Bank Negara Malaysia is inviting feedback to its Exposure Draft on Quality and Integrity of Currency by 30 April 2023.

The exposure draft, when it comes into effect, will apply to the following entities (collectively, the applicable entities):

  • banks licensed under the Financial Services Act 2013;
  • Islamic banks licensed under the Islamic Financial Services Act 2013;
  • prescribed institutions under the Development Financial Institutions Act 2002;
  • licensees under the Money Services Business Act 2011; and
  • currency processors registered under the Currency Act 2022;

The draft will set out:

  • the criteria for determining the quality of currency notes and coins in circulation;
  • the standards that the applicable entities need to adhere to in processing currency notes and coins, including the recirculation of notes and coins to the public;
  • the standards that the applicable entities need to adhere to when dealing with suspected counterfeit Malaysian currencies;
  • the requirements for applicable entities to record and report suspected counterfeit Malaysian currencies, including the timeline pursuant to which a police report must be made; and
  • the need to have competent staff to calibrate and attest currency processing machines; and

It will supersede:

  • the Guidelines on Quality Standards for Malaysian Currency, issued on 1 September 2006;
  • the Guidelines on Handling of Suspected Counterfeit Malaysian Currency Notes, issued on 2 September 2014; and
  • the Guidelines on the Treatment of Unfit, Mutilated, Defaced and Fraudulently Tampered Genuine Banknotes by Commercial Banks, issued on 15 September 2009.

For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.