Malaysia Country Summary
Sanctions
No
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
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
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 50 |
| World Bank: Control of Corruption Percentile Rank | 62 |
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, corruption remains a concern, particularly in public procurement, where favoritism and political connections can influence outcomes. In 2022, there were 323 arrests of public officials for corruption, indicating ongoing challenges in enforcement and compliance with anti-corruption laws.
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 in 2022. The country attracted $39.7 billion in actual foreign investment, bolstered by its strategic location, skilled workforce, and developed ICT infrastructure, while the government continues to implement reforms to enhance competitiveness and manage public spending.
Malaysia's investment climate is favorable for foreign direct investment (FDI), bolstered by a reported $69.5 billion in approved investments and $39.7 billion in actual foreign investment in 2023. The country benefits from its strategic location, a skilled workforce, and a robust manufacturing ecosystem, particularly in sectors like medical devices and semiconductors. The government continues to enhance investment incentives, including tax breaks for relocating manufacturing companies and initiatives aimed at creating high-value jobs.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
