Update BNM revokes licences of 41 money changers

Written by Isabelle Francis
Wednesday, 09 December 2009 18:19

KUALA LUMPUR: Bank Negara Malaysia (BNM) has revoked 41 money-changing licences this year under the Money-Changing Act 1998 (Act).

It said a number of the moneychangers had contravened Section 30 of the Act, which prohibits money-changers from transferring funds outside Malaysia, whether on their own behalf or on behalf of third parties.

Under the Act, moneychangers are only allowed to conduct the business of exchanging foreign currencies against the ringgit or against other foreign currencies within Malaysia.

The central bank reminded members of the public to use the services offered by commercial banking institutions or the 45 non-bank remittance service providers approved by BNM to transfer funds abroad.

“In Malaysia’s more liberalised financial environment, members of the public are free to transfer funds through these authorised entities,” it said in a statement yesterday.

The central bank revoked the money-changing licences of 19 moneychangers in April, and another 20 in October under the Act.

The list of the 39 and two other licensed moneychangers charged under the Act can be obtained from the BNM website.

BNM had said that the revocations should not unduly inconvenience members of the public, as currently there were about 900 licensed moneychangers in operation. It said the current number of moneychangers was adequate to serve the needs of tourists and travellers.

It is also understood that in BNM’s clampdown, licences of the top three moneychangers were revoked.

It is estimated that the turnover generated by the moneychangers in the country stood at about RM5 billion per annum.

However, local moneychangers told The Edge weekly recently that the clamping down on their operations alone would not solve anything because the problem lies beyond Malaysia and involves more than moneychangers.

The main problem, they said, lies in Singapore where moneychangers and remittance agents are allowed to operate with few restrictions. They also want restrictions on their daily operations to be lifted.

Traders also suggest BNM to look into the issuance of too many moneychanger licences.

At present, moneychangers only need to pay RM600 per annum in annual renewal and licensing fees to BNM to keep their licence.