Regulatory Alerts2024-09-03
Thematic Review on Legal Arrangements 2023
The Securities Commission Malaysia conducted a thematic review of 129 intermediaries to assess their compliance with Financial Action Task Force standards regarding money laundering and terrorism financing risks linked to legal arrangements. The study found that while legal arrangement customers represent less than 0.1% of the sector, reporting institutions have diligently integrated these risks into their business-based risk assessments and customer profiling mechanisms. The regulator highlighted robust industry practices, including comprehensive database management and diverse risk criteria, while emphasizing the need for continued vigilance to maintain resilience against emerging threats.
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