Appointing a Compliance Officer

Who is a Compliance Officer (CO)?

Who is a Compliance Officer (CO)?

A compliance officer is the reference point for anti-money laundering and counter financing of terrorism (AML/CFT) matters within the reporting institution (RI). The Compliance Officer is responsible for making sure that the reporting institution complies with the AML/CFT requirements and has the primary responsibility of reporting suspicious transaction report (STR) and cash threshold report (CTR) to Bank Negara Malaysia (BNM).

Notifying BNM on the appointment of Compliance Officer

Reporting institutions must notify BNM on the appointment or change in the appointment of the compliance officer, in writing within 10 working days from the date of appointment or change.

For DNFBP and NBFI reporting institutions, please use the form as provided:

The role of a compliance officer

The CO is responsible, amongst others, to:

Ensure the reporting institution puts in place adequate AML/CFT policies as required by the law;
Ensure proper implementation of those AML/CFT policies;
Ensure all relevant staff are aware of the firm’s AML/CFT measures;
Establish relevant internal criteria or red flags to detect suspicious transactions;
Evaluate any internally generated suspicious transaction reports before reporting to Bank Negara Malaysia; and
Regularly assess the AML/CFT control measures and procedures.

Who can be a Compliance Officer?

To ensure the appointed compliance officer can undertake the responsibility effectively, a reporting institution must ensure that the person appointed as a compliance officer:

Has sufficient stature, authority and seniority within the firm to participate and be able to effectively influence decisions relating to AML/CFT matters;
Be fit and proper to carry out the role; and
Possess the necessary knowledge and expertise in AML/CFT.

For further guidance on the ‘fit and proper’ criteria for Compliance Officers, please refer to the policy documents.