Terrorist Financing Risks Escalate in Malaysia Amid Digitalisation Boom

Kuala Lumpur, Malaysia - The rapid pace of technological change has intensified emerging risks associated with money laundering, terrorism financing, and proliferation financing in Malaysia. According to Bank Negara Malaysia (BNM) Deputy Governor Marzunisham Omar, the increasing shift towards digitalisation has left authorities scrambling to keep up.

The Evolving Threat

• Proliferation financing, a critical concern worldwide, refers to the provision of funds for illicit purposes such as manufacturing and delivering nuclear, chemical or biological weapons.
• The threat is becoming increasingly complex due to innovative financial instruments emerging in the market.

The Need for Proactive Measures

• To stay ahead of evolving threats, authorities must continuously adopt new approaches and tools, such as data analytics and artificial intelligence (AI), to enhance surveillance and enforcement capabilities.
• By leveraging these technologies, Malaysia can improve its anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

A Call to Action

The remarks by Marzunisham underscore the pressing need for Malaysia’s financial institutions and regulatory bodies to prioritize AML/CFT efforts in response to escalating threats posed by digitalisation and proliferation financing. By working together, authorities can mitigate these risks and ensure a safer financial landscape for all.

Sources:

• Bank Negara Malaysia (BNM) Deputy Governor Marzunisham Omar’s remarks at the 23rd Asia/Pacific Group on Money Laundering Typologies Workshop