Foreign Exchange Policy: An Overview and Compliance Requirements - Compliance

(The cost of the programme includes lunch and other refreshments, as well as programme materials for one participant. This is a non-HRDC claimable course.)

Note: Asian Banking School reserves the right to close registration earlier than the stated deadline once the number of registered participants reaches thirty (30). Each bank may register between two (2) to three (3) participants. Registration will be accepted on a first-come, first-served basis.

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.

As a first line of defence, financial institutions play an important role in ensuring compliance with FEP to ensure the effectiveness of the policy. Given FEP has become increasingly risk-based, it is important for financial institutions to adopt and maintain a robust FEP compliance approach by -

instilling strong FEP awareness among its employees to ensure the policy intent is being met for effective compliance and to prevent breaches/non-compliance from the onset.
implementing a sound internal compliance framework based on the industry-wide standards as outlined in the Minimum Due Diligence documents.

In addition, financial institutions must also understand the ramifications of non-compliance to the FEP rules, which would include administrative or enforcement action. Financial institutions are expected to take swift action by reporting any non-compliances or breaches of FEP rules transparently and addressing any weaknesses in a timely manner.

This programme is structured with the aim to:

provide an overview of the FEP rules, focusing on four primary FEP Notices, i.e. Notice 1, 2, 3 and 4. The remaining Notices of 5, 6 and 7 will be covered briefly.
enhance participants’ knowledge and comprehension of the FEP rules and its due diligence process via group discussions that are centred on anonymous real-life case scenarios.
expose participants to the common factors or elements of non-compliances and breaches.

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Programme Outline

Learning Objectives

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

interpret aptly the FEP rules and understand its policy intents
demonstrate the use of the FEP rules and its due diligence measures when undertaking/facilitating a customer’s banking transactions
justify appropriate due diligence procedures as practised by the industry to ensure continuous compliance.
identify and resolve the issues leading to non-compliance of FEP

Programme pre-requisite

This programme is not a foundation-level programme; hence, the participants shall meet the following criteria to qualify in attending the programme:

Have at least 3-5 years of solid working experience across the financial sectors in handling FEP-related banking transactions
Possess good and sound knowledge of the overall FEP rules, including the banking industry’s minimum due diligence documents on FEP transactions
Familiar with the content and documents available in the Bank Negara Malaysia (BNM)’s FEP website https://bnm.gov.my/fep

Programme Outline

Day 1
Overview on FEP
FEP from market perspective: Sharing session by Head Of Treasury of a Licensed Onshore Bank

Notice 1: Dealing in Currency, Gold and Other Precious Matters
Compliance Requirement on Notice 1
Case studies, discussion and presentation on Notice 1

Notice 2: Borrowing, Lending and Guarantee
Compliance Requirement on Notice 2
Case studies, discussion and presentation on Notice 2
Day 2
Recap of Day 1

Notice 3: Investment in Foreign Currency Asset
Compliance Requirement on Notice 3
Case studies, discussion and presentation on Notice 3

Notice 5, 6 and 7
Compliance Requirement on Notice 5,6 and 7
Case studies, discussion and presentation on Notice 5,6 and 7
Day 3
Recap of Day 2

Notice 4: Payment and Receipt
Compliance Requirement on Notice 4
Case studies, discussion and presentation on Notice 4

Comprehensive case studies, discussion and presentation

Overall summary

METHODOLOGY

Interactive presentation, group discussion and quizzes

Participant profile

Bank’s Executive (Managers of intermediate level and above) from financial institutions i.e. Onshore banks and Development Financial Institutions who deals directly in FEP related banking transactions and meets the programme pre-requisite criteria

Note : Priority will be given for participant who has never attended this programme or other BNM-led FE Policy training programme before.

Trainer

Senior Analysts and Analysts of BNM-Foreign Exchange Policy Department with extensive knowledge in the policy, assessment and compliance aspect of the FEP.

List of trainers:

1. Wong Ching Yieng
2. Zulazwer bin Hassan
3. Guneshwary a/p Shanmugam

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