Malaysia has moved into the highest follow up category under the Financial Action Task Force review after its latest mutual evaluation showed stronger controls against financial crime.
The assessment follows the publication of Malaysia’s latest Mutual Evaluation Report by the Financial Action Task Force and the Asia Pacific Group on Money Laundering and marks an improvement from the country’s 2015 evaluation.
The report reflects stronger technical compliance and improved effectiveness in addressing money laundering, terrorism financing and proliferation financing risks.
The evaluation cites a comprehensive legal and institutional framework supported by amendments to key laws, including the Anti Money Laundering, Anti Terrorism Financing and Proceeds of Unlawful Activities Act 2001, the Penal Code, the Companies Act 2016, the Labuan Companies Act 1990, the Trustees Incorporation Act 1952 and the Trustee Act 1949.
Bank Negara Malaysia Governor Dato’ Sri Abdul Rasheed Ghaffour said,
“On behalf of the NCC, we welcome the publication of the MER. This achievement reflects Malaysia’s whole-of-nation commitment and efforts to safeguarding the integrity of its financial system and combating money laundering, terrorism and proliferation financing.
We will continue to strengthen our AML/CFT/CPF framework to address emerging risks, maintain global confidence in Malaysia’s financial sector, and ensure Malaysia remains an attractive and competitive investment destination.”
The report highlights Malaysia’s improved understanding of financial crime risks, supported by three iterations of national risk assessments and multiple thematic reviews.
It also points to stronger coordination among authorities through mechanisms such as the National Coordination Committee to Counter Money Laundering, the National Anti Financial Crime Centre and a multi agency task force.
The evaluation found stronger supervisory and enforcement frameworks, supported by greater use of technology and data analytics for risk based supervision.
Financial institutions and virtual asset service providers have improved risk understanding and preventive measures, backed by enhanced financial intelligence capabilities and inter agency information sharing.
Asset recovery rose to RM37.63 billion, a fifteen fold increase since 2015, driven by clearer emphasis at policy and operational levels.
The report also notes progress in terrorism financing investigations and prosecutions aligned with assessed risks, alongside stronger implementation of targeted financial sanctions and improved outreach and monitoring of higher risk non profit organisations to prevent misuse.
Following the report’s publication, the National Coordination Committee is expected to develop and implement national strategies and action plans to address remaining risks and recommendations.
Featured image: Edited by Fintech News Malaysia, based on image by LensMastersCollection via Freepik
