Leveraging Investigations to Combat Financial Crimes

In the fight against money laundering and terrorism financing, investigations are crucial in uncovering illicit activities and holding perpetrators accountable. Bank Negara Malaysia (BNM) has identified two major offences frequently committed by financial institutions that contribute to the proliferation of such criminal activities – failure to conduct Customer Due Diligence (CDD) and sanctions screening upon client onboarding.

Customer Due Diligence is essential for conducting risk evaluation and enabling effective Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) efforts in targeting businesses or organizations. Financial institutions can detect illicit financing activities by certifying a client’s identity and understanding the purpose of transactions.

Sanctions screening, applicable to all Malaysians and corporate bodies in Malaysia, ensures compliance with regulatory requirements and helps prevent individuals and entities from engaging in unlawful transactions. It is imperative for reporting institutions to have robust employee screening procedures, training and awareness under an AML/CFT program to mitigate compliance risk effectively.

BNM emphasizes the importance of strict enforcement and monitoring to ensure compliance with AML/CFT guidelines. Violations of these laws may result in punitive measures, corrective actions, or administrative fines. Since the implementation of enforcement frameworks, BNM has taken numerous actions against financial institutions and related entities for offences related to obligatory compliance.

Through investigation and enforcement actions, BNM aims to maintain the financial system’s integrity and prevent the facilitation of criminal activities. By strengthening the compliance measures, enhancing regulatory oversights, and fostering collaboration between regulatory authorities and law enforcement agencies, Malaysia can effectively combat financial crimes and uphold the integrity of its financial sector.



Share on facebook
Share on twitter
Share on linkedin
Share on pinterest

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Services

Due diligence research can be a complex and lengthy process. Investiga has the resources to provide the most suitable solutions to your needs.

Nullam quis risus eget urna mollis ornare vel eu leo. Aenean lacinia bibendum nulla sed