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THE Malaysian government is committed to ensuring that the appeals process for bank accounts closed under suspicion of money laundering is conducted with greater transparency, efficiency, and without undue burden on account holders, Deputy Finance Minister (MoF) Lim Hui Ying announced in Parliament today.
Lim said that several measures have been introduced to enhance coordination between financial institutions, Bank Negara Malaysia (BNM), and enforcement agencies.
“BNM has strengthened transparency in handling appeals for bank accounts that are closed by requiring financial institutions to issue written notices to affected account holders,” she explained.
These notices must include the reason for account closure without revealing sensitive investigation details to prevent information leaks. They must also inform account holders of their rights to appeal, detailing the available channels, the time frame allowed, and the procedures for submitting an appeal.
Responding to a question from Teresa Kok Suh Sim (PH-Seputeh), Lim highlighted that this approach balances the need to prevent money laundering activities with safeguarding account holders from arbitrary account closures.
She added that BNM will collaborate with financial institutions to introduce a standard protocol from 1 July 2024, providing uniform guidance on reporting, managing, and appealing suspected mule accounts.
“The protocol also integrates processes and actions between the Royal Malaysia Police (PDRM) and financial institutions to ensure a coordinated and effective implementation,” Lim said.
Financial institutions will be required to review the current status of each case before taking further actions such as account regularisation, delisting, or reinstatement.
“BNM continuously monitors the financial industry’s practices in resolving consumer complaints to ensure complainants receive fair treatment,” she added.
Account holders may submit complaints to the respective financial institution’s complaint unit for feedback and final decisions. Should account holders disagree with the outcome, the matter can be escalated to BNM’s customer service centre, the Financial Industry Complaints Bureau, and where appropriate, the financial market ombudsman.
This comprehensive framework aims to provide greater clarity and fairness for bank customers while maintaining rigorous measures against money laundering. - October 22, 2025