Compliance of corporate gatekeepers under AML regime in Malaysia: issues and challenges

Nursyakila Kamaruddin, Nor Suziwana Tahir, Sarina Othman and Saslina Kamaruddin

Journal of Money Laundering Control, 2025, vol. 28, issue 4-5, 665-679

Abstract: PurposeThis paper aims to investigate the challenges faced by company secretaries in complying with anti-money laundering (AML) laws and their requirements in Malaysia. The focus of the study is to analyse the understanding and compliance of the company secretaries on the duties imposed on them under the AML regime in Malaysia.Design/methodology/approachA review of existing AML guidelines, policies and compliance reports was conducted, supplemented by an analysis of the specific responsibilities of company secretaries, including Know Your Customer, customer due diligence, suspicious transactions reporting and record-keeping practices.FindingsThe study identifies significant gaps in compliance among company secretaries despite the established AML framework and guidelines. These gaps include technical and operational challenges, and there is a need for enhanced measures to prevent the misuse of their service’s money laundering activities.Originality/valueThis research offers a unique perspective on the AML compliance landscape for company secretaries and service providers, underscoring the importance of their role in establishing the corporate vehicle and their roles in combating money laundering. This paper provides practical insight for improving compliance effectiveness, contributing to the broader discourse on AML enforcement within trust company and service providers (TCSPs), including the companies’ secretaries.

Keywords: Designated non-financial business profession; Customer due diligence; Anti-money laundering (AML); Compliance; Trust company and service providers (TCSPs); Malaysia (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jmlcpp:jmlc-09-2024-0147

DOI: 10.1108/JMLC-09-2024-0147

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