Malaysia has been placed under Regular Follow-Up—the top tier in the Financial Action Task Force (FATF) mutual evaluation framework—after the publication of its latest Mutual Evaluation Report by FATF and the Asia/Pacific Group on Money Laundering.
The move marks an improvement from Malaysia’s 2015 assessment and reflects stronger technical compliance as well as greater effectiveness in combating money laundering, terrorist financing and proliferation financing.
The report pointed to advances in the country’s legal and regulatory framework, enhanced risk assessments, improved coordination among agencies, and stronger supervisory and enforcement efforts.
Asset recovery was cited as a major gain, with the value of recovered assets rising fifteenfold since 2015 to $9.25 billion (RM37.63 billion).
It also noted more robust investigations into terrorist financing, the use of targeted financial sanctions, and tighter oversight of higher-risk non-profit organisations.
Bank Negara Malaysia Governor Dato’ Sri Abdul Rasheed Ghaffour said the result underscored a whole-of-nation approach to safeguarding the integrity of the financial system, adding that authorities would continue strengthening the framework to address emerging risks and sustain confidence in Malaysia’s financial sector.
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