MLY CB RENTAS Operational Procedure


On Apr. 3, MLY CB issued rules for payments, securities and currency.


  • MLY CB issued 3 updated operational procedures, and participation rules, for systems.
  • Participation Rules
  • MLY CB published updated Participation rules for payments and securities services, as applicable to RENTAS and FAST participants, to provide some clarification on issues.
  • This removed cyber resilience guidelines for all participants of both RENTAS and FAST.
  • Clause 16.0 was also updated with changes to clause 16.1 and sub-clauses, to include system recovery as one of the businesses continuity components under these rules.
  • Under Part XI CRMA for RENTAS and FAST participants, new clauses have been added as new clauses 40-42, on Introduction, objective and scope of assessment for CRMA.
  • Foreign Currency Settlement
  • MLY CB further published the Operational procedures for foreign currency settlement in the real time electronic transfer of funds and securities system (RENTAS), rules.
  • Added clause 7.8 and 7.9 to clarify the handling of payments settlement in RENTAS in the event of unexpected banking holiday, to ensure clarity for all of the system users.
  • Added new sub-cause 27.4.6 to introduce RENTAS iLINK new module in RENTAS Portal.
  • Changes also removed clause 28.1 on RENTAS iLINK user manuals, no longer needed.
  • On Guideline IV - Supplementary guideline on co-existence of RENTAS ISO20022 (MX) and ISO15022 (MT) a pair of new clauses had been added, clause 4.3 and clause 5.2 to manage additional information by RENTAS participants in co-existence of MT-MX.
  • Also, Appendix IX external user access request form was updated to be applicable for BNM and external use, and did remove cyber security department (CSD) sign off need.
  • In the glossary, the documents had been updated to add definition of banking holiday and unexpected banking holiday, and inserted eligible into the intraday credit facility.
  • Ringgit Settlement
  • MLY CB also published Operational procedures for Malaysian ringgit (MYR) settlement in the real time electronic transfer of funds and securities system (RENTAS) rules.
  • Added clause 8.11 and 8.12 to clarify the handling of payments settlement in RENTAS in the event of unexpected banking holiday, to ensure clarity for all the system users.
  • Added new sub-cause 34.4.6 to introduce RENTAS iLINK new module in RENTAS Portal.
  • The changes had also removed all of clause 35.1 on the RENTAS iLINK user manuals.
  • On Guideline IV - Supplementary guideline on co-existence of RENTAS ISO20022 (MX) and ISO15022 (MT) a pair of new clauses had been added, clause 4.3 and clause 5.2 to manage additional information by RENTAS participants in co-existence of MT-MX.
  • Also, Appendix XV external user access request form was updated to be applicable for BNM and external use, and did remove cyber security department (CSD) sign off need.
  • In glossary, the documents had been updated to add definition of banking holiday and unexpected banking holiday, and inserted eligible into the intraday credit facility.
  • Effectiveness
  • These new requirements all now apply from the date of rule creation, on Apr. 1, 2023.
  • Dec. 2023 Amendments
  • On Dec. 26, 2023, MLY CB issued amendments to the RENTAS operational procedures.
  • MLY CB updated clause 3.2.1 to include the new platform SWIFT Alliance Cloud (SAC) and the requirement for participants opting for SWIFT Alliance Lite2 (SAL2) and SAC.
  • Further, ML CB has updated clause 8.27 to reflect changes to the provision of MYR intraday credit during MYR evening settlement window and RPS business hours.
  • Changes were also made to clause 9.0, clause 19.0, the appendix and glossary.
  • The amendments come into effect on Jan. 2, 2024.
  • Document dated Dec. 26, 2023, received from MLY CB Dec. 27, summarized on Jan. 2.
  • In Feb. 2024, MLY CB drafted paper on RENTAS modernization plans, see #202808.
  • Jun. 25, 2024 Updates to Procedures, Rules
  • On Jun. 25, 2024, MLY CB issued version 1.5 on the RENTAS operational procedures for foreign currency settlement, version 1.6 for Malaysian Ringgit (MYR) settlement.
  • Updated to remove iLink accessibility via internet, updated Type 1 membership table to recognize bridge institutions as RENTAS members upon designation, per the PIDM act.
  • Added MyDebit 2nd Window in MYR settlement activities. reflect changes of payment message format from MT to MX, while retaining securities messaging format as MT.
  • Removed USD as available currency from forex settlement service in RENTAS.
  • Also issued version 1.3 of Participation rules for payments and securities services.
  • Separated clause 8.2 into two sections; outlines possible actions or scenarios during a resolution and specifies different procedures for handling the insolvency of facility agent, and insolvency procedures for non-PIDM MI operating SSDS account.
  • All of the updated versions are effective from Jul. 1, 2024.
  • Documents dated Jun. 25, 2024, received from MLY CB Jun. 28, summarized on Jul. 3.
  • Oct. 2024 Updates to Procedures and Rules
  • On Oct. 21, 2024, MLY CB issued version 1.6 on the RENTAS operational procedures for foreign currency settlement, version 1.7 for Malaysian Ringgit (MYR) settlement.
  • Replaced banking holiday with holiday; updated contingency terminal charges at BNM premise to include RENTAS bank gateway (RBG) activation fee, streamlined utilization fee of iLINK or RBG; updated the definition of recovery time objective (RTO).
  • Plus, version 1.4 of Participation rules for payments and securities services, which require participants to resubmit transactions to BNM upon request in the event of data loss/corruption, ensure finality of settlement during worst case scenario disasters.
  • The updated procedures and rules will be implemented from Nov. 1, 2024.

Regulators MLY CB
Entity Types Bank; FDM
Reference Gd BNM/RH/PD 028-29, BNM/RH/028-26, 10/21/2024; Gd BNM/RH/028-26, BNM/RH/PD 028-28, BNM/RH/PD 028-29, 6/25/2024; RF BNM/RH/PD 028-28, BNM/RH/PD 028-29, 12/26/2023; RF BNM/RH/PD 028-26, RF BNM/RH/PD 028-28; RF BNM/RH/PD 028-29, 4/3/2023
Functions BCS; Compliance; Cyber; Financial; Operations; Reporting; Risk; Settlement; Technology; Trading; Treasury
Countries Malaysia
Category
State
Products Banking; Cards; Clearing; Deposits; Forex; Payments; Securities
Regions AP
Rule Type Final
Rule Date 4/3/2023
Effective Date 11/1/2024
Rule Id 168402
Linked to Rule :202808
Reg. Last Update 10/21/2024
Report Section International

Last substantive update on 10/24/2024