On 4 January 2022, Bank Negara Malaysia (“BNM“), the Central Bank of Malaysia, issued the Licensing Framework for Digital Insurers and Takaful Operators Discussion Paper (“DITO Discussion Paper“).
The document represents the next phase of BNM’s initiative to encourage digitalisation within the financial sector, and follows the Licensing Framework for Digital Banks issued by BNM on 31 December 2020.
DITO applicants are required to demonstrate that their offering is in the best interest of Malaysia and will contribute to long-term social and economic benefits for Malaysia.
Separately, BNM may also impose additional requirements to encourage DITOs to strengthen their technology resilience against operational disruption and cyber threats.
Read more at Global Compliance News.