KUALA LUMPUR — Nov. 5, 2019: Bank Negara Malaysia is considering to impose a cash transaction limit (CTL) to complement the existing financial integrity measures.
While new to Malaysia, many countries like France, Italy and India have implemented it. This limit further mitigates the abuse of cash by addressing the ease of conducting high-value cash transactions.
Even with the rise of electronic payments, criminals still prefer cash because it is widely accepted, anonymous in nature and untraceable.
According to BNM governor Datuk Nor Shamsiah Mohd. Yunus, the National Coordination Committee to Counter Money Laundering (NCC) will be consulting the public on this proposal later this month.
“The NCC wants to make an informed decision. As such, we hope all of you could get the word out and encourage the public to provide feedback on the proposed measure,” said Nor Shamsiah at the Financial Crime and Terrorism Financing Conference.
In January the central bank lowered the daily cash threshold report (CTR) from RM50,000 to RM25,000 and up to September, over five million CTR reports were received, representing about RM483 billion in cash transactions.
“It is still too early to draw any concrete conclusions but what we have observed across the industry is the total value of cash transactions reported has increased marginally, while the number of CTR reports received have nearly doubled,” she said.
Nor Shamsiah said the significant increase in CTRs received since January provides BNM important data points that enable more rigorous monitoring of peculiarities in cash transactions and identification of money laundering/ terrorist financing risk on newly identified entities that have not been captured previously.
These additional insights also lead to a better quality of disclosures to relevant law enforcement agencies especially in relation to fraud, tax evasion and corruption crimes. — Bernama