Background of AMLA

​​​​​Money laundering, terrorism financing and restricted activity (or proliferation) financing (ML/TF/RAF) may affect the stability of Malaysia’s financial system and socio-economy. Today, criminal networks, money launderers, terrorist financiers and proliferator networks are highly adaptive and quick to exploit any weak links within an increasingly borderless world to obscure detection of such illicit funds.

The Anti-Money Laundering, Anti-Terrorism Financing, Anti-Restricted Activity Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), which imposes reporting obligations on reporting institutions as a counter-measure to prevent or mitigate ML/TF/RAF was enacted with the intention to fulfil the international standards imposed by the Financial Action Task Force (FATF).

Overview of AMLA

The AMLA provides for the offences of ML and RAF, the measures to be taken for the prevention of ML, TF and RAF offences, the investigation powers conferred and the forfeiture of property involved in or derived from ML, TF and RAF offences, as well as terrorist property, proliferator property, proceeds of unlawful activity and instrumentalities of an offence.

The AMLA promotes a collaborative and multi-agency approach by setting out the powers and functions of:

1. the competent authority which is responsible for overseeing the performance of obligations by reporting institutions, facilitating the enforcement of the AMLA and co-operating with foreign financial intelligence units;
2. enforcement agencies which are responsible for investigating offences under the AMLA; and
3. regulatory or supervisory authorities which are responsible for facilitating the implementation of the AMLA.

The Minister of Finance has appointed Bank Negara Malaysia (BNM) as the competent authority under the AMLA. BNM is responsible to perform the functions as the competent authority under the AMLA.

Date came into force: 15 January 2002

Not yet incorporating with latest amendment, Act A1761, that was gazetted on 14 May 2025 and came into force on 1 March 2026.

Documents: 

• AMLA 2001
• Amendment Act - A1761
• P.U. (B) 76/2026

First Schedule of AMLA

The First Schedule of the AMLA lists the reporting institutions i.e. financial institutions (FIs), non-bank financial institutions (NBFIs) and designated non-financial businesses and professions (DNFBPs) which are required to perform specific obligations designed to prevent ML, TF and RAF offences.

A “reporting institution” under the AMLA means any person, including branches and subsidiaries of that person, who carries on any activity listed in the First Schedule.

Reporting institutions must comply with requirements for the prevention of money laundering and terrorism financing. Find out more about:

• The requirements reporting institutions must comply with
• How to check if you are a reporting institution under the AMLA

Serious Offence under AMLA

The AMLA also defines serious offence, which if committed, is likely to result in a person benefitting or deriving proceeds from the offence.

These are the predicate offences in which a ML investigation can be pursued. Reporting institutions may refer to the definition of serious offence under section 3 of the AMLA.

ML investigation related to a serious offence is investigated by the respective law enforcement agencies, such as the Royal Malaysian Police, Malaysian Anti-Corruption Commission, Royal Malaysian Customs and others.