KUALA LUMPUR: Bank Negara Malaysia has urged financial institutions to put strong controls in place to safeguard the financial system's integrity, in light of the Op Sky special operation.

The central bank had teamed up with the Malaysian Anti-Corruption Commission (MACC) to take action against financial institutions that are involved in corruption and money-laundering activities.

In an email response to Business Times, Bank Negara said financial institutions have provided close cooperation to the central bank and other relevant law enforcement authorities during the ongoing investigation.

"Bank Negara is part of the joint enforcement team together with MACC in taking action against a financial consulting company offering debt-consolidation service with investment opportunities.

"The company is being investigated for potential contraventions of section 137(1) of the Financial Services Act 2013 (FSA), section 16 of the Malaysian Anti- Corruption Commission Act 2009 and section 4(1) of the Anti-Money Laundering, Anti- Terrorism Financing and Proceeds of Unlawful Activities Act 2001(AMLA).

"Bank Negara has stressed that the integrity of financial institutions and individuals working in financial institutions is paramount.

"Financial institutions are required to put strong controls in place to safeguard the financial system's integrity, including conducting thorough checks and screening of potential employees prior to hiring them and on a periodic basis," it said.

It added that individuals that have records of fraud and dishonesty are banned from working in any licensed financial institution.

Bank Negara also reminded the public to remain vigilant against unlicensed or unapproved companies providing any financial services and schemes.

"Borrowers who have difficulties meeting their financial obligations should reach out to their respective banks or Agensi Kaunseling dan Pengurusan Kredit for further advice or assistance," said the central bank.

In January, 12 individuals including directors of financial consultancy firms and bank officers from several financial institutions were arrested by the MACC under Op Sky as they were allegedly involved in corruption and money laundering activities.

The operation was conducted at 24 locations, including residences and offices around the Klang Valley and resulted in the arrest of 12 individuals.

Among those arrested were two directors of financial consultancy firms, a foundation director, a bank manager and a former sales manager from a banking institution.

They are believed to be involved in corruption and money laundering linked to personal loan applications from various banking institutions.

A five-day remand was given for the 12 individuals.

A week later, six more individuals were remanded, including current and former banking institution officers under suspicion of accepting bribes in exchange for assisting in processing and approving personal loan applications submitted by a financial consultancy firm.

The MACC also issued a five-day remand order for the six suspects.

To date, 27 individuals have been detained, including 18 bank officers, eight employees of the financial consultancy firm, and a member of the public.

All of them have since been released on bail by the MACC after their remand periods ended.

MACC chief commissioner Tan Sri Azam Baki said over RM22 million in funds linked to 98 bank accounts were frozen under the Op Sky investigation.

He declined to disclose the names of the banks involved.