Malaysia’s central bank says FATF outcome supports financial system confidence

The upgrade reflects stronger compliance and effectiveness in tackling money laundering.

Malaysia has been placed under Regular Follow-Up, the highest category in the Financial Action Task Force (FATF) mutual evaluation process, following the release of its latest Mutual Evaluation Report by FATF and the Asia/Pacific Group on Money Laundering.

The upgrade from Malaysia’s 2015 assessment reflects stronger technical compliance and improved effectiveness in tackling money laundering, terrorism financing and proliferation financing. 

The report highlighted improvements in the country’s legal framework, risk assessments, inter-agency coordination, and supervisory and enforcement practices.

Asset recovery was a key positive, with recovered assets increasing 15 times since 2015 to $9.25b (RM37.63b). 

The report also noted more effective terrorism financing investigations, targeted financial sanctions, and better oversight of higher-risk non-profit organisations.

Bank Negara Malaysia Governor Dato’ Sri Abdul Rasheed Ghaffour said the outcome showed a whole-of-nation effort to protect the integrity of the financial system. 

He added that authorities would continue to strengthen the framework to address emerging risks and maintain confidence in Malaysia’s financial sector.