Malaysia Leads Southeast Asian Peers in Implementing Anti-Money Laundering and Counter-Terrorism Financing Regulations

Malaysian financial institutes are leading other South Asian countries in complying with anti-money laundering (AML) and counter-terrorism financing (CTF) obligations to mitigate risk and combat money laundering.

Members of the South Asian regulatory authorities have commended Malaysia’s compliance process addressing the money laundering regulations at the 13th International Conference on Financial Crime and Terrorism Financing  (IFCTF). Dr. Gordon Hook, the Asia/Pacific Group on money laundering executive secretary, stated Malaysia is a regional leader in upholding risk mitigation crimes related to money laundering. Dr. Hook stated, “Malaysian financial institutions are working hard to mitigate current risks and emerging threats arising from the usage of new technology in the country and within the region by having highly educated compliance officers who are extremely good at what they do.”

Regarding the growing risk of financial crimes, Hook mentioned that the three biggest trends in the region are drug trafficking, tax evasion, and corruption. He asserted after the round session in the conference, “However, there will always be more things to be done, in terms of putting more resources to address those risks, as the emerging risks still need additional resources, not the reallocation of existing resources. Although there is an increase in emerging risks within the region, such as the use of cryptocurrencies for financial-related crimes, a number of existing issues and trends need to be addressed.” 

According to John Vallis, the worldwide director of compliance at Luno, the firm is serious about limiting its exposure to possible financial crimes in the cryptocurrency industry by upholding the same standards and laws used to fight traditional financial fraud. He added, “We strongly believe that the best way to create trust within the market is to work as closely as possible with the regulators in the market we are operating in.” 

Central Bank of Malaysia, Securities Commission Malaysia, and Labuan Financial Services Authority are all supporting the 13th IFCTF 2023, event has been jointly organised by AICB and its Compliance Officers’ Networking Group. They shared insight, experience, and knowledge on preventing proliferation, threats, and risk assessments through digital banks and numerous other subjects. Over 50 top global and local AML experts covered concepts, including the application of machine learning in AML avoidance and identification, cryptocurrency and cybercrime, regional and international collaboration mechanisms to combat transnational crime, and other issues. The Asian Institute of Chartered Bankers (AICB) chief executive, Edward Ling, stated, “AICB is here to provide professional banking education and talent development. The institute occupies a unique space in the financial services sector and is well placed to play a key role in the industry’s aim to achieve zero-tolerance for money laundering and terrorism financing.”

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