Combating money laundering in Malaysia

Abstract

Purpose

The aim of this paper is to highlight the importance of countering the dangers posed by money laundering activities and the measures taken to date by the Malaysian authorities in this respect.

Design/methodology/approach

The paper achieves this by looking at the current money laundering trends in Malaysia, followed by a detailed account of the initiatives taken by the Malaysian authorities to curb such activities. These proactive initiatives range from the enactment and implementation of the Anti‐Money Laundering (AML) Act 2001, the establishment of the Financial Intelligence Unit of the Central Bank of Malaysia and the Southeast Asia Regional Centre for Counter‐Terrorism which work with international enforcement agencies, to the requirement of suspicious transaction reporting amongst professional accountants and lawyers and more.

Findings

Malaysia continues to make a broad and sustained effort to combat money laundering and terrorist financing flows within its borders.

Practical implications

The practical implication of this paper is to stress the importance of keeping abreast with the increased challenges posed by money laundering, especially via the internet and the vital need for the banking and financial sector to invest heavily in transaction monitoring devices/software and training in AML detection, in order to tackle the menace.

Originality/value

This paper makes for a useful read for practitioners, academics, policymakers and students alike.

Citation

Shanmugam, B. and Thanasegaran, H. (2008), "Combating money laundering in Malaysia", Journal of Money Laundering Control, Vol. 11 No. 4, pp. 331-344. https://doi.org/10.1108/13685200810910402