Malaysia Country Summary
Sanctions
Low Concern
FATF AML Deficient List
Low Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
High Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
High Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Malaysia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Malaysia was undertaken in 2018. According to that Evaluation, Malaysia was deemed Compliant for 20 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are no international sanctions currently in force against this country
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 50 |
| World Bank: Control of Corruption Percentile Rank | 62 |
The Malaysian government has taken steps to combat corruption, including the establishment of the Malaysian Anti-Corruption Commission and the introduction of the Whistleblower Protection Act. Despite these measures, corruption remains a significant issue, with a notable decrease in arrests of public officials for corruption in 2022 compared to 2021. Malaysia also faces challenges related to human trafficking, counterfeit goods, and organized crime, while the judiciary and law enforcement agencies struggle with issues of corruption and executive influence.
Economy
Malaysia's economy grew by 3.7 percent in 2023, supported by resilient domestic demand and a recovery in tourism, following a post-COVID rebound. The country attracted $39.7 billion in actual foreign investment, bolstered by its strategic location, skilled workforce, and a favorable investment climate, which includes incentives for sectors like manufacturing and aerospace.
Malaysia's investment climate is favorable for foreign direct investment (FDI), bolstered by its strategic location, skilled workforce, and robust infrastructure. In 2023, the country approved $69.5 billion in investments, with actual foreign investments reaching $39.7 billion, supported by government incentives such as tax breaks for manufacturing and aerospace sectors. The New Industrial Master Plan 2030 aims to attract high-value investments while enhancing local companies' integration into global supply chains.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings