Breaches and Non-Compliance Incidents of Foreign Exchange Policy Within Banking Transactions: Red-flags and Key Takeaways - Compliance

Overview

Objective & Outline

Methodology

Participant Profile

Trainer

Overview

Open for Registration

HRDC PROG NO
10001254119

When

7 - 8 October 2026

9:00 AM - 5:00 PM

add to calendar

Oct 07, 2026, 9:00 AM

Oct 08, 2026, 5:00 PM

Where

Asian Banking School

LEARNING LEVEL

Intermediate

Programme Fee*

MYR 2,900.00

*Subject to 8% Service Tax per pax

Open for Registration

HRDC PROG NO
10001254119

When

23 - 24 November 2026

9:00 AM - 5:00 PM

add to calendar

Nov 23, 2026, 9:00 AM

Nov 24, 2026, 5:00 PM

Where

Asian Banking School

LEARNING LEVEL

Intermediate

Programme Fee*

MYR 2,900.00

*Subject to 8% Service Tax per pax

Foreign Exchange Policy (FEP) is part of broad prudential toolkits under Bank Negara Malaysia, aimed at preserving Malaysia’s monetary and financial stability.

The policy will continue to support the competitiveness of the Malaysian economy by facilitating a more conducive environment for domestic and cross-border real economy activities while ensuring a healthy balance of payments position and safeguarding the value of ringgit.

Over the years, there were many incidents of breaches and non-compliances of FEP that had happened within the banking industry. Those incidents were caused by various factors, among others that the bank’s staff or customers were unaware and/or did not fully understand the FEP, there was a lack of a proper due diligence process, there was insufficient transaction monitoring or documentary evidence undertaken by the LOB, etc. Such incidents could and had led to various enforcement actions by the regulator.

This programme is designed with the aim for participants to learn and understand what the breaches and non-compliances are, their indicators, factors and causes of such breaches and non-compliances. The programme will enable participants to develop a greater sense of awareness and alertness on the incidents of breaches and non-compliances within FEP and to ascertain key due diligence processes that should or could be done to detect and identify the indicators of breaches and non-compliances when performing or undertaking the bank's transactions.

Programme Outline

Learning Objectives

By the end of the programme, participants will be able to:

Illustrate the key rules of FEP that apply to or are affected by the breaches or non-compliances
Explain why and how the breaches or non-compliances occurred in the banking industry
Respond with the ‘how-to’ process that can help to prevent the occurrence of such breaches or non-compliances when facilitating customers' banking transactions
Demonstrate awareness by identifying the indicators

Programme Outline

Overview of Foreign Exchange (FE) Policy
FE Policy Goals: Safeguarding Malaysia’s Balance of Payment & Value of Ringgit
Roles of Licensed Onshore Banks
Directions to Financial Institutions & Overview of Minimum Due Diligence Processes
Consequences of breaches / non-compliances
Understanding FE Policy as a whole: The elements within the FEP rules
Common Factors Towards Breaches / Non-Compliance
Common areas of FEP breaches/non-compliance
Common potential indicators
Common remedial action
Enhanced Due Diligence requirements
Case Study 1: Breaches / Non-Compliances Concerning Payments & Receipts
Transaction via External Account of NR Financial Institution
AOO facilitating NRFI transaction for MYR payment to Resident
Transfer of FCY funds between Resident Individuals
Payment in FCY between Residents
Payment in Ringgit between Resident and Non-Resident
Payment in FCY between Resident and Non-Resident
Case Study 2: Breaches / Non-Compliances Concerning Investments in Foreign Currency Assets
Investment in FCY Property on behalf of subsidiary
Investment in FCY Asset sourced from Ringgit conversion
Investment using funds sourced from Trade FCA
Investment through cash pooling
Investment in FCY Asset with BNM Approval
Investment in FCY Asset onshore
Case Study 3: Breaches / Non-Compliances Concerning Dealings with Specified Person & Restricted Currency
Opening of Account
Export of Goods
Payment via credit cards for online purchased transactions
Receipts of FCY payments
Purchase of shares
Case Study 4: Breaches / Non-Compliances Concerning Borrowing, Lending & Guarantee
Borrowing in Ringgit by:
NRFI via OD facility
Non-Resident Entity
Resident Entity from NR Entity
Non-resident employee

Borrowing in FCY by Resident Entity:
From NR Financial Institution with BNM Approval
By Resident Entity from Resident
Case Study 5: Breaches / Non-Compliances Concerning Export of Goods
Crediting of export proceeds into Investment FCA
Extension period for receipts of export of goods

METHODOLOGY

This programme adopts a practical and interactive learning approach through presentations, quizzes, case studies, group discussions, and participant presentations. Drawing on selected Foreign Exchange Policy (FEP) breach and non-compliance scenarios adapted from industry training materials, participants will examine real-life situations to better understand regulatory requirements and compliance expectations.

Through facilitated discussions and case study analysis, participants will identify compliance gaps, assess potential risks and implications, and explore appropriate controls and preventive measures. The methodology is designed to strengthen participants’ ability to apply FEP requirements, exercise sound judgement, and enhance compliance practices when managing customer banking transactions.

Note: Case studies have been modified and presented in a generic format to preserve confidentiality and protect the identities of the individuals and institutions involved.

Participant profile

Officers and executives in banking institutions who possess a sound understanding of Foreign Exchange Policy (FEP) requirements, including due diligence obligations, and have less than three (3) years of experience in handling FEP-related banking transactions

Trainer

Shahrul Adzuan Ahmad

Senior Training Consultant,

Commercial Banking

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Shahrul Adzuan Ahmad

Senior Training Consultant, Commercial Banking

Shahrul Adzuan Ahmad is a training consultant at the Asian Banking School and has 27 years of working experience in the banking sector, with 24 of those years doing training and development at several banks.

His working experience includes branch operations, credit, and training administration support, as well as developing, delivering, and facilitating training programmes. The training programmes that he has conducted include Foreign Exchange Policy (formerly known as Foreign Exchange Administration Rules), credit, AML/CFT, leadership development and soft skills. At the Asian Banking School, Shahrul has conducted multiple training programmes relating to the Foreign Exchange Policy, Certified Credit Executive (CCE) and Retail Credit Professional (RCP). He also maintains a steady working relationship with the Foreign Exchange Policy Department of Bank Negara Malaysia for regular industry updates and training requirements as well as matters related to the Foreign Exchange Policy.

Shahrul holds a Bachelor of Science degree in Human Resources Development from the University of Technology Malaysia and a Diploma in Banking Studies from the Institute of Technology MARA (now known as the University of Technology MARA). He is a Certified Training Professional (CTP), DiSC - Certified Behavioural Consultant (CBC) and Certified HRDF Trainer.