Malaysian financial institutions in the banking industry such as banks are required to put processes for compliance with the Amla Act and banking legislation and financial regulations such as the Capital Markets and Services Act 2007.
The financial regulators and regulatory authorities oversee these financial systems to combat and reduce the risk of money laundering activities, financial crimes, and leakage of personal data.
One of the regulatory requirements and provisions required by the regulators is for the bank to perform customer due diligence on new customers. If they fail to perform these obligations, they may be hit with penalties and sanctions. Some employment lawyers are familiar with these compliance provisions.