Terrorist Financing Risks and Mitigation in Malaysia: Experts Sound Alarm on Evolving Threats
Kuala Lumpur - As the world becomes increasingly digitalized, Bank Negara Malaysia (BNM) Deputy Governor Marzunisham Omar has sounded an alarm about intensifying terrorist financing risks and money laundering threats in the country.
Emerging Challenges for Authorities
The rapid shift towards digitalization has created new challenges for authorities to combat money laundering, terrorism financing, and proliferation financing. Speaking at the 23rd Asia/Pacific Group on Money Laundering Typologies Workshop, Marzunisham noted that emerging financial instruments and technologies have outpaced anti-money laundering measures.
Virtual Assets: A New Challenge
The virtual asset sector is one area where innovations are happening at a breakneck pace. Marzunisham emphasized that authorities must adapt quickly to keep up with the evolving threats. “Remaining reactive and defensive will limit our opportunity to proactively shape the orderly development of the financial landscape while managing potential money laundering, terrorism financing, and proliferation financing risks,” he warned.
Proliferation Financing: A Growing Concern
Proliferation financing is a relatively new area for many countries, including Malaysia. According to Marzunisham, only a few countries have conducted risk assessments, with Malaysia and the United Kingdom being among them. This highlights the need for authorities to remain vigilant and adapt quickly to emerging challenges.
Public-Private Partnerships: A Key to Success
The expert also highlighted the importance of public-private partnerships (PPPs) in fighting terrorist financing threats. He noted that PPPs, such as the Financial Intelligence Network (MyFINet), are crucial for effective information sharing between law enforcement agencies and private sectors.
Benefits of Public-Private Partnerships
Greater collaboration among the law enforcement agencies as well as between LEAs and the private sector is essential for efficiently and effectively connecting and assessing all relevant information. This includes:
- Enhancing the effectiveness of anti-money laundering measures
- Improving the detection and prevention of terrorist financing risks
- Facilitating information sharing and coordination among stakeholders
Global Scrutiny on Anti-Money Laundering Measures
The revelation of high-profile leaks, such as the Panama Papers and Pandora Papers, has led to greater scrutiny on anti-money laundering measures. Authorities are expected to take prompt action against activities involving cross-border flow of illicit funds.
Conclusion
Marzunisham’s warning comes amid growing concerns over terrorist financing risks in Malaysia. In recent years, the country has seen a number of high-profile cases related to money laundering and terrorism financing. As the global community continues to grapple with evolving threats, experts are urging authorities to remain vigilant and adapt quickly to emerging challenges.