Malaysia fines Standard Chartered units over targeted financial sanctions breaches

KUALA LUMPUR, June 15, 2026 — Bank Negara Malaysia imposed administrative monetary penalties of RM132,000 each on Standard Chartered Bank Malaysia Berhad and Standard Chartered Saadiq Berhad for breaches of targeted financial sanctions requirements.

The central bank said an on-site supervisory examination found the Standard Chartered entities had failed to update their sanctions database without delay after publication of Malaysia's Domestic List. The lapse resulted in sanctions screening being conducted using outdated information.

Financial institutions subject to the requirements must screen existing, prospective and new customers against Malaysia's Domestic List and the United Nations Security Council sanctions list as part of customer due diligence. BNM said those controls are intended to prevent the financial system from being used for terrorism financing.

BNM attributed the breaches to gaps in Standard Chartered's sanctions screening controls and deficiencies in ensuring that screening processes met regulatory requirements. It said, however, that no listed individuals or entities were onboarded and no transactions involving designated parties were facilitated during the period affected.

The penalties were imposed June 10 and paid by both entities on June 15. Standard Chartered has since strengthened oversight and taken measures to improve the timeliness and effectiveness of its sanctions screening controls, BNM said.

The enforcement comes amid heightened scrutiny by the Malaysian regulator of targeted financial sanctions compliance. BNM separately announced enforcement action against payments company Setel Ventures on Aug. 26 over sanctions-screening deficiencies.

BNM said it considered the seriousness of the breaches, Standard Chartered's previous compliance record, the level of reasonable care exercised and remedial action taken when determining the penalties.