KUALA LUMPUR (Oct 30): Effective Jan 1, 2019, banks will have to report any cash transactions exceeding RM25,000 in their daily cash threshold report, down from the current RM50,000 limit.

Bank Negara Malaysia Governor Datuk Nor Shamsiah Yunus said despite the advancements made in epayments, the use of cash among the public and small- and medium-sized businesses remains high.

Speaking at the 10th International Conference on Financial Crime and Terrorism Financing, she said this opens up the economy to risks as cash is still being used by criminals to launder illegal proceeds, as seen from some high-profile cases over the past year or so.

"Similarly, this is the preferred mode to finance terrorist activities, which will involve transacting in cash," she said in her keynote speech.

Bank Negara's present requirements for the cash threshold report involves cash transactions above RM50,000 involving physical currencies and bearer negotiable instruments such as travellers' cheques.

The amount excludes bank drafts, cheques, electronic transfers or fixed deposit rollovers or renewals.

Nor Shamsiah said this change will bring the cash threshold report in Malaysia to be more at par with other countries.