What is Cash Transaction Limit (CTL)?

The National Coordination Committee to Counter Money Laundering (NCC) conducted a media briefing on 7 November 2019 on the proposed Cash Transactions Limit (CTL) at RM25,000.

The objectives of the CTL is to strengthen financial integrity in Malaysia and complement existing integrity measures. CTL targets large cash transactions that are of higher risk of being misused for illicit activities.

Promoting financial integrity in Malaysia is a shared responsibility – everyone has a role to play.

What is being proposed?

• A cash transaction limit of RM25,000 is being proposed. Any cash transaction above this limit will have to be paid electronically, by cheque or through the financial institutions.
• This will cover all types of physical cash payment transactions, e.g. payment for goods and services, donations or payment between individuals for any purpose whatsoever.

Have other Countries implemented a similar measure?

Yes. Several countries in Europe such as France, Spain, and Italy have implemented it. The UK has a similar arrangement through its supervision on High-Value Dealers – any business or sole trader that accepts or makes payments of €10,000 or more. In Asia-Pacific, India has introduced this measure. Australia and Indonesia are also in the midst of implementing a limit to cash payments.

What type of cash transactions are Exempted from the CTL?

• Cash transaction(s) with or through licensed banks under the Financial Services Act 2013, licensed Islamic banks under the Islamic Financial Services Act 2013, licensees under the Money Services Business Act 2011 or prescribed institutions under the Development Financial Institutions Act 2002 are exempted from this limit.
• As regulated entities, financial institutions are already subject to various anti-money laundering/counter-terrorism financing requirements.
• Physical cash transactions under exigent situations such as for humanitarian aid and disaster relief will also be exempted from the limit subject to approval from the Minister of Finance on the recommendation of Bank Negara Malaysia.

(Source: Bank Negara Malaysia)

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