Guide to Financial Services Regulations & Guidelines in Malaysia

Financial regulators in Malaysia include:

● Bank Negara Malaysia (BNM), also known as the Central Bank of Malaysia. It oversees banking and financial activities throughout the country.

● The Securities Commission Malaysia (SC) is the statutory government agency responsible for the management and supervision of the Malaysian capital market.

To regulate financial institutions' risk management in technology, the BNM and SC published a series of regulatory requirements and guidelines, covering technology risk management, IT outsourcing management, customer information protection and business continuity management for financial institutions operating in Malaysia The related regulatory requirements and guidelines include:

• Risk Management in Technology: This policy describes the BNM's requirements with regard to financial institutions' management risks in technology.

• Outsourcing: This policy specifies the scope of outsourcing arrangements and BNM's requirements for financial institutions to establish governance and risk management frameworks, including those relevant to the protection of data confidentiality.

• Management of Customer Information and Permitted Disclosures: This policy describes BNM's requirements for financial service providers' handling of customer information throughout the information lifecycle. The policy covers collection, storage, use, transmission, sharing, disclosure and disposal.

• Guidelines on Data Management and Management Information System Framework for Development Financial Institutions: This policy establishes guidelines for sound data management and management system practices for financial institutions in developing their data management capabilities. Financial institutions need to design and build data and management systems in compliance with the principles in the guidelines and in a way that is appropriate to specific business needs of a financial institution.

• Guidelines on Business Continuity Management: This policy describes the minimum business continuity requirements for financial institutions to ensure that the major business functions and essential services are not interrupted within a specified period of time in the event of a major disruption. Minimizing disruption to essential business services would increase public confidence in financial institutions and the system, and mitigate reputational risks for financial institutions.

• Guidelines on Management of Cyber Risk: This policy specifies SC's cyber risk management requirements for financial institutions. These requirements help financial institutions improve cyber risk management to ensure cybersecurity.

• Guiding Principles on Business Continuity: The objective of this document is to guide the financial institutions on minimum standards where entities are encouraged to adopt based on the nature, size and complexity of their business operations. The overall intended outcome of the principles is to ensure timely continuation of critical services and the fulfilment of business obligations in the event of disruptions and, ultimately, to mitigate or manage any possible wider systemic risks to the Malaysian capital market.

HUAWEI CLOUD User Guide to Financial Services Regulations & Guidelines in Malaysia describes how Huawei Cloud will help you meet the regulatory requirements of the financial industry in Malaysia.