Bank Negara Malaysia Issues Policy Document On Business Continuity Management

• Law Firm: Shearn Delamore & Co.
• Subject Matter: Finance and Banking, Capital Adequacy/BASEL, Financial Services
• Author: Shearn Delamore & Co
• Published date: 31 January 2023

Bank Negara Malaysia ("BNM") has on 19 December 2022 issued a policy document on Business Continuity Management which aims to:

• facilitate the development and implementation of a robust business continuity management framework, policies and processes by financial institutions which are integrated with their overall risk appetite and reinforce sound risk management practices;
• strengthen the capacity and preparedness of financial institutions to respond and recover from operational disruptions and
• preserve the continuity of critical business functions and essential services within a specified timeframe in the event of an operational disruption.

The Policy Document is applicable to a licensed person under the Financial Services Act 2013 ("FSA") and the Islamic Financial Services Act 2013 ("IFSA"), a prescribed institution under the Development Financial Institutions Act 2002 ("DFIA"), an approved issuer of electronic money ("e-money") which is an eligible issuer of e-money as defined in the policy document on interoperable credit transfer framework, and an operator of a designated payment system. For a financial institution operating as a foreign branch in Malaysia, the requirements in the Policy Document apply to the Malaysian branch with certain modifications.

BNM issues Policy Document on Electronic Money ("E-Money")

BNM has on 30 December 2022 issued the Policy Document on Electronic Money ("E-Money") which sets out BNM's regulatory requirements and guidance for electronic money issuer ("EMI") approved pursuant to section 11 of the FSA or the IFSA. The Policy Document outlines requirements aimed to:

• ensure the safety and reliability of e-money issued by EMI and
• preserve customers' and merchants' confidence in using or accepting e-money for the payment of goods and services.

BNM has also issued a Feedback Statement to address the key feedback and proposals received during the consultation period and Frequently Asked Questions ("FAQs") to enhance public understanding of the requirements and clarify interpretation issues in implementing the requirements of the E-Money policy document.

Exposure Draft on Medical and Health Insurance/Takaful Business

BNM is inviting feedback by 15 March 2023 to its Exposure Draft of a Policy Document on Medical and Health Insurance/Takaful Business which sets out BNM's proposed requirements and guidance in carrying on the medical and health insurance/takaful ("MHIT") business. The intended policy document, when come into...