Notice on Reporting of Fraud Incidents for Finance Companies (Notice No.Bu/N-3/2022/74 - Amendment No 1)

This amendment reinforces obligations for licensed finance companies to report fraud incidents to the Authority through agreed communication channels. Firms must maintain a board-approved fraud policy and ensure senior accountable persons oversee fraud risk management. For compliance teams, the key takeaway is that fraud reporting is now a direct regulatory requirement under Section 54 of the BDCB Order 2010, with immediate effect.

This means finance companies need to review and update their fraud policies, incident reporting procedures, and escalation routes. They should verify that their reporting channels are pre-agreed with the Authority, and that roles and responsibilities for fraud oversight are clearly assigned to Key Responsible Persons. The amendment also links to Financial Intelligence Unit reporting, so AML/CFT and fraud teams must coordinate.

RegCanary recommends affected firms assess their current fraud incident detection, documentation, and reporting processes against the amended notice, and consider automating fraud data capture to reduce reporting delays. While the direct scope is Brunei-licensed finance companies, the regulatory direction aligns with global expectations for operational resilience and financial crime controls. Firms operating in or with Brunei should monitor for further guidance and ensure board-level accountability is evidenced.

Opportunities exist for RegTech providers offering fraud reporting and case management solutions, and for firms to strengthen customer trust through improved fraud response. Overall impact is significant for in-scope finance companies, with high urgency given the effective date has passed and requirements apply immediately.