The Covid-19 impact on financial crime and regulatory compliance in Malaysia

Abstract

Purpose

The purpose of this paper is to provide a conceptual discussion and analysis of the Covid-19 impact on financial crime and regulatory compliance. The analysis is conducted to make a comparison of the financial crime and regulatory compliance patterns before and after the Covid-19 pandemic occurred.

Design/methodology/approach

This paper contextualises the impact of Covid-19 on financial crime and regulatory compliance. Moreover, this paper explores different ways of conceptualising the Covid-19 impacts in terms of financial crimes and regulatory compliance patterns based on the surveys by PricewaterhouseCoopers and Deloitte.

Findings

The Covid-19 pandemic has brought both challenges and opportunities to financial crime and regulatory compliance. In the aspects of financial crime patterns, this study found a reduction in physical crime whilst on the other hand increment in cybercrime. Nevertheless, this study discovered regulatory compliance not at a satisfactory stage even before the Covid-19 pandemic, let alone during the pandemic.

Practical implications

This study implies that the financial institutions must work together to combat the risks of financial crimes, not only amongst the institutions but also with the regulators. Digitalisation and robust risk management need to be improved at a massive level to beat the criminals’ high fintech skills and systems. The initiatives of fund packages from the governments to assist the companies especially the small firms need to be fully used by the companies to improve regulatory compliance.

Originality/value

Whilst some studies discussed the impact of Covid-19 on the economy, there are still scarce resources on the comparative analysis on the financial crime and regulatory compliance, not to mention the before and after effect of the Covid-19 pandemic. This is the first paper to integrate the issues surrounding the Covid-19 impact, financial crimes and regulatory compliance in Malaysia.

Citation

Jamil, A.H., Mohd Sanusi, Z., Yaacob, N.M., Mat Isa, Y. and Tarjo, T. (2022), "The Covid-19 impact on financial crime and regulatory compliance in Malaysia", Journal of Financial Crime, Vol. 29 No. 2, pp. 491-505. https://doi.org/10.1108/JFC-05-2021-0107