Domestic Coordination

National Coordination Committee to Counter Money Laundering (NCC)

The NCC is a body established in 1999 and is responsible for coordinating, implementing and monitoring Malaysia’s anti-money laundering and counter financing of terrorism (AML/CFT) initiatives. Bank Negara Malaysia acts as the chair and the secretariat of this inter-agency platform.

At the working level, the NCC Working Group seeks to examine and subsequently address operational issues relating to the implementation and effectiveness of initiatives approved by the NCC High Level.

The NCC comprises three main sub-committees, namely the Financial Intelligence, Law Enforcement and Prosecution (FLEP), Financial Sector Sub-Committee (FSSC) and the Designated Non-Financial Businesses and Profession Sub-Committee (DSC). Apart from these, there are several standalone committees within the NCC that carries on initiatives for specific focus area such as the Targeted Financial Sanctions on Terrorism Financing and Proliferation Financing.

NCC High Level formulates national policies and initiatives, plays the advisory role and sets out the strategic direction for the NCC. It comprises the Heads or Deputies of the member ministries and agencies.

Members of the NCC

There are currently 17 members in the NCC consisting of ministries and government agencies from supervisory/regulatory authorities, law enforcement agencies and policy-making ministries with Bank Negara Malaysia as the secretariat for the NCC.

The members are:
i. Attorney General’s Chambers;
ii. Bank Negara Malaysia;
iii.   Companies Commission of Malaysia;
iv.   Immigration Department of Malaysia;
v. Inland Revenue Board of Malaysia;
vi.   Labuan Financial Services Authority;
vii.   Malaysian Anti-Corruption Commission;
viii. Ministry of Domestic Trade and Cost of Living;
ix.   Ministry of Finance;
x. Ministry of Foreign Affairs;
xi.   Ministry of Home Affairs;
xii.   Ministry of Investment, Trade and Industry;
xiii. National Anti-Financial Crime Centre;
xiv. Registrar of Societies;
xv.   Royal Malaysia Police;
xvi. Royal Malaysian Customs Department; and
xvii. Securities Commission Malaysia.

Mandates of the NCC

The mandates of the NCC include:

i. Fostering cooperation, consultation and the necessary flows of information among the AML/CFT stakeholders in the development of AML/CFT policies, legislation, law enforcement and supporting infrastructures, including conducting regular review on the policy framework;

ii. Coordinating the collection, analysis and dissemination of the relevant information and statistics as may be necessary to assess:

the risks of money-laundering and terrorism financing, including proliferation financing for the purposes of the National Risk Assessment and making sound decisions on the implementation of the AML/CFT requirements based on the risk-based approach; and
the effectiveness and efficiency of the national AML/CFT framework.

iii. Facilitating good practices and the consistent and co-ordinated approaches among the AML/CFT Stakeholders with regard to the development, dissemination and implementation of AML/CFT:

Regulations and guidelines;
Supervision and enforcement actions; and
Greater awareness on capacity building initiatives; and
Identification of emerging risk and trends

iv. Providing a forum for examining any operational or policy issues that have implications on the implementation, effectiveness and efficiency of the National AML/CFT Framework and, where necessary, to make recommendations to the Government in order to address the issues.

National Risk Assessment (NRA)

The National Risk Assessment (NRA) is an assessment of the country’s exposure to prevailing crimes (domestic and foreign) and vulnerabilities of various sectors to money laundering and terrorism financing risks. The NRA comprises of threat assessment and sectoral assessment (covering financial and DNFBPs sectors). It is an initiative undertaken under the ambit of the National Coordination Committee to Counter Money Laundering (NCC).

The assessment is based on various quantitative and qualitative sources. These include statistics and reports from various public and private entities, surveys conducted among law enforcement agencies, reporting institutions and other credible external reports. The findings are validated by the NCC.

Results of the NRA will be communicated to the reporting institutions, supervisors, regulators and law enforcement agencies to assist in prioritising the deployment of resources in line with the identified risks.

The initiative would assist Malaysia in:

applying appropriate national AML/CFT strategy and policy response proportionate to the identified risks;
making risk-informed decisions, focusing on real and identified threats; and
prioritising resources towards areas with highest impact.

Overview of the NRA 2023

The NRA 2023 is Malaysia’s fifth national risk assessment. It includes a nuanced analysis of the transnational aspects of crimes and the flow of illegal proceeds. These assessments help drive and strategise the national and institutional AML/CFT policies and measures, in a more effective and targeted manner. This NRA should be read together with the NRA 2020 (Executive Summary (EN) / Ringkasan Eksekutif (BM)) for a more holistic understanding of the evolution of Malaysia’s ML and TF risks.

Download the NRA 2023 Executive Summary (EN).

For more information on the previous NRAs, please see:

MyFINet

The Malaysia Financial Intelligence Network (MyFINet) was launched on 5 November 2019 to encourage intelligence sharing between law enforcement agencies and financial institutions to fight money laundering, terrorism financing and other serious crimes.

MyFINet is a public-private partnership supported by BNM and consists of members from law enforcement agencies such as Royal Malaysia Police (RMP), Malaysian Anti-Corruption Commission (MACC), Royal Malaysian Customs Department (RMC) and Securities Commission Malaysia (SC) as well as reporting institutions such as banks and remittance service providers.