PETALING JAYA: Company secretaries, lawyers and accountants who fail to flag suspicious clients or report suspicious transactions could face enforcement action, as Bank Negara Malaysia (BNM) steps up efforts to prevent professional services and legitimate business structures from being exploited for financial crime.
Underscoring the serious consequences of non-compliance, Bank Negara Malaysia (BNM) deputy governor Datuk Marzunisham Omar said companies, trusts, and legal arrangements can be misused to disguise beneficial ownership, conceal the origins of illegal proceeds, or create a veneer of legitimacy around criminal activity.
“This places professional service providers in a critical position within our fight against financial crime.
“When a professional identifies suspicious activity, refuses to facilitate a questionable arrangement, or submits a suspicious transaction report, they do more than meet a regulatory requirement. They are closing a gate that criminals were attempting to enter. In doing so, you help protect businesses, communities, and our country.
“More than ever, professionals form a vital first line of defence against financial crime. This responsibility goes beyond procedural compliance; it requires professional scepticism, asking critical questions and challenging inconsistencies,“ he told delegates at Malaysia’s Designated Non-Financial Businesses and Professions (DNFBP) Compliance Conference 2026 today.
Marzunisham said financial crime is increasingly driven by highly organised criminal networks that operate across borders, leverage technology, exploit legal structures, and continuously adapt their methods.
They study controls and frameworks, identify weaknesses, adjust approaches in response to safeguards and continuously look for the gate where scrutiny is weakest.
“Across the region, we are seeing sophisticated criminal networks increasingly exploiting professional services and legitimate business structures to conceal ownership, integrate illicit proceeds and make criminal activities appear legitimate.
“A recent Transnational Organized Crime Threat Assessment for South-East Asia by UNODC identifies lawyers and accountants among the specialist facilitators within these criminal networks, operating on a contractual basis and providing enabling services to criminal organisations.
“Another emerging risk that deserves particular attention is the growing use of corporate mules. Data from the National Fraud Portal points to a rise in corporate mule accounts, reflecting how criminal networks are increasingly exploiting corporate entities to conceal illicit financial flows,“ Marzunisham said.
He said an effective Anti-Money Laundering, Countering the Financing of Terrorism, and Countering Proliferation Financing (AML/CFT/CPF) framework depends not only on strong laws and sound policies, but also on credible supervision and enforcement.
“This is why Bank Negara Malaysia takes non-compliance seriously. Weaknesses in one part of the system can compromise the integrity of Malaysia’s entire AML/CFT framework.”
Marzunisham said recent joint enforcement actions involving regulatory and law enforcement agencies reinforce this point.
BNM and the Companies Commission of Malaysia recently took enforcement action against a company secretary for failing to submit suspicious transaction reports related to foreign nationals suspected of involvement in an international scam syndicate.
The central bank and the Labuan Financial Services Authority took enforcement action against a Labuan investment bank after material deficiencies in customer due diligence affected the firm’s ability to assess customers’ potential involvement in illicit overseas activities and delayed the submission of suspicious transaction reports.
“These cases may involve different sectors and circumstances, but they convey the same message: Weak due diligence, vigilance and reporting create space for criminals to operate. Professional services must never become the gate through which illicit funds acquire the appearance of legitimacy, whether knowingly or unknowingly,“ Marzunisham said.
In 2027, he said, Bank Negara Malaysia will undertake the next iteration of the National Risk Assessment, which will enable a deeper assessment of the money laundering and terrorism financing risks facing the DNFBP sectors.
The findings will support the development of more targeted policies, guidance, and mitigation measures tailored to each sector’s specific risks.
Marzunisham called on professionals to provide practical insights to help ensure policy responses remain effective, proportionate, and grounded in the realities each sector faces.