INTEGRATED ANTI-MONEY LAUNDERING INITIATIVES IN THE MALAYSIAN BANKING INDUSTRY TOWARDS FATF FULL-COMPLIANT STATUS

Abstract

Background and Purpose: This study aims to demonstrate the integrated anti-money laundering (AML) initiatives in the Malaysian banking industry, with particular focus towards achieving the Financial Action Task Force (FATF) full-compliant status.
 
 Methodology: This study adopts a qualitative approach, which includes reviews and analysis of secondary data in relevant literature and documents relating to money laundering risk in the Malaysian banking industry.
 
 Findings: The integrated AML initiatives combine domestic and international efforts, which are anchored by the Malaysian Central Bank and FATF, respectively. Malaysia has been proactively abiding by the FATF requirements, and affirmative progression can be seen from the improved FATF-compliant status throughout the years.
 
 Conclusion and Contributions: This study adds new knowledge to the existing literature by integrating domestic and international AML efforts. Achieving a FATF full-compliant status is not impossible for Malaysia with the current integrated AML initiatives in place, and this forms a strong pillar that could protect the Malaysian banking industry from money laundering risk.
 Keywords: Money laundering, AML, risk, banking industry, Malaysia.
 
 Cite as: Mat Isa, Y., Hoque, M. N., Mohd Sanusi, Z., & Haniff, M. N. (2023). Integrated anti-money laundering initiatives in the Malaysian banking industry towards FATF full-compliant status. Journal of Nusantara Studies, 8(1), 117-139. http://dx.doi.org/10.24200/jonus.vol8iss1pp117-139