⚠️ The Cost of Delay: Sanctions Failures Now Trigger Fast Fines
Two Malaysian financial service providers — Merchantrade Asia and JAGS Money — have just been penalised by Bank Negara Malaysia (BNM) for failing to meet their sanctions screening obligations.
These enforcement actions weren’t about laundering billions. They were about something far more common — lagging updates to sanctions databases and delayed customer screenings.
But the consequences were swift:
RM29,000 for Merchantrade. RM6,000 for JAGS.
Both companies operate in Malaysia’s fast-growing money services sector, helping individuals — including migrant workers and underbanked communities — send funds, exchange currency, and access digital financial tools.
They’ve invested in innovation, but this time it wasn’t enough.
BNM’s investigation found that:
Merchantrade Asia failed to promptly update its sanctions database after Malaysia’s Domestic List was updated
JAGS Money didn’t screen new customers against the updated list in time
Both were fined under the Money Services Business Act 2011, which requires:
Timely and accurate screening against the Domestic List and UN Security Council Resolutions (UNSCR) List
Validation of matches to avoid false positives
Ongoing updates to sanctions databases — not once a month, not when convenient, but immediately
💥 Why This Keeps Happening
Many financial institutions — especially remittance providers, mobile money operators, and regional fintechs — want to do the right thing.
But they’re often held back by:
Manual systems that lag behind fast-changing lists
Inconsistent staff knowledge across branches or agents
Expensive screening solutions designed for big banks, not lean teams
Meanwhile, sanctions lists are updated regularly — and missing just one update can expose a business to regulatory penalties.
🛡️ What ANQA Offers
At ANQA COMPLIANCE, we believe compliance officers should be supported..
Our sanctions and watchlist screening tool delivers:
Screening across global and domestic lists (UN, OFAC, EU, MOHA, and more)
Automatic updates, so you’re never screening against stale data
An interface that’s elegantly simple for users — with serious power under the hood
Flexible, pay-as-you-go pricing — no bloated contracts or lock-ins
You focus on moving money. We’ll handle the screening.
⚠️ Final Word
Merchantrade and JAGS Money aren’t fringe players. They’re licensed, digital-first providers helping communities move money across borders.
And yet — a few procedural gaps led to public fines.
In this space, “we meant to” isn’t enough.
📍Stay sharp. Stay updated.
