Malaysia fines Zurich $390,000 over sanctions breaches

The penalties were issued on 19 January 2026 and paid on 26 January 2026.

Bank Negara Malaysia (BNM) has imposed administrative monetary penalties totalling $390,000 (RM1.56m) on two Zurich entities for breaches related to targeted financial sanctions requirements.

In a statement, BNM said Zurich General Insurance Malaysia Berhad was fined $260,000 (RM1.04m), whilst Zurich General Takaful Malaysia Berhad was fined $131,479.19 (RM520,000). 

Both penalties were issued on 19 January 2026 and paid on 26 January 2026.

As reporting institutions, the firms are required to update their sanctions databases without delay following updates to the domestic sanctions list, and to screen customers against both domestic and United Nations Security Council sanctions lists as part of due diligence. 

They must also investigate potential matches and, where confirmed, freeze funds and report immediately to BNM and the Royal Malaysia Police.

BNM said the breaches were identified through Zurich’s own reporting, which showed that several entities listed on the domestic sanctions list had been onboarded as customers. 

This was due to the firms using an outdated sanctions database, as updates were not carried out promptly.

The regulator also found that Zurich failed to properly assess potential matches to determine whether they were true matches. 

In one case, Zurich General Insurance Malaysia Berhad did not freeze funds or report promptly after identifying that it held funds linked to a listed entity.

BNM attributed the lapses to gaps in sanctions screening systems, weaknesses in standard operating procedures, and insufficient staff oversight and awareness.

Zurich has since taken steps to address the issues, including improving its procedures and providing additional staff training.

($1.00 = RM3.95)