A key business group in Malaysia has called on banks to handle company account closures with more fairness, especially in money laundering cases. The Association of Credit Management Malaysia made this plea amid recent rules from Bank Negara Malaysia aimed at boosting transparency.
Why Fairness Matters in Bank Account Closures
Businesses across Malaysia have faced sudden account suspensions or closures in recent months. These actions often stem from suspicions of money laundering under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, known as AMLA.
The Association of Credit Management Malaysia, or ACMM, supports efforts to fight financial crimes. Yet it stresses that companies need clear reasons for any closures. Without proper explanations, firms struggle with daily operations, payments, and compliance tasks.
Sudden closures can halt cash flow and disrupt supply chains. This affects not just the business owners but also employees and partners. ACMM points out that such moves can harm the economy if legitimate companies get caught in the crossfire.
In a statement, ACMM president Sri Ganesh Michiel highlighted the need for balance. He said banks must provide evidence or allow appeals before taking drastic steps. This approach aligns with principles of natural justice.
New Rules from Bank Negara Malaysia
Bank Negara Malaysia, the country’s central bank, rolled out tighter guidelines in October 2025. These rules require banks to send written notices to customers when closing accounts under AMLA.
The notices must explain the reasons without sharing sensitive details that could tip off suspects. They also outline how to appeal, including timelines and channels. Deputy finance minister Lim Hui Ying announced this during a parliamentary session on October 23, 2025.
This change came after complaints from businesses about unfair treatment. It aims to protect consumers while strengthening anti-money laundering defenses.
Here is a quick look at the key elements of the new directives:
| Aspect | Details |
|---|---|
| Written Notice | Banks must provide reasons for closure in writing. |
| Appeal Process | Clear steps, timelines, and channels for appeals. |
| Transparency | Balances security with customer rights. |
| Implementation | Effective from late October 2025. |
These updates build on the AMLA Amendment Act 2025, which expanded powers to tackle money laundering. The act includes new tools for tracking suspicious transactions and freezing assets.
Experts say these measures could reduce wrongful closures. Yet they warn that banks might still err on the side of caution due to hefty fines for non-compliance.
Impact on Businesses and the Economy
Many companies report severe disruptions from account closures. For instance, small and medium enterprises often lack backup banking options. This can lead to delayed payments, lost contracts, and even layoffs.
ACMM notes that without bank accounts, firms lose their financial audit trails. This complicates tax reporting and regulatory compliance. In extreme cases, it pushes businesses toward informal cash dealings, which defeats the purpose of anti-money laundering rules.
Recent data from 2025 shows a rise in account closures linked to fraud suspicions. Bank Negara Malaysia reported over 1,000 such cases in the first half of the year alone. This spike follows global trends in tightening financial regulations.
Business leaders argue for a presumption of innocence. They want banks to consider a company’s track record before acting. Some suggest independent reviews for disputed closures.
The broader economy feels the ripple effects. Malaysia’s GDP growth, projected at 4.5 percent for 2025 by the World Bank, could slow if businesses face ongoing banking hurdles.
Challenges in Fighting Money Laundering
Money laundering remains a big issue in Malaysia. Criminals use company accounts to hide illegal funds from scams, corruption, and other crimes.
The AMLA Amendment Act 2025 introduced stricter reporting for high-risk transactions. It also targets sectors like real estate and money services businesses.
Banks face pressure to comply. Failure can lead to penalties, as seen in a recent case where a money services firm was fined RM17,400 for due diligence lapses.
Yet ACMM warns that overzealous enforcement hurts innocent parties. It calls for training bank staff on fair risk assessment.
Key challenges include:
- Balancing security with business needs.
- Ensuring appeals are fast and effective.
- Educating companies on compliance to avoid flags.
International examples, like Singapore’s 2024 anti-money laundering laws, show similar balances. Malaysia could learn from these to refine its approach.
Looking Ahead for Better Practices
As Malaysia strengthens its financial defenses, stakeholders hope for ongoing improvements. ACMM plans to work with Bank Negara Malaysia on guidelines that protect all sides.
Businesses are advised to keep strong records and communicate openly with banks. This can help prevent misunderstandings.
In the end, fair banking access supports economic growth. Readers, share your thoughts on this issue in the comments below. Have you faced account closure problems? Let us know and spread the word to raise awareness.
