Malaysia

New Documents

Malaysia Anti-Corruption Commission Announces New Arrest in Corruption Probe

The Malaysian Anti-Corruption Commission issued a statement on the arrest of the country’s former prime minister.

March 10, 2023

Malaysia Anti-Corruption Advisor Discusses Recovery of Laundered Funds

The Malaysian Anti-Corruption Commission issued a statement by Dato Sri Akhbar Satar, a member of the Anti-Corruption Advisory Board, on efforts to retrieve laundered funds.

March 8, 2023

Bank Negara Malaysia Signs AML/CTF Agreement with Companies Commission of Malaysia

August 29, 2022

Malaysian Central Bank Governor Delivers Speech on Cybercrime

July 28, 2022

Malaysian Regulator Shares Regulatory Goals for 2022 to 2026

February 18, 2022

News

Midweek Roundup: Binance Faces Sanctions Probe, US Lawmaker Charged with Money Laundering, and More

U.S. AML enforcement rebounded in 2022, Ukrainian official criticizes Austrian bank, and more, in the midweek roundup.

May 10, 2023

Weekly Roundup: Putin’s Swiss Bankers Charged, US Treasury Using Powerful Sanctions Measure as Bargaining Chip, and More

Oil brokers helping Russia break energy and banking embargo, glamor model caught smuggling bulk cash, and more, in the weekly roundup.

March 3, 2023

Weekly Roundup: US Banks Rejecting Dollars from Iraq, ‘Unknown’ Option Threatens US Ownership Database, and More

January 20, 2023

Midweek Roundup: SBF Pleads Not Guilty, Coinbase Lands Record AML Penalty, and More

January 4, 2023

Midweek Roundup: Deutsche Bank Severs Soccer Club Ties, ‘Abu the Bee’ Accused of Financing Terrorism, and More

October 19, 2022

Enforcement Actions

Malaysian Regulators Order Asset Seizures of i-Serve Online Mall Sdn Bhd for Regulatory Violations

The Bank Negara Malaysia, along with several Malaysian regulators, ordered the seizure of assets belonging to the Malaysia-based financial technology company and its affiliates for overseeing various suspicious transactions.  

December 28, 2021

Malaysia Ministry of Finance: Deloitte PLT to Pay RM324 Million to Settle 1MDB, SRC International Claims

The Malaysia Ministry of Finance announced an agreement with a subsidiary of the London, U.K.-based firm to resolve claims related to the auditing of accounts for 1Malaysia Development Berhad and SRC International Sdn Bhd between 2011 and 2014.

March 5, 2021

Malaysia: Goldman Sachs Agrees to Pay $3.9 Billion to Resolve Charges Linked to 1MDB Scandal

July 24, 2020

Key Documents

Malaysia Enacts Updated AML/CTF Legislation

July 30, 2014

Malaysia Publishes Updated AML Guidelines

February 3, 2009

Malaysia Issues AML Guidelines for Banks

February 10, 2009

Malaysia Publishes AML Guidelines for Money Changers, Non-Bank Remitters

September 25, 2007

Malaysia Issues AML Guidelines for Insurance Industry

February 3, 2009

Important Facts

  • The U.S. State Department identifies Malaysia as a major money laundering country. The jurisdiction is vulnerable to domestic and transnational criminal activity due to its porous borders and visa-free entry policy for nationals from over 160 countries. Although Malaysia maintains a largely up-to-date AML regime with effective monitoring and enforcement capabilities, the country nevertheless faces risks of fraud, corruption, smuggling, tax crimes, and terrorist financing. Malaysia is also used as a transit country to move drugs globally. Drug trafficking by Chinese, Iranian, and Nigerian organizations is a significant source of illegal proceeds. Malaysia is a source, destination and transit country for wildlife trafficking, with some contraband (like ivory) used as currency by the trafficking networks. Money laundering methods that are also used for terrorist financing include cash couriers, funds skimmed from charities, gold and gem smuggling, front companies and businesses. Illicit proceeds also are primarily generated by fraud, criminal breach of trust, illegal gaming, credit card fraud, counterfeiting, robbery, forgery, human trafficking, and extortion. The jurisdiction’s large cash and informal economies and unauthorized money services businesses pose significant vulnerabilities. In 2020, the country's former prime minister was found guilty on three counts of money laundering in connection to the 1MDB prosecution and was sentenced to 12 years' imprisonment.
Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 20 High : 0
Largely Compliant : 18 Substantial : 4
Partially Compliant : 2 Moderate : 7
Non-Compliant : 0 Low : 0

Malaysia's technical compliance was re-rated in a Oct. 31, 2018 follow-up report

BASEL i

Rank : 66/110
Score : 5.47/10

TRANSPARENCY INTERNATIONAL i

Rank : 57/179
Score : 51/100

Tax Justice Network i

Rank : 32/133
Score : 70/100