Malaysia has attained a significant positive milestone in its efforts to combat money laundering, terrorism financing and proliferation financing (ML/TF/PF). In the joint publication by FATF/APG^[1] on Malaysia’s Mutual Evaluation Report^[2] (MER), Malaysia achieved Regular Follow-Up^[3] status, the highest category under the FATF mutual evaluation (ME) process.

This upgrade, since the previous ME in 2015, reflects Malaysia’s strong technical compliance and improved effectiveness in combating ML/TF/PF. The MER recognises the key strengths in Malaysia’s AML/CFT/CPF^[4] regime, such as:

• Comprehensive legal and institutional framework to combat ML/TF/PF including recently amended legislation such as the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, Penal Code, Companies Act 2016, Labuan Companies Act 1990, Trustees (Incorporation) Act 1952 and Trustee Act 1949.
• Sound and deep understanding of ML/TF/PF risks through three iterations of National ML/TF Risk Assessments and multiple thematic reviews.
• Robust domestic coordination and cooperation through the long-standing National Coordination Committee to Counter Money Laundering (NCC) and the establishments of the National Anti-Financial Crime Centre and Multi-Agency Task Force.
• Strong supervisory and enforcement frameworks, including leveraging technology for risk-based supervision and analytics, alongside improvement in risk understanding and preventive measures by financial institutions and virtual assets service providers.
• Advanced financial intelligence capabilities to support ML/TF investigations, including seamless integration of data analytics and inter-agency information sharing.
• Significant asset recovery through clear emphasis at policy and operational levels, resulting in a 15-fold increase since ME 2015 totalling RM37.63 billion in assets.
• Impactful TF investigations and prosecutions which are largely aligned with risk, and effective CFT/CPF and targeted financial sanctions (TFS) implementation, with improved outreach and monitoring of at-risk non-profit organisations to protect them from misuse.

The MER underscores Malaysia’s strong alignment with international standards, reflecting the country’s commitment to safeguarding the integrity of the financial system. This positive outcome reinforces global confidence in Malaysia as a safe and transparent destination for investment, supporting economic growth and long-term prosperity. It also strengthens trust and promotes cross-border collaboration, paving the way for deeper networks and partnerships with other countries.

Bank Negara Malaysia Governor Dato’ Sri Abdul Rasheed Ghaffour said, ‘On behalf of the NCC, we welcome the publication of the MER. This achievement reflects Malaysia’s whole-of-nation commitment and efforts to safeguarding the integrity of its financial system and combating money laundering, terrorism and proliferation financing. We will continue to strengthen our AML/CFT/CPF framework to address emerging risks, maintain global confidence in Malaysia’s financial sector, and ensure Malaysia remains an attractive and competitive investment destination.’

Following the publication of the MER, the NCC will develop and implement comprehensive national strategies and action plans to address risks and the recommendations from the report, to further strengthen the country’s AML/CFT/CPF framework.

The MER is available on the FATF website at: www.fatf-gafi.org

Bank Negara Malaysia
Chair
National Coordination Committee to Counter Money Laundering
11 December 2025

About the NCC

The NCC is a body established in 1999 and is responsible for coordinating, implementing and monitoring Malaysia’s AML/CFT/CPF initiatives. Bank Negara Malaysia acts as the chair and the secretariat of this inter-agency platform. The other member agencies are as follows:

• Attorney General’s Chambers;
• Companies Commission of Malaysia;
• Immigration Department of Malaysia;
• Inland Revenue Board of Malaysia;
• Labuan Financial Services Authority;
• Malaysian Anti-Corruption Commission;
• Ministry of Domestic Trade and Cost of Living;
• Ministry of Finance;
• Ministry of Foreign Affairs;
• Ministry of Home Affairs;
• Ministry of Investment, Trade and Industry;
• National Anti-Financial Crime Centre;
• Registrar of Societies;
• Royal Malaysia Police;
• Royal Malaysian Customs Department; and
• Securities Commission Malaysia

See https://amlcft.bnm.gov.my/domestic-coordination for more information.

[1] Financial Action Task Force and Asia/Pacific Group on Money Laundering

[2] The MER analyses Malaysia’s level of compliance with the International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation (FATF Recommendations) and the level of effectiveness of its anti-money laundering, countering financing of terrorism and countering proliferation financing (AML/CFT/CPF) system. The assessment provides findings and recommendations on how the system could be further strengthened.

[3] The three follow-up categories are Regular Follow-Up, Enhanced Follow-Up and International Cooperation Review Group (ICRG) referral.

[4] Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing