What SOP gaps did BNM cite in AEON Credit’s sanctions controls?

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BNM cited SOP gaps in AEON Credit’s sanctions controls that led to failing to reject a Domestic List match and delaying account freezing after confirmation.

Bank Negara Malaysia fined AEON Credit Service (M) Bhd RM520,000 after an on-site supervisory examination found breaches in its targeted financial sanctions (TFS) controls. BNM said the problems stemmed from a gap in the firm’s standard operating procedure (SOP), including how staff handled a positive match to a specified entity on the Domestic List and how quickly they froze an account after confirmation.
AEON Credit did not reject a positive match to a Domestic List entity
BNM said AEON Credit failed to reject a potential customer even though the customer was a positive match to an entity on the Domestic List. This was identified as one key SOP gap in how the credit firm’s onboarding process should respond to TFS screening results.
Freezing the customer account was delayed after confirmation
BNM also said there was a delay in freezing the customer’s account after confirmation that the customer was a specified entity. BNM linked this delay to the same SOP gap in the firm’s sanctions controls process.
The breaches were attributed to staff oversight and the SOP gap
BNM attributed the breaches to lack of staff oversight and the gap in AEON Credit’s SOP. In BNM’s account, these shortcomings affected both the rejection step when a match was identified and the timing of the account-freezing step once confirmation was made.
AEON Credit later enhanced its SOP and retrained staff
BNM said AEON Credit took remedial measures after the breach by enhancing its SOP and conducting refresher training for relevant staff. The central bank’s statement framed these steps as part of ensuring compliance with TFS requirements going forward.

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What SOP gaps did BNM cite in AEON Credit’s sanctions controls?

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