Securities Commission Malaysia

🔒 In today’s fast-paced tech landscape, managing technology risks is crucial for the stability and security of capital markets. Recent incidents underscore the need for strong tech risk management for Capital Market Entities (CMEs). 📉 In April 2024, a DNS outage disrupted a major telecom provider. In July, a software update failure at CrowdStrike caused global outages affecting air travel, banking, and healthcare. A cyber-attack also hit Microsoft Azure, impacting services worldwide. The Guidelines on Technology Risk Management (GTRM) provide essential guidance to help CMEs navigate these challenges effectively. By learning from these events, CMEs can enhance their resilience against tech risks and cyber threats, ensuring market stability. Continuous monitoring and improvement are key to maintaining a robust tech risk management framework. 👉🏼 Read the GTRM Guideline here: https://bit.ly/3WKtSCM

🔑 Key takeaways from Dato’ Mohammad Faiz Azmi’s, SC Chairman, Opening Address at the Securities Industry Development Corporation (SIDC) Business Foresight Forum 2024, themed "Investing in MSMEs for Impact" here at the SC this morning! 📈 🔗 Read the full speech here: https://bit.ly/3YPzRcn

🌟 The SCxSC Pitch & Match - Regtech event on 19 Aug 2024 attracted over 200 attendees from across the capital markets, including senior management and compliance/technology experts. The event showcased a range of innovative solutions, from AI-driven regulatory monitoring to real-time risk analysis and automated compliance processes—advancing market integrity, transparency, and accountability. 🛡️ Attendees engaged directly with solution providers at booths, sparking further discussions with capital market players post-event. Key themes included the value of a “business partnership” approach, seamless integration of Regtech into existing systems, adaptability to rapid regulatory changes, and robust data security, whether in the cloud or on-premise. 🚀 The event also spotlighted the SC's DIGID, encouraging entities to explore Regtech solutions. Participant feedback highlighted the event as an eye-opener, showcasing the potential of advanced technologies to enhance compliance, efficiency, and market integrity. 🔗 Keep the momentum going—find out more about #SCxSC2024 here: https://www.scxsc.my/

⭐ Thank you YB Tuan Gobind Singh Deo for launching GROWMatch and to all our partners and attendees! ✨On 16 Aug 2024, GROWMatch brought together over 200 participants, including government agencies, ministries,  investors, VC, PE, ECF/P2P operators and MSMEs to explore new investment or financing opportunities. 🌱 At the event 20 shortlisted companies presented their innovative solutions to address food security challenges, pitching to investors from the alternative financing space. Additionally, over 20 agriculture booths showcased cutting-edge innovation that could shape the future of agriculture! GROWMatch is an SC-led matching initiative designed to connect agri-based start-ups with venture capital and private equity firms, as well as ECF and P2P financing. It is a key component of SCxSC, our flagship fintech initiative.    🌐 Learn more about GROWMatch here: https://bit.ly/3AweNNR 🚀 See what’s coming next in SCxSC: https://www.scxsc.my/ #SCxSC2024

In the first panel session at the IFCTF Masterclass 2024, Jack Babani, Chief Compliance Officer of Hong Leong Bank Berhad spoke to the expert panel on various aspects of the National Risk Assessment (NRA). June Lian, Deputy Director, Financial Intelligence and Enforcement Department, Bank Negara Malaysia, illustrated the threat risk and sectoral risk assessment findings of the NRA, how the evolution of the NRA ensured a more reflective and comprehensive assessment of ML / TF risks and vulnerabilities, and on rendering the NRA findings into actionable insights. Speaking on ease of legislation, she articulated that the development of policies and regulations is an art, which suggests that creating effective policies and regulations requires more than just technical expertise, and implies a level of creativity, intuition, and judgment that goes beyond the mere application of rules and data. Sharifah 'Alia Alhabshi, Assistant General Manager, Supervision Department, Securities Commission Malaysia, elaborated on how perception surveys are used in threat risk assessments for the following reasons: 🔹 for regulators to gain a better understanding of what is happening on ground 🔹to identify potential gaps, which provide key information that can be used to improve on current regulations, and 🔹to increase awareness on inherent risks. Additionally, on the speed of the legislative process, she mentioned that when introducing any new requirements or guidelines, SC always ensures that the guidelines are in line with international standards, engages with the industry — as they are the ones operationalising the requirements — and implements benchmarking studies. Asked on ease of legislation, Muhammad Hanafis Borhan, Director, Supervision Department, Labuan Financial Services Authority, shared that Labuan FSA issues market guidance to facilitate applications of the various requirements of the Labuan entities. These guidelines include detailed explanations or clarification of rules governing the business and conduct of Labuan entities. Read more here: https://lnkd.in/grjCHaAy. View the IFCTF Masterclass 2024 programme here: https://lnkd.in/dR7ktYWc #IFCTF2024

🌐 As technology continues to advance, so do the risks that come with it. From cyber threats and data breaches to system failures and operational disruptions, these incidents can significantly impact the capital markets and the broader technology landscape. 🚨💻 To safeguard against these evolving threats, it’s vital for organisations to adopt robust security measures, ensuring their assets and data remain protected. This includes continuously monitoring and evaluating internal processes and systems, conducting thorough assessments, and adhering to stringent security standards and practices. The SC is taking proactive steps to bolster industry resilience by enforcing the Guidelines on Technology Risk Management. This initiative is designed to help organisations stay prepared and resilient against potential disruptions. 💪🔒 🔗 Read the full media release here: https://bit.ly/3SW9yNP

Given the rapidly changing landscape of virtual assets, regulatory compliance is critical to managing risk. In this session, Luno Country Manager Scarlett Chai spoke to the expert panel on various aspects pertaining to virtual assets (VA), including associated risks and assessment methodologies, the role of regulatory compliance in VA risk assessments (VARA), and how organisations can stay current with evolving regulations, among other matters. Abu Lokman Abu Bakar, Head, AML & Non Licensed Entities Supervision, Labuan Financial Services Authority, discussed the key indicators to be integrated into VA Service Providers’ (VASP) Institutional Risk Assessment (IRA), and shared recommendations for VASPs, which include the following best practices: 🔸employing IRA as a crucial component of risk management to identify, assess, and prioritise risks 🔸ensuring that transactions are conducted only with regulated providers 🔸implementing screening processes for wallets/addresses, and 🔸providing regular training and upskilling for risk professionals. According Tuan ACP Foo Wei Min, Assistant Director, Anti-Money Laundering Criminal Investigation Division, Royal Malaysia Police, criminals use VAs in two ways: 🔸as tools to lure victims into investing in Ponzi schemes, and 🔸to launder their criminal proceeds. He highlighted a recent case where an elderly member of the public suffered a staggering loss of over RM10 million after falling victim to a fraudulent cryptocurrency investment scheme: https://lnkd.in/gQXDetmN, and emphasised the need to guard against these scams. Tuan ACP Foo also provided insight into the case statistics on AMLA cryptocurrency investigations from 2020 onwards, and the various analytical tools used to detect risks and monitor ongoing due diligence. He made a salient point on managing VA risks, saying that for LEAs to recover any lost proceeds, time is of the essence, thus expeditious submissions of suspicious transaction reports are key to aiding LEAs in this process. Nurfazrina Daing Abdul Rahman, Deputy General Manager, Securities Commission Malaysia, clarified the objectives of the VARA approach, which were designed to: 🔸enhance the understanding of Malaysia’s virtual asset ML/TF risk exposure 🔸identify key threats and vulnerabilities that may be exploited by criminals using VA and VA service providers (VASP), and 🔸ascertain the adequacy and effectiveness of AML/CFT controls against identified risks to support the development of appropriate strategies. She also highlighted the importance of regulatory compliance in VAs, stating that it is important to engage with the industry, stay updated on trends and developments in the VA space, and consistently monitor regulatory changes. View the IFCTF Masterclass 2024 programme here: https://lnkd.in/dR7ktYWc #IFCTF2024

Curious about Regtech and what it’s about? 🤔 Watch this video and find out why we’re having the SCxSC Pitch & Match - Regtech on 19 August 2024 here at the SC to see how innovative solutions are transforming regulatory practices in the capital market! 📈 🌟 Learn more here: https://www.scxsc.my/ #SCxSC2024

🌱 New Funding Opportunity for Agri-Business Entrepreneurs! 🚀 The SC has launched GROWMatch, a matching initiative for entrepreneurs to showcase their projects and attract funding through alternative financing options like ECF and P2P financing, which has already supported over 18,000 MSMEs raise nearly RM8 billion. The Minister of Digital, YB Tuan Gobind Singh Deo, emphasised the role of alternative financing in boosting economic growth and addressing food security. GROWMatch leverages the strengths of diverse ecosystem partners to provide comprehensive support and resources, such as mentorship for small companies and startups. This initiative also aligns with the SC’s Five-Year Roadmap (2024-2028) for MSMEs and MTCs to bridge financing gaps At the event, the SC also signed a MoU with MDEC, Sidec, UPM, and Impact Circle, combining expertise to develop, incubate, and finance opportunities that support agripreneurs and enhance food security. 🌐 Discover more about GROWMatch and the 20 selected companies here: https://lnkd.in/g9uiPZwV 📰 Read the full media release here: https://bit.ly/4cs1zPE

🚨 Calling all VC/PE Intermediaries! 🚨 The SC is reaching out to the registered VC/PE intermediaries NOT FEATURED in the SC’s Public Register – https://lnkd.in/gSaPaK6. Pursuant to section 76(9) of the Capital Markets and Services Act 2007 (CMSA), these VC/PE intermediaries are required to contact the SC, within 14 days from the date of this announcement, of which failure to do so may adversely impact the registration status and may lead to deregistration. Please take note that the absence of response from the VC/PE intermediaries on information sought by the SC adversely impact the maintenance of an orderly market and the protection of investors and public interest. If your company is listed, contact the SC immediately! 📧 Email: [email protected]   Already listed on the SC’s Public Register? You can update your details via EASy!