Bank Negara Malaysia Fines Bank of China (Malaysia)

Bank Negara Malaysia (BNM) has fined Bank of China (Malaysia) (BOCM) approximately $20,196 (MYR88,000) for relocating its core banking systems to new data centres without the required approval.

BOCM moved two key systems in December 2022 and February 2023 without obtaining prior consent from the central bank, in violation of the Financial Services Act 2013 and the Policy Document on Outsourcing.

BNM stated that these relocations were significant modifications to the bank’s outsourcing arrangements, potentially altering the level of risk BOCM faces. The non-compliance was attributed to gaps in the bank’s oversight and internal policies regarding outsourcing.

In response, BOCM has taken steps to improve its oversight and ensure future compliance, including regular reviews of outsourcing activities. The bank paid the fine on August 2, 2024.