New IT Regulatory Requirements For EMIs

Following-up on their exposure draft issued in June 2021, Bank Negara Malaysia ("BNM") has recently issued a Policy Document on the requirements and guidance applicable to approved issuers of electronic money ("EMI").¹ Serving a twofold purpose, the Policy Document aims to:

1. Ensure the safety and reliability of E-money issued by EMI; and
2. Preserve customers' and merchants' confidence in using or accepting E-money for the payment of goods and services.

The usage of E-money has grown exponentially in recent times. Based on BNM's data, the average number of digital payment transactions per capita has more than quadrupled over the last 10 years, increasing from 49 transactions per capita in 2011, to over 221 transactions per capita in 2021. In 2020, the nation saw 3 million new mobile banking service subscriptions, largely due to the COVID-19 pandemic. In light of our increasing reliance on Emoney, it is of utmost importance that the integrity of