Cash transaction limit in the works to curb money laundering
A policy to limit cash transactions is in the works, with Bank Negara to embark on a series of public consultations to obtain feedback on the move.
Governor Shamsiah Mohd Yunus said today that the policy is aimed at curbing money laundering and "limiting the use of cash by criminals...
A policy to limit cash transactions is in the works, with Bank Negara to embark on a series of public consultations to obtain feedback on the move.
Governor Shamsiah Mohd Yunus said today that the policy is aimed at curbing money laundering and "limiting the use of cash by criminals."
"We are studying and will consult widely on a potential introduction of an economy-wide limit on cash transactions in Malaysia.
"Similar measures have been taken in several countries," she said at a press conference when unveiling the central bank’s 2018 Annual Report and 2018 Financial Stability and Payment Systems Report.
In the latter Report, Bank Negara cited how Australia, Italy and the Czech Republic imposed a single limit on cash transactions at A$10,000 (RM30,160), €3,000 (RM14,280), and 350,000 krone (RM64,935) respectively.
Also highlighted were countries that imposed multiple limits depending on various factors.
These include France, with limits ranging from €300 to €15,000 (RM1,428-RM71,400); Spain from €2,500 to €15,000 (RM11,900-RM71,400); India from 20,000 rupees to 200,000 rupees (RM1,182-RM11,820); and Mexico from 200,000 pesos to 500,000 pesos (RM41,929-RM104,822).
The Malaysian model
To formulate a Malaysian model, Shamsiah said the bank will hold public consultations in either the second or third quarter of this year.
"We would like to hear your views on this, because we are going to undertake a public consultation on these two things.
"Is this something that is suitable for Malaysia to adopt, is it moving in the right direction? And if it is, what would be the appropriate limit?" she asked during the question and answer session.
In addition to this initiative, the central bank is also working on accelerating migration to electronic payment systems to reduce the use of cash.
Beginning Jan 1 this year, Bank Negara reduced the cash transaction reporting threshold from RM50,000 to RM25,000 in an effort to combat illicit activities.
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