In the month of January, we discussed that there has been great emphasis within Bank Negara Malaysia (BNM) policies for companies to identify, hire and manage competent employees before and during the employment stage.
Specifically, we talked about the impacts of:
- The Fit & Proper Criteria
- The Anti-Money Laundering and Counter-Terrorism Financing Framework; and
- Employee Screening Exposure Draft (coming into effect 2018)
As February came, it became evident that these new policies are now going to be in full swing. On February 17th, the Star reported the following:
“Bank Negara Malaysia (BNM) will soon require financial institutions to undertake rigorous screening for their new hires as integrity is critical in enhancing confidence in the financial system.
“This is to ensure that the financial industry possess a competent and professional workforce,” said the central bank when asked on further development measures by BNM and the financial industry to protect the integrity and confidence in the domestic financial system.
Beginning January 2017, all new graduate entrants into the banking industry are required to be a member of Asian Institute of Chartered Bankers (AICB) and complete a mandatory programme on ethics and professional standards.
Since April 2017, the financial industry workforce operating in wholesale financial markets are also required to adhere to a high standard of professional entry eligibility, market conduct and internal controls ascribed in the Code of Conduct for Malaysia’s Wholesale Financial Markets.
The Code of Conduct is rigorously and jointly enforced by the Financial Market Association of Malaysia, financial institutions and regulators, it added.
BNM has been harping on upholding integrity in the financial system, time and again, and has been undertaking various efforts in this direction.
Governor Tan Sri Muhammad Ibrahim once said: “Malaysian financial institutions should be the gold standard for good governance practices.
“Because of their important role within the economic system, banks have the added responsibility of maintaining public trust and confidence.
“BNM expects the banking industry to take the lead in promoting good governance practices more broadly across corporate Malaysia, through financing and investment activities or professional advice to clients,” he was quoted as saying in 2016 at the 20th Malaysian Banking Summit.
It is clear that the aim of this effort is to promote a more ethical financial sector and to be aligned with some of BNM’s existing policies, like the Corporate Governance policy and the Code of Conduct for Malaysia Wholesale Financial Markets, The Fit & Proper Criteria and The Anti-Money Laundering and Counter-Terrorism Financing Framework.
Is your financial institution complying with these BNM requirements? Perhaps you should be looking into this!
Verity Intelligence works very closely with an estimated total of 700 companies to provide background screening support, more than 70 of which are financial institutions to help ensure their hiring process complies with our national laws and policies. We have a comprehensive view of BNM regulations through exhaustive research and we employ systems and processes to meet BNM’s policy requirements. We also have the experience in assisting our customers during BNM audits, Personal Data Protection Act audits and Information Technology/Information System Security audits.