KUALA LUMPUR (Nov 27): AMMB Holdings Bhd (AmBank Group) said the RM53.7 million penalty imposed on it by Bank Negara Malaysia (BNM) was a result of weaknesses in its reporting systems and processes.

"BNM's action for the non-compliance came about because of weaknesses in our reporting systems and processes in place at the time, as well as inadequate skills on the part of some of our staff," it said in a Bursa Malaysia filing late this evening.

"The non-compliance did not result in financial losses either to AmBank Group, save for the penalty, or to its customers. BNM has not placed any restrictions on the business operations of AmBank Group," it added.

The stock exchange had, in a letter dated Nov 24, required AmBank Group to provide more details about the fine, which the group had announced about a day earlier. AmBank Group had earlier stated only that the fine was a result of non-compliance with certain regulations.

AmBank Group also said it had strengthened its organisational structure in the area of compliance in order to improve its systems and processes.

"To strengthen the compliance function, AmBank Group has recruited a number of senior and experienced officers. For all of its staff, AmBank Group has increased and enhanced training and awareness programmes and, at the same time, senior management and the respective boards have heightened the oversight and improved the check and balance processes," it said in the filing today.

AmBank Group shares closed up 2 sen or 0.43% at RM4.64 today, bringing a market capitalisation of RM13.96 billion.

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