Malaysia

New Documents

The Bank Negara Malaysia, the central bank of Malaysia, announced that the Kuala Lumpur High Court fined Genneva Malaysia Sdn Bhd MYR$450 million for accepting money from depositors without a valid license.

Malaysia’s Central Bank published a guidance document to clarify and recommend practices related to identification and verification of customer due diligence requirements for financial institutions under the anti-money laundering, counterterrorist financing and targeted financial sanctions rules.

News

Enforcement Actions

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.


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