AMMB agrees to pay penalty of RM53.7 mil to Bank Negara

AMMB Holdings Bhd has agreed to pay a penalty of RM53.7 million to Bank Negara Malaysia over non-compliance with certain regulations by AmBank (M) Bhd and AmBank Islamic Bhd.

In a filing to Bursa Malaysia, it said the penalty pertained to action pursuant to section 234 of the Financial Services Act 2013 and Section 245 of the Islamic Financial Services Act 2013 by AmBank and AmBank Islamic, respectively.

It said AmBank Group has commenced its own review and has been co-operating with the central bank over this matter, including providing information.

"This review has led to the strengthening of our governance structure and its ongoing and the penalty has no material impact on AmBank Group's earnings for the financial year 2016," it said.

AmBank Group said that it took its compliance responsibility and had agreed with the Bank Negara's four-year programme of work towards achieving market best practices.

"We have agreed to set aside an average of RM25 million per annum for four years for investment in systems, infrastructure and training.

"This series of measures will further enhance the robustness the group's processes, reporting as well as improving its governance structure against such circumstances recurring in the future and ensure that AmBank Group is well placed for future growth," it added.