Bank Negara Malaysia (BNM) has imposed penalties on Maybank and CIMB for non-compliance with the Financial Services Act 2013 and the Islamic Financial Services Act 2013. These fines were issued following prolonged service disruptions that affected both banks.
For banking service users, unexpected disruptions can be highly distressing, particularly when they rely on these services for daily transactions. Whether brief or extended, such interruptions invariably impact users, especially those needing to conduct transactions or payments at that moment.
There have even been instances where account balances appeared as RM0, with savings seemingly ‘vanishing’ before services resumed.
BNM announced that it has imposed Administrative Monetary Penalties (AMP) on prominent banks, including Malayan Banking Bhd, Maybank Islamic Bhd, CIMB Bank Bhd, and CIMB Islamic Bank Bhd. Maybank was fined RM4.32 million, whilst CIMB was required to pay RM760,000. BNM reported that Maybank settled its penalty on 8 August, with CIMB making its payment on 12 August.
The fines were imposed due to the banks’ failure to comply with paragraph 10.32 of the RMiT Policy Document, which stipulates that financial institutions must ensure their critical systems are designed with a high level of availability.
Between 1 June 2023 and 31 May 2024, Maybank’s Regional Mobile Bank Platform (RMBP) and MAE app experienced multiple unplanned downtimes, leading to prolonged disruptions to banking services and customer interfaces. CIMB customers also encountered service disruptions between 8 and 9 April, when the bank’s channels, ATMs, and debit and credit card services were unavailable. These disruptions at CIMB were said to have exceeded the threshold set by BNM.
The imposition of these fines underscores the importance that regulatory bodies place on maintaining reliable and consistent banking services. It also highlights the need for financial institutions to invest in robust infrastructure and contingency plans to minimise service disruptions and ensure customer satisfaction.
As technology continues to play an increasingly crucial role in banking services, the expectation for uninterrupted access to financial platforms grows. Banks must therefore prioritise system stability and reliability to meet regulatory requirements and maintain customer trust in an increasingly digital banking landscape.
