Malaysia has achieved the “Regular Follow-up” status
this is the best outcome for the ME process
it is accorded to countries whose ME report reflects substantial to high levels of effectiveness and technical compliance.
However, the assessors concluded that major improvements are needed ("Moderate Level of Effectiveness") for Immediate Outcome (IO) 4 - supervision and preventive measures of DNFBPs, mainly due to:
low level of STR submission across most DNFBP sectors
limited enforcement actions taken against non-compliances identified
(see Chapter 4, page 88 on IO.4 for details)
Next Steps?
Key recommended actions (KRAs) required for IO4 (see Roadmap of KRAs, page 15 for details) are as follows:
Intensify efforts to enhance suspicious transaction reporting.
Address compliance failures through proportionate and dissuasive enforcement measures.
Malaysia is required to report back to the FATF on the progress of the KRAs by 2029.
Reporting Institutions (RIs) are urged to continuously improving their compliance culture to demonstrate an effective AML/CFT/CPF regime.
RIs should ensure implementation of AML/CFT/CPF requirements, including to screen all customers against the Sanction Lists, remain vigilant of red flags for suspicious transactions, and promptly submit suspicious transaction reports (STRs) to Bank Negara Malaysia where necessary.
The completion of this assessment marks not the end, but the beginning of a new chapter, one that calls for sustained effort, continuous improvement, and unwavering collaboration to ensure Malaysia remains at the forefront of global standards and most importantly, to protect and preserve the financial integrity of the country.
