Malaysia is planning to impose a cash transaction limit of RM25,000 (*USD 6,000 approx.) starting next year. BNM (Bank Negara Malaysia) is proposing to set a cash transaction limit to further strengthen the country’s financial integrity.
During a media briefing, BNM deputy governor and chairperson of the NCC (National Coordination Committee) – Rasheed Ghaffour said, “This is to address the abuse of physical cash used for illicit activities”. However, industries that deal with the large cash transactions – medical tourism, hotels, and wholesale companies are exempted from the cash transaction limit, he further added.
If proposal implemented, then cash transactions more than the limit cannot be paid by cash, but electronically (Credit or cheque).
Abdul Rasheed stated the move would not affect households as NCC’s engagement with over 1,000 individuals across the country revealed that large, single cash transactions on average among the Bottom 40 percent income group were RM2,284, Middle 40 percent income group (RM4,104) and Top 20 percent (T20) income group (RM7,843).
Earlier this year in January, BNM lowered the daily CTR (Cash Threshold Report) from RM50,000 to RM25,000.
Till September 2019, over 5 million CTR reports were received – representing about RM483 billion in cash transactions.
Source – Malaysiakin