17 of 24 Issued on: 22 December 2022 S 18.2 A PSO shall ensure confidentiality, integrity and availability of information held within the payment system by putting in place adequate controls to safeguard the information20 and retention of all information including sensitive data. S 18.3 In relation to paragraph 18.2, the PSO shall also ensure their relevant stakeholders, including outsourcing service providers, put in place appropriate controls to safeguard the confidentiality, integrity and availability of sensitive data. G 18.4 In ensuring the confidentiality, integrity and availability of information held within internal systems, the PSO should undertake the following– (a) develop a comprehensive data management framework that includes collection, identification, classification, handling, retention and disposal of data; (b) ensure there is sufficient back-up mechanism in place to facilitate access to all data and information, including critical data and information at all times; (c) ensure that information maintained in the system are not disclosed or accessible to any unauthorised users or third parties, and any changes or revision to the data and the system can only be made with proper authorisation; (d) ensure that there are sufficient controls put in place to minimise human error, mishandling or any other potential gaps; (e) conduct an IT risk assessment and identify appropriate mitigation measures to address risks identified through this assessment. The scope of the assessment should include but is not limited to the risk assessment on data security, business continuity management and fraud management; (f) conduct periodic review on the configuration and rules settings for all security devices. Automated tools shall be used to review and monitor changes to the configuration and rules settings; (g) perform regular vulnerability assessments and penetration tests on the infrastructure and technology ecosystem and ensure any material findings identified in such testing are rectified prior to operationalisation; (h) implement a fraud detection system to monitor suspicious or fraudulent transactions; and (i) implement an appropriate intruder detection and prevention system to monitor, detect and prevent any abnormal or suspicious network traffic within the PSO’s internal network. G 18.5 As part of effective management of sensitive data, the PSO may implement the following– 20 From data input into real-time backup. Payment System Operator 18 of 24 Issued on: 22 December 2022 (a) conduct periodic review of privileged users21 and the access rights given; (b) ensure technology networks are segregated into multiple zones according to their risk profile; (c) implement multi-layer network security and devices; (d) implement end-to-end encryption for external communication; (e) ensure protection of important data and information in use, in storage and in transit by adopting industry standards for encryption algorithms, message authentication, hash functions, digital signatures and random number generation; (f) establish proper controls to limit risk of potential data leakage; (g) establish audit trail capabilities; and (h) practise timely security patches for operating systems and application systems. 19 Cybersecurity S 19.1 A PSO shall develop a CRF which articulates the PSO’s governance for managing cyber risks, its cyber resilience objectives and risk tolerance, with due regard to the evolving cyber threat environment. Objectives of the CRF include ensuring operational resilience against extreme but plausible cyber-attacks. G 19.2 As part of the CRF specified under paragraph 19.1 and in ensuring proper cybersecurity controls are in place, a PSO should undertake the following: (a) actively manage software and hardware inventories and ensure updated records are adequately maintained; (b) adopt an appropriate access control policy including explicitly verifying user access by adopting the principles of least privilege22 and separation of duties for staff, outsourced service providers, as well as related parties in outsourcing arrangements and related counterparties; (c) ensure critical systems, applications and data are backed up and protected from deliberate erasure or encryption; (d) ensure micro segmentation of networks based on criticality and risk profile of assets; (e) perform continuous and integrated security monitoring of IT infrastructure (network, systems and endpoints) including effective collection, analysis and retention of audit logs; (f) adopt multi-factor authentication for all access; (g) perform regular vulnerability assessment and rapid patching of critical vulnerabilities; 21 Including outsourced service providers. 22 This refers to having access on a ‘need-to-have’ basis where only the bare minimum permissions are granted to legitimate users so that they can effectively perform their roles. Payment System Operator 19 of 24 Issued on: 22 December 2022 (h) establish and periodically test incident response programs to prepare, detect and rapidly respond to cyber-attacks; (i) periodically test the effectiveness and resiliency of IT systems and networks by adopting intelligence-led penetration testing; (j) strengthen security configurations by minimising security misconfigurations and avoiding use of default security settings of software and hardware – include periodic security reviews and whenever material changes are made to IT systems/networks; (k) implement the use of endpoint malware defence tools including rapid detection and response; and (l) provide adequate and regular technology and cybersecurity awareness training programmes that reflect current cyber threats for all staff, including the board. 20 Business continuity management S 20.1 A PSO shall ensure an effective and comprehensive BCP and DRP for all critical business functions to ensure continuity and timely recovery of operations in the event of contingencies. G 20.2 In relation to paragraph 20.1, the PSO should ensure the following: (a) detailed contingency plans are established for a variety of plausible scenarios 23 and fully operational back-up arrangements for critical communication and IT systems, crucial data and key personnel are in place; (b) ensure the PSO, its participants, outsourced service providers and other relevant counterparties24 have effective BCP and DRP which are regularly tested and cover appropriate test scenarios, to ensure their reliability and effectiveness of the recovery strategies and procedures; and (c) the BCP and DRP are reviewed and updated on a regular basis to ensure its continued relevancy and effectiveness. S 20.3 A PSO shall determine the MTD and RTO for all critical business functions. S 20.4 A PSO shall conduct an independent assessment on the adequacy and effectiveness of its BCM framework, policies and procedures including the testing of BCP and DRP. 23 For the avoidance of doubt, this should include extreme plausible scenarios such as all systems down. 24 E.g. onshore settlement institution or cross-border links. Payment System Operator 20 of 24 Issued on: 22 December 2022 S 20.5 A PSO shall ensure adequate organisational understanding and training on BCM such that all levels of staff are well equipped to effectively perform their roles. 21 Outsourcing arrangement S 21.1 A PSO shall remain responsible and accountable for any services performed by an outsourced service provider. G 21.2 A PSO should conduct appropriate due diligence of the outsourced service provider, at the point of considering new service-level arrangements (SLA), and when renewing or renegotiating existing SLAs. S 21.3 A PSO shall identify and have an in-depth understanding of potential risks25 arising from the SLA. The scope and nature of services and operations to be performed by the outsourced service provider should not compromise the risk management and internal controls of the PSO. S 21.4 In relation to the requirement specified in paragraph 21.3, the PSO shall ensure that the SLA are established in a manner which do not affect– (a) the PSO’s ability to effectively monitor the outsourced service provider and execute its BCP; (b) the PSO’s ability to promptly recover data in the event of the outsourced service provider’s failure that would critically impact or disrupt the PSO’s Malaysian operations, having due regard to the laws of the particular jurisdiction in the case where the outsourced service provider is located in a different jurisdiction from the PSO; and (c) the Bank’s ability to exercise its regulatory or supervisory powers, in particular the Bank’s timely and unrestricted access to systems, information or documents from the PSO relating to the outsourced service provider arrangement in the event that such service would critically impact or disrupt the PSO’s Malaysian operations. G 21.5 A PSO should exercise effective oversight on the outsourced service provider, as would have been the case if they were performed in-house which includes the following– (a) conduct regular review and monitoring of contracts and SLAs with the outsourced service provider to ensure the integrity and quality of work conducted by the outsourced service provider is maintained; (b) ensure effective controls are in place to safeguard the confidentiality, integrity and availability of any information shared with the outsourced 25 Including operational, financial and IT related risk. Payment System Operator 21 of 24 Issued on: 22 December 2022 service provider including proper escalation and resolution in handling disputes or complaints raised by the relevant stakeholders; (c) ensure the storage of its data is at least logically segregated from the other clients of the outsourced service provider with appropriate controls and periodic review of user access; (d) ensure data residing in the outsourced service provider are recoverable in a timely manner; (e) ensure clearly defined arrangements with the outsourced service provider are in place to facilitate the PSO’s immediate notification and timely update to the Bank and other relevant authorities in the event of a cyber-incident; and (f) ensure proper communication procedures and processes are in place where the participants or related stakeholders clearly understand the roles and responsibilities of the outsourced service provider to enable them to adequately manage their risks related to using their services. S 21.6 A PSO shall ensure any critical systems hosted by the outsourced service provider have strong recovery and resumption capabilities, and can facilitate an orderly exit in the event of failure or unsatisfactory performance by such provider. S 21.7 A PSO shall have a contingency plan or arrangements to secure business continuity in the event the arrangement with the outsourced service provider is suddenly terminated or fails to provide necessary support26. The contingency plan shall be periodically reviewed to ensure that the plan is current and remains appropriate for timely implementation. G 21.8 For outsourcing involving cloud services, the PSO may rely on third party certification and reports made available by the cloud service provider for the audit27, provided such reliance is supported by an adequate understanding and review of the scope of the audit and methods employed by the third party, and timely access to the third party and service provider to clarify matters relating to the audit. 22 Interlinkages S 22.1 For the purposes of paragraphs 22.2 and 22.3, the requirements shall be applicable to a PSO that establishes a link arrangement with other counterparties28. 26 Including insolvency or lack of resources issue. 27 For the avoidance of doubt, such certifications or reports should not substitute the PSO’s right to conduct on-site inspections where necessary. 28 E.g. Cross-border links with another payment system, either directly or through intermediaries. Payment System Operator 22 of 24 Issued on: 22 December 2022 S 22.2 A PSO shall conduct appropriate due diligence and assessment on the potential risks that could arise from the link arrangement prior to entering into an arrangement with other counterparties. This shall include the risks associated with the different legal requirements in the case where the counterparties are located in different jurisdictions from the PSO. S 22.3 A PSO shall ensure that its agreement with the counterparties clearly indicates the rights and responsibilities of each party, which at minimum, shall include the following– (a) safeguarding the confidentiality, integrity and availability of any information shared; (b) ensure appropriate controls for all established interlinkages to external systems; (c) ensure appropriate controls are in place to ensure the reliability, efficiency and smooth operation of the interlinkages system with minimal disruption and to achieve system and service high availability; (d) proper escalation and resolution in handling disputes or complaints raised by the relevant stakeholders; (e) ensure any enhancements or changes associated with the link arrangements do not pose significant operational risk to the other counterparties; and (f) ensure clearly defined arrangements with the counterparties are in place to facilitate the PSO’s ability to immediately notify and provide timely updates to the Bank and other relevant regulatory bodies in the event of a cyber-incident. 23 Recovery and orderly exit S 23.1 A PSO shall continuously identify plausible scenarios that may prevent its ability to provide its critical operations and services as a going concern or in the event a PSO exits29 the market and assess the effectiveness of options for recovery or orderly exit under these scenarios. S 23.2 A PSO shall establish appropriate plans for its recovery or orderly exit, including its communication strategy with the Bank and other relevant stakeholders to mitigate any unintended consequences. The plans shall be periodically reviewed and updated, where necessary, to ensure it remains relevant. 29 A PSO may exit the market either by (i) revocation of approval to operate in Malaysia by the Bank; or (ii) voluntary exit of a PSO from the market. Payment System Operator 23 of 24 Issued on: 22 December 2022 24 Access and participation S 24.1 A PSO shall establish fair and open access criteria for participants of its payment system that are objective, transparent and risk-based to commensurate with the risk profile of the participants. G 24.2 For purposes of paragraph 24.1, the PSO may set reasonable risk-related participation requirements to mitigate potential risks posed by the participants to the payment system. S 24.3 For tiered-participation arrangements, the PSO shall ensure the following: (a) establish rules, procedures and arrangements with the direct participants to enable the PSO to obtain information on indirect participants for the purpose of risk identification and monitoring; (b) identify the significant dependencies between direct and indirect participants that may adversely affect30 the PSO; and (c) regularly review the risks associated with the tiered-participation arrangements and institute appropriate mitigating measures. S 24.4 A PSO shall put in place measures to monitor the compliance of its participants with the participation requirements on an ongoing basis. S 24.5 A PSO shall clearly outline and disclose the procedures on the suspension or orderly exit of a participant in the event its participant has breached or is no longer able to meet the participation requirements. 25 Efficiency S 25.1 A PSO shall ensure the payment system offered meets the needs of its participants and the market it serves, with respect to, among others, clearing and settlement arrangements, operating structure31, and the use of technology and communication procedures. G 25.2 In meeting the requirement specified in paragraph 25.1, the PSO is advised to consider relevant factors such as the practicality and cost structure for its participants and other relevant stakeholders. G 25.3 In addition to paragraph 25.2, a PSO is encouraged to put in place a mechanism to facilitate continuous engagement with its participants and other relevant 30 For example, exposures that could arise from credit risk and liquidity risk. 31 For example, where the PSO is involved in cross-border links or outsourced arrangements with service providers. Payment System Operator 24 of 24 Issued on: 22 December 2022 stakeholders to receive feedback such that the PSO continues to meet the needs of its participants and the market. S 25.4 For the purposes of paragraph 25.1, a PSO shall establish a clearly defined, measurable and achievable efficiency objective32 to ensure it remains effective in the manner that the PSO operates. S 25.5 A PSO shall regularly review the progress against its targeted objectives to ensure the efficiency and effectiveness of its payment system. 26 Transparency S 26.1 A PSO shall ensure that the established rules and procedures for its participants are clear, comprehensive, up-to-date and fully disclosed to its participants. S 26.2 A PSO shall ensure the processes for proposing and implementing changes to its rules and procedures as well as the communication of these changes to its participants and relevant authorities are clear and fully disclosed. G 26.3 A PSO is encouraged to provide participants with all relevant documentation, training and information, including the risks that participants may face from participating in the payment system to facilitate their understanding on the rules and procedures. S 26.4 A PSO shall disclose its fees and relevant information to its participants, including prospective participants, to allow participants to assess the total cost of participating in the payment system and/or the services offered by the PSO. S 26.5 A PSO shall ensure that it provides sufficient advance notice to its participants of any changes to the fees made. 32 For example, in the areas of minimum service level targets, risk management expectations and business priorities.

Public Notice

16 Dis 2022

Jawatankuasa Bersama Mengenai Perubahan Iklim (JC3) terbitkan Katalog Data Iklim berserta Laporan

https://www.bnm.gov.my/-/jc3-terbitkan-katalog-data-iklim-berserta-laporan

https://www.bnm.gov.my/documents/20124/3770663/JC3-Report-on-Climate-Data-2022.pdf

https://www.bnm.gov.my/c/portal/update_language?p_l_id=182&redirect=/-/jc3-terbitkan-katalog-data-iklim-berserta-laporan&languageId=ms_MY

Reading: Jawatankuasa Bersama Mengenai Perubahan Iklim (JC3) terbitkan Katalog Data Iklim berserta Laporan Share: 18 Jawatankuasa Bersama Mengenai Perubahan Iklim (JC3) terbitkan Katalog Data Iklim berserta Laporan Embargo : Untuk siaran segera Tidak boleh disiarkan atau dicetak sebelum jam 1500 pada Jumaat, 16 Disember 2022 16 Dis 2022 Jawatankuasa Bersama Mengenai Perubahan Iklim (Joint Committee on Climate Change, JC3) hari ini menerbitkan Katalog Data Iklim (“katalog data”) berserta laporan iringan yang meringkaskan dapatan utama katalog data dan menggariskan saranan untuk menangani jurang data. Katalog data ini mengandungi data mustahak yang diperlukan oleh sektor kewangan bagi menyokong kes penggunaan yang telah dikenal pasti serta termasuk data yang tersedia, data yang sebahagiannya tersedia dan data yang belum ada, serta pemerhatian berhubung dengan jurang data. Katalog data ini dibangunkan untuk menjadi sumber rujukan dan panduan mengenai data tentang iklim dan alam sekitar untuk sektor kewangan serta berfungsi sebagai seruan untuk bertindak kepada pihak berkepentingan untuk menambah baik ketersediaan dan akses kepada data iklim secara kolektif. Versi PDF katalog data ini dilampirkan dalam laporan, manakala kandungan yang sama disediakan dalam format Excel bagi memudahkan penyaringan dan pencarian data. Laporan Katalog Data Iklim dan Saranan (PDF) Katalog Data Iklim (Laman web JC3, 2023) Pada masa hadapan, JC3 akan menggiatkan usaha untuk bekerjasama dengan pihak berkepentingan yang berkaitan bagi menangani jurang data. Bidang yang menjadi tumpuan utama pada tahun 2023 adalah untuk bekerjasama dengan penyedia data bagi meningkatkan ketersediaan dan akses kepada beberapa item data yang menjadi keutamaan.   Bank Negara Malaysia Suruhanjaya Sekuriti Malaysia 16 Disember 2022 Mengenai JC3 JC3 merupakan platform yang ditubuhkan pada bulan September 2019 untuk melaksanakan tindakan kerjasama bagi membangunkan daya tahan iklim dalam sektor kewangan Malaysia. JC3 dipengerusikan bersama oleh Datuk Jessica Chew Cheng Lian, Timbalan Gabenor Bank Negara Malaysia dan Datuk Zainal Izlan Zainal Abidin, Timbalan Ketua Eksekutif Suruhanjaya Sekuriti Malaysia dengan ahli-ahli yang terdiri daripada pegawai kanan Bursa Malaysia dan 21 peserta industri kewangan. Inisiatif dan keutamaan JC3 di bawah tanggungjawab lima jawatankuasa kecilnya, iaitu Pengurusan Risiko; Tadbir Urus dan Penzahiran; Produk dan Inovasi; Penglibatan dan Pembinaan Keupayaan serta Menangani Jurang Data. Ahli-ahli: Allianz General Insurance Company (Malaysia) Berhad, AmBank (M) Berhad, Bank Islam Malaysia Berhad, Bank Pembangunan Malaysia Berhad, Bank Pertanian Malaysia Berhad (Agrobank), BIMB Investment Management Berhad, BNP Paribas Asset Management Sdn. Bhd., Bursa Malaysia Berhad, CIMB Bank Berhad, Etiqa Family Takaful Berhad, HSBC Amanah Malaysia Berhad, Kenanga Investors Berhad, Maybank Berhad, MIDF Amanah Investment Bank Berhad, MSIG Insurance (Malaysia) Berhad, RHB Islamic Bank Berhad, RHB Islamic International Asset Management Bhd., Standard Chartered Bank Malaysia Berhad, Swiss Re Asia Pte. Ltd. (Swiss Retakaful), Syarikat Takaful Malaysia Am Berhad, UOB Asset Management (Malaysia) Berhad dan Zurich General Insurance Malaysia Berhad Bank Negara Malaysia 16 Disember 2022 © Bank Negara Malaysia, 2022. All rights reserved.

JC3 Report on Climate Data Catalogue: Key Findings and Recommendations to Bridge Data Gaps 7 Report on Climate Data Catalogue Key Findings and Recommendations to Bridge Data Gaps December 2022 Preamble 3 Executive Summary 4 1. Introduction 6 1.1 Climate and environmental data landscape 6 1.2 Data Catalogue: A stocktake on the availability of data required by the financial sector 7 2. A Stocktake of Malaysian Financial Sector’s Climate and Environmental Data Needs 8 2.1 Methodology 8 2.2 Use cases and stocktaking exercise on data needs 9 2.3 Prioritisation of data needs 10 3. The Data Catalogue – Key Findings and Future Plan 12 3.1 Data Catalogue results 12 3.2 Data Catalogue findings on data needs, availability, and gaps 16 3.3 Data Catalogue maintenance and future plan 16 4. Data Challenges and Recommendations 18 4.1 Data challenges 18 4.2 Recommendations 22 5. Future Plans 28 Acknowledgements 29 List of Acronyms 30 List of Diagrams 32 Appendix: Climate Data Catalogue 33 Contents Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 3 Climate change poses unprecedented challenges and opportunities for the financial sector, particularly in integrating climate considerations in business strategies, operations, and risk management. The availability of good quality climate data is therefore absolutely critical for the financial sector to enable it to track its progress in supporting an orderly transition to a low-carbon and sustainable economy. This is in line with the nation’s commitment to achieve net zero as early as 2050. Currently, the lack of quality and easily accessible climate-related data is one of the key factors that has hampered efforts by the financial sector to manage climate-related risks and support decarbonisation. In response to this, the Joint Committee on Climate Change (JC3) – the focal point for collective climate actions in the financial sector – established the Sub-Committee on Bridging Data Gaps (the Sub-Committee) in July 2021. This Sub-Committee was tasked to identify crucial climate data needed by the financial sector, determine the availability of credible data sources and subsequently the prevailing data gaps. Upon identifying these gaps, the Sub-Committee was then tasked to explore potential solutions and recommendations to address them. In delivering its mandate, the Sub-Committee has compiled a Data Catalogue (DC). The DC identifies available climate data sources to support various use cases by the financial sector, similar to the approach by the Network for Greening the Financial System (NGFS) for its Directory.1 The DC focuses on Malaysian climate and environmental data, thus complementing the NGFS Directory which is more global in nature. The content can also benefit a wider audience, such as members of the public to obtain information on data availability and sources. In the first iteration, the DC is compiled from known data sources. The data and sources in the DC are not exhaustive as of this point. As such, users are advised to undertake their own assessments to establish the relevance of the data for their use cases. While the DC currently focuses on the needs of the financial sector, it is envisioned that the DC will pave the way for the setting up of potentially a national-level climate DC, as part of the broader data ecosystem in the future to support the nation’s climate aspiration. Preamble 1 NGFS, “The NGFS Directory”. The NGFS Directory (masdkp.io) http://ngfs.dev.masdkp.io/glossary Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps4 Executive Summary Malaysia’s financial sector in recent years has stepped up its response to address the urgent and existential threats posed by climate and environment-related risks. This involves alignment of efforts toward global climate accords and the Sustainable Development Goals (SDG). The strategies and action plans on climate adaptation and mitigation need to be supported by a good information architecture, which consists of three building blocks: development of well-defined metrics and standards; a harmonised and consistent set of climate disclosure standards; and an established taxonomy.2 Towards this end, the Sub-Committee has compiled a DC that contains relevant and critical data needed by the financial sector to support pre-identified use cases based on engagements with members of JC3. The approach is modelled after NGFS’ systematic process and protocols to identify data needs of various stakeholder groups for applicable use cases in the NGFS Directory.3 This is followed by identification of metric types and data items required to support the use cases and metric types. Specifically, the DC encompasses: • 5 main stakeholder groups within the financial sector i.e. regulators, banking institutions, insurers and takaful operators, asset managers, and pension funds. • 8 use cases, i.e. climate disclosure, exposure quantification, financial stability monitoring, investment and lending decisions, macro-economic modelling, scenario analysis, stress testing and product development. • 6 metrics types, i.e. footprint, transition sensitivity, physical vulnerability, alignment, mobilisation, and combined metrics. • 82 data items, with Top 8 data groups comprising greenhouse gas (GHG) emissions and forward-looking targets, green/sustainable lending/financing, non-renewable and renewable energy, exposure to physical risks, asset value-at-risk (VaR) arising from natural catastrophes, Environmental, Social and Governance (ESG) score/rating, water consumption and waste management, and biodiversity and forestry indicators. The DC will serve as a source of reference on climate and environmental data for the financial sector. It includes data that are readily available, partially available and unavailable as well as observations on data gaps. Our research and engagement with data providers revealed that 49% of data items are available. Of the 49% of data items, only 18% are currently readily available. The remaining available data items suffer from gaps such as lack of granularity or accessibility. The latter either requires manual effort for data extraction or the data is proprietary in nature, hence requiring subscription. The remaining data items are not published due to confidentiality restrictions (11%) or not available (40%). In the course of compiling the DC, the Sub-Committee has sought technical assistance from the World Bank to improve the comprehensiveness, relevance and organisation of its content. 2 NGFS, “Final report on bridging data gaps”, July 2022. https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf 3 NGFS, “The NGFS Directory”. The NGFS Directory (masdkp.io) https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf http://ngfs.dev.masdkp.io/glossary Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 5 The DC is currently owned and maintained by the JC3 in its role to address the data needs of the financial sector. JC3 will establish the appropriate framework and mechanisms to maintain and update the DC to reflect the latest data needs or disclosure requirements in line with global and domestic developments and standards. While the first publication of the DC is in Microsoft Excel and PDF formats, JC3 will explore ways to improve the DC to improve user experience for data search and navigation. Although the DC currently focuses on the needs of the financial sector, it is envisioned that it can pave the way for the setting up of a national-level climate DC. This may be driven by the relevant government agencies, given their authority and specialised competency to compile and publish climate-related datasets serving the needs of all sectors. Readily available and reliable climate-related data is important for the financial sector to manage climate and environmental-related risks and provide green finance solutions. In compiling the DC, it is observed that the key data providers comprise mainly the public sector (e.g. government ministries and agencies), followed by private sector (e.g. financial institutions, corporations, Small and Medium Enterprises (SMEs) and private data providers). Due to these public-private interlinkages, there is a need for greater coordinated efforts between both sectors to address the identified data gaps and create a more open and extensive climate data ecosystem. Such public-private cooperation could take the form of joint data collection or facilitation of data access and sharing across the public and private sectors. The identification of sources for critical climate data through the DC exercise has led to the discovery of several critical data gaps. Factors contributing to these gaps in public sector data include methodological differences, legal impediments and decentralised data compilation and publication. For the private sector, the main challenges are lack of capacity and motivation to collect and disclose climate data, particularly among the SMEs. Addressing these challenges will be important to collectively bridge identified data gaps. One recommendation is to implement common definitions and methodologies for key climate data, which will improve data consistency and comparability at the national level. Following this, alignment of new disclosure requirements to established frameworks and standards will also facilitate comparability at the national and international level. Disclosures can also be expedited to bridge data gaps through shifts to open data and the review of current data confidentiality restrictions. Enhancing capacity building to improve awareness, understanding and use of climate data disclosures are also needed. The barrier to disclosure can be further lowered by establishing an industry-led platform that facilitates efficient climate data disclosure by companies, particularly the SMEs. Technology, existing data sources, and methodologies can be better leveraged to enhance the availability and quality of climate data. This could be achieved by utilising global and open-source platforms, along with making better use of new technologies and Application Programming Interfaces (APIs). Stakeholders in the climate data ecosystem may also consider using cutting- edge technologies, including machine learning and artificial intelligence, satellite imagery as well as statistical gap-filling approaches to bridge climate data gaps. These findings underscore the importance of ongoing collaborations between the public and private sector actors in the climate data ecosystem to prioritise, plan for and ultimately close key data gaps, as part of a whole-of-nation strategy to support Malaysia’s orderly transition to a low carbon economy. Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps6 1.1 Climate and environmental data landscape Climate change and environmental degradation are expected to have significant impact on the economic and financial landscape.4 The risks present themselves in the form of: • Physical risks from extreme climate events; • Transition risks due to changes in climate policies, shifts in consumer and investor preferences, regulatory pressures as well as technological advancements; and • Liability risks such as legal action and liability cost for failures to address climate-related and environmental risks. Nonetheless, the transition to a low carbon economy also creates opportunities for efficiency, innovation, and growth. Over the past few years, Malaysia’s financial sector has stepped up its response to address the urgent and existential threat posed by climate and environment-related risks, while aligning their strategies to support the Nationally Determined Contributions (NDCs) and SDG commitments. Formulating strategies and action plans on climate adaptation and mitigation require high-quality, reliable and comparable climate-related data. This is supported by good information architecture consisting of three building blocks: development of well-defined metrics and standards; a harmonised and consistent set of climate disclosure standards; and a broadly agreed upon taxonomy.5 However, based on survey findings from the JC3 Report on the Sustainable Finance Landscape in Malaysia,6 96% of Malaysia’s financial sector have cited poor data quality or availability as one of the key challenges in driving their sustainability agendas. At present, there are wide-ranging climate and environmental data available from the public sector, including environment statistics and SDG indicators by Department of Statistics Malaysia (DOSM) and Malaysian Administrative Modernisation and Management Planning Unit (MAMPU)’s Open Data Platform. The National Data Sharing Policy (NDSP) that will be introduced by the Government will foster a more conducive data sharing ecosystem. At the financial sector level, the implementation of the Climate Change and Principle- based Taxonomy (CCPT), Task Force on Climate-related Financial Disclosures (TCFD) Application Guide for Malaysian Financial Institutions and Principles-Based Sustainable and Responsible Investment Taxonomy for the Malaysian Capital Market (SRI Taxonomy) by Bank Negara Malaysia (BNM) and Securities Commission (SC) are pivotal to better promote availability, quality, and comparability of climate data. 4 Bank Negara Malaysia, “Financial Sector Blueprint 2022-2026”, January 2022 on Strategic Thrust 4, page 90. 5 NGFS, “Final report on bridging data gaps”, July 2022. https://www.ngfs.net/sites/default/files/medias/documents/final_ report_on_bridging_data_gaps.pdf 6 Joint Committee on Climate Change (JC3), “Report on the Sustainable Finance Landscape in Malaysia”, April 2022 on ‘Challenges in sustainable finance’, page 10. 1. Introduction https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 7 Regulators are also driving the effort to improve climate data availability. For example, BNM pledged its commitment to improve availability, access, and use of data for tackling climate change and environmental degradation7 in its Financial Sector Blueprint 2022-2026. This could be achieved by the application of advanced digital tools and collaboration with government agencies, academic institutes, technology firms and other relevant players to identify critical data needs and facilitate open access to relevant data sources. Similarly, SC’s Capital Market Masterplan 3 (CMP3) and Sustainable and Responsible Investment Roadmap for the Malaysian Capital Market (SRI Roadmap) include strategies to promote greater alignment towards TCFD recommendations for climate disclosures by corporations and capital market intermediaries in Malaysia,8 as well as development of platforms to provide SRI data9 to investors in the years to come. These initiatives encourage disclosures of more granular, reliable and comparable data which are vital for sustainable investment opportunities moving forward. In addition to the conventional approach to make data more available, the financial sector can also leverage big data or data analytics approaches and technologies (e.g. open API) to better optimise the use of data for their climate transition needs. 1.2 Data Catalogue: A stocktake on the availability of data required by the financial sector The DC is aimed to be a source of reference for climate and environmental data relevant to use cases in the financial sector. It includes data that are readily available, partially available, and unavailable as well as observations on data gaps. These observations will promote broader awareness on the missing pieces and serve as a call to action for data providers to improve the availability and accessibility of data. The DC is compiled by the Sub-Committee on Bridging Data Gaps established under JC3, based on data needs of the financial sector and data sources at the time of publication. Given that the compilation is based on the collective contribution by the members of the JC3 and its sub-committees and compiled on a best effort basis, the information is neither exhaustive, nor do they reflect latest, new data sources that may emerge in between updates to the DC. Users would then need to make their own assessments of the information that best meet their needs. 7 Bank Negara Malaysia, “Financial Sector Blueprint 2022-2026”, January 2022 on ‘Improving accessibility to public data’, page 73. 8 Securities Commissions, “Capital Market Masterplan 2021”, September 2021 on Section 3.3.1.B, page 72. 9 Securities Commissions, “SRI Roadmap 2019”, November 2019 on ‘5i-Strategy’, page 13. Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps8 2.1 Methodology The Sub-Committee has adopted NGFS’ user-centric data need identification approach,10 whereby stakeholders will identify the applicable use cases, followed by metric types and eventually data items (Diagram 1). The mapping exercise is captured in a standardised template or DC. The DC contains data items, characteristics, information on availability and sources as well as observations on data gaps. This exercise also involves prioritisation of the data needs, based on the criticality of the data item (i.e. assessed as a “must-have”) and number of times that the data item is profiled. This will help focus greater efforts toward bridging data gaps for the top priority data items. 10 NGFS, “Progress report on bridging data gaps”, May 2021 on ‘A repository of data needs’, page 5. 2. A Stocktake of Malaysian Financial Sector’s Climate and Environmental Data Needs 1. Regulators (e.g. central bank) 2. Banking institutions 3. Insurers and takaful operators 4. Asset managers 5. Pension funds 1. Exposure quantification 2. Investment and lending decisions 3. Macroeconomic modelling 4. Financial stability monitoring 5. Climate-related disclosures 6. Scenario analysis 7. Stress testing 8. Product development 1. Footprint 2. Transition sensitivity 3. Physical vulnerability 4. Alignment 5. Mobilisation (i.e. scaling up green finance) 6. Combined metrics • 143 granular data items by various dimensions (equivalent to 82 unique data items) have been identified by members of JC3. Some data items may serve more than one stakeholder and use case. • 103 granular data items (55 unique data items) are prioritised* and categorised into the Top 8 data groups: a) GHG emissions and forward-looking targets b) Green/Sustainable lending/financing and bonds/Sukuk investments c) Non-renewable & renewable energy d) Exposure to physical risks e) Asset VaR f) ESG score/rating g) Water consumption and waste management h) Biodiversity and forestry indicators * Prioritisation of the data item is based on the following criteria: a) profiled as a ‘must have’ data item b) the number of times that the data item is being profiled (across stakeholders and use cases) Stakeholders Use Cases Metric Types Key Results Diagram 1: Identification Process of Climate-related Data Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 9 2.2 Use cases and stocktaking exercise on data needs Establishment of the Use Cases The Sub-Committee has identified eight use cases, as listed in Diagram 2. This is derived from the use cases established by NGFS11 as well as engagements with five main stakeholder groups within the financial sector i.e. regulators such as BNM, SC and Bursa Malaysia; banking institutions, insurers and takaful operators, asset managers, and pension and provident funds. When compared to the NGFS’ use cases, product development is an additional use case, considering the pivotal role of financial institutions in financing transitions through the expansion and upscaling of green financial solutions. 11 NGFS, “Progress report on bridging data gaps”, May 2021 on ‘Taking stock of stakeholders’ needs’, Section 2.1. 12 NGFS, “NGFS Scenarios Portal”. (https://www.ngfs.net/ngfs-scenarios-portal/) Diagram 2: Identified Use Cases Applicable for the Climate Data Catalogue Use Case Description 1. Climate-related disclosures Climate-related disclosures refer to reports provided by corporations in addressing climate- related factors. Such disclosures provide the raw data for analysis, modelling, and monitoring by the stakeholders. Globally, climate-related reporting frameworks such as TCFD were established to facilitate more consistent and comparable climate-related disclosure amongst corporations. In Malaysia, Bursa Malaysia enhanced its Sustainability Reporting Framework in September 2022 with the aim of elevating the sustainability practices and disclosures by listed issuers. Amongst others, Main Market listed issuers will be required to provide TCFD-aligned disclosures by 2025 while ACE Market listed corporations will be required to provide a basic plan to transition towards a low carbon economy by 2026. 2. Exposure quantification Exposure quantification refers to the measurement on potential loss on financial instruments. For example, financial institutions evaluate the probability of physical risk such as flood events and forecast future losses on their existing financial portfolio. While for transition risk, they assess the impact of portfolio adjustment towards a low-carbon economy, e.g. by reducing exposure in high emitting sectors like coal. 3. Financial stability monitoring Financial stability monitoring refers to the assessment of financial systems vulnerabilities, defined as the collection of factors that contribute to the potential for widespread externalities. It is essential to recognise the systemic risks and multiple transmission channels (direct and indirect) of climate change-related risks and its impact to the economy and financial system. BNM and SC as regulators of Malaysia’s financial sector, assess the potential impact of climate- related risks to financial system and capital market. 4. Investment and lending decisions The decision made by both demand-side (investing) and supply-side (lending) on the amount of funds to be deployed for investment opportunities or to provide a loan. Factors such as footprint (carbon emissions), physical and transition vulnerabilities (exposure of investments to natural catastrophes and transition risk), mobilisation (prioritising financing needs to transition to low carbon activities) and alignment (measure the portfolios that would contribute towards internal/national target and goals) are embedded in the decision-making process. 5. Macro-economic modelling Macroeconomic modelling is used to analyse the impacts of climate-related issues on macroeconomic indicators like Gross Domestic Product (GDP), employment, and inflation. In the case of Malaysia, the study is on macroeconomic and sectoral impact associated with transition risk (decarbonisation) and physical risk/vulnerability (extreme/volatile weather conditions). 6. Product development The development of new financial products or solutions to support green growth or industry’s alignment to the climate agenda, exploration of intermediation structures that embed consideration for climate risks, and increase in supply of financing and protection solutions that support climate risks mitigation and adaptation. 7. Scenario analysis The assessment on the impact of different possible climate change pathways/scenarios to risk profile. The NGFS has designed 6 scenarios (Net Zero 2050, Below 2 °C, Divergent Net Zero, Delayed Transition, Nationally Determined Contributions (NDCs) and Current Policies) to assess physical and transition risks.12 In Dec 2022, BNM has issued the Policy Document on Climate Risk Management and Scenario Analysis (CRMSA) that sets out principles and requirements on climate risk management and scenario analysis for financial institutions to enhance the financial sector’s resilience against climate-related risks and to facilitate a just and orderly transition to a low-carbon economy. 8. Stress testing The risk framework method that focus on the impact climate change (the likelihood and sensitivity of the materialisation of climate-related risks) has on exposures’ actual risk. In June 2022, BNM has issued a discussion paper on the proposed framework and elements of the industry-wide Climate Risk Stress Testing (CRST) exercise to be implemented in 2024. https://www.ngfs.net/ngfs-scenarios-portal/ Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps10 Deriving metric types and data items Drawing on the approach adopted by NGFS,13 six metric types consisting of footprint, transition sensitivity, physical vulnerability, alignment, mobilisation, and combined metrics are established (Diagram 3). Subsequently, the data items were identified and tagged to specific metric type.14 2.3 Prioritisation of data needs In prioritising efforts to bridge data gaps, the Sub-Committee identified the top priority data items by assessing those profiled as ‘must-have’ by the stakeholders or those that are applicable to the most number of stakeholders or use cases. Diagram 3: Metric Types Established Metric Description Footprint GHG emissions caused directly or enabled by an individual, event, organisation, service or product. Transition sensitivity The disruption caused by adjusting to a low-carbon economy, which may be the result of policy changes, technological innovation, or social adaptation. Physical vulnerability The direct damage to assets or property that may come about owing to a changing climate (for example rise in sea levels) or extreme weather events. Alignment Tracks progress towards a 2°C world. Mobilisation Capture growth in green financing (i.e. scaling up green finance). Combined metrics Metrics aggregating a combination of the above metrics to provide insight on the extent to which a firm manages environmental, social and governance issues Source: The NGFS Directory15 13 NGFS, “Progress report on bridging data gaps”, May 2021 on ‘Identifying common metrics’, Section 2.2. 14 Further explanation on the data needs identification approach can be found in Progress Report on Bridging Data Gaps issued by NGFS in May 2021. 15 NGFS, “The NGFS Directory”. The NGFS Directory (masdkp.io) Diagram 4: Top 8 Data Groups Data group Examples of data item Applicable use cases 1. GHG emissions and forward-looking targets • GHG emissions (Scope 1, 2 and 3) • GHG inventory • GHG emission targets • GHG emission intensity • Economic sectors’ contribution to GDP and GHG emissions • Vehicle GHG emissions • Climate-related disclosure • Exposure quantification • Financial stability monitoring • Investment and lending decision • Scenario analysis • Stress testing 2. Green/Sustainable lending/financing and bonds/Sukuk investments • Green/Sustainable loan/financing, refinancing, outstanding, applied, approved, disbursed, repaid • Green/Sustainable bond/sukuk issuance • Green/Sustainable stock/bonds market indices • Green public investment, fiscal expenditures (including Public Private Partnerships) by portfolio • Percentage of investment in share capital with a green company (holding of ordinary or preference shares) • Climate-related disclosure • Exposure quantification • Financial stability monitoring • Investment and lending decision • Product development • Scenario analysis • Stress testing http://ngfs.dev.masdkp.io/glossary Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 11 Data group Examples of data item Applicable use cases 3. Non-renewable and renewable energy • Electricity purchased/consumed • Fuel used • Renewable energy purchased/ produced • Final energy consumption • Oil energy consumption • Coal energy consumption • Energy prices • Climate-related disclosure • Exposure quantification • Investment and lending decision • Macro-economic modelling 4. Exposure to physical risks • Extreme weather and climate change data such as flood, temperature, sea level rise, rainfall, drought, storm, coastal vulnerability index, natural hazard data/statistics (occurrence/map), heatwave, humidity • Exposure-related data such as real estate exposure to potential extreme weather conditions, exposure to physical risks measured as a percentage of business value (e.g. assets, profit or revenue), flood emergency reliefs • Exposure quantification • Financial stability monitoring • Investment and lending decision • Macro-economic modelling • Product development • Scenario analysis • Stress testing 5. Asset VaR • Asset VaR arising from natural catastrophes • Financial stability monitoring • Product development 6. ESG score/rating • Global Compact (GC) Score on human rights, labour right, environment, anti-corruption • ESG Score on environmental, social, and governance • Temperature score on emissions intensity ratio (EIR) • Climate-related disclosure • Exposure quantification • Investment and lending decision 7. Water consumption and waste management • Waste management indicators such as solid waste disposed or recycled. • Water management indicators such as water allocation and management, water consumption, treated wastewater such as proportion of wastewater that is treated to reduce pollutants before being discharged to the environment, by level of treatment • Climate-related disclosure • Exposure quantification • Financial stability monitoring • Investment and lending decision 8. Biodiversity and forestry indicators • Biodiversity indicators such as map of biodiversity risk hotspots and Environmentally Sensitive Areas (ESAs). • Forestry indicators such as map of ESAs, forest change (forest loss, tree cover loss, location of tree cover loss), Food and Agriculture Organisation of the United Nations (FAO) deforestation. • Other relevant indicators such as estimation of environmental costs and benefits (esp. ESAs/ high priority biodiversity hotspots). • Exposure quantification • Financial stability monitoring Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps12 3.1 Data Catalogue results There are 82 data items in the DC, which can be further split into dimensions such as by sector, country, and entity, resulting in 143 granular data items. The prioritisation exercise has classified 55 data items or 103 granular data items as the Top 8 data groups. In terms of metric type, most granular data items can be classified under physical vulnerability (30%) followed by transition sensitivity (25%), as shown in Diagram 5. Use cases The top use cases are financial stability monitoring (58% of data items), followed by investment and lending decisions (53% of data items). For financial stability monitoring, most data items relate to physical vulnerability (39%) such as data on flood and asset VaR arising from natural catastrophes, followed by mobilisation (22%), as shown in Diagram 6. For investment and lending decisions, most data items are under the category of transition sensitivity (29%) such as final energy consumption and the Green Building Index, and combined metrics (29%) such as climate-adjusted Probability of Defaults (PDs) and Green Equities Index, as shown in Diagram 6. Data items such as green/sustainable financing and GHG emissions are among those that are applicable to almost all of the use cases. 3. The Data Catalogue – Key Findings and Future Plan Diagram 5: Data Items by Metric Type 43, 30% 36, 25% 23, 16% 20, 14% 18, 13% 3, 2% All data items by metric type 34, 33% 25, 24% 18, 7% 17, 17% 9, 9% Top 8 data groups by metric type Physical vulnerability Transition sensitivity Combined metrics Mobilisation Footprint Alignment Physical vulnerability Transition sensitivity Mobilisation Footprint Combined metrics Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 13 Data Availability Based on the data availability exercise via desktop research and engagements with data providers, all data items can be grouped into the “readily available”, “proprietary (sensitive data)”, to “not available” categories (Diagram 7). Of the 49% of data items in the DC that are available: • 18% are readily available (e.g. Green Building Index and litigation claims/cases); • 18% suffer lack of granularity such as limited location data for green/sustainable bond/ sukuk issuance, ESAs and forest change (e.g. deforestation/forest loss, tree cover loss, etc.), and energy data by sector that is not classified as per the Malaysia Standard Industrial Classification (MSIC) 2008; • 11% are proprietary in nature that requires subscription to access (e.g. ESG and United Nations Global Compact (UNGC) scores); • 1% has a limited time horizon since the information is published on a one-off basis (e.g. past flood events); and • 1% lacks accessibility such as GHG emission targets that often reside in the sustainability report of companies. These data requires additional effort to extract and consolidate the data. Meanwhile, 11% of the data items are available but not disclosed due to confidentiality restrictions (e.g. entity-level data of electricity consumption and insured and uninsured losses related to natural catastrophes). The remaining 40% are not compiled or reported by any party, such as circular economy indicators to measure resource efficiency by minimising resource consumption and waste generation. Our findings are quite consistent with the NGFS final report,16 which showed that less than a quarter of data items are readily available in the form of official statistics or verified data, while more than 29% of all data items in their directory are currently unavailable, unknown or under construction. 16 NGFS, “Final report on bridging data gaps”, July 2022 on ‘Data accessibility and quality’, page 30. Diagram 6: Share of Metric Types for Top 2 Use Cases – Financial Stability Monitoring and Investment Lending Decisions Share of metric type in financial stability monitoring Share of metric type in investment and lending decisions Physical vulnerability Mobilisation Transition sensitivity Footprint Combined metrics Alignment Transition sensitivity Combined metrics Mobilisation Physical vulnerability Footprint 39% 22% 20% 16% 2% 1% 29% 29% 26% 8% 8% Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps14 Diagram 8 shows that readily available data is highest (54%) in the “exposure to physical risk” data group, mostly comprising historical and current data on temperature, rainfall, flood and drought. Meanwhile, most forward-looking data by region/country (e.g. heatwave and Coastal Vulnerability Index) are not available. On the other hand, the “water consumption and waste management” data group is the least available. These limitations pose some challenges to the financial sector as it requires granular data by sector and entity-level – which are currently not available – to conduct assessment for investment or lending purposes. Of significance, there is minimal coverage of non-listed companies such as SMEs and emission intensity performance of buildings in Malaysia under the “GHG emissions” data group. Meanwhile, data on energy consumption by entity is not available in the “non- renewable and renewable energy” data group. Diagram 7: Data Availability Data availability for all data items Data availability for top 8 data groups Not Available, 40% Readily Available, 18% Lack of Granularity, 18% Proprietary (need subscription), 11% Limited time horizon & frequency, 1% Limited time horizon & frequency, 2% Readily Available, 19% Lack of Granularity, 23% Proprietary (need subscription), 10% Lack of accessibility due to format or decentralised sources, 1% Lack of accessibility due to format or decentralised sources, 2% Proprietary (sensitive data), 11% Available, 49% Not Available, 32% Proprietary (sensitive data), 12% Available, 56% Not Available, 32% Diagram 8: Percentage of Data Availability for Top 8 Data Groups 25% 54% 18% 6% 50% 11% 8% 35% 27% 41% 39% 100% 50% 8% 6% 6% 11% 4% 6% 6% 6% 22% 25% 56% 50% 27% 47% 14% 44% 0% 50% 100% 8. Biodiversity and forestry indicators 7. Water consumption and waste management 6. ESG score/rating 5. Asset VaR 4. Exposure to physical risks 3. Non-renewable and renewable energy 2. Green/Sustainable lending/financing and bond/Sukuk investments 1. GHG emissions and forward-looking targets Readily Available Lack of Granularity Proprietary (need subscription) Limited time horizon & frequency Lack of accessibility due to format or decentralised sources Proprietary (sensitive data) Not Available Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 15 Data accessibility The accessibility of data items varies across metric types (Diagram 9). Some are publicly available, while others are proprietary in nature that requires subscription, or are not accessible due to confidentiality reasons or non-availability. Broadly, about 30-40% of the data items are publicly available (mostly without APIs) across most metric types. They are mostly sourced from ministries/government agencies or company publications (e.g. annual reports). Data items with public API accessibility are only confined to the “physical vulnerability” metric. This is mostly provided by the World Bank. When comparing data availability across the metrics, the “alignment” metric suffers from the highest data unavailability (67% of total data items in the metric). For example, detailed plans submitted to authorities to achieve carbon neutral or net zero and circular economy indicators are unavailable. This is then followed by the “transition sensitivity” metric (50%), such as data on internal carbon price and waste recycled. It is observed that these findings are consistent with those by the Asia Securities Industry and Financial Markets Association (ASIFMA)17 and NGFS’ final report on bridging data gaps.18 One of the common observations in ASIFMA’s and NGFS’ reports is the lack of publicly available granular data. ASIFMA noted that “public and government data sources obtained through regulatory disclosure requirements are often incomplete and disorganised”. 17 ASIFMA, “Data Challenges on Opportunities for ESG and Sustainable Finance in Asia Pacific”, December 2020. https:// www.asifma.org/wp-content/uploads/2020/12/asifma-fosda-esg-and-sf-data-challenges-and-opportunities-in-asia- f20201221c.pdf 18 NGFS, “Final report on bridging data gaps”, July 2022. https://www.ngfs.net/sites/default/files/medias/documents/final_ report_on_bridging_data_gaps.pdf Diagram 9: Data Accessibility by Metric Type Public (With API) Public Proprietary Confidential Not available 67% 39% 15% 30% 50% 56% 4% 45% 5% 8% 43% 7% 14% 6% 33% 13% 40% 44% 28% 39% 14% 0% 20% 40% 60% 80% 100% Alignment Combined metrics Mobilisation Physical vulnerability Transition sensitivity Footprint https://www.asifma.org/wp-content/uploads/2020/12/asifma-fosda-esg-and-sf-data-challenges-and-opportunities-in-asia-f20201221c.pdf https://www.asifma.org/wp-content/uploads/2020/12/asifma-fosda-esg-and-sf-data-challenges-and-opportunities-in-asia-f20201221c.pdf https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps16 3.2 Data Catalogue findings on data needs, availability, and gaps The Sub-Committee has obtained technical assistance from the World Bank to critically examine the comprehensiveness of the data items, its mapping to the use cases and metrics, and availability of data sources provided in the DC. In addition to that, the Sub-Committee also sought the World Bank’s recommendations to improve the content and structure of the DC. The World Bank found that the DC is comprehensive with 82 indicators (data items) covering multiple levels of aggregation, use cases and data attributes. Moreover, the DC demarcates the existing data gaps and highlights the limitations and possible alternatives in addressing the data gaps. The DC is also found to be readily accessible to a wide audience with low barriers of entry. In the course of validation, the World Bank has provided valuable suggestions to refine the DC structure to improve user experience particularly in filtering and clustering data according to users’ needs. The Sub-Committee has taken up some of the suggestions (e.g. harmonise categories and dimensions, clearly distinguish data items, segregate information based on data accessibility such as public sources accessible via API and include additional indicators). Other suggestions pertaining to the structure will be considered in the future iteration of the DC. This includes the implementation of an alternative structure of the DC known as the relational spreadsheet structure (RSS) or relational database management system (RDBMS). This promises a superior balance on accessibility, maintainability, and consistency in labelling. Nonetheless, this will mostly cater to the more technical audience who are well-versed in database operations. 3.3 Data Catalogue maintenance and future plan Maintenance of Data Catalogue The DC is currently owned and maintained by JC3 to ensure it is relevant and useful in serving the financial sector’s needs. The DC will be published in two formats, namely in PDF and Microsoft Excel. The PDF version, as attached in this report, will provide an overview on the data items and observations to guide the general users. Meanwhile, the Microsoft Excel version is more useful for filtration and search purposes. The DC will be updated on an annual basis, such that it reflects current data needs and disclosure requirements in line with global and domestic developments and standards. Users and the general public are welcome to provide feedback on the existing content or suggest additional data items. The feedback on additional data items will be assessed based on the criteria19 for inclusion by a Review Committee, comprising members with relevant qualification and experience. The recommendation on data updates and inclusion will be tabled to the Sub-Committee for approval, and subsequently reflected in the DC published on the BNM’s Climate Change Microsite and SC’s SRI Microsite. 19 The criteria for inclusion of data items in the DC are that the data items should be: i. Related to climate and environmental data; and ii. Required in use cases which are applicable to financial sector stakeholders Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 17 Future Plans for the Data Catalogue This first version of the DC compiles the data needs across a relatively narrow set of stakeholders, namely the members of the JC3 and its sub-committees. The primary focus in this first version is content development, with the aim of providing an overview on data availability for users. Naturally, the usage of the DC and volume of data items is likely to grow over time. In order to cope with the potential growth in usage and data items, JC3 will explore on ways to improve user experience in navigation, data search and filtration, e.g. through digitalising the DC on a web interface. Importantly, the findings in the DC will serve as a basis to engage data providers to adopt common or interoperable data definitions and standards, and open data policy. It is hoped that over the longer term, this will improve the availability and comparability of climate data. It is also envisioned that this DC for financial sector will pave the way for the creation of climate data catalogue/databases at the national level by the relevant government agencies in the future. Government agencies will have greater authority and competencies to compile and publish climate-related datasets to meet the data needs of a much broader set of users and stakeholders. Diagram 10: Data Catalogue Maintenance – Process Flow Receive feedback from public / users Assess feedback based on pre-set criteria by Review Committee Approval by JC3 Sub-Committee on Bridging Data Gaps Update Data Catalogue Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps18 It is observed that the major providers of climate and environment-related data are mainly government ministries and agencies, followed by financial-related institutions, corporations and private data providers. The 2021 Irving Fisher Committee on Central Bank Statistics (IFC) Report no. 14 on sustainable finance data for central banks echoed similar observations, whereby sustainable finance data are usually sourced from government agencies, government linked corporations, National Statistical Offices (NSOs), supervised financial institutions, private rating agencies and commercial data providers.20 Considering this public-private interlinkage, there is a need for greater coordinated efforts between both sectors to create a more conducive climate data ecosystem. More seamless public-private data sharing will help inform better decisions to tackle climate-related issues. Such public-private cooperation could take the form of more systematic data collection or facilitation of data access and sharing across the public and private sectors. The next section will delve on the existing factors hindering data availability and recommendations to overcome some of these challenges. 4.1 Data challenges21 An immediate priority lies in identifying and understanding the main constraints in obtaining and providing climate data. The financial sector still grapples with the lack of data disclosure and sharing by companies and public sector agencies, inefficiencies in aggregating across multitude of data sources, lack of a standardised global reporting framework and poor data quality.22 i. Differences in methodology At present, the main motivation for GHG emissions data publications by public sector is to track the country’s progress in fulfilling international commitment as Malaysia is a Party to the UNFCCC.23 Such data publication tends to be highly aggregated in nature. In contrast, the financial sector often requires data that is more granular at the sector and entity level. Examples of the differences in methodology for GHG emissions data compilation: • Compilation of GHG National Inventory is based on the 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Greenhouse Gas Inventories for the purpose of fulfilling the NDCs and commitments under UNFCCC. In contrast, the financial sector requires GHG emission inventory data based on the GHG Protocol Corporate Accounting and Reporting Standard24 (i.e. Scope 1, Scope 2 and Scope 3). 4. Data Challenges and Recommendations 20 Schmieder et al., “IFC Report No.14: Sustainable finance data for central banks”, December 2021. 21 The challenges outlined in this report and gaps observed in the Data Catalogue are solely from the perspective of the financial sector, due to the mismatch between i) data needed for financial sector use cases and ii) the available data at the time of publication. 22 A-Team Group, “A-Team ESG Handbook 2021”, 2021. https://www.solidatus.com/app/uploads/2021/08/A-Team_Group_ ESG-Handbook-2021-July-2021.pdf?hsCtaTracking=9f70f103-6af2-42a3-a52c-b226c716fe60%7Ce46f8ec2-5721- 4876-b81f-f1508ecf1366 23 Malaysia is Non-Annex I Party to the UNFCCC Malaysia | UNFCCC 24 PCAF, “The Global GHG Accounting and Reporting Standard for the Financial Industry”, November 2020. https://www.solidatus.com/app/uploads/2021/08/A-Team_Group_ESG-Handbook-2021-July-2021.pdf?hsCtaTracking=9f70f103-6af2-42a3-a52c-b226c716fe60%7Ce46f8ec2-5721-4876-b81f-f1508ecf1366 https://www.solidatus.com/app/uploads/2021/08/A-Team_Group_ESG-Handbook-2021-July-2021.pdf?hsCtaTracking=9f70f103-6af2-42a3-a52c-b226c716fe60%7Ce46f8ec2-5721-4876-b81f-f1508ecf1366 https://www.solidatus.com/app/uploads/2021/08/A-Team_Group_ESG-Handbook-2021-July-2021.pdf?hsCtaTracking=9f70f103-6af2-42a3-a52c-b226c716fe60%7Ce46f8ec2-5721-4876-b81f-f1508ecf1366 https://unfccc.int/node/61107 Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 19 • National sectoral data for GHG inventory data is guided by the 2006 IPCC Guidelines (i.e. Energy, Industrial Processes and Product Use, Agriculture, Waste and Land Use, Land Use Change and Forestry sectors). They are not comparable against the Malaysian Standard Industrial Classification (MSIC) which is widely used by the financial sector. Establishing a more comparable methodology and definition will allow the financial sector to fill the missing entity or sector level data using public sector data. ii. Legal impediments and restrictions Some climate-related data owned by public and private sector agencies are subjected to sharing restrictions. Some examples: • Forward-looking national flood risk map is not readily available, due to sensitivity issues and potential legal implication. While historical and current national flood hazard maps are available, they are not downloadable in geographic information system (GIS) file format to facilitate spatial analysis. This information is important for the financial sector to conduct climate risk assessment and to deliver sustainable finance solutions in partnership with public agencies, especially given increasing incidences of flood events. • Energy consumption data at entity level that are required by the financial sector for investment and lending evaluations (particularly to finance energy-efficient organisations) are often deemed as confidential. Although the data is compiled by the energy provider, disclosures are subjected to the utility providers’ policies. Under Tenaga Nasional Berhad (TNB)’s Personal Data Protection Policy,25 personal data may be shared with third parties for payment of electricity bill purposes only and not for other purposes including for climate-related assessments. Moreover, for entity level data, the current PDPA does not explicitly cover data portability rights for individuals to transfer their data in a structured machine-readable format across providers. This is in contrast to the European Union’s General Data Protection Regulation (GDPR)26 which accords the rights to data subject to get access to his or her data in a structured, machine-readable format which can be transferred from one data controller to another data controller. iii. Decentralised data compilation and publication Climate-related data are currently compiled by various federal ministries and public sector agencies. At the same time, compilation of certain data relating to land use and forestry falls within the purview of state governments. Each data owner has established its own practices and governance in terms of data compilation, methodologies and publication. This contributed to lack of uniformity in publication practices, thus creating considerable frictions for data users to access quality climate data, in a timely manner. 25 BUKU TATAMALAN 2.0 EN.pdf (tnb.com.my) , TNB_PDP_Policy_ENG_(rev).pdf 26 REGULATION (EU) 2016/ 679 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL - of 27 April 2016 - on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/ 46/ EC (General Data Protection Regulation) (europa.eu) https://www.tnb.com.my/assets/files/PERSONAL_DATA_PROTECTION_CODE_OF_PRACTICE_V2.pdf https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R0679 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R0679 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R0679 Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps20 Furthermore, government agencies’ platforms adopt different data format and granularity, that add a layer of complexity for data users to find and download the required climate data for analysis. For instance: • GHG emissions data by year, published in the Malaysia’s Third Biennial Update Report to the UNFCCC are available in PDF format. As an alternative, MAMPU Open Data Portal or Compendium of Environment Statistics at DOSM’s eStatistik portal27 offer similar yearly GHG emissions data in csv or excel format. • Number of flood events by state in Malaysia is not readily available in the Department of Irrigation and Drainage’s (DID) ‘InfoBanjir’ website. However, DOSM’s eStatistik portal has flood data at high level from year 2016 to 2020 and MAMPU portal has granular information on flood e.g. name of rivers and date of flood from year 2001 to 2010. • Portals such as Malaysia Informative Data Centre (MysIDC), openDOSM and Statistics Data Warehouse (StatsDW) provide data on emissions and floods, in addition to the Ministry of Natural Resources, Environment and Climate Change (NRECC, formerly known as KASA) and DID. However, financial users may not be aware of the differences between these platforms and the most efficient way to extract the required information from these portals. The financial sector also requires more granular GHG emissions data by types of vehicles, to assess their estimated Scope 3 emissions data for disclosure purpose and lending decision. Given the absence of any national database on GHG emissions by types of vehicles, users may refer to the high-level gas emissions by motor vehicles data published by the Department of Environment (DOE) in the annual Environmental Quality Report28 as proxy data. iv. Various climate disclosure requirements/frameworks There are many reporting frameworks and standards identified in the United Nations (UN) Sustainable Stock Exchange initiative’s ESG Guidance Database such as TCFD, Global Reporting Initiative (GRI), Climate Disclosure Standards Board (CDSB), and Sustainability Accounting Standards Board (SASB). A study by PwC Malaysia on ESG in financial reporting showed that the GRI is the most adopted standard, while TCFD is becoming more popular among Bursa-listed companies.29 The different reporting frameworks could give rise to comparability issue for investors. In response to this, Bursa Malaysia through its enhanced Sustainability Reporting Framework issued in September 2022, requires disclosures of a common set of prescribed sustainability matters and indicators that are deemed material for all listed issuers. This includes Scope 1, Scope 2 and limited Scope 3 GHG emissions disclosures. In addition, Main Market listed issuers will be required to provide TCFD- aligned disclosures while ACE Market listed corporations are required to disclose their plans to transition towards a low carbon economy.30 27 Data published in DOSM’s eStatistik and MAMPU Portal is being supplied by the respective ministries, agencies and departments owning the data, based on agreed terms between the data supplier and these portals. 28 Department of Environment (DOE) Environmental Quality Report 2020 EQR-2020-1.pdf (doe.gov.my) which contains emission loads for ‘motor vehicles’ category. 29 PwC Malaysia, “ESG Matters – Driving Change through Financial Reporting”, December 2020. https://www.pwc.com/my/ en/assets/publications/2020/esg-matters-driving-change-through-financial-reporting.pdf 30 Bursa Malaysia, “Bursa Malaysia Enhances Sustainability Reporting Framework With New Climate Change Reporting”, September 2022. 26Sept_2022_Bursa_Malaysia_Enhances_Sustainability_Reporting_Framework_With_New_Climate_ Change_Reporting.pdf (bursamalaysia.com) https://www.pwc.com/my/en/assets/publications/2020/esg-matters-driving-change-through-financial-reporting.pdf https://www.pwc.com/my/en/assets/publications/2020/esg-matters-driving-change-through-financial-reporting.pdf https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5c11a9db758f8d31544574c6/63312a2439fba20d86ba8e16/files/26Sept_2022_Bursa_Malaysia_Enhances_Sustainability_Reporting_Framework_With_New_Climate_Change_Reporting.pdf?1664169009 https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5c11a9db758f8d31544574c6/63312a2439fba20d86ba8e16/files/26Sept_2022_Bursa_Malaysia_Enhances_Sustainability_Reporting_Framework_With_New_Climate_Change_Reporting.pdf?1664169009 Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 21 v. Lack of capacity and motivation for disclosure by companies Collecting data for the purpose of climate-related disclosures requires extensive resources and effort. Companies have limited data at the primary source and tend to spend many hours in data collection, due to limited know-how and tools to facilitate data collection. The Financial Stability Board (FSB) also noted that data gaps are particularly acute in some emerging markets and developing economies, where there are less resources to collect and process data.31 There is also lack of incentives to collect and disclose data as it is not deemed as a business priority or value-add to their businesses. Some businesses are also concerned about disclosing proprietary information. In particular, the reporting of company-wide GHG emissions can be a complex undertaking, more so in reporting GHG Scope 3 due to its unclear boundaries and definitions. While there are several platforms developed by private data providers such as ESG Book,32 ESGpedia registry,33 Refinitiv and Bloomberg that record and aggregate ESG data of public listed companies across various sectors, data from SMEs are generally not captured. SMEs’ contribution on the economy is significant, comprising 97.2% of business establishments and contributing 38.2% to GDP (2020).34 Lack of data from SMEs hinders analysis to identify material risks and growth opportunities to support investment and lending decision by financial institutions. 31 FSB, “The Availability of Data with Which to Monitor and Assess Climate-related Risks to Financial Stability”, July 2021. PLEN202136 Climate data availability (fsb.org) 32 ESG Book. ESG Book - We power financial markets for a sustainable future. 33 STACS. ESGpedia - the ESG Data Encyclopedia 34 OECD iLibrary, “Financing SMEs and Entrepreneurs 2022: An OECD Scoreboard”, 2022. https://www.oecd-ilibrary.org/ sites/3bc2915c-en/index.html?itemId=/content/component/3bc2915c-en Diagram 11: Data Challenges 1. Differences in methodology Data compilation is often at aggregate level whereas the financial sector requires more granular data at the sector and entity levels 2. Legal impediments and restrictions Climate-related data publication could be limited due to legal restrictions 3. Decentralised data compilation and publication Varying publication practices and governance hinders data accessibility, adding a layer of complexity for data users 4. Various climate disclosure requirements and frameworks Different frameworks adopted by companies in the same sector could give rise to comparability issues for investors 5. Lack of capacity and motivation for disclosure Due to limited know-how and lack of appropriate tools to collect and process data https://www.fsb.org/wp-content/uploads/P070721-3.pdf https://www.esgbook.com https://esgpedia.io https://www.oecd-ilibrary.org/sites/3bc2915c-en/index.html?itemId=/content/component/3bc2915c-en https://www.oecd-ilibrary.org/sites/3bc2915c-en/index.html?itemId=/content/component/3bc2915c-en Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps22 4.2 Recommendations To overcome some of the above constraints, JC3 is advocating a more coordinated strategy to encourage greater disclosures of climate and environmental data, with common data definition and standards, while leveraging on available technology and data. A. Implement Common Definitions and Methodologies i. Common/interoperable data definition and methodology at national level It is important to establish consistent definitions and methodologies at the national level for climate data. This will not only improve the availability of quality, reliability and comparability of data, but will also facilitate common understanding among data users. Greater reconciliation of national level and corporate level of GHG emissions should be explored. Common methodology to calculate emissions at the corporate level could be considered for adoption to improve the availability of entity-level GHG emissions data. Some considerations: • Partnership for Carbon Accounting Financials (PCAF)35 provides guidance to calculate emissions at the corporate level leveraging on physical activity data and emissions factor. It is based on verified calculation methodologies approved by a credible independent institution such as the IPCC. • 2019 Refinement to the 2006 IPCC Guidelines provides guidance on how best to use facility-level data in national greenhouse gas inventories 36 37 (i.e. information related to emissions from an individual plant, installation or factory). For vehicle GHG emissions data, relevant public agencies may consider collaborating to establish a national database for public consumption. The database could be based on the pollutant emissions standards for new models of petrol- powered vehicles issued by the DOE.38 There are several examples of databases in other jurisdictions available for reference: • Database on fuel consumption and Carbon Dioxide (CO2) emissions data 39 by the United Kingdom (UK) government. The emission information by vehicle make and model is easily accessible in csv table format; and • Fuel economy information40 by the United States (US) Environmental Protection Agency via their website. Users can select specific car types in the US to derive its GHG emissions. One other potential area for consideration is the common adoption of MSIC standard by all relevant ministries, agencies and private sector for data collection and sharing purposes. Since MSIC is aligned to the International Standard 35 Equations to calculate financed emissions The Global GHG Accounting and Reporting Standard for the Financial Industry (carbonaccountingfinancials.com), page 52. 36 Buendia et al., “2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories”, 2019. CHAPTER 1 (ipcc.ch) 37 Use of Facility-Specific Data in National Greenhouse Gas Inventories TFI_Technical_Bulletin_1.pdf (iges.or.jp) 38 Environmental Quality (Control of Emissions from Petrol Engines) Regulations 1996 – P.U. (A) 543/96 Environmental Quality (Control of Emissions from Petrol Engines) Regulations 1996 – P.U. (A) 543/96 – Department of Environment (doe. gov.my) 39 Car fuel and CO2 emissions data, Car fuel and CO2 emissions data - GOV.UK (www.gov.uk) 40 The official U.S. government source for fuel economy information, Find and Compare Cars (fueleconomy.gov) https://carbonaccountingfinancials.com/files/downloads/PCAF-Global-GHG-Standard.pdf https://carbonaccountingfinancials.com/files/downloads/PCAF-Global-GHG-Standard.pdf https://www.ipcc.ch/site/assets/uploads/2019/12/19R_V0_01_Overview.pdf https://www.ipcc.ch/site/assets/uploads/2019/12/19R_V0_01_Overview.pdf https://www.ipcc-nggip.iges.or.jp/public/tb/TFI_Technical_Bulletin_1.pdf https://www.doe.gov.my/en/environmental-quality-control-of-emissions-from-petrol-engines-regulations-1996-p-u-a-543-96/ https://www.doe.gov.my/en/environmental-quality-control-of-emissions-from-petrol-engines-regulations-1996-p-u-a-543-96/ https://www.doe.gov.my/en/environmental-quality-control-of-emissions-from-petrol-engines-regulations-1996-p-u-a-543-96/ https://www.gov.uk/co2-and-vehicle-tax-tools https://www.fueleconomy.gov/feg/findacar.shtml Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 23 41 Bursa Malaysia’s Media Release ‘Bursa Malaysia Enhances Sustainability Reporting Framework With New Climate Change Reporting’ 26Sept_2022_Bursa_Malaysia_Enhances_Sustainability_Reporting_Framework_With_New_Climate_Change_ Reporting.pdf (bursamalaysia.com) 42 IFRS Foundation completes consolidation with Value Reporting Foundation IFRS - IFRS Foundation completes consolidation with Value Reporting Foundation 43 Current stage of Climate-related Disclosures IFRS - Climate-related Disclosures Industrial Classification (ISIC), such adoption will lay a good foundation for enabling interoperability of climate data usage between public and private sectors at both the national and international level. This will be particularly useful when comparing climate data based on a national taxonomy against ASEAN Taxonomy or other taxonomies in the future, which is universally based on ISIC standards. A data ecosystem with standardised definitions and methodologies will foster data comparability across companies and sectors. Such standardisation will support the implementation of BNM’s CCPT and SC’s SRI Taxonomy. Both of these taxonomies are developed to enable financial and capital market participants to assess economic activities and their associated impacts on climate and the broader environment. As a result, the financial sector can effectively monitor progress and accelerate the financing of transition to a low- carbon economy. ii. Alignment of disclosure requirements to established standards/frameworks Increasingly, there has been more consolidation or convergence of climate disclosure standards and frameworks. It is also observed that regulators or standard setting organisations are striving to align disclosure requirements with established standards/frameworks. A case in point is Bursa Malaysia’s41 enhancement of its Sustainability Reporting Framework with climate change-related disclosures. These enhancements are aligned with the TCFD Recommendations in addition to prescribing a common set of sustainability matters and indicators that are deemed material for all listed issuers among others. This is aimed at putting listed issuers on a good footing to progress and adopt international reporting frameworks and standards such as the GRI, SASB and the International Sustainability Standards Board (ISSB) standards that are currently under development. The International Financial Reporting Standards (IFRS) Foundation has achieved significant progress in this area by consolidating the Value Reporting Foundation (VRF) into the IFRS Foundation, following commitment made at Conference of the Parties (COP) 26 to support the establishment of ISSB.42 The VRF’s SASB Standards, now governed by the ISSB, serve as a key starting point for the development of the IFRS Sustainability Disclosure Standards. In March 2022, the ISSB launched a consultation on two proposed standards on climate-related disclosures and general sustainability-related disclosures. When finalised, the standards would form a comprehensive global baseline of sustainability-related disclosures designed to meet the information needs of investors in assessing enterprise value.43 https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5c11a9db758f8d31544574c6/63312a2439fba20d86ba8e16/files/26Sept_2022_Bursa_Malaysia_Enhances_Sustainability_Reporting_Framework_With_New_Climate_Change_Reporting.pdf?1664169009 https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5c11a9db758f8d31544574c6/63312a2439fba20d86ba8e16/files/26Sept_2022_Bursa_Malaysia_Enhances_Sustainability_Reporting_Framework_With_New_Climate_Change_Reporting.pdf?1664169009 https://www.ifrs.org/news-and-events/news/2022/08/ifrs-foundation-completes-consolidation-with-value-reporting-foundation/ https://www.ifrs.org/news-and-events/news/2022/08/ifrs-foundation-completes-consolidation-with-value-reporting-foundation/ https://www.ifrs.org/projects/work-plan/climate-related-disclosures/ Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps24 iii. Open data standards and platforms to facilitate data sharing The public sector should consider using common interoperable data standards, APIs and open data platforms. This will enable climate data to be organised in a manner that is easily accessible by users. Some considerations based on open data elements44 : • Availability and accessibility: Data must be available in a convenient and modifiable format; • Re-use and redistribution: Data to be provided under terms that allow users to re-use and redistribute or intermix with other datasets; and • Universal participation: Everyone must be able to use, re-use and redistribute the data. While MAMPU has launched the Public Sector Open Data platform to share public sector datasets, the decision to publish or release data is currently left to the discretion of respective government agencies which are responsible in compiling these data. There should be greater effort to establish an overarching national framework that determines whether data can be published or otherwise. Ideally a central body should be formed to lead the initiative, and subsequently enforce the implementation of open data across government agencies. Further improvements to the implementation of open data can be guided by two main policies on open government data currently in progress, i.e. the Public Sector Data Sharing Policy (DPDSA) and the National Data Sharing Policy (NDSP). • DPDSA guides public sector agencies on data sharing with other public sector agencies (G2G), with the business community (G2B), and with the people (G2C). This policy also provides guidance on implementing authentic, secure, and effective data sharing initiatives in accordance with a set of prescribed data sharing principles. • NDSP is envisioned to set out Malaysia’s long-term strategy designed to create a holistic, conducive, and inclusive data ecosystem to support Malaysia’s socio- economic development agenda. As such, NDSP should provide guidance on measures that would address issues relating to legacy regulations that impede the implementation of open data or prohibit data sharing. It is observed that public sector data is also shared via other data sharing platforms such as eStatistik, MysDIC, openDOSM and StatsDW. It will be useful to provide guidance on how the climate datasets are organised across these platforms. Providing a centralised data inventory or catalogue of open data that are available, together with firm commitments for data publication will provide better visibility for data users. 44 The Open Data Handbook Guide ‘What is Open Data’, by Open Knowledge Foundation. What is Open Data? (opendatahandbook.org) http://opendatahandbook.org/guide/en/what-is-open-data/ http://opendatahandbook.org/guide/en/what-is-open-data/ Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 25 Over and above these policies, the public sector can also strengthen the implementation of common interoperable data standards in available forums, such as the National Statistics and Data Council’s (MSDN) i.e. the highest advisory body for guidance and direction in strengthening governance of the national statistical system. This makes it the ideal body and the natural starting point to spearhead the use of standards by public sector agencies and to ensure implementation by respective statistics and data council at the state and regional level (MSDNgW). B. Promote and enforce greater disclosures i. Shift to embrace open data concept and review current data confidentiality restrictions Another consideration for both the public and private sector is to address current legal impediments through necessary reforms (e.g. reviewing existing data confidentiality restrictions). As explained earlier, currently there are restrictions that hinder the availability of entity-level energy consumption data. The public and private sectors in Malaysia may consider emulating the Green Button45 initiative in the US, which allow sharing of customers’ utility information, upon customers’ authorisation. Such arrangement can be facilitated with more explicit data portability rights, which is being considered under the PDPA review. In the meantime, financial sector users may continue to leverage on the most granular information available, such as sector-level non-renewable energy data via MAMPU Open Data Portal for Consumption of Energy by Sector. ii. Enhance capacity building and improve awareness and understanding on importance of climate related data usage and disclosure Another focus area is to strengthen the awareness and understanding on the importance of climate-related data usage and disclosure. This could be done through intensifying multidisciplinary collaboration and technical upskilling efforts amongst relevant stakeholders in both public and private sectors. The financial sector can also benefit from more knowledge sharing and sharing of best practices, drawing on expertise of peers that have made greater progress towards integrating climate risks into their business strategies, operations and risk management. As for the SMEs, the Capital Markets Malaysia (CMM), in collaboration with NRECC (formerly known as KASA), is now developing an ESG Disclosure Guide tailored to Malaysian SMEs which will address one of the key impediments in enhancing capacity building and guidance. This will provide practical guidance and the baseline exposures expected of SMEs in relation to ESG, to encourage greater transparency and improve the quality of SMEs’ ESG disclosure. Such adoption will pave way for alignment with global disclosure frameworks, including the one being developed by the ISSB, to promote comparability and minimise compliance costs for businesses and financial institutions going forward. 45 The Green Button’s Connect My Data (CMD) allows both utility customers and providers to share information securely while protecting customers’ personal data. Utility providers will provide information on utility usage upon customers’ authorisation of the transfer of information to third party. Green Button Alliance, “Connect My data – CMD”. Green Button Alliance https://www.greenbuttonalliance.org https://www.greenbuttonalliance.org https://www.ifrs.org/projects/work-plan/climate-related-disclosures/ Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps26 iii. Industry-led platform to facilitate efficient climate data disclosure Regulators may support and catalyse the establishment of an industry-led platform to accelerate climate data disclosure by companies. The coverage should extend beyond publicly listed companies, to also cover smaller firms such as the SMEs. The platform should ideally address the current fragmentation and uneven progress in disclosures. One means is by setting a low barrier to disclosure among the companies, thus improving the coverage of climate data disclosure for the use of financial sector. In order to mitigate greenwashing risks, such platform may also embed additional feature to support verifiability and auditability of the disclosures by companies. C. Leverage on Technology and Available Data Sources Leveraging on available data, approaches and tools is one of the common recommendations to address data gaps,46 pending significant progress being made to improve the availability of more granular and forward-looking data. While these recommendations would require expert knowledge, the financial sector can bridge the knowledge gaps through partnerships with academia and field experts. i. Technology Users can refer to existing global and open-source platforms (for example Open Source - Climate,47 European Space Agency Climate Data Dashboard48 and the World Resources Institute Climate Watch49), along with using new technologies such as APIs, machine learning, artificial intelligence as well as satellite imagery to bridge data gaps and improve user interactions. For example, the financial sector users can utilise real-time weather forecast from satellite imagery as inputs in extreme weather risk modelling to better manage and assess physical risks, e.g. use of historical and forecast data by reinsurers in flood risk scenario model to estimate potential business loss.50 Other climate change observations such as land use and cover, crop, bodies of water are also readily available from satellite imagery.51 ii. Statistical gap-filling approach Apart from satellite data, statistical gap-filling approaches could also be considered which exploits spatial, temporal, and multivariate information to create estimates for missing values in earth observations.52 46 NGFS, “Final report on bridging data gaps”, July 2022. https://www.ngfs.net/sites/default/files/medias/documents/final_ report_on_bridging_data_gaps.pdf 47 OS-climate - https://os-climate.org/ 48 ESA Climate Data Dashboard - https://climate.esa.int/en/odp/#/dashboard 49 World Resources Institute - https://www.wri.org/ 50 Risk Management for Specific Risk Types – Liquidity Risk Climate Risk Management and Scenario Analysis - Policy Document (bnm.gov.my) 51 Climate change analysis using satellite data - https://www.researchgate.net/publication/325491309_Climate_Change_ Analysis_using_Satellite_Data 52 CLIMFILL v0.9: A framework for intelligently gap filling Earth observations - GMD - CLIMFILL v0.9: a framework for intelligently gap filling Earth observations (copernicus.org) https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf https://www.ngfs.net/sites/default/files/medias/documents/final_report_on_bridging_data_gaps.pdf https://os-climate.org https://www.ipcc.ch/site/assets/uploads/2019/12/19R_V0_01_Overview.pdf https://climate.esa.int/en/odp/#/dashboard https://www.wri.org https://www.bnm.gov.my/documents/20124/938039/PD_Climate-Risk-Mgmt-Scenario-Analysis-Nov2022.pdf https://www.bnm.gov.my/documents/20124/938039/PD_Climate-Risk-Mgmt-Scenario-Analysis-Nov2022.pdf https://www.researchgate.net/publication/325491309_Climate_Change_Analysis_using_Satellite_Data https://www.researchgate.net/publication/325491309_Climate_Change_Analysis_using_Satellite_Data https://gmd.copernicus.org/articles/15/4569/2022/gmd-15-4569-2022.html https://gmd.copernicus.org/articles/15/4569/2022/gmd-15-4569-2022.html https://www.researchgate.net/publication/325491309_Climate_Change_Analysis_using_Satellite_Data Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 27 An example is the collaboration between the UNFCCC secretariat with the Greenhouse Gas Management Institute to develop a data collection and management tool called Sectoral Activity Data for GHG Emissions (SAGE) for the Energy and Industrial Process and Product (IPPU) sectors based on IPCC sectors. The tool will convert proxy data into appropriate variables and units and filing in completeness and time series gaps, to support the estimation of GHG emissions and removals.53 iii. Use of available and proxy data Available and proxy data have also been used to construct climate change risk indicators and taxonomies.54 The financial sector can explore incorporating existing data in their ESG rating methodology to rate and assess borrowers during onboarding and annual reviews of exposures as part of their climate risk management and assessment.55 Such information will assist in evaluating potential and existing borrowers and mitigating actions that can be taken in supporting the borrowers to adopt more environment-friendly and sustainable practices. 53 Data collection and management tools, GHG Support | UNFCCC 54 How proxies and publicly available data can be used to construct indicators on transition risk, physical risks, and green taxonomies - https://www.bis.org/ifc/publ/ifcb56_27.pdf 55 Principle 8: Financial institutions shall consider climate-related risks as part of comprehensive risk assessments to identify and measure all material risks. Climate Risk Management and Scenario Analysis - Policy Document (bnm.gov.my) Diagram 12: Recommendations to Bridge Data Gaps Implement Common Definitions and Methodologies i. Adopt common definitions and methodologies for key climate data at the national level ii. Align new disclosure requirements to established/prominent frameworks/standards iii. Adopt common interoperable data standards/platforms to encourage data sharing and facilitate accessibility Promote and Enforce Greater Disclosures i. Shift to embrace open data concepts and review current data confidentiality restrictions ii. Accelerate climate data usage and disclosure via capacity building and guidance iii. Establish industry-led platform to facilitate efficient climate data disclosures, especially by smaller firms Leverage on Technology, Available Data Sources i. Application of technology such as APIs, machine learning, artificial intelligence and satellite imagery to bridge data gaps and improve user interaction ii. Statistical gap-filling approaches to create estimates iii. Use of available or proxy data in constructing climate change risk indicators A B C https://unfccc.int/process-and-meetings/transparency-and-reporting/support-for-developing-countries/ghg-support#TOOLS-and-SOFTWARE- https://www.bis.org/ifc/publ/ifcb56_27.pdf https://www.ipcc.ch/site/assets/uploads/2019/12/19R_V0_01_Overview.pdf https://www.bnm.gov.my/documents/20124/938039/PD_Climate-Risk-Mgmt-Scenario-Analysis-Nov2022.pdf https://www.researchgate.net/publication/325491309_Climate_Change_Analysis_using_Satellite_Data Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps28 5. Future Plans Moving forward, the Sub-Committee on Bridging Data Gaps will pursue efforts to collaborate with relevant stakeholders to bridge data gaps. An immediate area of focus for 2023 is to work with data providers to improve the availability of a number of data items in the Top 8 data groups. The Sub-Committee will update the Data Catalogue on an annual basis, to ensure its relevance based on the latest data requirements, standards and data sources. To this end, the Sub-Committee welcomes feedback through email ([email protected]), particularly on the usefulness and comprehensiveness of the Data Catalogue. Such feedback will be invaluable in further enriching the content, format and functionalities of Data Catalogue in the future. Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 29 Acknowledgements This report is a collaborative effort among the members of the JC3 Sub-Committee on Bridging Data Gaps. This document was prepared under the purview of JC3 and Sub-Committee Chair, BNM Assistant Governor Fraziali Ismail. Support was provided by the Sub-Committee Secretariat team from BNM, led by Ong Li Ming and consists of members i.e. Ili Sarah Aspar, Saiful Anuar Mohd Husin, Nur Izzati Mohd Jamal, Rifqah Abdul Muis, Nurhazwani Abdul Halim, Tang Jia Quan, and Ho Shu Lin. The Sub-Committee is truly grateful for the contributions of all members and observers in contributing towards the climate Data Catalogue, particularly: Soong Kim Loong (Maybank), Ashish Garg (Maybank), Oliver Kumaran (Bank Islam), Fadzillah Mokhtar (Bank Islam), Hussien Mullar (Bank Pembangunan), Saw Wei Ta (Hong Leong Bank), Leonard Yap (UOB), Arsalaan Ahmad (Al-Rajhi Bank), Mo Khurram Zia (Al-Rajhi Bank), Sharmini Ramanathan (MBSB Bank Berhad), Muhamad Izham Abd Shukor (previously from Ministry of Natural Resources, Environment and Climate Change (NRECC, formerly known as KeTSA)), Dayang Ratnasari Abu Bakar (Ministry of Natural Resources, Environment and Climate Change (NRECC, formerly known as KASA)), Dr Gary William Theseira (Malaysian Green Technology and Climate Change Center (MGTC)), Nicole Wong Siew Yong (AmGeneral Insurance), Mahidon Promwichit (AmGeneral Insurance), Jeannie Foo Xinwen (Allianz General Insurance), Mohammad Junaid Khalid Iqbal (AIA Berhad), Keith Kwan Chi Hin (Syarikat Takaful Malaysia Am Berhad), Wong Xing Onn (MSIG Insurance (Malaysia) Bhd), Elsa Athira Norshamziah (Kumpulan Wang Persaraaan (KWAP)), Mohd Redza Abdul Rahman (Permodalan Nasional Berhad (PNB)), Razeen Mohd Rom (BNM), Mohamad Shazwan Shuhaimeen (BNM), Dr Ho Sui-Jade (BNM), Thulaja Thessa (previously from BNM), Edward Goh Yoon Hin (SC), Munirah Abdul Rahman (SC), Alina Osman (previously from SC), Wong Kay Yong (Bursa Malaysia), Wong Chiun Chiek (Bursa Malaysia), Dr Yeoh Ken Kyid (Bursa Malaysia), San Mei Kim (Bursa Malaysia), Promod Dass (RAM Sustainability), Gladys Chua (RAM Sustainability), Chan Yin Huei (RAM Ratings), Khairul Aidah Samah (DOSM) and Syed Ibrahim Mohd Jamaluddin (DOSM). The Sub-Committee would also like to thank the World Bank for its contribution to this report, particularly: Dieter Wang, with support from Josha van Spronsen with the task team leads Mohamed Rozani Mohamed Osman and Martijn Gert Jan Regelink and the reviewers Rekha Reddy, Rodrigo Pereira Porto, Nepomunk Dunz, Taisei Matsuki and Dara Lengkong. The Sub-Committee also appreciates contribution from other individuals: Dr. Peter Ho Chiung Ching (BNM), Muhammad Afiq Danish Shamsul Annuar (BNM), Chuah Kue Peng (BNM), Eugene Tian Jien Ming (BNM), Joshua Chin Soon Kean (BNM), Suraya Sani (BNM), Dr. Murizah Osman Salleh (BNM), Ang Jian Wei (BNM), Julian Mahmud Hashim (Bursa Malaysia), Crystal Wong Jee Yong (SC) and Lea Grisey (NGFS Secretariat). The Sub-Committee would also like to express appreciation for feedback and comments from the members of JC3 and other Sub-Committees of JC3. Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps30 List of Acronyms ACE Access, Certainty, Efficiency API Application Programming Interface ASEAN Association of Southeast Asian Nations ASIFMA Asia Securities Industry & Financial Markets Association BNM Bank Negara Malaysia CCPT Climate Change and Principle-based Taxonomy CDSB Climate Disclosure Standards Board CMD Connect My Data CMM Capital Markets Malaysia CMP3 Capital Market Masterplan 3 CO2 Carbon Dioxide COP Conference of the Parties CRMSA Climate Risk Management and Scenario Analysis CRST Climate Risk Stress Testing DC Data Catalogue DID Department of Irrigation and Drainage DOE Department of Environment DOSM Department of Statistics Malaysia DPDSA Public Sector Data Sharing Policy EIR Emissions intensity ratio ESA Environmentally sensitive area ESG Environmental, Social and Governance FAO Food and Agriculture Organisation of the United Nations FSB Financial Stability Board GC Global Compact GDP Gross Domestic Product GDPR General Data Protection Regulation GHG Greenhouse gas GIS Geographic Information System GRI Global Reporting Initiative G2B Government-to-Business G2C Government-to-Citizen G2G Government-to-Government IFC Irving Fisher Committee on Central Bank Statistics IFRS International Financial Reporting Standards ISIC International Standard Industrial Classification ISSB International Sustainability Standards Board Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps 31 List of Acronyms IPCC Intergovernmental Panel on Climate Change IPPU Industrial Process and Product JC3 Joint Committee on Climate Change MAMPU Malaysian Administrative Modernisation and Management Planning Unit MSDN National Statistics and Data Council MSDNgW State/Regional Statistics and Data Council MSIC Malaysia Standard Industrial Classification MysIDC Malaysia Informative Data Centre NDSP National Data Sharing Policy NDC Nationally Determined Contributions NGFS Network for Greening the Financial System NRECC Ministry of Natural Resources, Environment and Climate Change (formerly known as Ministry of Environment and Water (KASA) and Ministry of Energy and Natural Resources (KeTSA)) NSO National Statistical Office PCAF Partnership for Carbon Accounting Financials PD Probability of Default PDPA Personal Data Protection Act 2010 RDBMS Relational Database Management System RSS Relational Spreadsheet Structure SAGE Sectoral Activity Data for GHG Emissions SASB Sustainability Accounting Standards Board SC Securities Commission SDG Sustainable Development Goals SMEs Small and Medium Enterprises SRI Sustainable and Responsible Investment StatsDW Statistics Data Warehouse TCFD Task Force on Climate-related Financial Disclosures TNB Tenaga Nasional Berhad UK United Kingdom UN United Nations UNFCCC United Nations Framework Convention on Climate Change UNGC United Nations Global Compact US United States of America VaR Value-at-risk VRF Value Reporting Foundation Report on Climate Data Catalogue | Key Findings and Recommendations to Bridge Data Gaps32 List of Diagrams Diagram 1 Identification Process of Climate-related Data Diagram 2 Identified Use Cases Applicable for the Climate Data Catalogue Diagram 3 Metric Types Established Diagram 4 Top 8 Data Groups Diagram 5 Data Items by Metric Type Diagram 6 Share of Metric Types for Top 2 Use Cases - Financial Stability Monitoring and Investment Lending Decisions Diagram 7 Data Availability Diagram 8 Percentage of Data Availability for Top 8 Data Groups Diagram 9 Data Accessibility by Metric Type Diagram 10 Data Catalogue Maintenance – Process Flow Diagram 11 Data Challenges Diagram 12 Recommendations to Bridge Data Gaps Appendix: Climate Data Catalogue December 2022 Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series 1. ESG Book 2. Entity 1. https://app.esgbook.com/dashboard 2. a) Petronas (https://www.petronas.com/sustainability/reporting) b) Tenaga Nasional Berhad (https://www.tnb.com.my/sustainability/performance- highlight/) c) Axiata (https://sustainability.axiata.com/wp-content/uploads/2021/05/Axiata- SNCR2020.pdf) d) Allianz (https://www.allianz.com.my/personal/allianz-at-a-glance/allianz-4- good/sustainability-reports.html) e) CIMB (https://www.cimb.com/en/sustainability/sustainability-cimb.html) f) DRB Hicom (https://www.drb-hicom.com/investors/annual-report_/) Public Annual Varies by companies ESGBook provides the disclosure of GHG emission scope 1 and 2 for public-listed companies that disclose this information in the annual report. Users can sign up with no cost to obtain this data as ESGBook is a freemium platform. Upon sign-in, go to company directory > search and click the desired company > disclosure > emissions framework. There are a total of 1,564 Malaysian corporations in ESGBook. However, not all companies disclose their GHG emissions. 1. Refinitive 2. Bloomberg 1. https://www.refinitiv.com/en/sustainable-finance/esg-scores 2. https://www.bloomberg.com/professional/dataset/global-environmental-social- governance-data/ Proprietary Annual Not available Refinitiv and Bloomberg provide the disclosure of GHG emission scope 1 and 2 for public-listed companies that disclose these information in the annual reports. However, subscription fee is required. Forward- looking (projection) Entity Not available Not available Not available Not available Data is not available. Backward- looking NRECC (formerly known as KASA) https://unfccc.int/documents/267685 Public Biennial 1990-2016 GHG emissions published by NRECC (formerly known as KASA) is based on sectors and sub sectors (IPCC Guidelines) instead of scopes 1 and 2. The sectors are Energy, Industrial Processes and Product Use, Land Use, Land- Use Change, and Forestry, Agriculture, and Waste instead of industrial sector classification as per MSIC 2008. Forward- looking (projection) NRECC (formerly known as KASA) https://unfccc.int/sites/default/files/resource/Malaysia%20NC3%20BUR2_final% 20high%20res.pdf Public Biennial 2005-2030 Projections under 3 scenarios: 1. Business-as-usual (BAU) 2. Planning scenario incorporates existing policies and planned initiatives that would be implemented until 2030 (PLAN) 3. Ambitious scenario looks at potential emissions reduction when additional mitigation measures are implemented (AMB) GHG emission published by NRECC (formerly known as KASA) is based on sector and sub sector (IPCC Guidelines) instead of scopes 1 and 2. The sectors are Energy, Industrial Processes and Product Use, Agriculture Forestry and Other Land Use, and Waste instead of industrial sector classification as per MSIC 2008. Backward- looking Entity Not available Not available Not available Not available Data is not available. Forward- looking (projection) Entity Not available Not available Not available Not available Data is not available. 1. ESG Book 2. Entity 1. https://app.esgbook.com/dashboard 2. a) Allianz (https://www.allianz.com.my/personal/allianz-at-a-glance/allianz-4- good/sustainability-reports.html) b) Shell (https://reports.shell.com/sustainability- report/2021/services/downloads.html) c) Nestle (https://www.nestle.com/sites/default/files/2022-03/creating-shared- value-sustainability-report-2021-en.pdf) Public Annual Varies by companies ESGBook provides the disclosure of GHG emission scope 3 for public-listed companies that disclose this information in the annual report. There are 25 Malaysian companies which disclose their Scope 3 emission. Users can sign up with no cost to obtain this data as ESGBook is a freemium platform. Upon sign in, go to company directory > search and click the desired company > disclosure > emissions framework. The freemium access has a delayed scoring of 3 months, while real-time data and scoring require paid subscription. The information can also be obtained from respective companies' annual reports/sustainability reports. 1. Refinitive 2. Bloomberg 1. https://www.refinitiv.com/en/sustainable-finance/esg-scores 2. https://www.bloomberg.com/professional/dataset/global-environmental-social- governance-data/ Proprietary Annual Not available Refinitiv and Bloomberg provide the disclosure of GHG emission scope 3 for public-listed companies that disclose this information in the annual reports upon subscription. Forward- looking (projection) Entity Not available Not available Not available Not available Data is not available. Backward- looking NRECC (formerly known as KASA) https://unfccc.int/documents/267685 Public Biennial 1990-2016 GHG emissions published by NRECC (formerly known as KASA) is based on sector and sub sector (IPCC Guidelines) instead of Scope 3. The sectors are Energy, Industrial Processes and Product Use, Land Use, Land-Use Change, and Forestry, Agriculture, and Waste instead of industrial sector classification as per MSIC 2008. Forward- looking (projection) NRECC (formerly known as KASA) https://unfccc.int/sites/default/files/resource/Malaysia%20NC3%20BUR2_final% 20high%20res.pdf Public Biennial 2005-2030 Projections under 3 scenarios: 1. Business-as-usual (BAU) 2. Planning scenario incorporates existing policies and planned initiatives that would be implemented until 2030 (PLAN) 3. Ambitious scenario looks at potential emissions reduction when additional mitigation measures are implemented (AMB) Report to UNFCCC contains GHG emissions improvement plan, but no specific quantitative projections. GHG emissions published by NRECC (formerly known as KASA) is based on sector and sub sector (IPCC Guidelines) instead of Scope 3. The sectors are Energy, Industrial Processes and Product Use, Agriculture Forestry and Other Land Use, and Waste instead of industrial sector classification as per MSIC 2008. Backward- looking Entity Not available Not available Not available Not available Forward- looking (projection) Entity Not available Not available Not available Not available 3 GHG inventory Footprint 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National GHG Inventories / Malaysia Biennial Update Report to UNFCCC Gg CO2e By Sector Backward- looking ✓ NRECC (formerly known as KASA) https://unfccc.int/documents/267685 Public Biennial 1990-2016 The latest available report to UNFCCC is for 2020, which contains data from 1990 to 2016. The data published by NRECC (formerly known as KASA) is based on sectors (Energy, Industrial Processes and Product Use, Agriculture, Forestry and Other Land Use, and Water) instead of industrial sector classification as per MSIC 2008. 1. The Data Catalogue is compiled by the Sub-Committee on Bridging Data Gaps (the Sub-Committee) of the Joint Committee on Climate Change (JC3), based on data needs of Malaysia's financial sector and data sources at the time of publication. 2. The DC is aimed to be a source of reference for climate and environmental data relevant to use cases by Malaysia's financial sector. 3. The DC mainly covers Malaysian climate and environmental data that includes data that are readily available, partially available, and unavailable as well as observations on data gaps. For other global climate data, users may refer to the NGFS Directory (http://ngfs.dev.masdkp.io). Disclaimer: Inclusion of information in the Data Catalogue does not indicate use of or endorsement by the Sub-Committee on Bridging Data Gaps (the Sub-Committee), any member of the Joint Committee on Climate Change (JC3) or any affiliated organisation and neither the Data Catalogue's scope nor the data sources are meant to be comprehensive. The Sub-Committee and the members of JC3 do not make any warranty as to the results that may be obtained from use of the Data Catalogue, or as to the accuracy, adequacy, validity, availability, completeness, reliability or content of any information provided through the Data Catalogue, and users are responsible to make their own assessment of the information that is suitable for their purpose. 1 ✓✓ ✓✓ ✓ By Asset Class 2 GHG emissions Scope 3 Footprint 1. GHG Protocol Corporate Accounting and Reporting Standard 2. 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National GHG Inventories / Malaysia Biennial Update Report to UNFCCC Tonnes CO2e Tonnes CO2e Tonnes CO2e Tonnes CO2e Green House Gases (GHG) emissions Scope 1, Scope 2 Tonnes CO2e By Entity By Asset Class Backward- looking ✓percentage (%) By Entity By Sector By Sector ✓ Data Availability ✓ Observations on data availability/gaps Data is not available. ✓ ✓ ✓✓ No. Data Needs Backward- looking Use Cases Footprint 1. GHG Protocol Corporate Accounting and Reporting Standard 2. 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National GHG Inventories / Malaysia Biennial Update Report to UNFCCC 33 https://unfccc.int/sites/default/files/resource/Malaysia NC3 BUR2_final high res.pdf https://unfccc.int/sites/default/files/resource/Malaysia NC3 BUR2_final high res.pdf Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases Tonnes CO2e By Sector Forward- looking (projection) 1. NRECC (formerly known as KASA) 2. UNFCCC 1. https://www.kasa.gov.my/resources/alam-sekitar/Low-Carbon-Mobility- Blueprint-2021-2030/4/ 2. https://unfccc.int/sites/default/files/NDC/2022- 06/Malaysia%20NDC%20Updated%20Submission%20to%20UNFCCC%20Jul y%202021%20final.pdf Public Annual 2021-2030 Tonnes CO2e By Entity Forward- looking (projection) 1. Entity 2. Science Based Targets initiative (SBTi) 1. Entity a) Sunway (https://www.sunway.com.my/sustainability-report/wp- content/uploads/2022/07/Sunway-SR2021-interactive.pdf#page=76) b) Top Glove (https://www.topglove.com/sustainability-disclosure) c) IOI Group (https://www.ioigroup.com/Content/IR/PDF/SR/2021_SR.pdf) 2. https://sciencebasedtargets.org/companies-taking-action Public Annual Varies by companies GHG Protocol Corporate Accounting and Reporting Standard CO2 equivalent per unit of physical or economic output e.g. 1. kg CO2e/RM million 2. g CO2e/kWh By Entity Backward- looking Entity Not available Not available Not available Not available Data is not available. 1. Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories 2. 2006 IPCC Guidelines for National Greenhouse Gas Inventories (BUR3) CO2 equivalent per unit of physical or economic output e.g. 1. kg CO2e/RM million 2. g CO2e/kWh By Sector Backward- looking 1. UNFCCC/NRECC (formerly known as KASA) 2. International Energy Agency 3. European Environment Agency 1. https://unfccc.int/documents/267685 and https://unfccc.int/sites/default/files/resource/MALBUR1.pdf 2. https://www.iea.org/data-and-statistics/charts/development-of-co2-emission- intensity-of-electricity-generation-in-selected-countries-2000-2020 3. https://www.eea.europa.eu/ims/greenhouse-gas-emission-intensity-of-1 Public 1. Biennial (NRECC) 2. Upon update (IEA & EEA) 1. Selected years (KASA) 2. 2000-2020 (IEA) 3. 1990-2030 (EEA) The data published by NRECC (formerly known as KASA) is based on sectors (Energy, Industrial Processes and Product Use, Agriculture, Forestry and Other Land Use, and Water) instead of industrial sector classification as per MSIC 2008. IEA website contains data on CO2 emission intensity of electricity generation for its members, with limited data on Malaysia. Data from EEA is at the macro level, which is based on European countries. 6 Economic sectors' contribution to Gross Domestic Product (GDP) and GHG emissions Combined metrics International Standard Industrial Classification and GHG Protocol MYR Million / CO2 By Sector Backward- looking ✓ 1. Economic Planning Unit (EPU) 2. UNFCCC/NRECC (formerly known as KASA) 1. https://www.epu.gov.my/sites/default/files/2021-12/MEIF%202021.pdf 2. https://unfccc.int/documents/267685 Public 1. Annual 2. Biennial 1. 2005-2021 2. 1990-2016 EPU provides data on economics sector's contribution to GDP, whilst NRECC (formerly known as KASA) provides data on sectoral GHG emissions. Both however use different set of sector classification. 7 Vehicle GHG emissions Footprint 1. GHG Protocol Corporate Accounting and Reporting Standard 2. 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National GHG Inventories / Malaysia Biennial Update Report to UNFCCC Grams/km By Type Backward- looking ✓ ✓ ✓ 1. US Department of Energy 2. UK Vehicle Certification Agency 1. https://www.fueleconomy.gov/feg/findacar.shtml 2. https://www.gov.uk/co2-and-vehicle-tax-tools Public Upon update Upon update 1. Data for Malaysian car types is not available in the links. 2. The United Kingdom's government via its Vehicle Certification Agency has a vehicle GHG emission database on fuel consumption and CO2 emission data, whereby emission information by vehicle make and model is easily accessible in csv table format. 3. Department of Environment (DOE) via Environmental Quality Report 2020 (https://enviro2.doe.gov.my/ekmc/wp- content/uploads/2021/09/EQR-2020-1.pdf) publishes high-level air pollutant emission load data (Figure 5.10), and CO (Carbon Monoxide) load by sources (Figure 5.14) including by motor vehicles. 4. DOE had issued pollutant emission standards for new models of petrol-powered vehicles which aims to improve pollutant emissions in Malaysia using new engine designs and emission control technologies.(https://www.doe.gov.my/en/environmental-quality-control-of-emissions-from-petrol-engines-regulations- 1996-p-u-a-543-96/) By Sector Backward- looking 1. MSCI 2. CDP 1. https://www.msci.com/our-solutions/climate-investing/implied-temperature-rise 2. https://www.cdp.net/en/investor/temperature-ratings Proprietary Not available Not available Data is available upon subscription. The CDP-WWF temperature rating methodology is an open-source methodology which translates targets into an intuitive metric. It consists of three steps- a target protocol that converts emission targets to temperatures; a company protocol that aggregates the targets into an overall score; and a portfolio protocol that weights the scores across an investment portfolio. By Type of Entity / Issuer Backward- looking Not available Not available Not available Not available Not available Data is not available. 9 Internal Carbon price Transition sensitivity UN Framework Convention on Climate Change Kyoto Protocol USD/Tonnes CO2e By Entity Backward- looking ✓ ✓ Entity Not available Not available Not available Not available Data is generally not available. Reporting of internal carbon price is voluntary (e.g. Sunway, CIMB). Data users have to rely on news article or publications by entities to obtain relevant data. 1. Sunway (https://www.sunway.com.my/stories/sunway-sets-carbon-pricing-strategy-in-lofty-net-zero-targets/) 2. CIMB (https://www.cimb.com/en/newsroom/2022/cimb-establishes-scope-3-financed-emissions-baseline-towards- achieving-net-zero-ambition-sets-interim-sector-climate-targets-for-thermal-coal-and-cement.html) 10 Green or Net Zero Carbon Buildings Commitment Footprint 2°C aligned companies/ Net Zero Carbon by 2050 Not available By Sector Forward- looking (projection) ✓ World Green Building Council https://www.worldgbc.org/thecommitment#:~:text=Net%20zero%20carbon%20i s%20when,renewable%20energy%20sources%20and%20offsets. Public Upon update Not available Data is readily available. 11 Emission intensity performance of buildings in Malaysia Footprint Climate Bonds Standard - Low Carbon Building Criteria kgCO2e/m 2 By Type of building Backward- looking ✓ 1. EC 2. Entity Not available Not available Not available Not available Data is not available. Energy intensity performance can be found from this research journal: https://www.researchgate.net/publication/46496808_Energy_consumption_energy_savings_and_emission_analysis_in_ Malaysian_office_buildings By Entity Not available Periodic Periodic By Type Not available Periodic Periodic By Product Not available Periodic Periodic By Customer (SME and Non- SME) Not available Periodic Periodic By Sector Not available Periodic Periodic By CCPT Classification (C1 to C5) Not available Periodic Periodic By Classification of retail loans/ financing (green/ sustainable product) Not available Periodic Periodic By Location of utilisation Not available Periodic Periodic By Climate- supporting/ transitioning/ watchlist financing sector Not available Periodic Periodic Climate-supporting (C1)/ transitioning (C2 & C3)/ watchlist financing (C4 & C5) loan data by sector being compiled by financial institutions based on CCPT classification is submitted to BNM. ✓4 GHG emission targets 5 12 Backward- looking ✓ GHG emission intensity Combined metrics 8 Footprint 1. Climate Change and Principle based Taxonomy (CCPT) reporting • Climate supporting: C1 • Transitioning: C2 & C3 • Watchlist: C4 & C5 2. ASEAN Taxonomy: An activity can be classified in one of six ways: • Green FF: Green Foundation Framework • Amber FF: Amber Foundation Framework • Red FF: Red Foundation Framework • Green PS: Green Plus Standard • Amber PS Amber Plus Standard • Red PS: Red Plus Standard Green/Sustainable loan/financing, refinancing, outstanding, applied, approved, disbursed, repaid Mobilisation ✓✓ ✓ Portfolio temperature ✓Currency (e.g. MYR) ✓ 1. Morgan Stanley Capital International (MSCI) 2. Carbon Disclosure Project (CDP) - World Wide Fund for Nature (WWF) Degree Celsius ✓ Data is compiled by financial institutions. Certain data being compiled by financial institutions containing aggregated level exposure based on CCPT classification is submitted to BNM. 1. Financial institutions 2. BNM Confidential ✓ GHG emission target details are in aggregated format, with no target per sector. The data provided by SBTi can be filtered to show Malaysian companies that have publicly committed to science-based targets, and companies that have their targets approved by SBTi. ✓ ✓ ✓ ✓ ✓✓✓ ✓Footprint 1. GHG Protocol Corporate Accounting and Reporting Standard 2. 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National GHG Inventories / Malaysia Biennial Update Report to UNFCCC ✓ ✓ 34 Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases Backward- looking Forward- looking (projection) Backward- looking Forward- looking (projection) Backward- looking Forward- looking (projection) By Location of utilisation Backward- looking ACMF https://www.theacmf.org/initiatives/sustainable-finance/list-of-asean-green-social- sustainability-bondssukuk Public Periodic updates Periodic updates ACMF provides the list of issued bonds, with location data provided being 'Country of Issuance/Origination'. By Sector By Holder By Type 15 Green public investment, fiscal expenditures (including Public Private Partnerships) by Portfolio Mobilisation Not applicable Currency (e.g. MYR) By Type Backward- looking ✓ ✓ ✓ ✓ ✓ ✓ ✓ 1. Malaysian Green Technology And Climate Change Corporation (MGTC) 2. Green Technology Financing Scheme (GTFS) 3. DOSM 1. https://www.mgtc.gov.my/media/resources/ 2. https://www.gtfs.my/ 3. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public Annual 1. 2018-2020 (MGTC) 2. 2013-2017 (GTFS) 3. 2014-2022 (DOSM) Data on budget allocation for green technology and projects approved can be found in MGTC's annual report. GTFS shows a list of GTFS-certified companies and their projects. DOSM provides data on the environmental protection expenditure on sectoral level. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 6 (6.1-6.3) 16 Percentage of investment in share capital with a green company (holding of ordinary or preference shares) Mobilisation Not applicable Currency (e.g. MYR) or % (percentage) By Sector Backward- looking ✓ ✓ ✓ ✓ ✓ ✓ ✓ Entity Not available Not available Not available Not available Data is not available. Currency (e.g. MYR) By Type Backward- looking DOSM https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public Annual 2016-2022 DOSM provides data on the environmental protection expenditure on sectoral level. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 6 (6.1 and 6.2) Currency (e.g. MYR) By Geographical area Backward- looking DOSM https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public Annual 2016-2022 DOSM provides data on the environmental protection expenditure on sectoral level. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 6 (6.4) 18 Green Equities Index Combined metrics Not applicable Not available By Sector Backward- looking ✓ Bursa Malaysia 1. https://www.bursamalaysia.com/trade/trading_resources/listing_directory/indices- profile?stock_code=0842I 2. https://www.bursamalaysia.com/trade/trading_resources/listing_directory/indices- profile?stock_code=0843I Proprietary Daily 2022-present Bursa Malaysia has time series data on two ESG Low Carbon indices, which is at the aggregate level and would require subscription to their Historical Data Package. 19 Capital expenditure for decarbonisation Footprint TCFD or other relevant reporting frameworks Currency (e.g. MYR) By Entity Backward- looking ✓ Entity Not available Not available Not available Not available Data is generally not available. Reporting of capital expenditure is voluntary. Data users have to rely on news article or publications by entities to obtain relevant data (e.g. TNB - https://www.theedgemarkets.com/article/tnb-commits-rm20-bil- capex-annually-hasten-transition-responsible-energy-until-2050). By Sector Backward- looking 1. EC 2. Grid System Operator (GSO) 1. https://meih.st.gov.my/statistics 2. https://www.gso.org.my/SystemData/SystemDemand.aspx Public 1. Annual 2. Monthly (GSO) 1. 1978-2019 (MEIH) 2. 2016-2022 (GSO) The data published by EC is based on sectors (Industrial, Transport, Agriculture, Non-Energy, Residential and Commercial Sector) instead of industrial sector classification as per MSIC 2008. By Entity Backward- looking 1. Tenaga Nasional Berhad (TNB) 2. Sabah Electricity Sdn. Bhd (SESB) 3. Sarawak Energy Berhad (SEB) Not available Confidential Not available Not available Energy Statistics Database can be purchased through United Nations Shop from USD$600 (https://unstats.un.org/unsd/energystats/data). All utility companies are subjected to Personal Data Protection Act (PDPA). 21 Fuel used (per kWh) Transition sensitivity International Energy Agency (IEA) 1. physical unit/kWh 2. (Ktoe/kWh or gallon/kWh) 3. Heat rate (in British Thermal Units (Btu) per kWh) divided by Fuel heat content (in Btu per physical unit) By Sector Backward- looking ✓ EC 1. https://www.st.gov.my/en/web/download/listing/151 (Malaysia Energy Statistics Handbook) 2. https://meih.st.gov.my/statistics Public Annual 1. 1980-2018 (Handbook) 2. 1990-2019 (MEIH) EC publishes the data via: 1. Malaysia Energy Statistics Handbook (Final Energy Consumption by Sector) 2. MEIH (Final Energy Demand by Sector) The data published by EC is based on sectors (Industrial, Transport, Agriculture, Non-Energy, Residential and Commercial Sector) instead of industrial sector classification as per MSIC 2008. By Sector Backward- looking 1. EC 2. Grid System Operator 3. World Data 1. https://meih.st.gov.my/statistics 2. https://www.gso.org.my/SystemData/CurrentGen.aspx 3. https://www.worlddata.info/asia/malaysia/energy-consumption.php Public 1. Annual (MEIH, World Data) 2. Monthly (GSO) 1. 2012-2019 (MEIH) 2. 2016-2022 (GSO) 3. 1990-2018 (World Data) EC publishes data on unit generated by types of prime movers (e.g., hydro, solar, biogas, biomass). Amount of renewable energy purchased/produced by sector is not available. GSO data is available by types of renewable energy. Data by sector is not available. World Data provides the percentage of renewable energy usage. Relevant calculations are needed to calculate the amount of renewable energy usage. Data by sector is not available. By Entity Backward- looking Sustainable Energy Development Authority (SEDA) https://pvms.seda.gov.my/pvportal/ Proprietary Monthly Not available PV Monitoring System (PVMS) provides real-time data on electricity produced using solar photovoltaic (PV). Renewable energy producers need to register with PVMS. Currency (e.g. MYR) By Country Forward- looking (projection) Not available Not available Not available Not available Not available Data is not available. MWh per mn USD By Entity Backward- looking Not available Not available Not available Not available Not available Data is not available. ktoe By Sector Backward- looking EC 1. https://www.st.gov.my/en/web/download/listing/151 2. https://meih.st.gov.my/statistics Public Annual 1. 1990-2018 (Handbook) 2. 1978-2019 (MEIH) The latest available Malaysia Energy Statistic Handbook is for 2020, which contains data up until 2018. The data published by EC is based on sectors (Industrial, Transport, Agriculture, Non-Energy, Residential and Commercial Sector) instead of industrial sector classification as per MSIC 2008. ktoe By Sub-Sector Backward- looking Not available Not available Not available Not available Not available Data is not available. Renewable energy purchased/produced (per kWh) ✓✓ ✓ Final energy consumption Transition sensitivity ✓ ✓ 1. Renewable Energy Act 2011 2. Sustainable Energy Development Authority Act 2011 International Energy Agency (IEA) ✓ kWh, ktoe 22 kWhTransition sensitivity ✓Index value/point ✓ 23 ✓ Backward- looking Financing nature-based solutions/conservation programs 1. Forestry Department of Peninsular Malaysia 2. National Forestry Act 1984 3. Malaysian Criteria and Indicators for Sustainable Forest Management (MC&I SFM) Physical vulnerability ✓ By Issuer / Entity Electricity purchased/consumed 1. TNB pricing and tariff (example electricity bill) 2. Sabah pricing and tariff (example electricity bill) 3. Sarawak pricing and tariff (example electricity bill) 17 13 Green/Sustainable bond/sukuk issuance Mobilisation 20 14 Green/Sustainable stock/bonds market indices Mobilisation 1. BPAM ESG Bond Index 2. FTSE4GOOD Bursa Malaysia Index Transition sensitivity 2014-2022 (Bursa) ✓ 1. Sustainable and Responsible Investment (SRI) Sukuk Framework by SC 2. Climate Change and Principle based Taxonomy (CCPT) reporting • Climate supporting: C1 • Transitioning: C2 & C3 • Watchlist: C4 & C5 3. ASEAN Green, Social, Sustainability Bond Standards 4. International Capital Market Association (ICMA) Green/Sustainability Bond Principles 5. ASEAN Taxonomy: An activity can be classified in one of six ways: • Green FF: Green Foundation Framework • Amber FF: Amber Foundation Framework • Red FF: Red Foundation Framework • Green PS: Green Plus Standard • Amber PS Amber Plus Standard • Red PS: Red Plus Standard ✓Currency (e.g. MYR) or % (percentage) ✓ 1. Daily (BPAM) 2. Daily (Bursa) ✓ ✓ Public ✓✓By Sector By Type 1. https://bpam.com.my/local-market 2. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index 2. https://www.investing.com/indices/ftse4good-bursa-malaysia-historical-data 1. ASEAN Capital Markets Forum (ACMF) 2. Bond+Sukuk Information Exchange (BIX) 3. Climate Bonds Initiative (CBI) 4. Bond Pricing Agency Malaysia (BPAM) 5. Fully Automated System for Issuing/Tendering (FAST) 1. https://www.theacmf.org/initiatives/sustainable-finance/list-of-asean-green- social-sustainability-bondssukuk 2. https://www.bixmalaysia.com/news-announcements/upcoming-issuances 3. https://www.climatebonds.net/market/data/ 4. https://www.bpam.com.my/esg 5. https://fast.bnm.gov.my/fastweb/public/MainPage.do ✓ ✓ ✓ ACMF provides the list of issued bonds in ASEAN countries, along with the name of issuer, type of project, currency, size, type of bond (green/social/sustainable). BIX webpage provides the upcoming issuances of bond/sukuk in Malaysia. Climate Bond provides data on green bond issuance geographies, issuer type, use of proceeds (sector), currency, and deal size. BPAM's webpage provides the latest and upcoming issuances of ESG bond/sukuk in Malaysia, with more ESG data in their proprietary platform BondStream. For CCPT reporting, BPAM provides the bond classifications by request and subscription basis. BPAM currently covers GP1 and GP2, with all classifications (GP1-GP5 and C1-C5) to be covered by Q2 2023. BPAM has an ESG Bond Index which includes a 3-month index value chart. More ESG index data can be found in their proprietary platform BondStream. The FTSE4Good Bursa Malaysia Index allows identification of index constituents and constituents' market value. Public Monthly ACMF – List from 29 Dec 2017 periodically updated. BIX – Have up- to-date list (Note: Entries for issuance prior to 22 Aug 2017 are all indicated as 1 Jan 0001) CBI - View of Labelled Green Bonds Data shows bonds that were issued during the last 3 months. A full database of over 5000 records is available to CBI Partners ✓ ✓ 1. Bond Pricing Agency Malaysia (BPAM) 2. Bursa Malaysia, investing.com 35 Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases 24 Oil energy consumption Transition sensitivity Not applicable 1. Currency (e.g. MYR) 2. Volume By Entity Backward- looking ✓ EC Not available Not available Not available Not available Data is not available. Final consumption of crude oil and petroleum products at the aggregate level is published by MEIH: https://meih.st.gov.my/statistics (National Energy Balance) 25 Coal energy consumption Transition sensitivity Not applicable 1. Currency (e.g. MYR) 2. Volume By Entity Backward- looking ✓ EC Not available Not available Not available Not available Data is not available. Final consumption of coal at the aggregate level is published by MEIH: https://meih.st.gov.my/statistics (National Energy Balance) 26 Gas energy consumption Transition sensitivity Not applicable 1. Currency (e.g. MYR) 2. Volume By Entity Backward- looking ✓ EC Not available Not available Not available Not available Data is not available. Final consumption of natural gas at the aggregate level is published by MEIH: https://meih.st.gov.my/statistics (National Energy Balance) National Energy Balance 1. MYR/MMBtu 2. USD/MMBtu By Type Backward- looking 1. EC 2. World Bank 1. https://www.st.gov.my/en/web/download/listing/111 https://meih.st.gov.my/ 2. https://www.worldbank.org/en/research/commodity-markets Public 1. Annual (EC- MEIH) 2. Monthly (World Bank) 1. 1990 - 2019 (EC - MEIH) 2. 1970 - 2022 (World Bank) MEIH statistics webpage provides energy prices for retail petroleum (latest available data for retail petroleum is 2015), petroleum products, liquefied petroleum gas and natural gas. Meanwhile EC's National Energy Balance 2019 provides energy prices for crude oil, coal & coke. World Bank Commodities Price Forecast USD/MMBtu By Type Forward- looking (projection) World Bank https://www.worldbank.org/en/research/commodity-markets Public Annual 2021 - 2024 Energy prices forecasts are available for Australia, Europe, US, Japan (but no specific reference for Malaysia). By Sector Backward- looking Not available Not available Not available Not available Not available By Entity Backward- looking Not available Not available Not available Not available Not available 29 Energy-efficiency indicators Transition sensitivity International Energy Agency (IEA) Currency (e.g. MYR) or % (percentage) By Sector Backward- looking ✓ ✓ ✓ International Energy Agency (IEA) 1. https://www.iea.org/data-and-statistics/data-product/energy-efficiency- indicators 2. https://www.iea.org/countries/malaysia Proprietary Not available 2009 onwards Types of indicators were generally mentioned in page 47 of the National Energy Efficiency Action Plan, without any supporting data. (https://www.pmo.gov.my/wp-content/uploads/2019/07/National-Energy-Efficiency-Action-Plan.pdf) IEA website contains energy efficiency indicators for its members, with limited energy-related indicators on Malaysia country page (Malaysia is not a member country). 1. MetMalaysia 2. DOSM 1. https://www.met.gov.my/penerbitan/laporan-tahunan/ 2. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public MetMalaysia provides Malaysian meteorological data such as highest and lowest recorded temperatures along with temperature variations. DOSM provides historical data on annual mean temperature, rainfall volume, and mean relative humidity in Malaysia, broken down to registered measures across selected meteorological stations in various states. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 1 World Bank https://climateknowledgeportal.worldbank.org/country/malaysia Public (With API) Historical data from World Bank is at the national level. MetMalaysia https://www.met.gov.my/projection/temperature/ Public MetMalaysia provides weather forecasts up to 7 days ahead under the 'Forecast' tab. World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data- projections Public (With API) Data is readily available. Multi-model projected mean or anomaly temperature: 1. Monthly data with a 10-year interval, up until the year 2100 2. Annual data up until the year 2100 1. National database 2. World Bank's Climate Change Knowledge Portal (CCKP) 3. Coupled Model Intercomparison Project Phase 5 (CMIP5) models, which are utilized within the Fifth Assessment Report (AR5) of the Intergovernmental Panel on Climate Change (IPCC) By Country Forward- looking (projection) World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data- projections Public (With API) Annual 1995-2100 Data is readily available. Multi-model projected mean or anomaly temperature: 1. Monthly data with a 10-year interval, up until year 2100 2. Annual data up until the year 2100 Backward- looking World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/impacts-sea-level-risePublic (With API) Monthly 1993-2015 The World Bank provides monthly historical data on sea level anomaly and sea surface temperature. World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/impacts-sea- level-rise Public (With API) Annual 2020-2100 The World Bank provides projection of sea level rise up to 2100. NAHRIM https://mycoast.nahrim.gov.my/www/index.php?id=18&page_id=71&jenis=RCP Public Annual 2030, 2050 & 2100 For sea-level rise projections, NAHRIM issued a report in 2017 with projections up to 2100 for different RCP. Forward- looking (projection) 1. https://www.met.gov.my/penerbitan/laporan-tahunan/ 2. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public Backward- looking 1. https://www.met.gov.my/ 2. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam 3. https://publicinfobanjir.water.gov.my/hujan/data-hujan/?lang=en Public MetMalaysia By Region Backward- looking DOSM https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public Annual 2009-2022 DOSM provides data on mean temperature, rainfall volume and mean relative humidity (in %). Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 1 (1.1 Mean temperature, rainfall volume and mean relative humidity, Malaysia) 1. National database, 2. World Bank's CCKP, CMIP5 models, which are utilized within the AR5 of the IPCC By Country Forward- looking (projection) World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data- projections Public (With API) Annual 1995-2100 Data is readily available. Backward- looking Forward- looking (projection) 1. National database 2. World Bank's CCKP, CMIP5 models, which are utilised within the AR5 of the IPCC SPI Index By Country Forward- looking (projection) World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data- projections Public (With API) Annual 1995-2100 World Bank provides data on the temperature projection and projected number of consecutive dry days. ✓ ✓ ✓✓ ✓ Currency (e.g. MYR) or % (percentage) By District & StateDegree Celsius 1. Reg HCM 2. INFORM 2019 Risk Index 3. ND-GAIN Index 4. RCP Emission pathway 5. Coastal Vulnerability Index 6. National Disaster Management Agency (NADMA) By Geography / Location By Geography / Location (Region) Metre Millimetre Forward- looking (projection) Forward- looking (projection) Backward- looking ✓ ✓ Temperature Fossil fuel/oil/gas sales as a proportion of total revenue ✓ 1. Reg HCM 2. INFORM 2019 Risk Index 3. ND-GAIN Index 4. RCP Emission pathway 5. Coastal Vulnerability Index 6. National Hydraulic Research Institute of Malaysia (NAHRIM) 1. Regional Hydro-Climate Model (Reg HCM) 2. INFORM 2019 Risk Index 3. Notre Dame Global Adaptation Initiative (ND- GAIN) Index 4. Representative Concentration Pathway (RCP) Emission pathway 5. Coastal Vulnerability Index Not applicable Drought Physical vulnerability SPI Index Sea Level Rise 30 Rainfall Energy prices Transition sensitivity Footprint 33 31 Physical vulnerability 1. MetMalaysia 2. DOSM 3. DID ✓ Public1. DID 2. MetMalaysia 1. http://infokemarau.water.gov.my/drought_report_page.cfm 2. https://www.met.gov.my/iklim/pemantauan-kemarau/ ✓ ✓ ✓ ✓ By District & State1. Regional Hydro-Climate Model (Reg HCM) 2. INFORM 2019 Risk Index 3. ND-GAIN Index 4. RCP Emission pathway 5. Coastal Vulnerability Index 6. MetMalaysia 27 Physical vulnerability 32 ✓ 28 DID publishes a monthly drought report that includes stations that record rain deficits based on the long-term means from the past 3 months. MetMalaysia provides a 6-month forward-looking projection for Standardized Precipitation Index (SPI) by station (latest available report - Dec 2022, under "Drought Monitoring" tab) 1. 1981-2019 (MetMalaysia) 2. 2009-2022 (DOSM) 3. 1901-2020 (World Bank) 1. Annual 2. Weekly (DID) 1. 2004-2020 (MetMalaysia) 2. 2009-2022 (DOSM) ✓ Monthly ✓ 1. Annual 2. Weekly (MetMalaysia) Data is not available. 2022 DID publishes rainfall data for the past 7 days at the state, district and station levels. MetMalaysia discloses their historical data through their Annual Reports. They use the tendency of low/high rainfall (historical), and also provides a 6-mth forward looking weather forecast (Tinjauan Cuaca Jangka Panjang). DOSM provides data on mean temperature, rainfall volume and mean relative humidity (in %). Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 1 Springer publishes an article that shows the projected rainfall and temperature changes over Malaysia at the end of the 21st century based on Providing Regional Climates for Impacts Studies (PRECIS) modelling system: https://link.springer.com/article/10.1007/s13143-016-0019-7 ✓ Physical vulnerability 36 Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases 1. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam 2. https://www.water.gov.my/jps/resources/auto%20download%20images/5844e4 6d37d56.pdf Public https://go.climatecentral.org/coastaldem/ Proprietary 1. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam 2. https://www.water.gov.my/jps/resources/auto%20download%20images/5844e4 6d37d56.pdf Public https://go.climatecentral.org/coastaldem/ Proprietary NADMA Number of days affected per year or Number of incidents per year By Region Backward- looking 1. DOSM 2. DID 1. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam 2. https://www.water.gov.my/jps/resources/auto%20download%20images/5844e4 6d37d56.pdf Public Annual 1. 2009-2022 (DOSM) 2. 1980-2000 (DID) DOSM provides data on Extreme Events and Disasters. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 4 (4.1 Number of flood incident reported by state) 1. National database 2. World Bank's CCKP, CMIP5 models, which are utilized within the AR5 of the IPCC Number of days affected per year or Number of incidents per year By Country Backward- looking World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data- projections Public (With API) Monthly 1995-2099 World Bank provides data on the projection of precipitation on an annual basis. 35 Water level at various river gauges Physical vulnerability DID Metre By Location Backward- looking ✓ DID https://publicinfobanjir.water.gov.my/aras-air/data-paras- air/?state=SEL&lang=en Public Daily Daily Data on water levels are available and frequently updated, with accompanying analysis of the danger level. 36 Flood-related impacts: 1. Households impacted 2. Number of buildings damaged/impacted 3. Estimated economics loss and insured loss 4. Past flood Footprint Physical vulnerability DOSM 1. Number of households impacted 2. Number of buildings damaged/impacted 3. Economics loss and insured loss 4. Past flood Footprint By Location Backward- looking ✓ DOSM https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public One-off 2021 DOSM publishes a one-off report on flood impacts which does not contain historical events. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Special Report on Impact of Floods in Malaysia 2021' 37 Flood emergency relief Physical vulnerability Not applicable Currency (e.g. MYR) By Type Backward- looking ✓ Ministry of Finance (MOF) https://bantuanbanjir.com/ Public Upon update 2021 Reliefs provided include cash and rebates at the individual and communal level. 1. MetMalaysia 2. DOSM 3. World Meteorological Organisation By Country Backward- looking 1. MetMalaysia 2. World Meteorological Organisation 1. https://www.met.gov.my/en/iklim/maklumat-iklim/ 2. https://severeweather.wmo.int/thunder/b3/stations.html Public Daily Daily MetMalaysia publishes a general climate information on thunderstorm data in their summary report (Highest number of days with thunderstorm in a year). World Meteorological Organisation reports historical data for the past 24 hours. Not applicable By Region Backward- looking World Meteorological Organisation https://severeweather.wmo.int/thunder/b3/stations.html Public Daily Daily Data is readily available. 1. National database 2. World Bank's CCKP, CMIP5 models, which are utilized within the AR5 of the IPCC By Country Forward- looking (projection) 1. MetMalaysia 2. World Meteorological Organisation 1. https://www.met.gov.my/data/ICN20032.html 1. https://www.met.gov.my/data/AmaranRibutPetir.jpg 1. https://www.met.gov.my/data/IWR30002.html 2. https://worldweather.wmo.int/en/country.html?countryCode=20 Public Daily Daily Data is readily available. Backward- looking Forward- looking (projection) 1. National database 2. World Bank's CCKP, CMIP5 models, which are utilized within the AR5 of the IPCC No. of areas, size of area, category of severity (1-5) By Country Forward- looking (projection) Not available Not available Not available Not available Not available Data is not available. By Location Backward- looking Not available Not available Not available Not available Not available DOSM provides data on Extreme Events and Disasters. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 4 https://newss.statistics.gov.my/newss-portalx/ep/epProductFreeDownloadSearch.seam Number of disaster incidents reported by states: 1. Flood 2. Earthquake 3. Landslide 4. Coastal erosion areas Natural hazard location by longitude & latitude is currently not available. By Country Backward- looking World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/vulnerability Public (With API) Annual 1980-2020 Data is readily available. NADMA Number of days affected per year or Number of incidents per year By Region Forward- looking (projection) NADMA Not available Not available Not available Not available Forward-looking data is not available, however a snapshot of the current heatwave status is available in the following link: https://www.met.gov.my/en/iklim/status-cuaca-panas/ 1. National database, 2. World Bank's CCKP, Coupled Model Intercomparison Project Phase 6 (CMIP 6) models, which are utilized within the AR5 of the IPCC Number of days affected per year or Number of incidents per year By Country Forward- looking (projection) World Bank https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data- projections Public (With API) 1. Annual 2. Quarterly 3. Monthly 2020-2099 World Bank provides data on temperature projections and projected number of consecutive dry days. 42 Humidity Physical vulnerability 1. DOSM 2. MetMalaysia Grams/m 3 , % By District & State Backward- looking ✓ 1. DOSM 2. MetMalaysia 1. https://newss.statistics.gov.my/newss- portalx/ep/epFreeDownloadContentSearch.seam?cid=96850 2. https://m.met.gov.my/projection/humidity/48623?lang=en Public 1. Annual 2. Daily 2016-2022 DOSM publishes data on environmental condition and quality. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 1 (1.1 Mean temperature, rainfall volume and mean relative humidity, Malaysia) (%) MetMalaysia: Snapshot data is available, but not historical. 43 Real estate exposures to potential extreme weather conditions Physical vulnerability 1. National database 2. World Bank Climate Change Knowledge portal Currency (e.g. MYR) or % (percentage) By Sector Backward- looking ✓ Not available Not available Not available Not available Not available Data is not available. 44 Exposure to physical risks measured as a percentage of business value (e.g. assets, profit or revenue) Physical vulnerability Not applicable Sensitivity measure expressed as a percentage of business value e.g. X% of Revenue By Entity Backward- looking ✓ ✓ Not available Not available Not available Not available Not available The disclosure among Malaysian companies is limited as most have yet to perform/disclose their scenario analysis/stress testing. The data available is mainly from Europe (https://www.spglobal.com/_division_assets/images/special- editorial/understanding-climate-risk-at-the-asset-level/sp-trucost-interplay-of-transition-and-physical-risk-report-05a.pdf). 1. NAHRIM 2. PLANMalaysia, KPKT ✓ By State Storm Physical vulnerability Number of days affected per year or Number of incidents per year No. of areas, size of area, category of severity (1-5) Physical vulnerability By Region Natural Hazard Data/Statistics (Occurrence/Map) Physical vulnerability World Bank's CCKP 1. Longitude & Latitude 2. Number of occurrence Physical vulnerability Heatwave Physical vulnerability 1. Number of flood incidents (also shows the 3 states with the highest flood incidents) - DOSM 2. Number of flood events and year of worst flood incident - DID 3. Number of days affected per year or Number of incidents per year 41 39 40 Coastal Vulnerability Index Flood34 38 ✓ ✓ PublicPLANMalaysia, KPKT https://myplan.planmalaysia.gov.my/www/ 1. DOSM 2. DID 3. Climate Central ✓ ✓✓ ✓ DOSM provides data on Extreme Events and Disasters. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 4 (4.1 Number of flood incident reported by state) DID has a publication which lists flood incidents from 1980 to 2000. CoastalDEM by Climate Central is a near-global DEM, of which their dataset is proprietary. PLANMalaysia publishes data on the Coastal Vulnerability Index under the Second National Coastal Zone Physical Plan. The link contains two volumes of publications, with sufficient granularity data based on coastal areas of each state in Malaysia. Upon update 2021 1.Monthly 2. Annual 1. 1995 2. 2009-2022 (DOSM) 3. 1980-2000 (DID) ✓ ✓ 1. DOSM 2. DID 3. CoastalDEM 4. National database, 5. World Bank's CCKP 6. CMIP5 models, which are utilized within the AR5 of the IPCC Backward- looking Forward- looking (projection) 37 https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data-projections https://climateknowledgeportal.worldbank.org/country/malaysia/climate-data-projections Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases Backward- looking https://easyxdi.com/ Proprietary Annual Not available Forward- looking (projection) https://easyxdi.com/ Proprietary Annual Until 2100 Backward- looking https://www.msci.com/www/research-report/value-at-risk-for-asset/019081046 Proprietary Not available Not available Forward- looking (projection) https://www.msci.com/www/research-report/value-at-risk-for-asset/019081046 Proprietary Not available Not available 1. arabesque s-ray 2. Sustainalytics 3. FTSE4Good 4. ESGBook 1. sray.arabesque.com 2 https://www.sustainalytics.com/esg-ratings 3. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index 4. https://app.esgbook.com/ Public 1. MSCI 2. Bloomberg 3. FTSE Russell 4, S&P Global 5. RAM Sustainability 1. https://www.msci.com/our-solutions/esg-investing/esg-ratings 2. https://www.bloomberg.com/professional/dataset/global-environmental-social- governance-data/ 3. https://www.ftserussell.com/data/sustainability-and-esg-data 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards 5. https://analytics.ram.com.my/ESGRatings Proprietary 1. arabesque s-ray 2. Sustainalytics 3. FTSE4Good 4. ESGBook 1. sray.arabesque.com 2 https://www.sustainalytics.com/esg-ratings 3. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index 4. https://app.esgbook.com/ Public 1. MSCI 2. Bloomberg 3. FTSE Russell 4, S&P Global 5. RAM Sustainability 1. https://www.msci.com/our-solutions/esg-investing/esg-ratings 2. https://www.bloomberg.com/professional/dataset/global-environmental-social- governance-data/ 3. https://www.ftserussell.com/data/sustainability-and-esg-data 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards 5. https://analytics.ram.com.my/ESGRatings Proprietary 1. arabesque s-ray 2. Sustainalytics 3. FTSE4Good 4. ESGBook 1. sray.arabesque.com 2 https://www.sustainalytics.com/esg-ratings 3. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index 4. https://app.esgbook.com/ Public 1. MSCI 2. Bloomberg 3. FTSE Russell 4. S&P Global 1. https://www.msci.com/our-solutions/esg-investing/esg-ratings 2. https://www.bloomberg.com/professional/dataset/global-environmental-social- governance-data/ 3. https://www.ftserussell.com/data/sustainability-and-esg-data 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards Proprietary 1. arabesque s-ray 2. Sustainalytics 3. FTSE4Good 4. ESGBook 1. sray.arabesque.com 2 https://www.sustainalytics.com/esg-ratings 3. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index 4. https://app.esgbook.com/ Public 1. MSCI 2. Bloomberg 3. FTSE Russell 4. S&P Global 1. https://www.msci.com/our-solutions/esg-investing/esg-ratings 2. https://www.bloomberg.com/professional/dataset/global-environmental-social- governance-data/ 3. https://www.ftserussell.com/data/sustainability-and-esg-data 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards Proprietary 1. arabesque s-ray 2. Sustainalytics 3. FTSE4Good 4. ESGBook 1. sray.arabesque.com 2 https://www.sustainalytics.com/esg-ratings 3. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index 4. https://app.esgbook.com/ Public 1. MSCI 2. Bloomberg 3. FTSE Russell 4. S&P Global 1. https://www.msci.com/our-solutions/esg-investing/esg-ratings 2. https://www.bloomberg.com/professional/dataset/global-environmental-social- governance-data/ 3. https://www.ftserussell.com/data/sustainability-and-esg-data 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards Proprietary By Entity Backward- looking Not available Not available Not available Not available Not available By Sector Backward- looking Not available Not available Not available Not available Not available By Entity Backward- looking Not available Not available Not available Not available Not available By Sector Backward- looking Not available Not available Not available Not available Not available 49 Water management indicators (e.g. water allocation and management) Transition sensitivity National Water Services Commission (SPAN) Million litres per day By Country Backward- looking ✓ ✓ ✓ ✓ National Water Services Commission (SPAN) https://www.span.gov.my/document/upload/ExULH8APaxLhLE4vailErDx5v4KJ XDCx.pdf Public Annual 2017-2021 SPAN publishes data on raw water extraction and production in the annual water and sewerage fact book. However, only Peninsular Malaysia states and W. P. Labuan are under the coverage of SPAN. By Sector Backward- looking DOSM https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam Public 1. Annual (Compendium) 2. One-off (MySEEA PSUT) 1. 2016-2022 (Compendium) 2. 2015 (MySEEA PSUT) DOSM publishes data on metered water consumption by sector (domestic and non-domestic) and state. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 2 (2.49 in the PDF version of the Compendium) DOSM also publishes data on uses of abstracted water by sector. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'MySEEA PSUT Water 2015' SPAN publishes total water consumption by states (Peninsular Malaysia states and W. P. Labuan): https://www.span.gov.my/document/upload/ExULH8APaxLhLE4vailErDx5v4KJXDCx.pdf By Entity Backward- looking Water utility companies by state Not available Confidential Not available Not available Data is not available. By Sector Backward- looking Not available Not available Not available Not available Not available By Entity Backward- looking SPAN Not available Confidential Not available Not available Physical vulnerability By Location By Area% of asset value Treated wastewater (Proportion of wastewater that is treated to reduce pollutants before being discharged to the environment, by level of treatment) Cubic metre By Sector By Entity Transition sensitivity Water consumption Climate VaR Transition sensitivity 50 51 45 Asset value at risk (VaR) arising from natural catastrophes Environmental, Social & Governance (ESG) score/rating Combined metrics Waste recycled Combined metrics Waste management indicators (e.g. Solid waste disposed) Transition sensitivity 46 47 48 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ National Water Services Commission (SPAN) 1. Number 2. tonnes Ministry of Local Government Development (KPKT) Backward- looking Backward- looking By Securities ✓Cubic metre National Water Services Commission (SPAN) tonnes 1. Climate Risk / ESG Score rating 2. GC Score: (0- 100) on human rights, labour right, environment, anti- corruption 3. ESG Score: (0- 100) on environmental, social, and governance 4. Temperature Score: • (tCO2/m$US) on emissions intensity ratio (EIR) • range from (1.5°C, 2°C, 2.7°C, >2.7°C, 3°C) on the temperature score and is reflected on scenario category 1. Rating provider's methodology 2. ESG Book: Arabesque S-Ray Methodology (Global Compact (GC) Score, ESG Score, Temperature Score) 3. R1ESGo By Entity By Fund Ministry of Local Government Development (KPKT) Backward- looking Backward- looking Backward- looking ✓ ✓ ✓ ✓ ✓ Different methodologies and scales would require internal evaluation, as it is not transparent on how the ESG scoring is derived. The coverage of companies also varies across these platforms. RAM Sustainability offers complimentary R1ESGo industry ratings covering 43 sectors (Level 2) upon registration. R1ESGo industry ratings of up to 94 sub-sectors (Level 3) are available upon subscription. ✓ Easy XDI MSCI DOSM publishes data on wastewater flows by sector. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'MySEEA PSUT Water 2015' SPAN publishes data on public sewage treatment plant by states (Peninsular Malaysia states and W. P. Labuan): https://www.span.gov.my/document/upload/ExULH8APaxLhLE4vailErDx5v4KJXDCx.pdf Data by operator is compiled by SPAN however, the data is not available publicly. DOSM publishes data on recycling rates (in percentage form). Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 3 KPKT published data on recycleable waste collection on its statistical report: https://www.kpkt.gov.my/index.php/pages/view/700?mid=586 Data is available upon subscription. DOSM publishes data on municipal waste treated by types of treatment and disposal by state, and quantity of scheduled wastes generated by industry. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 3 Data on solid waste disposed by facility and by category is published on a quarterly basis by KPKT. Latest update Latest update✓ Easy XDI helps to ascertain value at risk for building replacement cost. It covers different perils at individual asset level and location. 38 https://www.msci.com/www/research-report/value-at-risk-for-asset/019081046 Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases 52 Map of Biodiversity Risk Hotspots (e.g. high conservation value forests, high biodiversity value ecosystems etc.) Physical vulnerability Convention on Biological Diversity (CBD) Not Applicable By Geographical area Backward- looking ✓ ✓ 1. DOSM 2. Malaysia Biodiversity Information System (MyBIS) of NRECC (formerly known as KeTSA) 3. Protected Planet 4. Global Biodiversity Information Facility 5. Natural Capital Finance Alliance 1. https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam 2. https://www.mybis.gov.my/one/pamaps.php 3. https://www.protectedplanet.net/country/MYS 4. https://www.gbif.org/country/MY/about 5. https://encore.naturalcapital.finance/en/map Public Annual 1. DOSM: 2016- 2022 2. MyBIS: Not available 3. Protected Planet: 2021 4. GBIF: 1700 - 2022 5. ENCORE: Not available 1. DOSM compiles various biodiversity data such as number of fauna species by category, endemic fauna species by class, number of flora and fauna species in gazetted and totally protected areas. Go to DOSM eStatistik > click on 'Free Download' on the left pane on the page > search 'Compendium of Environment Statistics' > Table of Component 1. 2. MyBIS provides a list of protected areas in Malaysia (Protection Forest Reserve, Virgin Jungle Reserve etc). 3. Protected Planet provides interactive maps of Terrestrial and Inland Waters Protected Areas, and Marine Protected Areas. Other effective area-based conservation measures in Malaysia are sourced by NRECC (formerly known as KeTSA) and other relevant agencies. Latest update was in 2021. Also provides information on the assessment of management effectiveness of selected areas and IUCN Green List of Protected and Conserved Areas. 4. GBIF provides data on biodiversity locations in Malaysia, through polygons which consists of data of 'occurrences' of species 5. ENCORE Tool: explores how economic activities impact ecosystem services and natural capital. Impact drivers from certain terrestrial ecosystem categories can be selected and the available data is heat map data of different types of land cover in 2021. Some categories also have external links that explain more heat map data (statistical data, line charts). The map is available as a snapshot. 53 Estimation of enviromental costs and benefits (esp. ESAs/high priority biodiversity hotspots) Physical vulnerability Convention on Biological Diversity (CBD) Currency (e.g. MYR) By Geographical area Backward- looking ✓ ✓ Not available Not available Not available Not available Not available Data is not available. 54 Map of environmentally sensitive areas (ESAs) Physical vulnerability 1. Forestry Department of Peninsular Malaysia 2. National Forestry Act 1984 3. Malaysian Criteria and Indicators for Sustainable Forest Management (MC&I SFM) Not Applicable By Geographical area Backward- looking ✓ ✓ PLANMalaysia https://myplan.planmalaysia.gov.my/www/# Public Every 5 years since 2016 1. 2014 (3rd NPP) 2. 2020 (4th NPP) 1. 3rd NPP (2016) page 26 -27 has maps on ESAs of Peninsular Malaysia (2014) and Sabah and Federal Territory of Labuan (2030-2033 plans) 2. 4th NPP (2021) is available only in Bahasa Melayu and short of information on Sabah & Sarawak, as map in 'Pelan 5- 10' on page 42 is on Peninsular Malaysia and Federal Territory of Labuan. 55 Forest Change (Forest Loss, Tree Cover Loss, Location of Tree Cover Loss, FAO Deforestation) Physical vulnerability 1. Forestry Department of Peninsular Malaysia 2. Forest Department Sarawak 3. Sabah Forestry Department 4. National Forestry Act 1984 5. Malaysian Criteria and Indicators for Sustainable Forest Management (MC&I SFM) Unit for land area By Geographical area Backward- looking ✓ ✓ 1. Forestry Department of Peninsular Malaysia 2. Forest Department Sarawak 3. Sabah Forestry Department 4. Global Forest Watch 5. World Bank 1. https://www.forestry.gov.my/en/2016-06-07-02-53-46/2016-06-07-03-12-29 2. https://forestry.sarawak.gov.my/page-0-461-1170-FACTS-FIGURES.html 3. https://forest.sabah.gov.my/, https://forest.sabah.gov.my/images/pdf/publication/annualreport/AR2021%28Fi nal%29.pdf 4. https://www.globalforestwatch.org/ 5. http://wdi.worldbank.org/table/3.4# Public Varies 1. 2011 - 2020 (Peninsular Malaysia) 2. 2020 (S'wak) 3. 2020 (Sabah) 4. 2001-2022 (Global Forest Watch) 5. 1990 and 2020 (World Bank) 1. Forestry Department of Peninsular Malaysia provides forestry statistics (e.g. forested and non forested area) from 2011 to 2020. 2. Forest Department Sarawak Facts and Figures page has data on forest covered area for 2020 only. 3. Sabah Forestry Department provides forest resource management information (e.g. forest cover) and 2021 Annual report mentioned on forest cover loss in 2020 compared to 2018. 4. Global Forest Watch provides analysis of primary forest loss, tree cover loss etc in Malaysia. This can be done by clicking the map of Malaysia and 'Analyse'. 5. World Bank provides data on forest area (sq. km) in 1990 and in 2020, data on forest loss can be derived form the data. 6. Article by Friends' of the Earth Malaysia (https://foe-malaysia.org/articles/statistical-data-on-forested-and-conservation- areas-in-malaysia-2/) has information on size of forested areas in Peninsular Malaysia, Sabah and Sarawak from 1990/2005 to 2018 and links to various sources. 56 Share of cost of raw materials with high environmental impact against revenue Combined metrics Not applicable % or ratio By Entity Backward- looking ✓ Not available Not available Not available Not available Not available Data is not available. 57 Climate Change Target Transition sensitivity Plans submitted to the UNFCCC should be taken as key reference Scenarios, Tonnes CO2e By Country Forward- looking (projection) ✓ ✓ ✓ ✓ ✓ ✓ 1. EPU 2. NRECC (formerly known as KASA) 3. UNFCCC 1. https://www.epu.gov.my/en/sustainable-development-goals 2. https://www.kasa.gov.my/resources/alam-sekitar/Low-Carbon-Mobility- Blueprint-2021-2030/4/ 3. https://unfccc.int/sites/default/files/NDC/2022- 06/Malaysia%20NDC%20Updated%20Submission%20to%20UNFCCC%20Jul y%202021%20final.pdf Public Varies among countries, at least annual 2018 & 2019 (EPU) 2021-2030 (NRECC & UNFCCC) EPU provides overall information on Malaysia SDGs, with links to SDGs for 2018 and 2019. NRECC (formerly known as KASA) & UNFCCC provides information on Nationally Determined Contribution targets. Backward- looking Customer survey / study Not available Not available Not available Not available Forward- looking (projection) Customer survey / study Not available Not available Not available Not available Backward- looking Customer survey / study Not available Not available Not available Not available Forward- looking (projection) Customer survey / study Not available Not available Not available Not available Backward- looking Not available Not available Not available Not available Not available Forward- looking (projection) Not available Not available Not available Not available Not available Backward- looking Not available Not available Not available Not available Not available Forward- looking (projection) Not available Not available Not available Not available Not available Backward- looking Not available Not available Not available Not available Not available Forward- looking (projection) Not available Not available Not available Not available Not available Not Applicable By Sector Backward- looking Not available Not available Not available Not available Not available Not Applicable By Entity Backward- looking Not available Not available Not available Not available Not available Not Applicable By Country Backward- looking Not available Not available Not available Not available Not available Backward- looking World Bank https://carbonpricingdashboard.worldbank.org/map_data Public Annual 2005-2022 Data is only available for the EU region, starting from 2005. Forward- looking (projection) Not available Not available Not available Not available Not available Data is not available. Another mechanism for carbon pricing is the Voluntary Carbon Market (VCM) which currently is an initiative under the purview of the Ministry of Finance (MoF) and Ministry of Natural Resources, Environment and Climate Change (NRECC, formerly known as KASA), and Bursa Malaysia Berhad (Bursa). Bursa has launched the Bursa Carbon Exchange (BCX) on 9 Dec 2022, which is a voluntary carbon market (VCM) and the world’s first shariah-compliant carbon exchange. The first trade via auction on the BCX is expected to commence in March 2023. https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry617bfd2839fba20f54a06574/632bbd5 55b711a1976102da6/files/Bursa_Malaysia_VCM_Exchange.pdf?1664349271 https://www.theedgemarkets.com/article/bursa-malaysia-launches-first-shariahcompliant-carbon-exchange 62 Government's sustainability-related financing needs Mobilisation Not applicable Currency (e.g. MYR) By Sector Forward- looking (projection) ✓ Government Agencies Not available Not available Not available Not available Climate finance provided by developed countries can be found at: https://www.oecd.org/env/climate-finance-provided- and-mobilised-by-developed-countries-aggregate-trends-updated-with-2019-data-03590fb7-en.htm 63 Private sector's financing needs Mobilisation Not applicable Currency (e.g. MYR) By Sector Forward- looking (projection) ✓ Not available Not available Not available Not available Not available List of certified companies and projects by Green Technology Financing Scheme (GTFS) can be found here: https://www.gtfs.my/certified Exposure to transition risks 58 61 ✓✓ ✓ Price of permit under the emission trading scheme Indicators capturing technological innovation Transition sensitivity Not applicable Percentage of customer preference on sustainability products/services Transition sensitivity Market study Scenario, % 1. OECD 2. IMF Sensitivity measure expressed as a percentage of business value e.g. percentage of Revenue 59 By Sector 60 Footprint Combined metrics By Entity By Location By RegionUSD/Tonnes CO2eWorld Bank Carbon Pricing Dashboard By Sector By Customer segment ✓ ✓ ✓ ✓ ✓ ✓ Data is not available. Data is not available. Country-level data is published by IMF: https://climatedata.imf.org/pages/fi-indicators/#fr1 39 Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases 64 Insured and uninsured losses related to natural catastrophes Physical vulnerability Insurance and takaful claims due to natural catastrophes Currency (e.g. MYR) By Entity Backward- looking ✓ 1. Insurance Services Malaysia 2. Insurers and takaful operators Not available Confidential Not available Not available Data by entity can be requested on ad-hoc basis from Insurance Services Malaysia. ISM collects data on insured related natural catastrophes, but only applicable to flood under fire class. Munich RE, Swiss RE and BoE have reported this information but on a global basis and aggregated level. Global for Munich RE only: 1.https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/natcat- 2022/2021_Figures-of-the-year.pdf/_jcr_content/renditions/original./2021_Figures-of-the-year.pdf 2. https://www.swissre.com/institute/research/sigma-research/sigma-2021-01.html 3. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2017/the-banks-response-to-climate- change.pdf?la=en&hash=7DF676C781E5FAEE994C2A210A6B9EEE44879387 Data on "Number of Policies/Certificates", "Number of Claims", "Gross Claims Incurred" and "Net Claims Incurred" by climate change-related products, such as Flood under Motor class, Fire class and Other class are collected from insurers and takaful operators on a half-yearly basis by BNM via CCPT reporting. 65 Exclusion of controversial sectors in the investment/ lending policy Transition sensitivity 1. Sustainability rating providers (e.g., RobecoSAM, International Capital Market Association (ICMA), MSCI, CBI, S&P Global) 2. International organisations (i.e., UNEP FI, IFC) 3. Research bodies (i.e., Institute for Energy Economics and Financial Analysis (IEEFA), Bursa Malaysia, Shariah, SRI Responsible Financing guidelines) Qualitative By Sector Does not apply ✓ 1. Entities a) BNP Paribas b) CIMB c) RHB Group d) Amundi e) Robecco 2. Institutions/organisations a) IFC b) IEEFA c) UNEP FI 1. Entities a) https://group.bnpparibas/uploads/file/2021_eu_sustainable_finance_disclosure_ bnp_paribas_asset_management_english.pdf b) https://www.cimb.com/content/dam/cimb/group/documents/sustainbility/2019% 20CIMB%20Bank%20SDG%20Bond%20Framework_Final.pdf c) https://www.rhbgroup.com/files/others/sustainability/RHB_Our_Approach_to_S ustainability__Mar_2020__v3__1_.pdf d) https://about.amundi.com/files/nuxeo/dl/c44a7bb2-813b-4346-96e0- e3d695241d9b e) https://www.robeco.com/docm/docu-exclusion-list.pdf 2. Institutions/organisations a) https://www.ifc.org/wps/wcm/connect/28a1d656-dfec-4295-8bf9- a9be7e45549a/IFC%2BExclusion%2BList.pdf?MOD=AJPERES&CVID=kpIOlY T b) https://ieefa.org/coal-divestment c) https://www.unepfi.org/publications/turning-the-tide-recommended- exclusions/ Public Periodic Periodic Some financial institutions and asset managers publish list of sectors or categories deemed to be controversial. The IFC provides a list of projects that IFC does not finance. IEEFA has data on coal divestment by banking institutions, asset managers and insurers/reinsurers. UNEP FI data is accessible upon registration. The updated document provides an overview of the recommended activities to exclude from financing in the sustainable blue economy, based on market-first 'Turning the Tide' and 'Diving Deep' guidance for financial institutions. 66 Sustainability Index Membership Transition sensitivity Based on index providers Status By Entity Forward- looking (projection) ✓ 1. MSCI 2. FTSE Russell 1. https://www.msci.com/our-solutions/indexes/esg-focus-indexes 1. https://www.msci.com/our-solutions/indexes/index-profiles/low-carbon-sri- leaders-indexes 2. https://www.ftserussell.com/index/spotlight/sustainable-investment-data-and- indexes Proprietary 1. Quarterly (MSCI) 2. Not available (FTSE Russell) Not available Data is accessible upon subscription. MSCI ESG Focus Indices target companies with positive ESG characteristics. FTSE Russell integrates Environmental, Social and Governance (ESG) considerations into index benchmarks. 67 Revenue mix of environmental opportunities (renewable energy, clean tech, energy efficiency, pollution control, sustainable growth, and green technology) Combined metrics Not applicable % or ratio By Sector Backward- looking ✓ Not available Not available Not available Not available Not available Data is not available. 68 Insurance premium for coverage against natural disasters Physical vulnerability Not applicable Currency (e.g. MYR) By Sector Backward- looking ✓ Insurers, takaful operators Not available Confidential Not available Not available Data on "Gross Earned Premium/Contribution" and "Net Earned Premium/Contribution" by climate change-related products, such as Flood under Motor class, Fire class and Other class are collected from insurers and takaful operators on a half-yearly basis by BNM via CCPT reporting. Aggregated data on premiums/contributions and claims by general business classes such as Fire, Motor, Medical and Health from insurance and Takaful industry are published on the BNM website via https://www.bnm.gov.my/publications/mhs since 2009 on a half-yearly basis. However, there is no specific information/category for natural disasters. Insurance Services Malaysia (ISM) publishes the ISM Statistical Yearbook on an annual basis via https://www.ism.net.my/news-updates/ (requires free registration to access/download). The Yearbook provides key data on Malaysian insurance and takaful industry, such as premiums/contributions by line of business, net earned premiums/contributions, net claims incurred ratio etc. However, there is no specific information/category for natural disasters. 69 Government legislation, masterplan, blueprint, announcements, strategy and policy on sustainability and climate change Alignment Not applicable Not applicable By Country Backward- looking / Forward- looking (projection) ✓ 1. DOE 2. NRECC (formerly known as KASA) 3. SEDA - Renewable Energy Act 2011 4. NRECC (formerly known as KeTSA) 5. EPU 6. Climate Action Tracker 1. https://www.doe.gov.my/portalv1/en/tentang-jas/pengenalan/dasar-alam- sekitar 2. https://www.kasa.gov.my/resources/alam-sekitar/Low-Carbon-Mobility- Blueprint-2021-2030/12/ 3. https://www.seda.gov.my/ms/polisi/akta-tenaga-boleh-baharu-2011/ 4. https://www.pmo.gov.my/2019/07/national-policy-on-climate-change/ 5. https://www.epu.gov.my/sites/default/files/2022- 09/National_Energy_Policy_2022-2040.pdf 6. https://climateactiontracker.org/ Public Annual 1. 2021-2030 2. 2016-2030 (Climate Action Tracker) Information is readily available but not exhaustive. Climate Action Tracker provides information on the policies in multiple countries, however Malaysia is not included. By Sector Backward- looking Not available Not available Not available Not available Not available By Entity Backward- looking Not available Not available Not available Not available Not available Backward- looking 1. Transition Pathway Initiative 2. Bursa Malaysia 1. https://www.transitionpathwayinitiative.org/ 2. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index Public Varies by data providers Varies by data providers Backward- looking 1. Carbon Disclosure Project (CDP) 2. Fitch 3. MSCI 4. S&P 5. Sustainalytics 1. https://www.cdp.net/en/companies/companies- scores#446647786929955804cc9a3a08ef1eb4 2. https://www.fitchratings.com/products/subscribe 3. https://esgdirect.msci.com/ 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards 5. https://www.sustainalytics.com/esg-rating Proprietary Varies by data providers Varies by data providers Backward- looking 1. Transition Pathway Initiative 2. Bursa Malaysia 1. https://www.transitionpathwayinitiative.org/ 2. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index Public Varies by data providers Varies by data providers Backward- looking 1. Carbon Disclosure Project (CDP) 2. Fitch 3. MSCI 4. S&P 5. Moody's 6. Sustainalytics 1. https://www.cdp.net/en/companies/companies- scores#446647786929955804cc9a3a08ef1eb4 2. https://www.fitchratings.com/products/subscribe 3. https://esgdirect.msci.com/ 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards 5. https://esg.moodys.io/climate-solutions 6. https://www.sustainalytics.com/esg-rating Proprietary Varies by data providers Varies by data providers Backward- looking 1. Transition Pathway Initiative 2. Bursa Malaysia 1. https://www.transitionpathwayinitiative.org/ 2. https://www.bursamalaysia.com/trade/our_products_services/indices/ftse4good- bursa-malaysia-f4gbm-index Public Varies by data providers Varies by data providers Backward- looking 1. Carbon Disclosure Project (CDP) 2. Fitch 3. MSCI 4. S&P 5. Moody's 6. Sustainalytics 1. https://www.cdp.net/en/companies/companies- scores#446647786929955804cc9a3a08ef1eb4 2. https://www.fitchratings.com/products/subscribe 3. https://esgdirect.msci.com/ 4. https://www.spglobal.com/ratings/en/research-insights/special-reports/esg-in- credit-ratings#sector-report-cards 5. https://esg.moodys.io/climate-solutions 6. https://www.sustainalytics.com/esg-rating Proprietary Varies by data providers Varies by data providers 70 Capital requirements from insurance exposure to weather- related catastrophic events as a percentage of total capital available Physical vulnerability ✓ By Sector71 Climate Risk / ESG Score rating By Location Climate Risk Score of Listed Companies Combined metrics Rating provider's methodology By Entity Not applicable Currency (e.g. MYR) or % (percentage) ✓ Capital requirement on catastrophe risk (including natural catastrophe) is currently not explicitly accounted for in the Risk Based Capital (RBC) Framework. As part of the ongoing holistic review of RBC framework, BNM is exploring to include catastrophe risk as a new risk category in insurance/takaful risk capital requirement. Methodologies, assumptions and models vary across different providers and would require internal evaluation. 40 Data Items Category/ Metric Methodology/ Standard/ Classification/ Taxonomy/ Reference Unit (e.g. CO2) Dimension (e.g. Sector, Customer) Time horizon Climate- related disclosures Exposure quantification Financial stability monitoring Investment and lending decisions Macro- economic modelling Product development Scenario analysis Stress testing Data Source/Compiler/ Provider Link Accessibility (Public/Proprietary/ Confidential/Public (With API)/Not available) Frequency Time series Data Availability Observations on data availability/gapsNo. Data Needs Use Cases 72 Executive remuneration linked to climate considerations Transition sensitivity Not applicable Currency (e.g. MYR) or % (percentage) By Entity Backward- looking ✓ Entity Not available Not available Not available Not available Companies which are incorporating ESG/climate considerations into executive remuneration did not provide much details on how these are linked to remuneration. For ESG-linked remuneration practiaces in ASEAN, refer to https://www.sfinstitute.asia/wp-content/uploads/2022/05/integrating-esg-remuneration-final-version.pdf Data is generally not available. Data users have to rely on news article or publications by entities to obtain relevant data. 73 Detailed plans submitted to authority to achieve carbon neutral or net zero Alignment GHG Protocol Corporate Accounting and Reporting Standard for Accounting CO2 mil MT per year By Entity Forward- looking (projection) ✓ Entity Not available Not available Not available Not available Data is not available. By Sector Backward- looking Not available Not available Not available Not available Not available By Loan purpose Backward- looking Not available Not available Not available Not available Not available By Entity Backward- looking Entity Not available Confidential Not available Not available By Location of utilisation Backward- looking Not available Not available Not available Not available Not available 75 List of companies with ISO 14000 Combined metrics ISO 14000 Number of companies By Entity Backward- looking ✓ Certification Body Not available Not available Not available Not available There is currently no centralised database for Malaysia that stores the comprehensive list of companies with ISO 14000 certification. Each certification body keep their own copy of companies or products that are certified by themselves. They are not required to submit the list of the data/companies that they have certified to the standard setters e.g. Standard Malaysia (Dept of Standard Malaysia) or UKAS, however they are being audited (sampling basis) by the standard setters. By Sector and Case 1. DOE 2. Climate Case Chart 3. London School of Economics (LSE) 1. https://www.doe.gov.my/portalv1/en/awam/maklumat-umum/paparan-kes- mahkamah 2. http://climatecasechart.com/climate-change-litigation/non-us-climate-change- litigation/ 2. https://climate-laws.org/litigation_cases 3. https://www.lse.ac.uk/granthaminstitute/wp-content/uploads/2021/07/Global- trends-in-climate-change-litigation_2021-snapshot.pdf Public 1. Monthly (DOE) 2. Varies (Climate Case Chart, LSE) 1. 2014-2022 (DOE) 2. Varies (Climate Case Chart, LSE) Department of Environment (DOE) publishes court cases on their website with the name of offender, type of offence, and penalty on monthly basis. Only Global Climate Change Litigation data is available. Simplified trend of total cases data for certain countries (including Malaysia) is available at https://www.lse.ac.uk/granthaminstitute/wp-content/uploads/2021/07/Global-trends-in-climate-change-litigation_2021- snapshot.pdf eLaw.my is a database for Malaysian court judgements and legislations and can be accessed via paid subscription: https://www.elaw.my By Entity DOE https://www.doe.gov.my/en/court-case-list/ Public Monthly 2014-2022 Department of Environment (DOE) publishes/announces information on court cases related to environmental offences. The information published/announced include name of company/individual, date, Act, offences, court & date of decision and penalties. 77 Circular economy indicator: Percentage of Circular economy to the GDP Sector Alignment 1. European Commission (EC) 2. Organisation for Economic Co-operation and Development (OECD) Percentage (%) By Sector Backward- looking ✓ Not available Not available Not available Not available Not available Data is not readily available and will require further relevant indicators for the calculation of percentage of circular economy to the GDP. 78 Green Building Index Transition sensitivity 1. Green Building Index (GBI) rating system 2. GreenRE Tools and Design Reference Guide Number By Project/ Building Backward- looking ✓ 1. Green Building Index (GBI) 2. GreenRE 1. https://www.greenbuildingindex.org/how-gbi-works/gbi-executive-summary/ 2. https://www.greenre.org/rating_tools Public Latest Update 1. 2013-2022 (GBI) 2. Periodic update (GreenRE) Data is readily available. 79 Notre Dame - GAIN Country Index Transition sensitivity Notre Dame - Gain Country Index Score By Country Backward- looking ✓ University of Notre Dame https://gain.nd.edu/our-work/country-index/ Public Annual 1995-2020 The Notre Dame Index is derived from readiness & vulnerability index data. 1. arabesque s-ray 2. ESGBook 1. https://sray.arabesque.com/ 2. https://app.esgbook.com/dashboard Public Upon update Upon update The UNGC scores are accessible by the public with minimal registration through ESGBook. The coverage of companies, methodologies and scales vary across these platforms and would require internal evaluation, as it is not transparent on how the GC scoring is derived. 1. MSCI 2. Moody's 1. https://esgdirect.msci.com/ 2. https://esg.moodys.io/ Proprietary Upon update Upon update Data is available upon subscription. Moody's also collects data on detailed scores for each of the core UNGC themes. By Country Not available Not available Not available Not available Not available The general mortality rate is published by several organisations: 1. World Bank (https://data.worldbank.org/indicator/SP.DYN.IMRT.IN?locations=MY) 2. WHO (https://www.who.int/data/gho/data/countries/country-details/GHO/malaysia?countryProfileId=56662d20-4890- 4511-a55b-77132f6dd227) 3. UN DESA Population Division (https://population.un.org/wpp/Download/Standard/Mortality/) 4. DOSM (https://www.dosm.gov.my/v1/index.php?r=column/cone&menu_id=dC9JU2RhZk9HNmxQS3hTOStuMVVLdz09) By State/ Territories Not available Not available Not available Not available Not available DOSM publishes data on the general mortality rate by states: https://newss.statistics.gov.my/newss- portalx/ep/epProductFreeDownloadSearch.seam. Go to DOSM eStatistik > click 'Free Download' on the left pane on the page > search 'Abridged Life Tables' 82 Morbidity rate arising from climate change Physical vulnerability Ministry of Health (MOH) Number of people getting a disease over a population By State Backward- looking ✓ ✓ Not available Not available Not available Not available Not available Only general data on specific years are available based on the National Health & Morbidity Survey conducted by National Institute of Health, Ministry of Health Malaysia: https://iku.gov.my/nhms (On the NHMS Report, Infographics and Fact Sheet section) United Nations Global Compact (UNGC) Score 80 Backward- looking By Entity% / RangeUNGCCombined metrics ✓ Litigation claims and cases Physical vulnerability 1. Laws and policies (International and local) 2. DOE Climate Risk / ESG Score rating 74 81 Mortality rate arising from climate change Physical vulnerability World Bank Number of claims/cases Climate-adjusted Probability of Defaults (PDs) Combined metrics Backward- looking 76 Number of deaths per 1000 live births Backward- looking Not applicable ✓ ✓ ✓✓ Data is not readily available, requires methodology to model climate risk and embed this into the PDs of customers or counterparties. 41 https://iku.gov.my/nhms Climate Data Catalogue Metric Type Definition Footprint GHG emissions caused directly or enabled by an individual, event, organisation, service or product. Transition sensitivity The disruption caused by adjusting to a low-carbon economy, which may be the result of policy changes, technological innovation, or social adaptation. Physical vulnerability The direct damage to assets or property that may come about owing to a changing climate (for example rise in sea levels) or extreme weather events. Alignment Tracks progress towards a 2°C world. Mobilisation Capture growth in green financing (i.e. scaling up green finance). Combined metrics Metrics aggregating a combination of the above metrics to provide insight on the extent to which a firm manages environmental, social and governance issues. Source: NGFS Use Cases Definition Climate-related disclosures Reports provided by corporations about climate-related factors, including indicators such as carbon footprint Exposure quantification The measurement on the maximum potential loss on financial instruments Financial stability monitoring The assessment of financial systems vulnerabilities, defined as the collection of factors that contribute to the potential for widespread externalities Investment and lending decisions The decision made on the amount of funds to be deployed in investment opportunities Macroeconomic modelling The study on the impacts of climate-related issues on macroeconomic indicators *Product development The development of new financial products to support green growth or industry's alignment to the climate agenda Scenario analysis The assessment on the impact of different possible climate change pathways/scenarios to risk profile Stress testing The risk framework methods that focus on the sensitivity of portfolios and the impact climate change (the likelihood and severity of the materialisation of climate-related risks) has on exposures’ actual riskiness * Product development is an additional use case as compared to NGFS' use cases Source: NGFS Glossary 42 Climate Data Catalogue Acronyms Meaning ACMF ASEAN Capital Markets Forum API Application Programming Interface AR5 Fifth Assessment Report ASEAN Association of Southeast Asian Nations BNM Bank Negara Malaysia BPAM Bond Pricing Agency Malaysia BoE Bank of England Btu British Thermal Unit CBD Convention on Biological Diversity CBI Climate Bonds Initiative CCKP Climate Change Knowledge Portal CCPT Climate Change and Principal-based Taxonomy CDP Carbon Disclosure Project CMIP 5 Coupled Model Intercomparison Project Phase 5 CMIP 6 Coupled Model Intercomparison Project Phase 6 CO Carbon Monoxide CO2 Carbon Dioxide CoastalDEM Coastal Digital Elevation Model DID Department of Irrigation and Drainage DOE Department of Environment DOSM Department of Statistics Malaysia Easy XDI Easy eXtensible Data Interchange EC Energy Commission EEA European Environment Agency EIR Emissions Intensity Ratio ENCORE Exploring Natural Capital Opportunities, Risks and Exposure EPU Economic Planning Unit ESA Environmentally Sensitive Area ESG Environmental, Social & Governance EU European Union EUR Eurodollar FAO Food and Agriculture Organization FAST Fully Automated System for Issuance/Tendering FTSE Financial Times Stock Exchange GBI Green Building Index GBIF Global Biodiversity Information Facility GC Global Compact GDP Gross Domestic Product Gg (Giga) gram GHG Greenhouse Gases GreenRE Green Real Estate GSO Grid System Operator GTFS Green Technology Financing Scheme ICMA International Capital Market Association IEA International Energy Agency IEEFA Institute for Energy Economics and Financial Analysis IFC International Finance Corporation IMF International Monetary Fund INFORM Index for Risk Management IPCC Intergovernmental Panel on Climate Change ISO International Organization for Standardisation IUCN Red List International Union for Conservation of Nature's Red List List of Acronyms 43 Acronyms Meaning KPKT Ministry of Local Government Development ktoe (Kilo) Tonne of Oil Equivalent kWh (Kilo) Watt Hour LSE London School of Economics MC&I SFM Malaysian Criteria and Indicators for Sustainable Forest Management MEIH Malaysia Energy Information Hub METAR METeorological Aerodrome Report MetMalaysia Malaysian Meteorological Department MGTC Malaysian Green Technology and Climate Change Corporation MMBtu (Metric Million) British Thermal Unit MoF Ministry of Finance MOH Ministry of Health MSCI Morgan Stanley Capital International MSIC Malaysia Standard Industrial Classification MWh (Mega) Watt Hour MyBIS Malaysia Biodiversity Information System MYR Malaysian Ringgit MySEEA Malaysia System of Environmental-Economic Accounting NADMA National Disaster Management Agency NAHRIM National Hydraulic Research Institute of Malaysia NASDAQ National Association of Securities Dealers Automated Quotations ND-GAIN Index Notre Dame Global Adaptation Initiative Index NGFS Network for Greening the Financial System NPP National Physical Plan NRECC Ministry of Natural Resources, Environment and Climate Change (formerly known as Ministry of Environment and Water (KASA) and Ministry of Energy and Natural Resources (KeTSA)) OECD Organisation for Economic Co-operation and Development PD Probability of Default PDPA Personal Data Protection Act 2010 PLANMalaysia Department of Town and Country Planning PLC Public Listed Companies PRECIS Providing Regional Climates for Impacts Studies PSUT Physical Supply & Use Table PV Photovoltaic PVMS PV Monitoring System RBC Risk Based Capital RCP Representative Concentration Pathway Reg HCM Regional Hydro-Climate Model S&P Standard and Poor's SBTi Science Based Targets initiative SDG Sustainable Development Goals SEB Sarawak Energy Berhad SEDA Sustainable Energy Development Authority SESB Sabah Electricity Sdn. Bhd SME Small and Medium-sized Enterprise SPAN National Water Services Commission SPI Standardized Precipitation Index SRI Sustainable and Responsible Investment TAF Terminal Area Forecast TCFD Task Force on Climate-Related Financial Disclosures TNB Tenaga Nasional Berhad UKAS United Kingdom Accreditation Service UN United Nations 44 Acronyms Meaning UN DESA United Nations Department of Economic and Social Affairs UNEP United Nations Environment Programme UNEP FI United Nations Environment Programme Finance Initative UNFCCC United Nations Framework Convention on Climate Change UNGC United Nations Global Compact US United States of America USD United States Dollar VaR Value at Risk WHO World Health Organisation WWF World Wide Fund for Nature 45

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