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Bank Negara Malaysia (BNM) has fined Setel and two Standard Chartered entities a combined RM901,500 over sanctions screening failures.
Setel Ventures was fined RM637,500. Standard Chartered Bank Malaysia and Standard Chartered Saadiq received penalties of RM132,000 each.
BNM identified Setel’s breaches after the company submitted a report involving several individuals or entities on Malaysia’s Domestic List.
Setel Ventures operates Petronas’ Setel app, which provides fuel payments and other mobility services.
Further checks found that Setel had not promptly updated its sanctions database or screened its customer records as required.
It also failed to determine whether potential matches were genuine.
BNM attributed the breaches to gaps in Setel’s standard operating procedures and screening system.
The company has since updated its procedures and strengthened its internal controls.
It paid the RM637,500 penalty on 6 May 2026.
Standard Chartered Units Fined RM264,000
BNM uncovered the separate breaches at Standard Chartered Bank Malaysia and Standard Chartered Saadiq during an on-site examination.
The two banks failed to update their sanctions database promptly after the Domestic List was published.
This resulted in customers being checked against outdated information.
However, BNM found that the banks had not onboarded any listed individuals or entities or processed transactions involving them.
The regulator attributed the breaches to gaps in the banks’ controls and weaknesses in aligning their screening process with regulatory requirements.
Both banks have since strengthened their oversight and improved the timeliness of their database updates.
They each paid the RM132,000 penalty on 15 June 2026.
Featured image: Edited by Fintech News Malaysia, based on image by Magnific