Why Touch ‘N Go was fined RM600,000 by Bank Negara MY

Touch ‘N Go Digital (TNG) has been fined by Bank Negara Malaysia for violating the Financial Services Act 2013.

According to a statement by BNM, it said that it imposed the administrative monetary penalty (AMP) on TNG earlier this year on May 18 2023. This was after two people had been sanctioned under the Anti-Monetary Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Order 2014 on separate occasions.

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In these cases, according to BNM, TNGD failed to conduct sanction screenings on the names of its customers. Additionally, it also failed to ascertain and make further enquiries to ensure that its customers matched with the United Nations Security Council resolutions list or the home affairs ministry’s domestic list.

The AMP amount, BNM said, was determined by considering relevant aggravating and mitigating factors, including the assessment of the remedial actions taken to address the non-compliances.

TNGD paid RM600,000 for the AMP imposed by the Bank on 31 May 2023.

Earlier this year in March, TNGD appointed Praba Sangarajoo as its new CEO. Prior to being appointed CEO, Sangarajoo was the deputy CEO of TNGD. He held the responsibility for revenue growth, new businesses, product innovation as well as the management of government and stakeholder relationships.

During his time with the company, Sangarajoo spearheaded the launch of new products and introduced new revenue streams, including radio frequency identification (RFID) for expressway toll payments and fuelling, the enhanced TNGD near field communication (NFC) card for improved customer conveniences, and the acquisition of an unprecedented number of new parking sites in 2022.

Prior to the fine, TNGD held a pretty strong stand in its rankings. In December last year, YouGov released a report in which it stated that TNGD topped its Bank and Payment Brand Rankings of 2022 with a score of 39.9 points. Following closely behind is Maybank at 38.7 points. 

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