Malaysia

New Documents

Central Bank of Malaysia Adopts New Digital Bank Licensing Framework

The Bank Negara Malaysia, the central bank of Malaysia, adopted a new policy document on licensing framework for digital banks, following a six-month public consultation.

January 12, 2021

Malaysian Agency Highlights Efforts to Digitalize Financial Services

Malaysia’s Labuan International Business and Financial Centre issued a press release, highlighting its move to digitalization in the financial sector.  

January 12, 2021

BNM Advises Licensed Entities on CDD Requirements Under AML/CTF Policies

January 12, 2021

BNM, Securities Commission of Malaysia Clarify Regulatory Approach to Cryptocurrencies

January 11, 2021

BNM: High Court Orders Genneva Malaysia Sdn Bhd to Pay MYR$450 Million for AML Violations

October 15, 2020

News

Legal Brief: 2020 in Review

In our final installment for 2020, the moneylaundering.com legal team revisits our coverage over the past year.

December 15, 2020

Midweek Roundup: Western Union Ends Cuban Remittances, Airbnb Faces US Sanctions Fine, and More

Prevezon Holdings suspected of handling larger volume of illicit funds, Crown Resorts loses license, and more, in the midweek roundup.

November 18, 2020

Goldman Sachs’ 1MDB Settlement Exposes Rift Between Business and Compliance

October 22, 2020

Weekly Roundup: Swiss Probe Lender Over Corrupt Payments, Ex-Danske Bank Execs Seek Dismissal of Money Laundering Case, and More

October 9, 2020

Kleptocrats of the World Have United: Author

October 5, 2020

Enforcement Actions

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

The Ministry of Finance Malaysia entered into a settlement with Goldman Sachs requiring the investment banking company to pay $3.9 billion to resolve outstanding charges and claims related to three bond transactions it structured and arranged with 1Malaysia Development Berhad.

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, including 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.
Source: 2019 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 : 65/141
Score : 5.25/10

TRANSPARENCY INTERNATIONAL i

Rank : 51/1780
Score : 53/100

Tax Justice Network i

Rank : 32/133
Score : 70/100