Foreign Exchange Policy (FEP) is part of Bank Negara Malaysia’s broad prudential toolkit to preserve monetary and financial stability.

As the FEP becomes increasingly risk-based, it is important for banks to adopt a dual-track approach in ensuring robust FEP compliance culture.

First, banks as the first line of defense in ensuring compliance to FEP shall instil strong FEP awareness among their staff to ensure the policy intent is met and to prevent non-compliance from the outset. This includes comprehensive understanding of FEP to ensure effective compliance whilst implementing industry-wide standards as outlined in the Minimum Due Diligence (MDD) documents.

Second, banks shall undertake swift remedial actions to report non-compliance in a transparent manner and address any weaknesses in a decisive manner. Banks must understand the ramifications of these non-compliances that include administrative or enforcement action.

This programme IS NOT an introductory programme to FEP, it is designed as an advanced level programme that aims to familiarise bankers with common instances of non-compliance. Participants are expected to gain a more holistic view of FEP compliance principles including both preventive and corrective measures.