Malaysia Malaysia

New Documents

Bank Negara Malaysia Releases Annual 2022 Report

Bank Negara Malaysia published its annual report for 2022, highlighting the Bank’s initiatives in promoting financial stability, combating scams, and managing cyber threats. 

April 25, 2024

Bank Negara Malaysia Releases Annual 2023 Report

Bank Negara Malaysia published its annual report for 2023, highlighting that combatting online fraud continues to be a top priority for the agency.

April 4, 2024

Bank Negara Malaysia Revises AML/CTF Policies for Financial Institutions, DNFBPs

April 2, 2024

Bank Negara Malaysia Releases Proliferation Financing Risk Assessment 2021

April 2, 2024

Bank Negara Malaysia Publishes NRA 2020

April 2, 2024

News

Midweek Roundup: TD Bank Kept US Probe Secret, Morgan Stanley Assists Russian Oil Deal, and More

RUSI warns FATF, fintechs surpass banks in AML fines, and more.

January 10, 2024

Midweek Roundup: FinCEN Wants Beneficial Ownership Deadline Extension, Binance Risks US Secondary Sanctions, and More

Banks push fintechs to invest in compliance, SBF pleads not guilty, and more, in the midweek roundup.

August 23, 2023

Midweek Roundup: British Banks De-risk Ukraine, Bankman-Fried Charged with Fraud, and More

August 16, 2023

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

May 10, 2023

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

March 3, 2023

Enforcement Actions

BNM Fines Mandiri International Remittance Sdn. Bhd. RM134,400 for AML Noncompliance

Bank Negara Malaysia imposed a monetary penalty on the Kuala Lumpur-headquartered financial institution for contravening the Money Services Business Act 2011.

September 19, 2023

Bank Negara Malaysia Fines MPI Generali Insurans Berhad RM260,000 for AML, Sanctions Infractions

Bank Negara Malaysia fined MPI Generali Insurans Berhad RM260,000 for violating the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions policy document.

September 13, 2023

Bank Negara Malaysia Fines Six Entities RM50 Million for AML Breaches

September 13, 2023

Bank Negara Malaysia Fines TNG Digital Sdn. Bhd. RM600,000 for AML, Sanctions Violations

September 13, 2023

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

December 28, 2021

Key Documents

Bank Negara Malaysia Revises AML/CTF Policies for Financial Institutions, DNFBPs

April 2, 2024

Bank Negara Malaysia Publishes NRA 2020

April 2, 2024

Bank Negara Malaysia Releases Proliferation Financing Risk Assessment 2021

April 2, 2024

Malaysia Enacts Updated AML/CTF Legislation

July 30, 2014

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 : 72/152
Score : 5.21/10

TRANSPARENCY INTERNATIONAL i

Rank : 57/180
Score : 50/100

Tax Justice Network i

Rank : 39/141
Score : 66/100