Bank Negara Malaysia (BNM) issued an exposure draft providing an agent oversight framework for money services business on 18 November 2021, which is open for public consultation until 18 January 2022.

According to BNM, this draft is intended to update the Guidelines on Agent Oversight Framework for the Money Services Industry issued on 15 April 2013.

The draft, when it comes to effect, will apply to all money services business licensees (MSB licensees) that are approved to appoint money services business agents under section 43 of the Money Services Business Act 2011.

The amendments introduced in this draft include:

  • the expansion of the definitions of "agent" and "money services business agent";
  • the introduction of a definition of "substantial shareholder", which is not in the 2013 guidelines, and an obligation for MSB licensees to notify BNM of any changes to the non-substantial shareholder(s) of its third-party agents; and
  • the introduction of the definitions of "mobile channel" and "online channel" and new regulation of the conduct of money services business through online and/or mobile channels by agents.

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