KUALA LUMPUR: Malaysia continues to lead a coordinated response to financial crime, uniting regulators and financial institutions in a robust ecosystem of collaboration, data sharing and next-generation technology.
Asian Institute of Chartered Bankers (AICB) chairman Tan Sri Azman Hashim said the domestic banking industry – led by The Association of Banks in Malaysia, Association of Islamic Banking and Financial Institutions Malaysia, and Bank Negara Malaysia (BNM), has collectively blocked RM780 million in suspicious online transactions between 2023 and 2024 through enhanced security measures and widespread outreach.
Meanwhile, he said, public engagement has continuously been strong, with nine in 10 Malaysians actively reading scam alerts and demonstrating readiness to act.
“Yet with over 47,000 scam cases and RM1.9 billion in losses reported up to September 2025, a whole-of-nation response remains critical,“ Azman told delegates at the International Conference on Financial Crime and Counter Terrorism Financing 2025 (IFCTF 2025) today.
He said globally, anti-money-laundering fines exceeded US$6 billion (RM25 billion) last year, while cyber-enabled fraud in East and Southeast Asia caused estimated losses of up to US$37 billion.
In Malaysia, scams cost more than RM573 million in just the first quarter of 2025, a 13% increase from the previous year. In the same quarter, the Royal Malaysia Police recorded 12,110 cases of online fraud nationwide, resulting in losses of RM573.7 million.
“Behind every statistic lies a story – a retiree’s savings lost, a business disrupted, a community’s trust shaken,“ Azman said.
With the support of BNM, the Securities Commission Malaysia and the Labuan Financial Services Authority, the AICB and its Compliance Officers’ Networking Group hosted the 15th IFCTF 2025, gathering over 50 leading global and regional experts and more than 1,200 banking professionals.
Themed “The Future is Now: Tech-driven Compliance in the Fight Against Financial Crime”, this year’s discussions examine how artificial intelligence (AI), machine learning, and advanced analytics are transforming compliance and risk management.
Key topics include AI-enabled fraud detection, machine learning-driven compliance, the rise of virtual assets, terrorism and proliferation financing, and anti-bribery and AML (anti-money laundering) frameworks, all set against a backdrop of tightening global enforcement and rising digital-fraud threats.
BNM governor Datuk Seri Abdul Rasheed Ghaffour said the amendments to AMLA (Anti-Money Laundering, Anti-Terrorism Financing, Anti-Restricted Activity Financing and Proceeds of Unlawful Activities Act 2001), which were gazetted in May 2025, enhance the supervision and regulation of reporting institutions, as well as investigation and prosecution procedures.
Also, the findings from various thematic reviews and risk assessments, including the National Risk Assessment, have strengthened the understanding of illicit financial activities and their risks to Malaysia’s financial system.
“These insights will help the central bank design more focused policies, supervision, and enforcement actions,“ Abdul Rasheed said.
He highlighted that financial crimes operate without regard for borders or jurisdictions.
“As such, efforts to cement close cooperation among Asean countries in combating transnational financial crimes are paramount to ensure the security, stability and safety of the region and the well-being of its people,“ Abdul Rasheed said.
Abdul Rasheed noted that Malaysia has made strong progress in modernising its payment systems, ranking second globally in Quick Response payment adoption, with DuitNow becoming a common feature in daily life.
“While we have seen digital technology develop at an unprecedented pace and improve our lives, there has also been a sharp increase in cybercrime. Bad actors use these same technologies to evade detection and manipulate the system,
including through propaganda, disinformation, fraud and cyber-attacks.
“Businesses, including financial institutions, have also become targets of sophisticated scams involving AI-generated impersonation. Even my own image has been used to create such deepfakes. Such incidents highlight the increasing risks posed by advanced technology and the fact that anyone can fall prey,“ Abdul Rasheed said.
Over the years, Malaysia’s financial industry has weathered numerous challenges – at times some seemed unbeatable, he said. “Yet through resilience and collaboration, we have continued to move forward. The financial industry must continue to address new challenges and safeguard the integrity of our financial ecosystem.”
Further, the evolving digital and financial landscape requires greater agility and collaboration to combat threats.
“Swift sharing of information and expertise is essential in our fight against financial crimes. Collaboration is also essential in fighting emerging crimes. Nowadays, we are witnessing the rise of crimes facilitated by technology, particularly through social media and streaming platforms.
“These new crimes are fuelled by the advent of new technologies. Tackling these emerging crimes is not the sole responsibility of law enforcement agencies alone.
“Every one of us must remain vigilant in detecting and reporting such activities. As fraud schemes become increasingly sophisticated, empowering consumers with knowledge becomes pertinent,“ Abdul Rasheed said.
He added that in 95% of scams in Malaysia, victims knowingly transfer money to people who turn out to be scammers.
This demonstrates a critical gap in awareness and emphasises the importance of consumer education.
“Regulators, financial institutions and customers each must also play a stronger role in protecting the integrity of our system, especially as we intensify the fight against fraud, scams, and mule accounts,“ Abdul Rasheed said.
