KUALA LUMPUR: Bank Negara Malaysia (BNM) has urged financial institutions to uphold ethics and integrity as the cornerstone of compliance in an era increasingly shaped by artificial intelligence (AI).
Governor Datuk Abdul Rasheed Ghaffour said while technology can strengthen compliance systems, it cannot replace human judgment and accountability.
“No algorithm can replace the judgment, integrity and accountability expected of the financial industry,” he said in his keynote address at the 15th International Conference on Financial Crime and Terrorism Financing (IFCTF) 2025 here yesterday.
He said the rapid adoption of automated tools must not come at the expense of values that protect consumers and preserve market integrity.
“Cases of fraud and corruption within the industry remind us that we must continue to work on improving our conduct and send a clear message that unethical employees and bad actors must be penalised for misconduct,” he said.
Abdul Rasheed added that BNM’s Fair Treatment of Financial Consumers principles — which emphasise fairness, transparency and due care — should guide how technology is designed, deployed and governed.
He also highlighted the vigilance of customer service officers as vital in detecting and preventing scams, underscoring how conduct and culture safeguard public trust.
“As frontliners, your actions build customer trust and facilitate our efforts to educate and protect the public against financial crimes,” he said.
The Governor stressed that conduct should go beyond compliance requirements to form part of an organisation’s conscience.
“It is conduct that preserves confidence and ultimately is what keeps the financial system safe and resilient.
“The principles of collaboration, creativity and conduct together shape Malaysia’s path toward a more secure and trusted financial ecosystem,” he said.
