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.

The Malaysian government has implemented various measures to combat corruption, including the establishment of the Malaysian Anti-Corruption Commission (MACC) and the introduction of the Whistleblower Protection Act. Despite these efforts, a significant number of Malaysian businesses lack anti-corruption programs, and enforcement of anti-corruption laws can be inconsistent due to capacity issues. Recent high-profile cases, such as the reduction of former Prime Minister Najib Razak's graft conviction, highlight ongoing challenges in addressing corruption within the country.

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 in 2022. The country attracted $39.7 billion in actual foreign investment in 2023, bolstered by a favorable investment climate characterized by its strategic location, skilled workforce, and robust infrastructure, particularly in key sectors like medical devices and semiconductors.

Malaysia's investment climate is favorable for foreign direct investment (FDI), bolstered by its strategic location, skilled workforce, and advanced ICT infrastructure. In 2023, the country approved $69.5 billion in investments, with actual foreign investment reaching $39.7 billion, supported by government initiatives like tax incentives for relocating manufacturing companies and the New Industrial Master Plan aimed at creating high-value jobs. The business environment is generally conducive to U.S. investments, particularly in sectors such as semiconductors and healthcare.