Policy document on business continuity management
Policy document on e-money
Exposure Draft on Medical and Health Insurance, and Takaful Business
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency
Discussion paper on Financial Inclusion Framework 2023-2026
Policy document on liquidity facility to licensed insurers and takaful operators


This article discusses Bank Negara Malaysia's (BNM's) latest policy documents, guideline revisions and feedback requests.

Policy document on business continuity management

On 19 December 2022, BNM issued a policy document on business continuity management. This document aims to:

  • help financial institutions to develop and implement a robust business continuity management framework and policies and processes that are integrated with their overall risk appetite and that reinforce sound risk management practices;
  • strengthen the capacity and preparedness of financial institutions to respond and recover from operational disruptions; and
  • preserve the continuity of critical business functions and essential services within a specified timeframe in the event of an operational disruption.

The document is applicable to:

  • a licensed person under the Financial Services Act (FSA) 2013 and the Islamic Financial Services Act (IFSA) 2013;
  • a prescribed institution under the Development Financial Institutions Act 2002;
  • an approved issuer of electronic money (e-money) that is an eligible issuer of e-money as defined in the policy document on interoperable credit transfer framework; and
  • an operator of a designated payment system.

For a financial institution operating as a foreign branch in Malaysia, the requirements in the document apply to the Malaysian branch with certain modifications.

Policy document on e-money

On 30 December 2022, BNM issued a policy document on e-money, which sets out BNM's regulatory requirements and guidance for electronic money issuers (EMIs) approved pursuant to section 11 of the FSA or the IFSA. This document outlines requirements that aim to:

  • ensure the safety and reliability of e-money issued by EMIs; and
  • preserve customers' and merchants' confidence in using or accepting e-money for the payment of goods and services.

BNM has also issued a feedback statement to address the key feedback and proposals received during the consultation period and frequently asked questions to enhance public understanding of the requirements and clarify interpretation issues when implementing the requirements.

Exposure Draft on Medical and Health Insurance, and Takaful Business

BNM invited feedback on its Exposure Draft of a Policy Document on Medical and Health Insurance, and Takaful Business. This draft sets out BNM's proposed requirements and guidance in carrying on medical and health insurance or takaful (MHIT) business. Once it comes into force, the policy document will:

  • apply to insurers licensed under the Financial Services Act 2013 and takaful operators licensed under the Islamic Financial Services Act 2013, each of which underwrites or offers MHIT products;
  • address developments in the MHIT business and promote more innovative, inclusive and sustainable MHIT business models to better respond to the needs of consumers and the prevailing operating environment;
  • aim to update the requirements of the conduct of MHIT business, in line with the key strategies outlined in BNM's Financial Sector Blueprint 2022-2026; and
  • set out the regulatory requirements covering specific areas of the MHIT business and products.

This final policy document is intended to come into effect three months after it is issued.

Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency

On 22 December 2022, BNM revised its Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency. These guidelines are applicable to the public and set out:

  • the criteria for determining the quality and integrity of currency in circulation;
  • the procedure for the public to exchange unfit currency at financial institutions; and
  • the procedure for handling and reporting suspected counterfeit in circulation.

The public is reminded that counterfeit currencies are not legal tender.

Discussion paper on Financial Inclusion Framework 2023-2026

On 3 February 2023, BNM issued a discussion paper on its proposed Financial Inclusion Framework 2023-2026 and invited feedback by 31 March 2023.

The framework is intended to serve as a four-year strategic roadmap to advance financial inclusion and meet the goals envisioned in the Financial Sector Blueprint 2022-2026. At the national level, advancing the financial inclusion agenda remains a key priority under the Twelfth Malaysia Plan 2021-2025. The framework's vision is to provide a more expansive and holistic approach to achieve broader development outcomes and improve the financial wellbeing and the standard of living in Malaysia.

Policy document on liquidity facility to licensed insurers and takaful operators

On 10 February 2023, BNM issued a policy document on liquidity facility to licensed insurers and takaful operators. This policy document came into effect on 10 February 2023 and is applicable to all licensed persons.

The term "licensed person" refers to:

  • licensed insurers, including professional reinsurers; and
  • licensed takaful operators, including professional retakaful operators.

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.