BNM Enforcement Actions: What's the Damage?

Ever wondered what happens when banks try their luck bending the rules?

Bank Negara Malaysia (BNM) isn’t here for friendly reminders—they enforce compliance with fines that hit harder than a late-night mamak bill after a "belanja" gone wrong. Millions in penalties may sound steep, but like salaries and income tax, it’s all about perspective—what’s pocket change for a bank is a financial wipeout for the rest of us.

All data is sourced directly from Bank Negara Malaysia's (BNM) enforcement actions registry at BNM Enforcement Actions. So this is public information. I am just making it more public.

BNM didn't mess around—doling out a whopping RM32.7 million in penalties across 42 actions. And some banks clearly felt the burn more than others:

Breaking Down the Damage:

• Customer Information Leaks – Costliest mistake, totaling RM9.6 million.
• Late Statistical Reporting – Most common error (18 incidents).
• Top 5 offenses represent over 80% of all fines.

Below are the categories of Nature of Offences :

To put these penalties into perspective, let’s measure them in something relatable—potatoes! Based on last month controlled item pricing from KPDN at RM3.50/kg, here’s what the penalties look like when compared to bank profits and then scaled via basic mathematical scaled down formula:

We assume:

• A bank’s net profit = A person’s monthly salary
• The ratio of fine to net profit is applied to an equivalent salary.

Formula Used:

Fine Scaled Down = (Bank Fine / Bank Net Profit) × Monthly Salary

This ensures that the fine has the same proportionate impact on a bank’s total earnings as it would on a person’s monthly income.

Notice something? These fines look pretty big until you realize they're tiny compared to the banks' profits. CIMB’s seemingly hefty fine is just like tossing out 26 potatoes if your monthly salary was RM5,000—barely noticeable. Makes you wonder if the penalty stings or merely tickles.

Wrapping It Up (Without the Peels)

BNM’s penalties aren’t just about punishment—they’re a loud reminder for banks to get their act together. Data leaks, sloppy paperwork, and constant downtime aren’t small mistakes; they're headaches for everyone involved. Yet, these fines are still a fraction of their earnings, underscoring the question: Are these penalties strong enough to change behavior, or just small potatoes?

Disclaimer

All data (except potato pricing—obviously) is sourced directly from Bank Negara Malaysia’s (BNM) enforcement actions registry at BNM Enforcement Actions. This is purely informational and not financial or legal advice.

For accurate potato prices, visit the Ministry of Domestic Trade and Cost of Living at www.kpdn.gov.my.