Notice on Reporting of Fraud Incidents for Islamic Banks (Notice No.Bu/N-4/2022/75 - Amendment No 1)

The Brunei Darussalam Central Bank (BDCB) has issued Amendment No. 1 to its Notice on Reporting of Fraud Incidents for Islamic banks. Effective 30 September 2026, the amendment updates the reporting framework under section 66 of the Islamic Banking Act, Chapter 168. For compliance teams at Brunei-licensed Islamic banks, this is a clear signal to revisit fraud incident detection, escalation and reporting arrangements.

The amendment sharpens definitions, notably around ATM skimming, and reinforces the use of agreed communication channels with the Authority. It also highlights the role of Key Responsible Persons and coordination with the Financial Intelligence Unit. Practical implications: banks should update their fraud incident reporting policies and procedures to reflect the amended scope, ensure incidents are captured and reported promptly through authorised channels, and embed clear ownership at senior management level.

Training for front-line and fraud teams, review of ATM and payment card controls, and alignment with AML/CFT obligations are prudent next steps. While the notice is specific to Islamic banks in Brunei, its themes—fraud reporting discipline, senior accountability and regulatory transparency—are consistent with broader expectations across financial crime compliance. Firms should document their gap analysis, test reporting workflows, and maintain evidence of timely submissions.

Non-compliance can attract supervisory scrutiny and reputational damage. Overall, the amendment is a focused but material compliance update, requiring immediate attention from affected institutions.