Regulatory Alerts2024-09-02
Red Flag Indicators for Capital Market Intermediaries
The Securities Commission Malaysia issued this document to provide capital market intermediaries with non-exhaustive red flag indicators to identify suspicious transactions related to money laundering, terrorism financing, and proliferation financing. The guidelines categorize warning signs into general transaction patterns, customer behavior, employee misconduct, and high-risk jurisdictions, while also detailing specific indicators for equity crowdfunding, peer-to-peer financing, and digital assets. Intermediaries are required to consider these indicators alongside customer and product risks when monitoring, scrutinizing transactions, and reporting suspicious activities.
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