Malaysian Association of Money Services Business. Together Building A Progressive, Modern & Strengthened Industry

Transcription

1 Malaysian Association of Money Services Business Together Building A Progressive, Modern & Strengthened Industry Annual Report 2016

2 MALAYSIAN ASSOCIATION OF MONEY SERVICES BUSINESS YEAR in REVIEW This has been an outstanding year for the Association and our members. We broke new ground in terms of developing the human capital in the industry and supporting our members in their efforts to reinvent themselves to remain relevant with sustainable business models. Our Strategic Blueprint and Bank Negara Malaysia s vision for the industry has been the guiding light for us in this transformative phase that we are in. We have rolled out various initiatives under the strategic blueprint and our members have been steadfast in continuing to push boundaries, challenge stereotypes and chart new milestones for the industry. We have made great strides in 2016 and we have set new standards within financial services. We firmly believe that the best is yet to come for the industry. Thank you to everyone for their support of the Association and our members. 1

3 What We Accomplished Together With Our Members Contents What We Accomplished Together With Our Members 3-7 Who We Are 8-9 Our Members 10 Our Members Touchpoints 11 Our Leadership - The Council President s Message 21 Management & Operations Team 22 CEO s Reflections 23 How We Are Organized 24 Organizational Structure 25 How We Create Value Our Vision, Roles & Objectives 28 Our Strategic Blueprint Our Performance For Our Transformation Roadmap 31 Progress Update on Initiatives Under the Strategic Blueprint Greenback 2.0 Project MSB Customer Experience (MCX) Benchmarking and Awards Member Engagement Sessions Annual General Meeting Engagement with Bank Negara Malaysia 55 Adoption of Latest Accounting Standards for MSB Industry Council Meetings 58 Committees & Taskforces 59 Membership 59 MAMSB s Key Focus for Appreciation 61 Key Industry Data & Statistics Calendar of Events Press Releases & Article MAMSB Committee & Taskforce Members MAMSB Membership Directory 96 List of Members (Licensees under the Money Services Business Act 2011) List of Associate Members (Approved Money Services Business Agents Appointed by Principals) List of Principal Companies (Licensees under the Money Services Business Act approved to appoint agents) What We Accomplished Together With Our Members 2 3

4 What We Accomplished Together With Our Members Key Milestones January 2014 Official launching of MAMSB by YBhg. Datuk Muhammad bin Ibrahim, then Deputy Governor of Bank Negara Malaysia (current Governor of Bank Negara Malaysia) May 2014 Co-organized the 1st MSB Regional Conference 2014 held at Sasana Kijang with Bank Negara Malaysia and the World Bank and supported by the International Association of Money Transfer Networks. Over 350 participants from 28 countries attended. January 2015 Launched the MAMSB Strategic Blueprint for Money Services Business Industry charting a five year plan to modernize, strengthen safeguards and enhance professionalism. June st batch of Industry Trainers certified by the Finance Accreditation Agency (FAA) via the Certified Training Professionals programme. 15 certified industry trainers serving the Dec September 2015 Government funding for the development of the National Occupational Skills Standards (NOSS) approved for MSB industry CEOs / Directors / Managers / Compliance Officers / Frontliners August 2013 MAMSB was officially formed and registered with the Registrar of Societies. 12 April 2014 Extraordinary General Meeting held to elect Council Members. 16 September 2014 Code of Conduct for money services business (MSB) industry launched to promote industry self regulation. 8 April 2015 Formed Group of Compliance Officers (GOCO) Committee and Network to support MSB industry Compliance Officers and strengthen compliance standards. 25 April st Annual General Meeting and Annual Dinner held. 8 August 2015 Launched 1st Module of AML/CFT Certification Programme for Compliance Officers. 12 August 2015 MAMSB Education Framework approved by MAMSB's Council to define and review the educational philosophy, policy and standards of the education and training programmes. 25 November 2015 Organized the Money Transfer Asia Pacific Conference at Sasana Kijang, Bank Negara Malaysia with the International Association of Money Transfer Networks supported by Bank Negara Malaysia. Over 400 participants from 30 countries attended. 29 November 2015 Launching of Project Greenback 2.0 in Johor Bahru by Bank Negara Malaysia and The World Bank. MAMSB and the Johor Bahru City Council are key partners for this project. Key Achievements Regional MSB conferences organized. Certified Training Professionals accredited by the Finance Accreditation Agency serving as trainers for the industry. Compliance Officers registered in the Group of Compliance Officers Network. AML/CFT Certification Programme workshops organized for the ndustry in Participants attended the AML/CFT Certification Programme for Compliance Officers trained in Certified Compliance Officers that have passed the AML/CFT Certification Programme Compliance Clinics organized. Greenback 2.0 Remittance Fairs organized. 4 5

5 What We Accomplished Together With Our Members Key Milestones January 2016 Launched 2nd Module of the AML/CFT Certification Programme for Compliance Officers. 3 April 2016 Organized 3rd Greenback 2.0 Remittance Fair in Ladang Ulu Remis, Sime Darby in Johor Bahru supported by Bank Negara Malaysia. Over 1200 migrant workers and 10 Remittance Service Providers participated. 16 April nd Annual General Meeting held to elect 2nd Term Council Members. June 2016 Launched Customer Feedback Channel Notice for industry and streamlined standard notices at MSB outlets. 4 June 2016 Development of the National Occupational Skills Standard for CEOs / Directors / Managers kicked off. 7 June 2016 Organized 4th Greenback 2.0 Remittance Fair in Ladang Basir, Kulim Plantation in Johor Bahru. Over 350 migrant workers participated. 14 June 2016 Launched Human Resource Guide for members. August 2016 Launched 1st MSB Industry Customer Service Benchmarking. 124 members participated. August 2016 Launched Powering You! Talk series as part of knowledge sharing forum for industry. 20 November 2016 Organized 7th Greenback 2.0 Remittance Fair in Senai Industrial Park, Johor Bahru. Over 2000 migrant workers participated. January 2017 The four National Occupational Skills Standards (NOSS) for Compliance Officers / Directors / CEOs / Managers / Frontliners were approved by the Department of Skills Development. The NOSS for Compliance Officers was gazetted by the Ministry of Human Resources in January March 2016 Launched MAMSB Newsletter - MSB Chronicle. 6 March 2016 Organized 1st Greenback 2.0 Remittance Westlite Pasir Gudang - Johor Bahru (JB). Over 350 migrant workers participated. 11 March 2016 Organized 2nd Greenback 2.0 Remittance TH Plantation - JB. Over 150 migrant workers participated. 19 & 20 March 2016 Launched soft skills training for MSB, Corporate Etiquette Programme. 10 May 2016 Launched 3rd Module of the AML/CFT Certification Programme for Compliance Officers. 17 May 2016 Development of the National Occupational Skills Standard for Frontliners kicked off. 24 May 2016 Participated in the Multi-Lateral brainstorming session organized by The World Bank for Project Greenback 2.0 in Lombok, Indonesia. Five party brainstorming and coordination meeting held between The World Bank - Bank Indonesia - Bank Negara Malaysia - MAMSB - APPUI (Remittance Association of Indonesia). 22 July 2016 MAMSB approved as Certified Training Provider by the Finance Accreditation Agency (FAA). 30 July 2016 Organized 5th Greenback 2.0 Remittance Fair in Westlite Dormitories, JB Tech Park in Johor Bahru. Over 300 migrant workers participated. 4 September 2016 Organized 6th Greenback 2.0 Remittance Fair in Westlite Dormitories, Senai, Johor Bahru. Over 1000 migrant workers participated. 27 September 2016 Development of the National Occupational Skills Standard for Compliance Officers kicked off. 27 September 2016 Launched collaboration with Malaysian Directors Academy (MINDA) for programmes for MSB CEOs & Directors. 29 September 2016 Launched 4th and final Module of the AML/CFT Certification Programme for Compliance Officers. 5 December 2016 Participated in the Mini Forum panel discussion organized by Bank Negara Malaysia and The World Bank to mark the 1st Anniversary of the Greenback 2.0 Project. 5 December 2016 MAMSB received recognition as Platinum Partner for supporting Greenback 2.0 initiatives during the 1st Anniversary of the Greenback 2.0 Project Appreciation Dinner organized by Bank Negara Malaysia and The World Bank. Key Achievements Migrant workers attended Greenback 2.0 Remittance Fair organized in National Occupational Skills Standards (NOSS) for Compliance Officers, Directors / CEOs / Managers and Frontliners approved by the Department of Skills Development. Projects under the MAMSB Strategic Blueprint completed in Companies participated in the 1st MSB Customer Experience Benchmarking. Powering You! Compliance & Leaders Talk Series organized to promote the advancement of the industry via knowledge sharing Leaders Knowledge Sharing sessions / programmes organized in collaboration with the Malaysian Directors Academy (MINDA) Initiatives under the MAMSB Education Framework rolled out. Member Engagement sessions held in

6 Who We Are Who We Are Page Our Members 10 Our Members Touchpoints 11 Our Leadership - The Council President s Message 21 Management & Operations Team 22 CEO s Reflections

7 Who We Are Our Members Our Members Customer Touchpoints Members By Class: Class A (Remittance & Money Changing) Number of Members Perlis 3 11 MAMSB Membership by State Kedah Sabah 8Central - 6 Penang 3 South - 1 East Malaysia Perak Kelantan Terengganu 15 Sarawak East Malaysia Number of Members: 354 (Licensees under the Money Services Business Act 2011) Number of Associate Class B (Remittance) Number of Members 21 Central - 19 South West Malaysia 60 Selangor Kuala Lumpur 3 6 Negeri Sembilan Melaka Pahang Johor 6 56 Total Members = 348 Class No. A (Remittance & Money Changing) 8 B (Remittance) 21 C (Money Changing) 319 D (Wholesale Currency) 6 Members: 129 Who Are Our Members Remittance Service Providers Money Changing Companies Currency Wholesalers (Approved money services business agents to principal licensees under the Money Services Business Act 2011) Number of Principal Licensees: 13 (Licensees under the Money Services Business Act 2011 approved to appoint agents) Number of MSB Industry Employees: Over 5,500 (over 37,000 if includes Development Financial Institutions & Pos Malaysia Berhad) Class C (Money Changing) Number of Members 319 Central South - 59 North - 63 East Coast - 3 East Malaysia - 36 Class D (Wholesale Currency) Number of Members 6Central Penang Perlis 78 Kedah West Malaysia 5 Perak 292 Selangor Kuala Lumpur Putrajaya Kelantan MAMSB Members' Touchpoints by State Negeri Sembilan Melaka Pahang 7 Terengganu Johor Sarawak Sabah 97 East Malaysia Total touchpoints = 1411* *Note: MSB Companies = 1411 MSB Companies + DFIs + Pos Malaysia = 2870 Note: Central Region includes Kuala Lumpur, Selangor, Negeri Sembilan & Pahang Northern Region includes Kedah, Perlis, Pulau Pinang & Perak East Coast Region includes Kelantan & Terengganu Southern Region includes Melaka & Johor East Malaysia Region includes Sabah, Labuan & Sarawak Note: DFI = Development Financial Institution (Bank Kerjasama Rakyat Malaysia Berhad, Bank Pertanian Malaysia Berhad (AGROBANK) and Bank Simpanan Nasional) 10 11

8 Who We Are Our Leadership - The Council Main Office Bearers Jajakhan Bin Kader Gani Vice President Chief Executive Officer Vital Rate Sdn Bhd As salam mua laikum wbt and Salam Sejahtera to all fellow respected MAMSB Office Bearers. Akbar Batcha Bin Mohamed Shamsuddin Secretary Jajakhan Bin Kader Gani Vice President Ramasamy K Veeran President Mohamed Burhan Bin Mohd Alahudin Treasurer Please allow me to express my gratitude and my heartfelt appreciation to all of you The Honourable people of MAMSB for the trust and support during my position as Council member and later Vice President of the Association. There are no words to describe how much I appreciate the confidence entrusted to me. I wish to take this opportunity to thank all of the Class C members from various ranks and regions in helping to shape a modernized industry. I have always enjoyed the path that God has guided me to be part of a big group of professionals in the MAMSB industry to achieve sustainability status as a market player. The industry landscape is rapidly changing and it is up to us to embrace the tsunami of change by equipping oneself to remain competitive and relevant as an industry player. My sincere and honest wish for everyone to be successful and may we meet again in a different forum of the MAMSB industry. Thank you everyone! Was salam and warm regards. Akbar Batcha Bin Mohamed Shamsuddin Secretary Managing Director Akbar Money Changer Sdn Bhd Year 2016 has seen a lot of challenges and with the resilience of Members in the MSB Industry, Members were able to overcome them swiftly. The challenges were the Brexit Issue and the demonetization of the Indian Rupees both the Rs and Rs. 500 notes. This was a major test for Members as this was something new and Members had to face the Public to address the issues. With the professionalism, patience, experience and unity amongst Members, somewhat those issues were overcome and the Public accepted the explanations. Coincidentally these issues have gotten the Association and its Members wide recognition amongst the Media and Public. At the Association, it was a busy year with activities and many milestones achieved. The continuous rollout of the AML/CFT Certification Programme Modules 1-4 workshops for Compliance Officers greatly benefited the Members, lifting the standards to a higher level. The MSB Industry was also recognized by the Human Resources Ministry whereby the National Occupational Skills Standards for Frontline Staff, Compliance Officers, Chief Executive Officers and Directors were approved. The Association had also embarked on the MSB Customer Experience Survey (MCX) and had appointed Frost & Sullivan to carry out the survey. This is to gauge the service levels provided by Members to the consumers and the industry can be proud that our Association is a global pioneer in benchmarking and recognizing its Members based on Customer Satisfaction. The Association has also been recognised by the World Bank for its efforts in successfully supporting the Greenback 2.0 Project and organizing various activities in Malaysia and invited the Association to participate in the Lombok Greenback 2.0 Project launch in Indonesia. Year 2017 shall be an even more challenging year and as the Members are accustomed to such challenges, the MSB Industry shall be able to weather and sail through as we are all united. I would like to this opportunity to thank all the Council Members for their relentless contributions in terms of time, effort and dedication in helping to transform the MSB Industry into a Progressive, Modern & Strengthened Industry. The Council is committed to driving the industry forward towards achieving its vision of building a modern and professional Money Services Business industry. The Council that is elected by members sets the strategic direction for the Association and oversees its implementation and overall operations of the Association. The Council deliberates on issues as well as regulatory and supervisory matters concerning the industry

9 Who We Are Mohamed Burhan Bin Mohd Alahudin Treasurer Class Council Members Chief Executive Officer Dimensi Permata Sdn Bhd Another year has passed! It had been a very exciting and productive year for the MSB industry. MAMSB had engaged very actively in the industry by organizing various activities as well as participating and supporting those organized by BNM. This reflects the positive and cordial relationship between MAMSB our regulator. Espen Kristensen Class A (Remittance & Money Changing) Number of members - 8 Lee Eng Sia Class B (Remittance) Number of members - 21 Mohd Sani Bin Mohamed Ismail Class C (Money Changing) Number of members Jam Imtiaz Rasool Class D (Wholesale Currency) Number of members - 6 Last year was very challenging due to the very rare phenomenon of the financial market where we saw Brexit and the demonetizations of certain currencies and the effect it had to the industry and the consumer. MAMSB played the role of a communication center with regards to these issues. The money changers played their part in communicating with the consumers in every part of the country. Through these efforts we managed to allay the consumers fears and managed the situation very well. The perception and confidence of consumers toward our members is high. On capacity and knowledge building for money changers, we met up regularly to discuss issues and this strategy brought a lot of benefit for our members in terms of addressing compliance issues and getting members connected. The regional representative and the council members played their part and carried out their responsibility well. This will be an ongoing effort to further strengthen the well-being and the safety of the industry. As for the industry, it is expected to further consolidate, either via merger or acquisition. This is normal to any industry and should be seen positively by our members. This will transform the family owned and managed MSB businesses to become a very professionally structured business. Muhammed Yasin Bin Shah Mohd Assistant Secretary (Appointed by the Council) Chief Executive Officer Shahbina Money Changers Sdn Bhd Greetings Members! Its been a crazy year! Some may even call it historic, with Brexit, demonetization of Indian rupees and of course the US elections. These events affected our industry and we saw a drop in business, however things are starting to look better now, and moving forward we expect to see improvement. I m very proud to say that our industry has improved in terms of AML/CFT based on the feedback from our regulator. Good job everyone and keep at it! Now let s all move forward into the future together and dive into this new trend called Fintech or Regtech while its still a fresh thing in the market. As the youngest member appointed by the council, I am so lucky and blessed to have been given the opportunity to serve my industry and peers. It has opened up my mind in so many ways that the road to the future is so much clearer now with the new technologies and ideas and how it all aligns with the expectations of the country, regulator and members alike. Seriously, thank you everyone! The Class Council Members role is to represent the interest of members of the respective classes in the Council. The Class Council members also discuss, review and formulate appropriate measures and proposals to ensure specific issues relating to the respective classes are addressed

10 Who We Are Espen Kristensen Chief Executive Officer IME (M) Sdn Bhd 2016 was a challenging year for the MSB industry with unexpected events such as the denomination issue in India, Brexit in UK and the outcome of the US presidential election. At home we have seen a weakening Ringgit which had affected the confidence of remittance customers. This unfortunately is an environment that gives room for informal players to thrive. In this regard, MAMSB is actively working with BNM to address the issue together with other stakeholders. Going into the New Year we can be sure that unexpected events will continue in 2017 as well. We can be certain that new technology and innovation will gradually be introduced into the market. This is a development that we all should embrace as the pressure on pricing will continue. It will be even more important to be efficient moving forward as cost will continue to increase. Fair competition is healthy as it will boost innovation, ultimately lead to stronger players and offer consumers choice. It is very important to continue improving the public perception of MSB. Together the MSB industry has developed an effective, safe, reliable and efficient payment systems. We are doing an important job to facilitate financial inclusion in Malaysia and on the pay-out side. We should be proud of what we are doing and need to convey this message to the public. Finally I would like to emphasize that the Malaysian economy still has positive growth despite a slower growth rate. I would therefore like to take this opportunity to wish all members success in 2017 in growing their businesses. Mohd Sani Bin Mohamed Ismail Chief Executive Officer Munawarah Exchange Sdn Bhd Year 2016 was an eventful one. I am honored and humbled to be elected as the Class C (Money Changing) Council Member for in MAMSB. Following strong legacy of previous leaders, 2016 has been a marvelous year with various activities organized whereby Class C members knowledge increased through various training and development programmes. We conclude the year 2016 by weathering Brexit and Indian Rupees Demonetization. Financially, in year 2016, our money changing industry has grown in term of volume to greater heights. All of these movements in the market and industry has helped to make us fit to lead our business and strengthen us to set our sights on the future. I am expecting this coming 2017 to be a better platform for Class C members to embrace digital payment methods and fintech solutions in their business as add on services. I would like to take this opportunity to wish all the Class C members a fulfilling and prosperous 2017, a year of action to realize our dreams, and results that encourage us to aim even higher! Jam Imtiaz Rasool Chief Executive Officer UAE Exchange Malaysia Sdn Bhd Lee Eng Sia Chief Executive Officer Mobile Money International Sdn Bhd Year 2016 has been challenging for remittance players. The world is becoming more unsafe thus the requirement for more stringent compliance over cross border remittances. Over the year we saw more agents being recruited by remittance service providers. We also see remittance through informal channels becoming more rampant. These have driven margins and fees down to a certain extent. Having said that, I acknowledge that BNM and MAMSB have contributed enormously in increasing the standard of the MSB industry in terms of service delivery, consumer awareness and education as well as members knowledge on compliance. Moving forward, I hope we are able to have more engagement sessions with BNM on how to curb informal players and review of customer due diligence process for small amount remittances. Members should also embrace IT to improve their processes and services. We have done great things in 2016, including in the area of competition, fees and to bring synergy in the wholesale industry. We have created awareness among the industry about illegal channels. We have also worked to address issues arising from BREXIT and demonetization of the INR in a professional manner with minimal impact on the players. We have also embarked on an industry wide customer service benchmarking. Last but not least the best achievement I shall highlight is the Group of Compliance Officers AML/CFT Certification programme with the four modules to educate the team members about AML requirement. We are also embarking on several initiatives in 2017 particularly the joint campaign against illegal Bkash service provides. Keeping the digital age in mind, the Association is working to develop a mobile application with useful functions for relevant stakeholders. Fintech and the Integrated Statistical System (ISS) is in the pipeline. I believe all these initiatives shall lead us to hit extra miles in bringing professionalism and modernizing the industry that indeed helps all the beneficiaries in the Industry. I would like to thank all the members of the Association for their full hearted support and coordination. I wish all the very best and a great success to MAMSB in the years to come

11 Who We Are Regional Council Members Jahbar Sadheek Bin Syed Mohamed Chief Executive Officer Glojuara (M) Sdn Bhd Mohamed Sherafath Ali Bin Abdul Rahman Northern Region Number of members - 63 Harif Fadilah Bin Hashim East Coast Region Number of members - 3 Jahbar Sadheek Bin Syed Mohamed Central Region Number of members Lim Kuan Yew Southern Region Number of members - 62 Lim Ching Seng East Malaysia Region Number of members - 37 ASSALAMUALAIKUM DAN SALAM SEJAHTERA. First of all, I would to thank to all the members who have elected me to be the representative and regional councilor for the central region. The Central region has the biggest number of members and comprise of all the classes of MSB, namely A, B, C and D. The central regional committee members has organized two meetings in The meetings were attended by a number of members. The main issue discussed was competition. Expenses especially overhead cost is rising but profits are under pressure. It is my personal wish that all of us can be united to ensure healthy competition prevails so that all MSB s can remain in the business for years to come. Fintech, for example has emerged and it can be disruptive to our kind of business, if we are not united. Let us all be united and embrace fintech, where we can be relevant and remain competitive in the industry. As the saying goes BERSATU KITA TEGUH, BERCERAI KITA ROBOH. The association has been engaging the regulators and working hard to ensure the business sustainability. It has now been acknowledged that industry has undergone great transformation under the guidance of BNM and leadership of Mr. Ramasamy as President of MAMSB. Unity is the essence of survival MAMSB Boleh. Thank you Mohamed Sherafath Ali Bin Abdul Rahman Chief Executive Officer Sharafath Ali Sdn Bhd The overall achievements of MSB players in the Northern Region, especially the Class C, has improved tremendously in the year MAMSB has played an important role by providing educational training to members especially on the AML/CFT Compliance Modules (1 to 4) through GOCO. Most of the companies has sent two or more members for the training. At least three sessions of each modules (2,3 & 4) has been conducted in the Northern Region from April to December 2016 to accommodate the requirements of the members. This continuous training has resulted in improvement in terms of compliance level among the members. These improvements were acknowledged by our regulator during their engagement session with the Northern Region members. Year 2016 also has seen certain mergers and acquisitions taking place among the members in the Northern Region. Awareness among the members has increased on the aspect of capacity building and also growing their business together. More mergers are expected in the year With the inclusion of FinTech Solutions and innovations that will take place in the coming years, members have to brace to face the more challenging times ahead. In difficult times, we are not supposed to quit believing, we are not supposed to stop growing. We should never give up and be confident in what we do. There may be tough times, but the difficulties which we face will make us more determined to achieve our objectives and to win against all the odds. The Regional Council Members role is to represent the interest of members of the respective regions in the Council. The Regional Council members also discuss, review and formulate appropriate measures and plans to address specific issues and unique needs relating to the respective regions. Note: Central Region includes Kuala Lumpur, Selangor, Negeri Sembilan & Pahang Northern Region includes Kedah, Perlis, Pulau Pinang & Perak East Coast Region includes Kelantan & Terengganu Southern Region includes Melaka & Johor East Malaysia Region includes Sabah, Labuan & Sarawak 18 19

12 Who We Are Lim Kuan Yew Chief Executive Officer SMJ Teratai Sdn Bhd 2016 has been a year filled with opportunities and challenges for our members as we continue the transformation of our industry. I wish to extend my heartfelt gratitude to the regulator and the members for their support of the Association s activities and programs throughout last year. I would also like to record my appreciation to our Association s secretariat which, despite being shorthanded, had successfully raised the profile of our industry by among others providing compliance training, promoting best standards and quality of service, industry wide sharing of information and consumer education and awareness. Within a short span of its formation, our Association has become the role model for many foreign MSB associations. Going forward, 2017 holds distinctive challenges for our members in terms of the global economy, increased competition, demonetization and so forth. There is no one-size-fits-all solution to many of the challenges that we face as each member has its own unique business set-up and practices. In that regard, our Association is continuing its efforts to bring quality and relevant courses to the members to equip us with the knowledge and skill to help us overcome the hurdles and strengthen our businesses. As a regional council member, I hope that besides the GOCO compliance training, we hope to bring more educational programs to locations outside the Klang Valley so that the benefit may be extended to the members regionally. Harif Fadilah Bin Hashim Managing Director HAK Ventures Sdn Bhd In a very productive economy like Malaysia, it is inevitable that we count profoundly on international trade hence more jobs have to be created in order to provide goods and services to the high influx of investors and tourists. It is vital for us to identify a company s internal and external atmosphere if we want to succeed in crafting an approach that fits wonderfully with the company s situation. As money changers are unable to control the macroeconomic forces, it is more important to identify the competitive forces so we can focus on the critical strengths and weakness of the firm, shift the positioning of the firm in the industry if needed and identify areas where strategic changes can harvest the greatest payoff yet, emphasize on entrenching on the opportunities and nullifying the threats. As technology advances, consumers and money changers may move into online transactions so as to save costs for both parties. However, this may have its own unique challenges especially in terms of mitigating money laundering risks. To keep abreast of latest development, Money changers need an updated trading platform as we need to be constantly updated by the minute-by-minute developments in the currency market. Lim Ching Seng Managing Director EZ Money Express Sdn Bhd 2016 has come and go and we are smack in the end of Q Time really flies and if we don t take the opportunity we will miss the moment. In the year 2016, we saw the MSB landscape changing everywhere. We see companies changing hands, M&A and we even saw companies offering services for free. Welcome to the fintech world of negative gross revenue a new form of company valuation based entirely on volume and hype! Is this the new beginning? Well to be fair - nobody knows but it does seems to be the trend and we ought to take note of it so that we may better face the challenges or even embrace the changes in Good luck and all the best! President s Message Ramasamy K Veeran President Managing Director Merchantrade Asia Sdn Bhd The Malaysian Association of Money Services Business (MAMSB) celebrates its third anniversary this year. It gives me great pride to represent the Council of MAMSB to pen this message to commend the concerted efforts of our members and associates as well as the MAMSB Secretariat for the many notable achievements since its official launch in January Bank Negara Malaysia (the Bank) had set the stage for revolutionary reforms for the money services business (MSB) industry in Malaysia through the enactment of the Money Services Business Act 2011 as well as the enhanced regulatory and supervisory frameworks. MAMSB plays a very important role to compliment the Bank s efforts in capacity building and enhance the professionalism of MSB operators. MAMSB has developed the MSB Strategic Blueprint to focus on strategic outcomes that will contribute positively to achieving MAMSB s vision which is to be a respectable organisation and the driving force to modernise and enhance the professionalism of the money services business industry in Malaysia. It is now timely for MAMSB to conduct a mid-term review on its achievements envisaged in the MSB Strategic Blueprint. MAMSB can take pride to be the first, perhaps the only MSB association in the region, to have set up the MSB Group of Compliance Officers (GOCO) to elevate the competence and effectiveness of compliance officers. The GOCO Committee worked tirelessly to develop the AML/CFT Certification Programme with the guidance and support of the Bank and this certification is now a mandatory training requirement on Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) compliance for all MSB compliance officers. ThIs certification programme that is delivered in a modular basis is in the process of obtaining programme accreditation from the Finance Accreditation Agency and sets the stage as a MSB industry standard. MAMSB also is working with the Department of Skills Development (Jabatan Pembangunan Kemahiran or JPK) and the Bank to develop the National Occupational Skills Standard (NOSS) for the MSB industry. To-date, NOSS for compliance officers has been approved and gazetted by JPK under the Ministry of Human Resources. The NOSS for Frontliners and CEOS, Directors and Managers have also been approved. This NOSS will be the foundation for crafting the onboarding programmes that new entrants into the industry will undergo. MAMSB has also obtained approval from JPK as the lead authority for all matters relating to the MSB NOSS to be referred to the Association. This will provide MAMSB better control over the NOSS and any training programmes based on any approved NOSS for the industry. MAMSB, apart from running its own programmes on consumer education, also supported the Greenback 2.0 initiatives undertaken by the Bank jointly with the World Bank by organizing a number of roadshows and remittance fairs. A number of our members which are remittance services providers have participated actively in the outreach activities aim to increase remittance efficiency among migrant workers as well as small and medium enterprises (SMEs). Indeed, MAMSB has made significant progress in building and enhancing the capacity and professionalism of members and associates through the concerted efforts of the Secretariat, Regional Council Members, Member Class Council Members and various Committees, including the Education Committee, Code of Conduct Committee and line of business Committees. Undoubtedly, no efforts of MAMSB would be fruitful without positive actions of members and associates in wanting to bring about progressive enhancements for the industry. The country has received positive feedback on the MSB industry in area of AML/ CFT compliance based on the Mutual Evaluation Exercise by the Asia/Pacific Group on Money Laundering in Through the support of our remittance service providers the average remittance cost has also reduced from 3.15% in 2012 to 2.85% in 2016, well below the World Bank target of 5%. These achievements are big steps forward for the industry. Moving forward, MAMSB will continue to work closely with the Bank to improve further the efficiency of MSB in areas relating to enhancing take-up of formal remittances, encouraging digitalisation of MSB and facilitating efficient management of currency exposures. I am confident that through collaborative efforts of all Council Members, Committees and members as well as support and guidance from the Bank, the MSB industry in Malaysia will achieve greater heights. Let me once again congratulate each one of our members and associates for your great effort to bring about positive changes to our MSB industry! Thank you very much to the Bank for the guidance and support. MAMSB By Members for Members! 20 21

13 Who We Are The Management & Operations Team The Year That Was - CEO s Reflection Shalini Pavithran Chief Executive Officer If 2015 was a whirlwind year, 2016 was nothing short of a thrilling ride with many defining moments. As we take stock of the year that was, we must acknowledge and recognize how far we have come as an industry in this journey to re-define and transform ourselves. This 2016 report offers you a glimpse of all that we have accomplished together which would not have been possible without our members and the Council that have been our pillar of strength. We would like to record our highest appreciation to Bank Negara Malaysia for the guidance, support and assistance rendered and most importantly for continually urging us to challenge our boundaries and raise our game has been a challenging year with many unforeseen external events that had a significant impact on the industry. However, despite that as an industry, we have been able to rise, albeit slightly bruised but still determined to conquer the situation and forge ahead. We have been and will continue to be resolute that no matter what the circumstances are, we must not lose sight of our priorities: to continue to modernize, raise the professional standards, build a customer centric, strong and sustainable industry that is able to weather the headwinds. This past year has had a significant impact on all of us which makes members continued support and their dedication to the Association s cause and initiatives during these challenging times all the more commendable. We have also been very fortunate to collaborate with various organizations that have contributed to the growth and development of the industry and the Association such as the Finance Accreditation Agency, the Department of Skills Development under the Ministry of Human Resource, The World Bank and the Malaysian Directors Academy. Since coming on board almost a year and half ago, I have been amazed with the resilience and determination of our members to embrace change, rise to the challenge and move forward. My team and I look forward to supporting and working with members and the Council to venture on to the next phase of our journey ahead. The Secretariat manages the overall operations and administration of the Association and implements various initiatives in line with the strategic direction set by the Council in order to achieve the vision and objectives of the Association. The year ahead will bring its own challenges however by honing our skills, enhancing our capabilities, continually innovating and adapting to the changes taking place around us, working together and staying focused on our priorities, we can sustain our efforts and momentum to realize our vision for the industry. Thank you all for your support and wishing everyone continued success ahead

14 How We Are Organized Organizational Structure MAMSB Organization Chart Council Finance Committee Secretariat Chef Executive Officer Membership Committee Code of Conduct Committee Disciplinary Unit of Code of Conduct Committee Education Committee Legal Committee Committee on Wholesale Currency Business Committee on Remittance Business Committee of Money Changing Business Northern Region Working Group Nomination Evaluation Committee Nomination Committee Group of Compliance Officers Committee Information Technology Committee Central Region Working Group Southern Region Working Group East Malaysia Region Working Group How We Are Organized 24 25

15 How We Create Value How We Create Value Page Our Vision, Roles & Objectives 28 Our Strategic Blueprint

16 How We Create Value Our Vision, Roles & Objectives Our Strategic Blueprint The Association's vision, the role we play and our objectives are aligned towards elevating the money services business (MSB) industry in Malaysia. The MAMSB Strategic Blueprint (SBP) To Transform MSB Industry Into A Progressive, Modern & Strengthened Industry Vision SBP Strategic Outcomes SBP Objectives MAMSB Vision To be a respectable organization and driving force to modernize and enhance the professionalism of the money services business industry in Malaysia Enhanced professionalism & compliance culture Roles & Objectives Competitive & dynamic MSB industry Modern and professional MSB Industry Promote modernisation and professionalism of members Facilitate education, training and sharing of knowledge amongst members Common platform to foster greater understanding and address issues Collaborate and cooperate with similar organisations or other relevant agencies Increased usage of formal MSB channels Improved reputation & public confidence Strengthened safeguards to preserve integrity of industry Alignment with national agenda to promote modernisation and professionalism of MSB industry Represent interest of members through constructive engagements with Bank Negara Malaysia Established code of conduct and formulate rules to promote self-regulation Promote consumer awareness and knowledge of authorised money services business Availability of competent, capable & adequate talent pool Efficient & sustainable MAMSB Enhanced protection for consumers 28 29

17 Our Performance For 2016 Our Performance For 2016 Our Transformation Roadmap 2016 was an important year for the Association with second term Council Members assuming the mantle to continue to look ahead to modernize and transform the industry and the Association to weather the headwinds from a volatile, uncertain, complex and somewhat ambiguous times that we are facing now. The Association has been progressing well in its path as it moves to the second phase of its journey to form strategic alliances, improve the public perception of the industry to build trust and innovate. In this journey, the Association s members have shown tremendous resilience and willingness to raise the bar for themselves. The industry players drive to forge ahead, transform themselves and to embrace change has contributed to the Malaysian money services business (MSB) industry being touted as the benchmark in the region for the MSB industry in terms of the progress made thus far to evolve. Our Roadmap To Transform the MSB Industry Achievements We Are Here Phase 3 Page Our Transformation Roadmap 31 Progress Update on Initiatives Under the Strategic Blueprint Greenback 2.0 Project MSB Customer Experience (MCX) Benchmarking and Awards Member Engagement Sessions Annual General Meeting Engagement with Bank Negara Malaysia 55 Adoption of Latest Accounting Standards for MSB Industry Council Meetings 58 Committees & Taskforces 59 Membership 59 MAMSB s Key Focus for Appreciation 61 Phase 1 Building Capacity (Inward Looking) Improved compliance culture Sharing best practices Product / Services innovation Enhance consumer awareness Continuous education programme Enabling factors in place Phase 2 Strategic Cooperation & Innovation (Outward Looking) Accreditation of training programme & human capital Building strategic relationships Improved reputation and public confidence Customer centric service Repositioning for Excellence (Forward Looking) Establish own MSB training institute Regional Centre of Excellence for MSBs Internationally recognized name in MSB industry Time 30 31

18 Our Performance For 2016 MAMSB Strategic Blueprint Progress Update On Strategic Blueprint (SBP) Initiatives Our efforts to transform and modernize the MSB industry is guided by the MAMSB Strategic Blueprint For Money Services Business Industry (SBP). The SBP was crafted to enable the Association to focus on strategic outcomes that will contribute positively towards achieving its vision and playing its role to accomplish the objectives of its existence. This year, the Association pushed on to ensure initiatives under the SBP were implemented as envisioned. The Strategic Blueprint As A Guide To Modernize And Raise The Professional Standards Of The Industry SBP Strategic Outcomes SBP Objectives MAMSB Vision Completed: 22 (33%) In Progress: 18 (27%) On-going: 20 (30%) Not Started: 7 (10%) Modern and professional MSB Industry Availability of competent, capable & adequate talent pool Efficient & sustainable MAMSB Improved reputation & public confidence Enhanced professionalism & compliance culture Competitive & dynamic MSB industry Increased usage of formal MSB channels Strengthened safeguards to preserve integrity of industry Enhanced protection for consumers Alignment with national agenda to promote modernisation and professionalism of MSB industry Total Initiatives Under SBP: 67 The high level progress updates of the strategic initiatives are shown below. Project / Action Plan Enhanced Professionalism And Compliance Culture Progress Update Completed development and rollout of the Anti-Money Laundering & Counter Financing of Terrorism Certification Programme (Modules 1 to 4). Streamlined Standard Notices, Feedback Channel Notice and Membership Sticker for display at all members outlets. 14 industry trainers that are certified training professionals accredited by the Finance Accreditation Agency are available to serve the industry. Launched the Money Services Business Customer Service Benchmarking to assess the customer service levels of the industry via face to face customer interviews. The Secretariat with the guidance of the Council and the support of the members have been instrumental in the significant progress made on this front by ensuring all projects and action plans under the SBP were implemented accordingly. Proactive communication plan introduced to better handle public and media. National Occupational Skills Standard (NOSS) for MSB Compliance Officers approved and gazzetted by the Ministry of Human Resources. Kick started information sharing for the benefit of the industry. Resource Centre for the benefit of members set up via MAMSB s website

19 Our Performance For 2016 Project / Action Plan Competitive And Dynamic MSB Industry Progress Update Human Resource Guide and Guide on Employers Legal Obligations available for members benefit. Group of Compliance Officers (GOCO) helpdesk has gone live to assist compliance officers for them to raise queries and issues that will be handled by the GOCO Committee Members. Collaborating with technology providers to assist MSB companies to be competitive and relevant. Working with Banks on introducing alternative payment options at MSB outlets. Engaging technology providers on regulatory technology solutions for members to reduce cost of compliance and enhance efficiency and effectiveness. Engaging with service providers to introduce industry wide screening solution. The key projects and initiatives under the Strategic Blueprint that were implemented in 2016 are as follows: (i) Group Of Compliance Officers (GOCO) The GOCO Committee has been continuing their exemplary work to strengthen the industry and enhance the competency of Compliance Officers in member companies. The existing GOCO Committee comprises of the dynamic individuals listed below who each bring their unique strengths, skills, experience and perspective to make GOCO a highly impactful committee. GOCO Committee Members No. Name. Company Class Region / State Increase Usage Of Formal MSB Channels Improve Reputation And Public Confidence Supported over 30 Project Greenback 2.0 activities since the launch of the project in November Organized seven (7) Greenback 2.0 Remittance Fairs with the support of our Remittance Service Providers. Promoted MAMSB s logo at members outlets to identify authorised MSB players that are licensed by Bank Negara Malaysia. Kick started media campaign to improve public perception and awareness. Engagement began with key stakeholders in our fight to eradicate illegal operators e.g. Royal Malaysian Customs, various Local Councils and High Commissions. Consumer awareness programmes through distribution of pamphlets, briefings and roadshows on-going. Kicked off industry wide Money Services Business Customer Service Benchmarking exercise to hear from the public on MSB service levels and to recognize excellence in service quality. Proactive communication strategy to promote confidence in MSB industry and MAMSB. Launched Feedback Channel Notice and streamlined notices displayed at members outlets. Continued engagement with local associations in financial services industry as well as regional and international associations for mutual sharing of best practices. Launched the Powering You! Talk series to promote advancement of industry, knowledge sharing, networking and exchanging of views and ideas Mr. Alan Lu Chen Ho Ms. Jane Ng Yen Peng Mr. Muhamad Esamuddin Bin Mohd Saiful Mr. Balachandar Sathyanarayanan Mr. Mohd Azizul B Abdul Rahmanl Alfa Millions Sdn Bhd Sumber Jalur Sdn Bhd Alaf Jutawan Sdn Bhd Travelex Malaysia Sdn Bhd Mobile Money International Sdn Bhd Class C (Money Changing) Class C (Money Changing) Class C (Money Changing) Class D (Wholesale Currency & Money Changing) Class B (Remittance) East Malaysia / Sarawak Central / Kuala Lumpur Central / Kuala Lumpur Central / Kuala Lumpur Central/ Selangor Availability Of Competent, Capable And Adequate Talent Pool Developed and rolled out Anti-Money Laundering & Counter Financing of Terrorism Certification Programme for all MSB Compliance Officers to enhance the competency and skill set of compliance officers in the industry. Kick started work to develop Individual Accreditation programme of Compliance Officers which is expected to be rolled out by mid National Occupational Skill Standards (NOSS) for MSB Compliance Officers approved and gazzetted by the Ministry of Human Resource. National Occupational Skill Standard for MSB Management, Directors and Frontliners approved by the Department of Skills Development. Registration of industry experts under the Ministry of Human Resource Directory of Industry Experts is underway to recognise expertise within our industry. All industry line trainers are certified by the Finance Accreditation Agency. Launched five Powering You! Compliance & Leaders Talk Series to promote advancement of industry, knowledge sharing, networking and exchanging of views and ideas. Collaborated with Malaysian Directors Academy (MINDA) on 4 Leaders Knowledge Sharing sessions

20 Our Performance For 2016 The Association also worked with the Finance Accreditation Agency, an independent quality assurance and accreditation body supported by Bank Negara Malaysia and the Securities Commission Malaysia, to have a skilled line up of industry trainers as well as accredited programmes to serve the needs of the industry. The following 16 trainers that have undergone the Certified Training Professionals (CTP) programme conducted by the Finance Accreditation Agency have been instrumental in the rollout of the Anti-Money Laundering & Counter Financing of Terrorism Certification Programme. We currently have 15 certified trainers serving the industry. The Association would like to express its deep appreciation to the GOCO Committee and the industry trainers who have shown the highest level of commitment to train and impart their knowledge which has contributed to the higher skill and knowledge level of Compliance Officers in this industry. The Association would also like to thank the employers of these trainers for fully supporting them in their role as an industry trainer and allowing them to serve the industry. The Association would like to commend the following member companies that have sponsored their staff for the Certified Training Professionals Programme to accredit industry trainers: No. Certified Industry Trainers Region / State No. Member Companies 1 Mr Alan Lu Chen Ho - Alfa Millions Sdn Bhd East Malaysia / Sarawak 1 Merchantrade Asia Sdn Bhd 2 Ms. Lim Poh Hong - E-Globex Sdn Bhd (resigned w.e.f. October 2016) Central / Kuala Lumpur 2 E-Globex Sdn Bhd 3 Dr Abdul Rahman Mokhtar - Merchantrade Asia Sdn Bhd Central / Selangor 3 Alfa Millions Sdn Bhd 4 Mr Muhamad Esamuddin Mohd Saiful - Alaf Jutawan Sdn Bhd Central / Kuala Lumpur 4 SMJ Teratai Sdn Bhd 5 Mr Mohamad Azizul Abdul Rahman - Mobile Money International Sdn Bhd Central / Selangor 5 Vital Rate Sdn Bhd 6 Ms Jane Ng Yen Peng - Sumber Jalur Sdn Bhd Central / Kuala Lumpur 6 Life Time Link Sdn Bhd 7 Mr Balachandar Sathyanarayanan - Travelex Malaysia Sdn Bhd Central / Kuala Lumpur 7 Mobile Money International Sdn Bhd 8 Ms. Noorzliana Ahmad - Merchantrade Asia Sdn Bhd Central / Selangor 8 Sumber Jalur Sdn Bhd 9 Mr Kesavan Sathasivam - Valyou Sdn Bhd Central / Kuala Lumpur 9 Travelex Malaysia Sdn Bhd 10 Ms Nik Nuun Asma Nik Sulaiman - UAE Exchange Malaysia Sdn Bhd Central / Kuala Lumpur 10 IME (M) Sdn Bhd 11 Ms. Kamaria Bt Sukardi - EZ Money Express Sdn Bhd East Malaysia / Sabah 11 Western Union Payments (Malaysia) Sdn Bhd Mr. Mohamed Riyazullah bin Mohd Hidayathullah Khan - Kanson Forex (M) Sdn Bhd Ms. Leow Su Lin - Foo Inn Sdn Bhd Mr. Shaik Abdul Kadir Bin Sahul Hameed - Pacific Money Exchange Sdn Bhd Ms. Loh Lee Min - Perniagaan Sri Johor Jaya Sdn Bhd Mr. Jajakhan Kader Gani - Vital Rate Sdn Bhd Northern / Penang Southern / Johor Northern / Penang Southern / Johor Central / Kuala Lumpur UAE Exchange Malaysia Sdn Bhd Alaf Jutawan Sdn Bhd Max Money Sdn Bhd EZ Money Express Sdn Bhd Kanson Forex (M) Sdn Bhd Foo Inn Sdn Bhd At present, we have an ideal number of trainers to meet the needs of the industry. However, the trainer requirement will be continually reviewed to ensure a sufficient pool of trainers are available to meet the requirements of the industry at all times Pacific Money Exchange Sdn Bhd Perniagaan Sri Johor Jaya Sdn Bhd As at to-date, a total of 1019 Head of Compliance and Compliance Officers are registered in GOCO. As the Anti-Money Laundering & Counter Financing of Terrorism Certification Programme was progressively rolled out, it was evident that the Compliance Officers of the industry greatly benefited through this programme and were able to enhance their competency and be better equipped to perform their role effectively. GOCO is committed to adding value to the industry and to build best in class Compliance Officers for MSB companies through initiatives such as workshop, e-learning programmes, accreditation programmes, conferences and forums

21 Our Performance For 2016 (ii) MAMSB Education Framework The Education Committee has continued its efforts to develop the MSB human capital to bridge the gap between the current and future needs of the industry. The Education Committee is guided by the Education Framework in implementing initiatives to address the human capital issues, enhance the competency, skills and knowledge of MSB staff as well as to promote effective consumer awareness and education. Since the Education Framework was approved by the Council on 12 August 2015, the following initiatives under the Education Framework have been rolled out or are in progress for the benefit of members and consumers. MAMSB Education Framework Progress Update On Initiatives Under The Education Framework Section 1: Members Education Initiatives Rolled Out In Progress On-Going Pipeline Part 1 Part 2 Part 3 Standard Job Description Identity list of jobs by class Standard HR Documents Identity Training Needs by class & Levels Conference & Learning Certification Resources Training Standard HR Guide Documents Conference / Forum / Seminars Develop Standard Job Description Job Duties and task Job Activities Skills Needed Abilities Needed Knowledge. Experience, Education Required Recruitment Process Reference Check Prequalification Training NA Enhance Knowledge Enhance Skill Enhance Ability Class Room OJT e-learning Self Learning Conference Peer Group / networking Conference Web Seminar Seminar Training Partner General Awareness Certification Body Trainer Certification Certification Levels Survey & White Papers Training Polls Video Member Library Forum General Awareness Certification Body Identified Trainer Certification Training On Compliance National Occupational Skills Standard Development For Accreditation Of MSB Staff Awareness Program For Consumers On Legal Channels Roadshow On MSB Channels Leaflets Section 2: MSB Customers / Public Education Section 3: Evaluation of Education Leveraging On Media To Educate Consumers Part 1 Part 2 Resource Centre Identify list of Regulatory Guidelines for Customers Develop Basic Guideline Fact book Identify Awareness Required Develop Consumer Campaign Delivery Channels Monitoring Outcome Road show Activity Impact E-Learning Solution (Q4 17) The Committee will continue to rollout initiatives based on criticality and timelines set out under the Education Framework. Licensed Channel Basic MSB Process Leaflets Seminar Basic AML Use of formal channels E-Media Feedback Basic Anti Terrorism Use of formal channels Basic Anti Terrorism 38 39

22 Our Performance For 2016 (iii) Members Education Programme a. Anti-Money Laundering / Counter Financing of Terrorism Certification Programme The Association continued to focus on providing relevant and high quality trainings to members and associates to meet their training requirements. The focus in 2016 continued to be the rollout the Anti-Money Laundering / Counter Financing of Terrorism (AML/CFT) Certification Programme for Compliance Officers (COs). The AML/CFT certification is done on a modular basis as follows: Module 1: Understanding the AML/CFT Framework Module 2: Customer Due Diligence Process Module 3: Managing Suspicious Transactions Module 4: Understanding and Application of Risk Based Approach As per the Bank Negara Malaysia policy entitled Requirements for the Money Services Business Compliance Officer issued on 4 March 2016, all members must ensure that their Head of Compliance / Compliance Officer successfully completes the AML/ CFT certification programme and be duly accredited by a recognized and credible accreditation body. The policy document stipulates the timeline for a Compliance Officer to complete the AML/CFT certification programme as shown below: Appointment as Compliance Officer For Compliance Officers appointed before 30 June 2016 For Compliance Officers appointed from July 2016 onwards By introducing the AML/CFT certification and accreditation for MSB Compliance Officers, the Association and the industry is ahead of the curve amongst financial services providers as we work towards having competent, fit and proper compliance officers to help strengthen the industry. During the year, Modules 2, 3 and 4 was developed by the Group of Compliance Officers (GOCO) Committee. Compliance Officers are required to complete and pass the assessment conducted after each module in order to progress to the next module. A total of 100 AML/CFT Modules 1, 2, 3 and 4 training sessions were conducted in 2016 for the benefit of staff from member companies as follows: Timeline By 31 December Before appointment OR within a period of one (1) year from the Compliance Officer s appointment. Location Kuala Lumpur Penang Ipoh Johor Bahru Kota Kinabalu Kuching Total Location Kuala Lumpur Penang Ipoh Johor Bahru Kota Kinabalu Kuching Total Location Kuala Lumpur Penang Ipoh Johor Bahru Kota Kinabalu Kuching Total Module 2: Customer Due Diligence Process Workshops in 2016 Number of Sessions Number of Participants Module 3: Managing Suspicious Transactions Workshops in 2016 Number of Sessions Number of Participants Module 4: Understanding & Application of Risk Based Approach Workshops in 2016 Number of Sessions Number of Participants Module 1: AML/CFT - Understanding the AML/CFT Framework Workshops in 2016 Location Number of Sessions Number of Participants Kuala Lumpur Penang 1 36 Johor Bahru 1 21 Total Note: 756 participants trained in Module 1 in b. Compliance Clinics While the AML/CFT Certification programme was the primary focus, the Association also rolled out Compliance Clinics to assist members on specific compliance areas. Date Other Trainings 5 March 2016 Central Region Compliance Clinic on Risk Based Approach 22 March 2016 Central Region Compliance Clinic on Risk Based Approach 25 March 2016 Central Region Compliance Clinic on Risk Based Approach 20 October 2016 Southern Region Compliance Clinic on Suspicious Transaction Reporting 25 October 2016 East Malaysia Region Compliance Clinic on Suspicious Transaction Reporting 27 October 2016 Central Region Compliance Clinic on Suspicious Transaction Reporting 23 November 2016 Northern Region Compliance Clinic on Suspicious Transaction Reporting 40 41

23 Our Performance For 2016 c. Powering You! Talk Series The Association also launched the Powering You! Talk Series on relevant topics of interest to members as part of promoting knowledge transfer and exposing members to relevant latest developments. The programmes held in 2016 are as follows: Date 22 August 2016 Other Trainings Powering You! Compliance Talk Series # 1: Latest Developments in AML/CFT Trends - Mr. Kirk Png, Senior AML Risk & Compliance APAC, Lexis Nexis Risk Solutions. (iv) Accreditation of MSB Staff via the National Occupational Skill Standards (NOSS) Development for MSB Industry As part of our capacity building initiatives under the MAMSB Strategic Blueprint, the Association had laid out plans for key resources in the industry to be accredited. In this regard, the Association was approved government funding by the Department of Skills Development (JPK) under the Ministry of Human Resources to accredit all MSB staff through the development of the National Occupational Skills Standard (NOSS) for all levels of staff namely the Chief Executive Officers (CEOs), Directors, Managers, Compliance Officers and Frontline staff. The development of the NOSS for MSB would change the face of the industry as the NOSS will be used to prepare new joiners for their role in a MSB company as well as be a career roadmap for staff looking to progress in their career within this industry. 27 August September 2016 State of Compliance of MSB Companies - En. Mohd Nadzri Bin Sulaiman, Deputy Director, Bank Negara Malaysia. Powering You! Leaders Talk Series # 1 Market Outlook - Mr. Ibrahim Sani, Presenter & Producer, BFM Radio. Effectively Managing Your Company s Risk - Mr. Japhire Gopi, Insurance Specialist, JA Assure Pte Ltd. Prudent Currency Management Strategies - Mr. Pradeep Ponneth, Head - Forex, UAE Exchange Malaysia Sdn Bhd. Powering You! Leaders Talk Series # 2: Enhancing Directors and Board Effectiveness - Dato Abdul Aziz Abu Bakar, CEO / Executive Director of Malaysian Directors Academy. Mergers and Acquisitions - Mr. Norhisham Abd Bahrin, Corporate & Mergers and Acquisitions Partner, Azmi & Associates. Four National Occupational Skills Standards based on the respective levels and roles were developed for the MSB industry as follows: Level 1 to 3 - Frontline Personnel / Officer in Charge Level 4 - Compliance Officer Level 4 - Manager Level 5 - Chief Executive Officers / Director The NOSS for MSB industry was developed with the help of panel experts comprising of MSB staff from all levels as stated above, representatives from Bank Negara Malaysia (BNM) and the Finance Accreditation Agency (FAA). MSB staff that were chosen to be part of the panel experts were required to have a minimum of 5 years of industry experience and be willing to share their expertise and knowledge. d. Soft Skills Training The Association also introduced soft skills training for leaders in the industry via the Corporate Etiquette Programme, a special image program designed for members who want to cultivate good social etiquette as well as observe good grooming standards to elevate their professional image. The session was held on 19 March 2016 & 20 March 2016 at Hotel Istana, Kuala Lumpur. The Association had also embarked on an initiative for MSB staff with at least 10 years experience in this industry to be registered in the Directory of Industry Experts for financial services industry. This directory is maintained by the Department of Skills Development under the purview of the Ministry of Human Resource. The program was conducted by Ms. Sheila Wong who is an International Image Consultant, Master Trainer, Author and Personal Branding Expert who has worked with over 150 organizations over the years. This programme received rave reviews from participants that attended the session

24 Our Performance For 2016 (v) National Occupational Skill Standards (NOSS) Development for MSB Industry Name Panel Experts For Developing NOSS For Level 4 to 5 (Manager / CEO / Director) Company We have kicked off the process of developing the NOSS for the MSB Industry under the aegis of the Department of Skills Development. The Department of Skills Development had appointed a facilitator from the Management Institute of Human Resource Management to guide the Association in the process of developing the NOSS. The first step was to enlist the help of industry experts to be part of the panel to develop the NOSS. This is crucial as the NOSS must be based on industry players input of the current status and future requirements of the industry. The panel experts from the industry approved by the Department of Skills Development that were instrumental in developing the NOSS for the respective areas are as follows: Panel Experts For Developing NOSS For Level 1 to 3 (Frontline Personnel / Officer in Charge) Name Company Pn Ayuna Bt Omar Roz Money Changer Sdn Bhd Ms. Nor Shafeeza Binti Roslan Merchantrade Asia Sdn Bhd Mr. Mohamed Ziaudeen Bin Seeni Ahamed Spectrum Forex Sdn Bhd Mr. Nashir Husin Bin O.E.O. Mohamed Ismail Vital Rate Sdn Bhd Ms. Ang Chai Fee Suria Muhabat Sdn Bhd Mr. Alan Lu Chen Ho Alfa Millions Sdn Bhd Ms. Ruzanna Bt Abdul Rahman Ms. Lim Poh Hong Mr. Balachandar Sathyanarayanan Mr. Kesavan Sathasivam Mr. Amin Basheer B Jaffar Ali Ms. Lee Li Fong Mr. Loghandran G. Krishnasamy Mr. S Narayanan Subbarayan Mr. Alan Lu Chen Ho Ms. Ng Yen Peng Ms. Noorzliana Ahmad Ms. Shalini Pavithran Ms. Rusmanita Abd Ani Bank Negara Malaysia Representative Roz Money Changer Sdn Bhd E-Globex Sdn Bhd Travelex Malaysia Sdn Bhd Valyou Sdn Bhd Vital Rate Sdn Bhd Nudee Enterprise Sdn Bhd Lotus Group Enterprise Sdn Bhd Merchantrade Asia Sdn Bhd Alfa Millions Sdn Bhd Sumber Jalur Sdn Bhd Merchantrade Asia Sdn Bhd MAMSB Finance Accreditation Agency En Muhamad Esamuddin Bin Mohd Saiful En. Hafiszul Bin Esa En. Bashir Osman Bin S Masohood Ms. Ng Yen Peng Ms. Noorzliana Ahmad Bank Negara Malaysia Representative Alaf Jutawan Sdn Bhd IME (M) Sdn Bhd Akbar Money Changer Sdn. Bhd. Sumber Jalur Sdn Bhd Merchantrade Asia Sdn Bhd The panel experts along with the facilitator held their first workshop for developing the NOSS for Frontline Staff (Level 1 to 3) on 17 May The first workshop for developing the NOSS for Managers, CEOs and Directors (Level 4 to 5) was held on 4 June The workshop for developing the NOSS for Compliance Officers kicked off on 7 September Upon development of the NOSS, the document was reviewed by the evaluation panel comprising of senior representatives from the industry and a Bank Negara Malaysia representative. The evaluation panel had provided their feedback for the improvement of all NOSS being developed for MSB and their feedback has been duly incorporated. Evaluation Panel For NOSS Level 4 (Compliance Officers) Name Mr.Alan Lu Chen Ho Ms.Lim Poh Hong Panel Experts For Developing NOSS For Level 4 ( Compliance Officer) Company Alfa Millions Sdn Bhd E-Globex Sdn Bhd Name Dr. Abdul Rahman Bin Mokhtar Mr. Jajakhan Bin Kader Gani Bank Negara Malaysia Representative Company Merchantrade Asia Sdn Bhd Vital Rate Sdn Bhd Ms. Nurul Kamimah Binti Kamaruddin Mr. Mohamad Azizul B Abdul Rahman Mr. Muhammad Yasin Bin Shah Mohd Ms. Ng Yen Peng Ms. Noorzliana Ahmad Ms. Rusmanita Abd Ani Bank Negara Malaysia Representative IME (M) Sdn Bhd Mobile Money International Sdn Bhd Shahbina Money Changers Sdn Bhd Sumber Jalur Sdn Bhd Merchantrade Asia Sdn Bhd Finance Accreditation Agency Name Mr. Lim Kuan Yew Evaluation Panel For NOSS Level 1 to 3 (Frontline Personnel / Officer in Charge) & Level 4 to 5 (Manager / CEO / Director) Mr. Espen Kristensen Mr. Jajakhan Bin Kader Gani Bank Negara Malaysia Representative Company SMJ Teratai Sdn Bhd IME (M) Sdn Bhd Vital Rate Sdn Bhd 44 45

25 Our Performance For 2016 Upon receiving clearance from the evaluation panel, the NOSS documents for the respective levels were submitted to the Department of Skills Development for their evaluation, approval by the Ministry and subsequent gazzetting. The NOSS for Compliance Officers was approved and gazetted by the Department of Skills Development, Ministry of Human Resources. The NOSS for Frontline Staff and Management had received conditional approval pending amendments based on feedback from the evaluation panel. With the NOSS developed for MSB industry, we will be ahead of other financial services in terms of having a skill standard covering all generic roles within the MSB industry. The next steps currently being worked on are for the panel experts that developed the NOSS to be certified as assessors to kick start the accreditation process for the industry. Further, the Department of Skills Development had approved the Association s request that was supported by Bank Negara Malaysia for all matters relating to the MSB NOSS to be referred to the Association as the lead authority. This will provide the Association better control over the NOSS and any training programmes developed based on the said NOSS for MSB industry. The Association will also be engaging service providers to develop training programmes based on the NOSS for MSB industry that has been developed. The NOSS and the corresponding programmes that will be developed will provide the opportunity to promote the Association as a regional training centre for MSBs in the near future which will be in line with our transformation roadmap. The Association would like to express our deep appreciation to the panel experts, evaluation panel members and their member companies and Bank Negara Malaysia for their support and contribution to this initiative which is key to the development of the human capital of the MSB industry. (vi) Implementation of New Membership Decal and Standard Notices In an effort to project a more professional image of MSB outlets, the Association had streamlined the notices to be displayed at all members outlets. This project was also initiated to promote public confidence and trust with the introduction of the Feedback Channel Notice. Based on the numerous feedback received from members on the clutter caused by various notices displayed at MSB outlet counters, the streamlining of these notices was a long awaited solution to address the issue. Greenback 2.0 Project The Greenback Project was initiated by the World Bank in order to achieve greater efficiency in the remittance market through innovation and promoting change driven by the needs of the ultimate beneficiaries of remittances namely the migrant and their families. The Greenback 2.0 Project was launched in November 2015 in Johor Bahru as the first Champion City in Asia. The Greenback 2.0 Project was spearheaded by Bank Negara Malaysia with the support of the Association and its members namely the Remittance Service Providers (RSP). The objective of the Greenback 2.0 project in Johor Bahru was to lower remittance costs and improve transparency in remittance services. Since its launch, various activities such as roadshows, remittance fairs, one-on-one interaction with migrant workers as well as educational and informational talks to SMEs have been rolled out. The two-year Greenback 2.0 Project aims to promote awareness, market transparency and efficiency and financial inclusion i.e migration to legal channels targeting migrant workers including in plantation and industrial areas, dormitories and SME businesses. As part of promoting customer awareness and transparency, the Greenback 2.0 Project also saw the advent of the new smartphone application for consumers developed by the World Bank and supported by Bank Negara Malaysia as well as our remittance service providers. The application was aptly named Pick Remit and is accessible via smartphone and tablet. Pick Remit is available for download for free via the Google Play and the Apple App Store. The Pick Remit app enables consumers to compare remittance rates and fees which promotes transparency and competitiveness amongst remittance service providers. Pick Remit Mobile Application Under this initiative, the Association introduced the new membership window glass sticker, the general standard notice and feedback channel notice (as shown below) to be displayed at all members outlets. It is compulsory for members to display these three items. The Association has been actively promoting the membership sticker with our logo as an essential brand mark to identify legal channels licensed by Bank Negara Malaysia. Membership Sticker General Standard Notice Feedback Channel Notice Choose destination Set amount to be remitted Find location (nearest remittance service providers) Member Associate Member COMPANY B COMPANY A COMPANY B 5 4 COMPANY C Membership Number Compare delivery method Compare rates Source: Bank Negara Malaysia Greenback

26 Our Performance For 2016 Various activities have been organized as part of creating consumer awareness, promoting MSB channels and eradicating the illegal channels which the Association has been championing together with Bank Negara Malaysia. The activities organized in 2016 are as follows: MSB Customer Experience (MCX) Benchmarking and Awards Date 6 March March April May May June June July September November 2016 Greenback 2.0 Activities Greenback Remittance Westlite Pasir Gudang - Johor Bahru (JB) Greenback Remittance TH Plantation - JB Greenback Remittance Sime Darby Plantation Ulu Remis - JB Greenback Multi-Lateral Lombok Indonesia between World Bank-Bank Indonesia- Bank Negara Malaysia-MAMSB-APPUI (Remittance Association of Indonesia) Greenback 2.0 Project Lombok, Indonesia Greenback Remittance Kulim Plantation- JB Meeting with Kulim Plantation Estate Management Greenback Remittance Westlite JB Techpark Greenback Remittance Westlite Senai II Greenback Remittance Senai Industrial Area The Association launched the Money Services Business Customer Experience (MCX) Benchmarking and Awards with the support of members to recognize member companies that have achieved outstanding results through initiatives that demonstrate leadership and commitment to enhancing the customer experience and providing excellent service. The MCX Awards will be presented for Best Customer Experience for Money Changing Company, Best Customer Experience for Remittance Company and Best Customer Service Professional to name a few. These awards are important as it is based on customers feedback of MSB companies on the service delivery standards and customer experience. For the MCX Award, the Association s aim was to provide a robust and transparent judging process that provides clarity and confidence to all involved. In this regard, the Association engaged Frost & Sullivan, a global research and consulting organization, to conduct the customer service benchmarking to ensure the integrity and independence of the findings and to ensure global standards for such surveys are used. The Frost & Sullivan team conducted over 3,000 face to face customer interviews at outlets of participating member companies. Customers were interviewed about their experience after completion of their transaction at the MSB outlet. The survey feedback are scored using pre-determined criteria. These criteria are used to generate the award winners and winners from each category are identified based on the highest score as obtained from customer interviews conducted at participating companies outlets. 5 December st Anniversary of Greenback 2.0 Project - Mini Forum & Appreciation Dinner Over 13,000 migrant workers and SMEs have been engaged during this period through the Greenback 2.0 activities. This project also saw average cost of remittances in Johor Bahru drop to 2.02% from 3.33% in 2015 and approximately 170,000 new customers registered with our remittance service providers¹. The various activities organized by the Association and supported by Bank Negara Malaysia and the resulting achievements thus far would not have been possible without the full support and dedication to the cause of the following Remittance Service Providers of various Greenback 2.0 events: Remittance Service Providers That Have Supported Greenback 2.0 Activities All participating companies will receive their own feedback report upon completion of the assessment. This report contains customer feedback derived from the interviews conducted and will help member to plug any gaps and continue to improve the quality of service delivered to customers. The Frost & Sullivan team kick started the face to face customer interviews in September 2016 and completed their field work in December Based on preliminary findings, overall customers are reported to be pleased with the service they have been getting at participating MSB outlets and no negative feedback was received. The MCX Award winners will be announced during the Association s MCX Award Ceremony & Gala Dinner that has been fixed for 29 April 2017 at the Hilton, Kuala Lumpur. Akbar Money Changer Sdn Bhd Agrani Remittance House Sdn Bhd Bank Simpanan Nasional CBL Money Transfer Sdn Bhd GPL Remittance Sdn Bhd IME (M) Sdn Bhd KL Remit Exchange Sdn Bhd Max Money Sdn Bhd Mandiri Remittance International Sdn Bhd Merchantrade Asia Sdn Bhd Mobile Money International Sdn Bhd NBL Money Transfer Sdn Bhd Numoni DFS Sdn Bhd Pos Malaysia Berhad SMJ Teratai Sdn Bhd TML Remittance Center Sdn Bhd UAE Exchange Malaysia Sdn Bhd Unique Change Sdn Bhd Valyou Sdn Bhd Western Union Payments (Malaysia) Sdn Bhd The Association would like to thank the 124 member companies that have taken the bold step to evaluate their customer experience level by participating in the 1st MSB Customer Experience Benchmarking and Awards. ¹ Source: Bank Negara Malaysia Financial Stability and Payment Systems Report 2016 and Bank Negara Malaysia Greenback

27 Our Performance For 2016 Customer Service Benchmarking & Award Participation By Region Date Engagement Session Region Total Members Participating % 25 May 2016 Northern Region Committee Meeting Central June 2016 Remittance Service Providers Engagement with BNM On Issue of Competition North June 2016 BNM, MAMSB and Remittance Service Providers Meeting South July 2016 East Malaysia Engagement with Members - Kuching Engagement East Coast July 2016 East Malaysia Engagement with Members - Kota Kinabalu Engagement East Malaysia July 2016 Northern Region Committee Meeting Total July 2016 Northern Region Engagement Session Customer Service Benchmarking & Award Participation By Class 27 July 2016 Southern Region Committee Meeting Class Total Members Participating % 4 August 2016 Central Region Committee Meeting A August 2016 Customer Due Diligence Taskforce Meeting B August 2016 Money-Changing Business (Class C Committee) Meeting C August 2016 Central Region Engagement with Members D August 2016 Education Committee Meeting Principal Total August August 2016 Money-Changing Business (Class C) - Wholesale Business (Class D) - BNM - MAMSB Engagement Session Southern Region Committee Meeting Member Engagement Sessions There were a number of engagement sessions organized in 2016 to ensure the Association is in tune with members needs and understands members issues in order to play its role effectively. Frequent member engagement sessions were held together with the relevant Committees under the Association to gather feedback and address issues of criticality. The details of the sessions held were as follows: 25 August August September September October 2016 Northern Region Committee Meeting Northern Region Engagement Session Taskforce on Guideline On Product Bundling & Promotion Meeting Taskforce on Review Of MAMSB Constitution Meeting Member Engagement & Dialogue with President - Southern Region Date 20 January January February 2016 Engagement Session Money-Changing Business (Class C ) Committee Meeting Information Technology Committee Meeting Dialogue with President - Penang 25 October October October November November 2016 Dialogue with President - East Malaysia Northern Region Engagement Session Dialogue with President - Central Region Northern Region Engagement Session Code of Conduct Committee Meeting 4 March 2016 Dialogue with President - Ipoh 2 December 2016 Taskforce on Review Of MAMSB Constitution Meeting 14 March 2016 Dialogue with President - Kota Kinabalu 7 December 2016 Taskforce on Review Of MAMSB Constitution Meeting 22 March 2016 Dialogue with President - Johor Bahru 9 December 2016 Code of Conduct Committee Meeting 24 March 2016 Dialogue with President - Kuala Lumpur 16 December 2016 Information Technology Committee Meeting 6 May 2016 Remittance Service Providers Engagement 19 December 2016 Taskforce on Review Of MAMSB Constitution Meeting 9 May May 2016 Wholesale Business (Class D) Committee Meeting Engagement between Royal Malaysian Customs - MAMSB - BNM - Wholesale Business (Class D) members 21 December 2016 Meeting between Money-Changing Business (Class C) Committee Members and Wholesale Business (Class D) Committee Members 50 51

28 Our Performance For 2016 Dialogue with President of MAMSB The dialogue with the Association s President was organized for members to raise issues of concern to the leadership of the Association. The sessions organized were as follows: Annual General Meeting 2016 The Association successfully concluded the second annual general meeting (AGM) on 16 April 2016 at Hotel Istana, Kuala Lumpur. A total of 217 members of which 215 with voting rights and 5 associates attended the meeting. Details are as follows: Date 5 February March March 2016 Venue Royal Hotel, Penang Tower Regency Hotel, Ipoh Sabah Golf Club, Kota Kinabalu Participation Member Associate Total in Membership Register Attended % March March 2016 Bayu Marina Hotel, Johor Bahru Royal Selangor Club, Kuala Lumpur Attendance By Class 20 October 2016 Grand Paragon Hotel, Johor Bahru Class Total Member Attended % 25 October October November 2016 Grandis Hotel, Kota Kinabalu Kelab Golf Perkhidmatan Awam, Bukit Kiara, Kuala Lumpur Sunway Georgetown, Penang A B C D Items discussed during these engagement sessions are as follows and action have been or are being taken to address these concerns: Total Engagement Session Item Raised Attendance By Region Southern/ East Malaysia/ Central Request for Branch Oversight & SOP workshop to be organized. Class Central Total Member 200 Attended 141 % 71 All Regions Request for the AML/CFT Certification programmes to be held at the region. Northern Southern/ East Malaysia Southern Southern / Central Members requested for good examples of Suspicious Transaction Report case writing answers under the AML/CFT Certification programme - Module 3 be shared with members. Members requested for training materials and exams in dual language. Members raised the issue of Staff Pinching which greatly impacted members operations and bench strength. East Coast Southern East Malaysia Total Southern Members requested an update on issues raised with regards to wholesalers. Southern Southern/ Central East Malaysia East Malaysia Central Central Northern Northern Central Members requested details on the ISS rollout implementation. Members requested for Cyber Security awareness programmes to be organized. Members requested for MIS System & PEP/Sanction database. Members raised the issue of Illegal cross border flow of currencies & Illegal operators. Clarity requested on interview of Compliance Officers by the regulator. Members requested regulator s view on members pursuing new business activity / strategies Members requested for Mergers & Acquisition Talk to be organized. Availability of seats for Heads of Compliance for AML/CFT programmes Members raised the issue of competition amongst members The Council s report for 2015 as well as the audited accounts for 2015 tabled were passed by the members present. The meeting also approved the appointment of MAZARS to be the external auditor for financial year 2016 and Mr Cheong Kam Tho as the internal auditor for the term. There was one resolution on the review of three clauses of the Constitution that was put to members to decide during the AGM. This resolution was not approved by members as it failed to get the support of two thirds (2/3) of the members in attendance as it garnered only 11 votes. However, the Chairman of the meeting had assured members that a taskforce would be formed to conduct a full review of the Constitution

29 Our Performance For 2016 On the agenda item to discuss issues of material impact to the industry, the issue of unfair practices in terms of promotions practiced by members was raised. The Chairman had proposed the formation of a taskforce to look into guidelines on promotions and 177 members had voted for it. Other issues raised by members were: new branch locations and rules on branching customer due diligence requirements single principal rule for agents and to consider opening it up to multiple principals. The meeting agreed that taskforces should be formed to look into each of these areas of concern raised by members. In this Annual General Meeting, the election for Council Members for Second Term of Office ( ) was held. There were five posts that were contested namely Secretary, Treasurer, Class A (Remittance & Money Changing) Council Member, Central Region Council Member and Northern Region Council Member and eight positions that were won uncontested. The members had elected Council Members for the Second Term of Office ( ) as follows: Engagement with Bank Negara Malaysia During the year, the Secretariat, Council Members, Committee and Taskforce Members have been continually engaging Bank Negara Malaysia (BNM) to raise various issues highlighted by members. In addition to that, for 2016, there was one constructive engagement meeting between the Council and Bank Negara Malaysia held on 20 June The meeting was chaired by the Assistant Governor (AG), Puan Jessica Chew Cheng Lian. Various issues of interest and those affecting the MSB industry were discussed at this engagement session. The primary focus of this session was to take stock of the initiatives and progress of the Association. During the meeting, AG informed that the industry had exceeded expectations in terms of transforming itself. However, AG advised that we should not rest on our laurels as there is still room to improve further and the industry must continue to strive hard to rise to the next level. The Association provided an update on the Transformation Roadmap and Milestones achieved from AG commended the Association on its achievements and was briefed on the general view of the industry on the changes that were taking place. Post President Vice-President Secretary Treasurer Class A Council Member Class B Council Member Class C Council Member Class D Council Member Central Region Council Member Northern Region Council Member Southern Region Council Member East Coast Region Council Member East Malaysia Region Council Member Name of Office Bearers Mr. Ramasamy K Veeran En. Jajakhan Bin Kader Gani En. Akbar Batcha Bin Mohamed Shamsuddin Tn Haji Mohamed Burhan Bin Mohd Alahudin Mr. Espen Kristensen Mr. Lee Eng Sia En. Mohd Sani Bin Mohamed Ismail Mr. Jam Imtiaz Rasool En. Jahbar Sadheek Bin Syed Mohamed En. Mohamed Sherafath Ali Bin Abdul Rahman Mr. Lim Kuan Yew En. Harif Fadilah Bin Hashim Mr. Lim Ching Seng The issues raised and discussed with BNM are as follows: Compliance Standards Promotion Of Standards And Quality Of Service Promotion of Standard Business Practice Cooperation with Key Stakeholders in Eradicating Illegal Operators Raising Profile & Building Trust Customer Due Diligence Requirements Imposed on MSBs Single Principal Rule AML/CFT Certification Programme Currency Supply Non-Money Exchange (NME) Companies As MSB Agents Illegal Operators Located In Malls In closing the session, AG also briefed that BNM is currently engaging the industry for data mining purposes and will continually engage licensees as it moves towards analysing information more rigorously and at a transaction level. BNM advised Regional Council Members to share the Association s progress and encourage members to change their perspective by being open to change. Licensed Money Changers Management Information Systems The Association continued its efforts to ensure the Management Information Systems (MIS) provided by system vendors to licensed money changers have in place capabilities to: Ensure adequate system control; Support their MSB operations; and Comply with regulatory requirements. Upon close follow up and various engagement between BNM, the Association and the system vendors, the five main system vendor have closed the gap on the issues highlighted above. The Association together with Bank Negara Malaysia have also engaged the remaining system vendors servicing money changing members to ensure they addressed these issues as well

30 Our Performance For 2016 Adoption of Latest Accounting Standards For MSB Companies The Malaysian Institute Accountants (MIA) through its Financial Reporting Standards Implementation Committee ( FRSIC ) had initiated the move to streamline accounting practices due to inconsistent practices noted in the money services business (MSB) companies in two areas: Classification of currencies held for sale Some MSBs recognize the currencies held for sale as Inventories as they deem that the currencies held are for sale in the ordinary course of business as per the Malaysian Financial Reporting Standards (MFRS). However, there are other MSBs that recognize the currencies held for sale as Cash as they deem that the currencies held for sale meet the definition of cash as defined in the MFRS and accordingly classified as cash which are financial assets. Measurement of income on sale of currencies held for sale For MSBs that consider currencies held for sale as inventories, the income on sale of currencies is recorded at gross proceeds with a corresponding cost of sales based on the carrying amount of the currencies sold. However, some MSBs measure the income at net proceeds (Proceeds received from the sale of currencies minus the carrying amount of the currencies sold). MIA was seeking to put in place new standards to promote best practices in compliance with the highest standards in financial accounting via a consistent approach of accounting for currencies held for sale by MSBs particularly in the following areas: Classification of currencies held for sale; The measurement of income on sale of currencies held for sale; and The presentation of income arising from currencies held for sale. The new accounting standard to be adopted by MSB companies dealing in currencies effective financial year end (FYE) December 2016 is the Malaysian Financial Reporting Standards (MFRS). For companies where their financial year end was on 31 December 2016 were the first batch where the company s financial statement must be prepared in accordance to the MFRS standards. Subsequently, the companies with financial year end in 2017 will need to transition and adopt MFRS accounting standards progressively based on their financial year end. This will bring the industry in line with the Malaysian Accounting Standards Board (MASB) requirement whereby all entities that prepare and lodge financial statements to BNM must adopt MFRS. 3. Benchmark Rate Revaluation of CHFS at fair value is a procedure to benchmark, adjust and reflect the value of these currencies at its current market position There is no single or a standard source of benchmark rates to be adopted by the MSB industry for the purpose of revaluation of CHFS. Guiding principles for benchmark rate to be used by members: > Frequently used benchmark by member for day-to-day price setting for the business; > Mutually acceptable to the member and company s appointed external auditor > Different benchmark rates can be used for different CHFS as long as complies with the guiding principles above > Consistently apply the same source(s) of benchmark rates throughout all FYEs when performing revaluation of CHFS. > If there is a change in terms of source of benchmark rate, it must be justified by the member and accepted by the external auditor; > Same benchmark rates must be used for all outlets. 4. Impact of MFRS Minimum capital funds > Any unrealised gains or losses arising from the revaluation of CHFS will not be included in the computation of minimum capital funds Taxation > Any unrealised gains or losses will not have an impact on the computation of a licensee s statutory income tax System > System vendors have been engaged to do the necessary adjustments to the system which are minimal. > The MSB system must be able to facilitate the accounting treatment including: i. Preparation of revaluation report ii. Passing of accounting entries to the general ledger module Bank Negara Malaysia had conducted various engagement sessions with the Association, members and the system providers to ensure smooth transition to the new accounting standard. The key areas to note with the implementation of MFRS are as follows. 1. Treatment of Currencies Held For Sale: Treat currencies held for sale (CHFS) in accordance with Consensus for Currencies Held for Sale in MSB issued by MIA CHFS must be classified as financial assets and not stocks or inventories CHFS must be revalued at least at every reporting date i.e financial year end 2. Income from CHFS Income items arising from CHFS must be recognised in the profit and loss statement namely: > Income from revaluation of CHFS > Income from buying and selling of CHFS 56 57

31 Our Performance For 2016 Council Meetings During the year, the Council held ten meetings to discuss and address various issues of concern to the industry as well as ensure all initiatives are being implemented as planned. The Council Members and the appointed Assistant Secretary have been regularly attending council meetings, showing their commitment to their duties and responsibilities towards the Association. Details of the meetings held are as follows: Council Meeting Date Council Member Attendance 17th Council Meeting 22 January /12 Committees And Taskforces The Council had formally approved the setting up of 16 committees and five taskforces during the year. Each of these Committees have carried out the expected roles and responsibilities stipulated in the Constitution of the Association. The list of the committee and taskforce members are provided in the subsequent section of this report. The Association would like to thank all committee and taskforce members for their support and diligence. The Regional Council Members had also played an important role to assist the various committees mainly the Education Committee and the line of business committees to ensure regional activities and training programmes were successfully conducted and the various business related issues were highlighted and resolved. 18th Council Meeting 19th Council Meeting 26 February March /12 10/12 Membership 20th Council Meeting 29 April /13 The membership of the Association as at 31st December 2016 stood at 354 Members and 129 Associate Members as shown below: 21st Council Meeting 20 May /13 Class of Member Number of Members 22nd Council Meeting 22 July /13 A (Money Changing & Remittance) B (Remittance) rd Council Meeting 19 August /13 C (Money Changing th Council Meeting 23 September /13 D (Wholesale Currency) Total Number Of Members th Council Meeting 21 October /13 Total Number Of Associate Members th Council Meeting 18 November /13 Note: There were a total of 12 council members from January till March 2016 and 13 Council Members for the period of April - December 2016 The reduction in the number of members were mainly due to Money Changing (Class C) members opting to surrender their money changing licences to become MSB agents as well as pursuit of inorganic growth through mergers with other licensees. While it is a licensing requirement imposed by Bank Negara Malaysia for all licensed money services business companies to become a member of the Association, the approved money services business agents do not have a similar requirement imposed on them. The Association has been engaging all principal companies to push all their agents to sign up as an associate member

32 Our Performance For 2016 MAMSB s Key Focus For 2017 The money services business companies have been hard at work to respond to a growing and changing state of play in the financial services world. The regulatory changes will also have a major influence on the timing and pace of change in this industry. This rapidly changing industry and landscape places a big responsibility on the Association to prepare members for the future and ensure that the industry is fit and well equipped to face an ever more challenging future. Key Thrust For 2017 Appreciation The Association would like to express its appreciation to members who have been steadfast in supporting the Association and thank them for their co-operation and trust in the Association to champion their causes on their behalf. The Association looks forward to serving the interests of its members for years to come. The Association is deeply grateful to Bank Negara Malaysia for the guidance and support rendered to the Association and the industry. The Association would also like to thank the Finance Accreditation Agency, the Department of Skills Development under the Ministry of Human Resources and The World Bank Group for their support. Continued Focus External 1. Improving Customer Service 2. Continuing Customer Education & Awareness Efforts 3. Shaping Public Perception 4. Regional Focus Good Governance Compliance Strengthening Leadership Innovating & Adapting To Changes Foundation Of Sustainable Companies Talent Development Code Of Conduct & Regulatory Parameters Sustainable Business Growth Strong Corporate Governance Greater Public Confidence Regional Foothold Essentially, the Association will focus on strengthening members from within by strengthening leadership in the industry to be able to guide member companies to the next phase of the future, continuing to push ahead to improve governance and compliance standards as well as finding viable options and opportunities to innovate and keep with the times. In doing this, we are mindful of the regulatory parameters and code of conduct that are applicable. We will continue to focus our efforts on talent development to energize and sustain our momentum going forward. From an external standpoint, the focus will be to shape public perception and build trust. The Association will be working with members to enhance customer service via the Customer Service Benchmarking results, continue efforts to educate the public on MSBs, ensuring professional business conduct and dealings and lastly to find opportunities for members to market themselves regionally via strategic collaborations and for the Association to expand and have a regional presence in terms of trainings and advisory services. The end game is for members through a strong foundation and positive external influencing factors to lead to sustainable business growth, strong corporate governance and professional standards to instill public confidence and for members and the Association to begin taking steps to make its mark regionally

33 Key Industry Data & Statistics Key Industry Data & Statistics 62 63

34 Key Industry Data & Statistics Money Services Business Transaction Statistics Steady Increases in MSB Transaction (a) Value (RM billion) Outward remittance Retail currency exchange Wholesale currency Line of Business % % Money Changing Wholesale Currency Remittance RM60.7 billion RM7.7 billion RM34.9billion RM73.5billion RM10.6billion RM34.4billion Ç Ç È 21.1% 38.5% 1.9% Average cost of remittance for MSBs 3.15% Note: We are well below the World Bank target of 5% for average cost of remittance 2.85% È 9.5% (b) Volume (million) B2B Remittance via non-bank Remittance Service Providers % 25 Transaction Value RM100 million RM653 million Ç 553% Growth in use of authorized MSB channels 10 Growth CAGR ( ) Outward Remittance 16.8% Retail Currency Exchange 16.2% Wholesale Currency CAGR ( ) 16.8% 14.5% 32.6% Outward remittance Retail currency exchange % 1.3% n/a Source: Bank Negara Malaysia Financial Stability and Payment Systems Report 2016 Source: Bank Negara Malaysia Financial Stability and Payment Systems Report

35 Calendar of Events MSB Companies with turnover of less than RM30million Number of companies 80% 27% Source: Bank Negara Malaysia Financial Stability and Payment Systems Report % Overall average in profitability per annum from 2012 to Companies With Mobile Applications / Online Remittance Services Source: Bank Negara Malaysia Financial Stability and Payment Systems Report 2016 Impact of Greenback 2.0 Project % Average cost of remittance (Johor Bahru) 3.33% Source: Bank Negara Malaysia Financial Stability and Payment Systems Report % È 39.3% Calendar Of Events 170,000 New Customers Registered 12,000 Number of migrant workers educated 1,100 Number of SMEs educated Source: Bank Negara Malaysia Financial Stability and Payment Systems Report 2016 and Bank Negara Malaysia Greenback

36 Calendar of Events Date Events Date Events 20-Jan-16 Money-Changing Business (Class C ) Committee Meeting 4-Aug-16 Central Region Committee Meeting 27-Jan-16 Information Technology Committee Meeting 11-Aug-16 Taskforce on Customer Due Diligence Requirement Meeting 5-Feb-16 Dialogue with President, Northern Region - Royal Hotel, Penang 11-Aug-16 Money-Changing Business (Class C) Committee Meeting 26-Feb-16 Nomination Evaluation Committee Meeting 17-Aug-16 Central Region Engagement with Members 4-Mar-16 Dialogue with President, Northern Region - Tower Regency Hotel, Ipoh 19-Aug-16 Education Committee Meeting 5-Mar-16 Central Region Compliance Clinic on Risk Based Approach 22-Aug-16 Powering You! Compliance Talk Series # 1 6-Mar-16 Greenback 2.0 Remittance Westlite Dormitory Pasir Gudang, Johor 23-Aug-16 Code of Conduct Committee Meeting 11-Mar Mar Mar Mar Mar Mar Mar Mar Mar-16 3-Apr Apr Apr-16 6-May-16 9-May May May May-16 Greenback 2.0 Remittance TH Plantation, Ladang Bukit Lawiang, Kota Tinggi Dialogue with President, East Malaysia Region - Sabah Golf Club, Kota Kinabalu Nomination Committee Meeting Corporate Etiquette Workshop Southern Region Committee Meeting Dialogue with President, Southern Region - Bayu Marina Hotel, Johor Bahru Central Region Compliance Clinic on Risk Based Approach Dialogue with President, Central Region - Royal Selangor Club, Kuala Lumpur Central Region Compliance Clinic on Risk Based Approach Greenback 2.0 Remittance Sime Darby Plantation Ulu Remis, Layang Layang, Johor MAMSB Annual General Meeting, Hotel Istana, Kuala Lumpur Meeting between Department of Skills Development, Ministry of Human Resources - Bank Negara Malaysia - MAMSB - Finance Accreditation Agency on National Occupational Skills Development for MSB Industry Engagement Session with Remittance Service Providers (Class A & B) Wholesale Business (Class D) Committee Meeting Meeting between Royal Malaysian Customs - Bank Negara Malaysia - MAMSB - Wholesale Business (Class D) members Our members including the GOCO committee participated in the ACAMS Annual KL Seminar On AML & Financial Crime Compliance. 29 participants from MSB industry attended this insightful session. Five party brainstorming and coordination meeting at Lombok Indonesia between World Bank-Bank Indonesia-Bank Negara Malaysia-MAMSB-APPUI (Remittance Association of Indonesia) under the Greenback 2.0 Project. 24-Aug Aug Aug Aug Aug-16 4-Sep-16 7-Sep-16 9-Sep Sep Sep Sep Sep Sep Oct Oct Oct Oct-16 Bank Negara Malaysia - MAMSB - Money Changing Business Committee - Wholesale Business Committee Engagement Session Southern Region Committee Meeting Northern Region Committee Meeting Northern Region Engagement with Members Powering You! Leaders Talk Series # 1 Greenback 2.0 Remittance Westlite Dormitory Senai II, Johor Taskforce on Product Bundling & Promotions Meeting Taskforce on Review Of MAMSB Constitution Meeting BNM - MAMSB Briefing to National Union of Plantation Workers (NUPW) Committee Members, Kota Tinggi on Legal Remittance Channels - Greenback 2.0 Initiative BNM - MAMSB Briefing to National Union of Plantation Workers (NUPW) Committee Members, Kluang on Legal Remittance Channels - Greenback 2.0 Initiative MSB-Lympics : Forum 19, Petaling Jaya kicked off the 1st MSB sporting event Powering You! Leaders Talk Series # 2 Taskforce on Product Bundling & Promotions Meeting Southern Region Compliance Clinic on Suspicious Transaction Reporting Dialogue with President, Southern Region - Grand Paragon Hotel, Johor Bahru East Malaysia Region Compliance Clinic on Suspicious Transaction Reporting Dialogue with President, East Malaysia Region - Grandis Hotel, Kota Kinabalu 25-May-16 Launching of Project Greenback 2.0 Lombok Timur, Indonesia at Golden Tulip Hotel, Mataram, Indonesia. 26-Oct-16 Northern Region Engagement Session with Members 25-May-16 Northern Region Committee Meeting 27-Oct-16 Central Region Compliance Clinic on Suspicious Transaction Reporting 7-Jun-16 7-Jun-16 8-Jun-16 8-Jun-16 Bank Negara Malaysia - MAMSB Meeting with Kulim Plantation Estate Management, Ladang REM, Kota Tinggi for Greenback 2.0 Initiative Greenback 2.0 Remittance Ladang Basir, Kulim Plantation, Kota Tinggi Bank Negara Malaysia - MAMSB Meeting with Kulim Plantation Estate Management, Ladang Renggam, Johor for Greenback 2.0 Initiative Bank Negara Malaysia - MAMSB Meeting with Kulim Plantation Estate Management, Ladang Sedenak, Johor for Greenback 2.0 Initiative 27-Oct Nov Nov Nov Nov-16 2-Dec-16 Dialogue with President, Central Region - Kelab Golf Perkhidmatan Awam, Bukit Kiara, Kuala Lumpur Greenback 2.0 Remittance Senai Industrial Area, Johor Northern Region Compliance Clinic on Suspicious Transaction Reporting Dialogue with President, Northern Region - Sunway Georgetown, Penang Code of Conduct Committee Meeting Taskforce on Review Of MAMSB Constitution Meeting 10-Jun-16 Engagement Session with Remittance Service Providers (Class A & B) 5-Dec-16 Greenback 2.0 Project Mini Forum, Double Tree Hotel, Johor Bahru 13-Jun-16 Bank Negara Malaysia - MAMSB - Remittance Service Providers Engagement Session 5-Dec-16 1st Anniversary of Greenback 2.0 Project Appreciation Dinner, Double Tree Hotel, Johor Bahru 20-Jun-16 Bank Negara Malaysia - MAMSB Council Quarterly Engagement Meeting 7-Dec-16 Taskforce on Review Of MAMSB Constitution Meeting 11-Jul-16 East Malaysia Engagement with Members - Kuching Engagement 9-Dec-16 Code of Conduct Committee Meeting 18-Jul-16 East Malaysia Engagement with Members - Kota Kinabalu Engagement 16-Dec-16 Information Technology Committee Meeting 19-Jul-16 Northern Region Committee Meeting 19-Dec-16 Taskforce on Review Of MAMSB Constitution Meeting 19-Jul-16 Northern Region Engagement with Members 21-Dec-16 Meeting between Money Changing Committee Members and Wholesale Business Committee Members 27-Jul-16 Southern Region Committee Meeting 30-Jul-16 Greenback 2.0 Remittance Westlite Dormitory Johor Bahru Techpark 68 69

37 Calendar of Events 6 Mar Greenback 2.0 Remittance Westlite Dormitory Pasir Gudang, Johor 11 Mar Greenback 2.0 Remittance TH Plantation, Ladang Bukit Lawiang, Kota Tinggi Mar Corporate Etiquette Workshop 22 Mar Dialogue with President, Southern Region, Johor Bahru 14 Mar Dialogue with President, East Malaysia Region - Sabah Golf Club, Kota Kinabalu 3 Apr Greenback 2.0 Remittance Sime Darby Plantation Ulu Remis, Layang Layang, Johor 70 71

38 Calendar of Events 16 Apr MAMSB Annual General Meeting Apr 2016 Multi-lateral brainstorming and coordination meeting at Lombok, Indonesia between World Bank-Bank Indonesia-Bank Negara Malaysia- MAMSB-APPUI 24 Apr 2016 MAMSB Representatives invited to attend the launching of the Project Greenback 2.0 Lombok Timur, Indonesia 72 73

39 Calendar of Events 29 Apr Jun Greenback 2.0 Remittance Ladang Basir, Kulim Plantation, Kota Tinggi 11 Jul East Malaysia Engagement with Members, Kuching 17 Aug Central Region Engagement with Members Meeting between Department of Skills Development, Ministry of Human Resources - Bank Negara Malaysia - MAMSB on National Occupational Skills Standards Development for MSB Industry 24 May GOCO Committee members attending the ACAMS Annual KL Seminar 30 Jul Greenback 2.0 Remittance Westlite Dormitory Johor Bahru Techpark 74 75

40 Calendar of Events 22 Aug Powering You! Compliance Talk Series # 1 26 Aug Northern Region Engagement Session, Penang 4 Sep Greenback 2.0 Remittance Fair At Westlite Dormitories Senai II 9 Sep Taskforce For Review of MAMSB Constitution Meeting 27 Aug Powering You! Leaders Talk Series # Sep BNM-MAMSB Briefing to National Union of Plantation Workers Committee Members 76 77

41 Calendar of Events 24 Sep MSB-Lympics : Forum 19, Petaling Jaya 27 Sep Powering You! Leaders Talk Series # 2: 25 Oct Dialogue with President, East Malaysia Region, Grandis Hotel, Kota Kinabalu, Sabah 20 Oct Southern Region Compliance Clinic 27 Oct Central Region Compliance Clinic 78 79

42 Calendar of Events 20 Nov Greenback 2.0 Remittance Fair at Senai Industrial Park 23 Nov Dialogue with President, Northern Region & Compliance Clinic, Penang 5 Dec Greenback 2.0 Project Mini Forum, Double Tree Hotel, Johor Bahru 5 Dec st Anniversary of Greenback 2.0 Project Appreciation Dinner, Double Tree Hotel, Johor Bahru 80 81

43 Calendar of Events Greenback 2.0 initiative by our member, Mandiri International Remittance Sdn Bhd Our Greenback Ambassadors Northern Region Committee Meeting - Penang Central Region Compliance Clinic Our member, SMJ Teratai Sdn Bhd, participating in the Johor State Entrepreneur Development Centre SME Roadshow to promote B2B Remittance as part of the Greenback 2.0 project intiative. Greenback 2.0 Hit The Street Programme at Econsave, Johor Bahru Northern Region Meeting - Ipoh Southern Region Committee Meeting - Johor 82 83

44 Calendar of Events AML/CFT Certification Programme AML/CFT Certification Assessment 84 85

45 Press Releases Press Releases & Article Press Releases & Article Issued In 2016 Date 11-Apr Jun Jun Nov Nov Nov-16 Subject The Edge: Transforming the Money Services Business Industry Availability of Supply of British Pound Sterling in the Market Supply of British Pound Sterling in the Market Indian Rupees 500 and 1,000 Cease To Be Legal Tender Indian Rupees 500 and 1,000 Cease To Be Legal Tender Availability of Supply of Foreign Currencies in the Market 86 87

46 MAMSB Committee & Taskforce Members MAMSB Committee Members Finance Committee Designation Name Company MAMSB Committee & Taskforce Members Chairman Members Mr. Lim Ching Seng EZ Money Express Sdn Bhd Ms. Kee Hiau Leng Wang & Company Money Changer Sdn Bhd Mr. Selva Raj Kanapathy NS Cashpoint Sdn Bhd Ms. Lee Li Fong Nudee Enterprise Sdn Bhd Membership Committee Designation Chairman Members Name Tn Hj Mohamed Burhan B. Mohd Alahudin Mr. Akbar Batcha B. Mohamed Shamsuddin Mr. Jahbar Sadheek Bin Syed Mohamed Company Dimensi Permata Sdn Bhd Akbar Money Changer Sdn Bhd Glojuara (M) Sdn Bhd Designation Code of Conduct Committee Name Company Chairman Members Mr. Akbar Batcha B. Mohamed Shamsuddin Tn. Hj. Munower Sadiq Bin MKE Kader Sultan Mr. Jahbar Sadheek Bin Syed Mohamed Mr. Sheikh Akhter Uddin Ahmed Mr. Mavuri Satyamallikharjuna Rao Mr. Mohd Sani B. Mohamed Ismail Mr. Harif Fadilah Bin Hashim Akbar Money Changer Sdn Bhd Ruhanmas Forex Sdn Bhd Glojuara (M) Sdn Bhd NBL Money Transfer Sdn Bhd Lotus Group ENT Sdn Bhd Munawarah Exchange Sdn Bhd Hak Ventures Sdn Bhd Designation Disciplinary Unit Of Code Of Conduct Name Company Chairperson Members Ms. Leow Su Lin Mr. Espen Kristensen Mr. Lee Eng Sia En. Mohd Sani B. Mohamed Ismail Mr. Jam Imtiaz Rasool Foo In Sdn Bhd IME (M) Sdn Bhd Mobile Money International Sdn Bhd Munawarah Exchange Sdn Bhd UAE Exchange Malaysia Sdn Bhd 88 89

47 MAMSB Committee & Taskforce Members MAMSB Committee Members Legal Committee Group Of Compliance Officers Committee (GOCO) Designation Name Company Designation Name Company Chairman Members Mr. Lim Kuan Yew Mr. Selva Raj Kanapathy Ms. Leow Su Lin SMJ Teratai Sdn Bhd NS Cashpoint Sdn Bhd Foo In Sdn Bhd Chairman Deputy Chairman Ms Lim Poh Hong (resigned w.e.f 20 October 2016) Mr. Alan Lu Chen Ho E-Globex Sdn Bhd Alfa Millions Sdn Bhd Designation Chairman Deputy Chairman I Deputy Chairman II Education Committee Name Company Mr. Ramasamy K Veeran Merchantrade Asia Sdn Bhd Mr. Jajakhan B. Kader Gani Vital Rate Sdn Bhd Mr. S Narayanan Subbarayan Merchantrade Asia Sdn Bhd Secretary Treasurer Members Designation Ms Jane Ng Yen Peng Sumber Jalur Sdn Bhd En Muhamad Esamuddin Bin Mohd Saiful Alaf Jutawan Sdn Bhd Mr Balachandar Sathyanarayanan Travelex Malaysia Sdn Bhd En Mohd Azizul B Abdul Rahman Mobile Money International Sdn Bhd Committee On Remittance Business (Class A & B) Name Company Secretary Ms Lee Li Fong Nudee Enterprise Sdn Bhd Chairman Mr. Espen Kristensen IME (M) Sdn Bhd Members Ms Chia Moy Huan Garuda Cahaya Sdn Bhd Members Mr. Chan Kam Sum Mobile Money International Sdn Bhd En. Abdul Rahman B. Achmed Roz Money Changer Sdn Bhd Mr. Matthew James Boast BFC Exchange Malaysia Sdn Bhd En. Mohd Sani B. Mohamed Ismail Munawarah Exchange Sdn Bhd Mr. Narayanan Ponnusamy NS Cashpoint Sdn Bhd En. Asrab Ali B. Shaik Abdul Kader Broadway Money Exchange Sdn Bhd Pn. Nora Bt Hj Abdul Rahman POS Malaysia Berhad Ms Kee Hiau Leng Wang & Company Money Changer Sdn Bhd Mr. MD. Saidur Rahaman Farazi CBL Money Transfer Sdn Bhd En. Harif Fadilah B. Hashim Hak Ventures Sdn Bhd Mr. Abdull Aziz Bin Harun Mandiri International Remittance Sdn Bhd En. Mohamed Taha Bin Mohamed Kassim Mr. Billy Tham Seng Heng Mega Global Money Sdn Bhd IME (M) Sdn Bhd Designation Committee On Money - Changing Business (Class C) Name Company Designation Members Nomination Committee Name Company Mr. Lee Eng Sia Mobile Money International Sdn Bhd En. Mohd Sani B. Mohamed Ismail Forex Munawarah Sdn Bhd Mr. Espen Kristensen IME (M) Sdn Bhd Mr. Jam Imtiaz Rasool UAE Exchange Malaysia Sdn Bhd Advisor Chairman Members En. Jajakhan Bin Kader Gani En. Mohd Sani B. Mohamed Ismail Tn Hj Mohamed Burhan B. Mohd Alahudin Ms. See Yoke Siew En. Muhammad Yasin Bin Shah Mohd En. Mohamed Ershad Bin Syed Jahabar Mr. Nagapan Nagarajan Vital Rate Sdn Bhd Munawarah Exchange Sdn Bhd Dimensi Permata Sdn Bhd Adcrew Sdn Bhd Shahbina Money Changers Sdn Bhd SSB Interchange Sdn Bhd Spectrum Forex Sdn Bhd Designation Chairman Deputy Chairman Information Technology Committee Name Company Mr. Lee Eng Sia Mr. Lim Wai Kheong Mobile Money International Sdn Bhd E-Globex Sdn Bhd En. Shaik Abdul Kadir Bin Shahul Hameed Mr. Alan Liau Chen Kiong En. Mohamed Faizal Ali Bin Mohamed Sali En. Amin Basheer B. Jaffar Ali Ms. Loh Lee Min Pacific Money Exchange Sdn Bhd Traveller s Money Changer Sdn Bhd Jalinan Duta Sdn Bhd Vital Rate Sdn Bhd Perniagaan Sri Johor Jaya Sdn Bhd Member Mr. Yap Ke Lip Numoni DFS Sdn Bhd 90 91

48 MAMSB Committee & Taskforce Members MAMSB Committee Members Committee On Wholesale Currency Business (Class D) Central Region Working Group Designation Name Company Designation Name Company Chairman Mr. Jam Imtiaz Rasool UAE Exchange Malaysia Sdn Bhd Advisor Mr. Jahbar Sadheek Bin Syed Mohamed Glojuara (M) Sdn Bhd Members Mr. Ramasamy K Veeran Merchantrade Asia Sdn Bhd Chairman Mr Abd Hamid Bin Abdullah Max Money Sdn Bhd Mr. Rakesh Aravind Travelex Malaysia Sdn Bhd Members Mr. Akbar Batcha B. Mohamed Shamsuddin Akbar Money Changer Sdn Bhd Mr. Wong Sim Peng E- Globex Sdn Bhd Mr Nasir M. H. Din Sdn Bhd Mr Abd Hamid Bin Abdullah Max Money Sdn Bhd Mr. Manimakudam Karuppiah Suria Muhabat Sdn Bhd Mr. Ahmad Hadzim Bin Abd Majid Metro Money Exchange Sdn Bhd Mr. Sivanesan Muthusamy Global Millenium Trading Sdn Bhd En. Muhammad Yasin Bin Shah Mohd Shahbina Money Changers Sdn Bhd Northern Region Working Group Mr. Ahamed Sathali Bin Abu Mohamed Visionary Creation Sdn Bhd Designation Name Company Mr. Tan Kang Pan Benson Money Changer Sdn Bhd Advisor Tn Haji Munower Sadiq B. MKE Kader Sultan Ruhanmas Forex Sdn Bhd Mr. Abdull Aziz Bin Harun Mandiri International Remittance Sdn Bhd Chairman Members Tn Haji Mohamed Sherafath Ali B. Abdul Rahman Tn Haji Baharudin B. Puteh En. Mohamed Usman B. Mohamed Ameen Ms. Lee Li Fong En. Shaik Abdul Kadir En. Abdul Manaf B. Nordin En. Umar Farook B. Othuman Mydin En. Burhanuddin Ms. Khaw Ai Leen Sharafath Ali Sdn Bhd Dean Forex (M) Sdn Bhd S A Sahul Hamid Trading Sdn Bhd Nudee Enterprise Sdn Bhd Pacific Money Exchange Sdn Bhd Maju MC Sdn Bhd Triple Trillion Sdn Bhd Era Inspirasi Sdn Bhd Chop Thye Hin Sdn Bhd Designation Chairman Sabah State Representative Member - Kota Kinabalu Area Sarawak State Representative East Malaysia Region Working Group Name Company Mr. Lim Ching Seng EZ Money Express Sdn Bhd Ms. Chia Moy Huan Garuda Cahaya Sdn Bhd Mr. Alan Liau Chen Kiong Traveller s Money Changer Sdn Bhd Mr. Kenny Heng Swan Chuan Alfa Millions Sdn Bhd Tn. Syed Osman B. Abdul Rahim En. Muhammad Amin B. MSK Ameer Hamsa World Coins Forex Sdn Bhd MSKM Mohamed Haniffa Forex Sdn. Bhd. Member - Miri Area Mr. Daniel Hii Bei Seng Chin Guan Sdn Bhd Designation Southern Region Working Group Name Company Advisor Chairman Members Mr. Lim Kuan Yew Ms. Kee Hiau Leng Ms. Loh Lee San Mr. Goh Seng Liang Mr. Tai Tian Poh Mr Muralithran A/L B.Murthy Ms Emily Sim Moh Yue Mr. Chiong Sen Sern Mr. Lim Mui Liang SMJ Teratai Sdn Bhd Wang & Company Money Changer Sdn Bhd JB Central Trading Sdn Bhd Perinaga Cemerlang Sdn Bhd Lambang Canggih Sdn Bhd Easy Returns Sdn Bhd Abmann (M) Sdn Bhd Pengurup Wang Kluang Sdn Bhd Rich Feature Sdn Bhd 92 93

49 MAMSB Committee & Taskforce Members MAMSB Taskforce Members Taskforce On Review Of MAMSB Constitution Taskforce On Product Bundling And Promotions Designation Name Company Designation Name Company Chairman Mr. Lim Kuan Yew SMJ Teratai Sdn Bhd Chairman Mr. Espen Kristensen IME (M) Sdn Bhd Deputy Chairman Secretary Members Mr. Selva Raj Kanapathy Ms. Leow Su Lin Mr. Asrab Ali Bin Shaik Abdul Kader Mr. Cheong Kam Tho Mr. Nagapan Nagarajan Mr. Akbar Batcha Bin Mohamed Shamsuddin Mr. Wong Sim Peng NS Cashpoint Sdn Bhd Foo In Sdn Bhd Broadway Money Exchange Sdn Bhd Sumber Jalur Sdn Bhd Spectrum Forex Sdn Bhd Akbar Money Changer Sdn Bhd E-Globex Sdn Bhd Members Mr. Matthew James Boast Mr. Sarveswaran Raja Gopal Mr. Sheikh Akhter Uddin Ahmed Mr. Akbar Batcha Bin Mohamed Shamsuddin Mr. Chu Ah Poi Mr. Ayalur Viswanathan Subbaraman Mr. Narayanan Ponnusamy BFC Exchange Malaysia Sdn Bhd Merchantrade Asia Sdn Bhd NBL Money Transfer Sdn Bhd Akbar Money Changer Sdn Bhd Port Store Sdn Bhd Horizon Remit Sdn Bhd NS Cashpoint Sdn Bhd Designation Chairman Taskforce On Review Of Customer Due Diligence Requirement Name Company Mr. Jahbar Sadheek Bin Syed Mohamed Glojuara (M) Sdn Bhd Designation Chairman - (Principal) Taskforce On Review Of Single Principal Name Company Mr. Espen Kristensen IME (M) Sdn Bhd Members Mohd Sani Bin Mohamed Ismail En. Mohamed Faizal Ali Bin Mohamed Sali Munawarah Exchage Sdn Bhd Jalinan Duta Sdn Bhd Members - Representing Principal Mr. Sarveswaran Raja Gopal Mr. Wong Kok Yoong Merchantrade Asia Sdn Bhd Western Union Payments (Malaysia) Sdn Bhd En Muhamad Esamuddin Bin Mohd Saiful Alaf Jutawan Sdn Bhd Mr. Abd Hamid Bin Abdullah Max Money Sdn Bhd Designation Chairman Taskforce On Recommendation On Branching Name Company Mr. Jajakhan B. Kader Gani Vital Rate Sdn Bhd Chairman - (Agents) Members - Representing Agents Mohd Sani Bin Mohamed Ismail Mr. Jajakhan B. Kader Gani Tn Hj Mohamed Burhan Bin Mohd Alahudin Mr. Wong Liang Yuu Munawarah Exchage Sdn Bhd Vital Rate Sdn Bhd Dimensi Permata Sdn Bhd Dekad Intan Sdn Bhd Members - Representing Group A Tn Hj Mohamed Burhan Bin Mohd Alahudin Mr. Abdul Rahman Bin Achmed Dimensi Permata Sdn Bhd Roz Money Changer Sdn Bhd Mr. Jahbar Sadheek Bin Syed Mohamed Glojuara (M) Sdn Bhd Members - Representing Group B Ms. Leow Su Lin Mr. Asrab Ali Bin Shaik Abdul Kader Mr. Mavuri Satyamallikharjuna Rao Mr. Wong Sim Peng Mr. Silas Magakumar Das Foo In Sdn Bhd Broadway Money Exchange Sdn Bhd Lotus Group ENT Sdn Bhd E-Globex Sdn Bhd Golden K.L Union Sdn Bhd 94 95

50 MAMSB Membership Directory List of Members (Licensees under the Money Services Business Act 2011) as at 31 December 2016 MAMSB Membership Directory Page List of Members List of Associate Members List of Principal Companies 107 No. Company Business Additional Registration Region Principals Information Number 1 38 Money Tower Sdn Bhd ( D) C (Money Changing) Southern 2 A1 AJ Money Services Sdn Bhd ( X) C (Money Changing) Central 3 Abd Wahab Bin M Abu Bakar Sdn Bhd ( K) C (Money Changing) Southern 4 Abdul Rasheed Trading (M) Sdn Bhd ( P) C (Money Changing) Central 5 Abdul Rashid Enterprise (M) Sdn Bhd ( K) C (Money Changing) Central 6 Abmann (M) Sdn Bhd ( T) C (Money Changing) Southern 7 AB-ONE Option (Asia) Sdn Bhd ( K) C (Money Changing) Central 8 Access Smart Street Sdn Bhd ( T) C (Money Changing) Central 9 Adcrew Sdn Bhd ( V) C (Money Changing) Central 10 Adil Teladan Sdn Bhd ( T) C (Money Changing) Central 11 AFR Resources Sdn Bhd ( V) C (Money Changing) Central 12 Agrani Remittance House Sdn Bhd ( M) B (Remittance) Central 13 Akar Warisan Sdn Bhd ( P) C (Money Changing) Southern 14 Akbar Money Changer Sdn Bhd ( W) A (Money Changing & Remittance) Central Principal Licensee 15 Al Athabia Sdn Bhd ( A) C (Money Changing) Northern 16 Al- Lameem World Change Centre Sdn Bhd ( X) C (Money Changing) Central 17 Al Seema Reza Sdn Bhd ( D) C (Money Changing) Southern 18 Alaf Jutawan Sdn Bhd ( T) C (Money Changing) Central 19 Alfa Millions Sdn Bhd ( P) C (Money Changing) East Malaysia 20 Al-Fattah Sdn Bhd ( W) C (Money Changing) Central 21 Alif Money Changer Sdn Bhd ( P) C (Money Changing) Central 22 Alinoor & Sons Sdn Bhd ( X) C (Money Changing) Central 23 Alpha Tristar (M) Sdn Bhd ( D) C (Money Changing) Central 24 Al-Tamij Capital Resources Sdn Bhd ( T) C (Money Changing) Central 25 Amaha Resources Sdn Bhd ( V) C (Money Changing) Southern 26 Ameer Sultan Sdn Bhd ( U) C (Money Changing) Northern 27 Anjur Intan Sdn Bhd ( P) C (Money Changing) East Coast 28 Antaraduit Agensi Sdn Bhd ( P) C (Money Changing) Central 29 Asiah Bte Ab. Hamid Sdn Bhd ( X) C (Money Changing) Central 30 AZ Forex World Sdn Bhd ( P) C (Money Changing) Northern 31 Az Nur Resources Sdn Bhd ( D) C (Money Changing) Northern 32 Ban Loong Enterprise Sdn Bhd ( P) C (Money Changing) East Malaysia 33 Bank Kerjasama Rakyat Malaysia Berhad 2192 B (Remittance) Central Development Financial Institution 34 Bank Pertanian Malaysia Berhad (AGROBANK) ( U) B (Remittance) Central Development Financial Institution 35 Bank Simpanan Nasional B (Remittance) Central Development Financial Institution 36 Bella Ilusi Sdn Bhd ( W) C (Money Changing) Northern 37 Benchmark Alliance Sdn Bhd ( D) C (Money Changing) Central 38 Benson Money Changer Sdn Bhd ( A) C (Money Changing) Central 39 Benua Kapital Sdn Bhd ( K) C (Money Changing) Central 40 Best Quote Sdn Bhd ( T) C (Money Changing) Central 41 BFC Exchange Malaysia Sdn Bhd ( A) A (Money Changing & Remittance) Central Principal Licensee 41 Bijak Permata Sdn Bhd ( H) C (Money Changing) Southern 43 Billion Debut Sdn Bhd ( H) C (Money Changing) Central 44 Bismi Enterprise Sdn Bhd ( H) C (Money Changing) Central 45 Broadway Point Sdn Bhd ( K) C (Money Changing) Northern 46 BSB Darussalam Sdn Bhd ( U) C (Money Changing) East Malaysia 47 Bumi Teraju Money Changers Sdn Bhd ( P) C (Money Changing) Central 48 C & H Dominant Gerik Sdn Bhd ( X) C (Money Changing) Northern 49 Cairns Multitrade Sdn Bhd ( P) C (Money Changing) Northern 50 Cash & Chips Sdn Bhd ( W) C (Money Changing) Central 51 CBL Money Transfer Sdn Bhd ( M) B (Remittance) Central Note: Central Region includes Kuala Lumpur, Selangor, Negeri Sembilan & Pahang Northern Region includes Kedah, Perlis, Pulau Pinang & Perak East Coast Region includes Kelantan & Terengganu Southern Region includes Melaka & Johor East Malaysia Region includes Sabah, Labuan & Sarawak 96 97