Malaysia Country Summary

FATF Status

Malaysia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Malaysia was undertaken in 2025. According to that Evaluation, Malaysia was deemed Compliant for 24 and Largely Compliant for 16 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.

Malaysia faces significant challenges with crime and corruption, as evidenced by the prevalence of human trafficking, financial crimes, and organized crime networks. Despite the government's efforts to combat corruption through the establishment of the Malaysian Anti-Corruption Commission and various legislative measures, public trust remains undermined due to ongoing issues with political freedoms and the independence of the judiciary.

Malaysia's economy is characterized by a robust growth trajectory, with a reported 5.1% increase in 2024, driven by strong domestic demand and a rebound in exports. The government actively promotes foreign direct investment (FDI), which reached $85.8 billion in approved investments in 2024, with the United States being the largest investor. Malaysia's favorable investment climate is bolstered by its strategic location, abundant natural resources, advanced ICT infrastructure, and a skilled workforce, while ongoing reforms aim to enhance local R&D and production capabilities, particularly in high-value sectors such as electronics and biotechnology.