KUALA LUMPUR Dec 27 Bank Negara Malaysia said
it was taking action against an unamed financial institution for
failing to promptly notify the central bank of a "significant
audit finding" related to its dealers' misconduct involving the
fixing of the dollar-ringgit exchange rate.
The action could include monetary penalties, issuance of a
written order to comply, a public reprimand and a written order
to mitigate or remedy such breaches, it said in a statement,
without naming the financial institution.
"The finding indicates that there were communications with
traders from other foreign financial institutions which included
inappropriate references to the fixing rate submission process,"
Bank Negara said in a statement.
The central bank said it viewed such breaches seriously,
"especially on financial institutions' involvement with offshore
ringgit NDF (non-deliverable forward) market or any activities
that relates towards market manipulation."
(Reporting by A. Ananthalakshmi; Editing by Simon