Anti-Money Laundering, Anti-Terrorism Financing, Anti-Restricted Activity Financing and Proceeeds of Unlawful Activities Act 2001 · Updated to 1 Mar 2026 · Part IV · Reporting Obligations
19. Compliance programme
Feedback & supportA reporting institution, or the director, officer or employee of the reporting institution shall adopt, develop and implement internal programmes, policies, procedures and controls, as the competent authority may specify, to guard against and detect any offence under this Act.
The programmes in subsection (1) shall include—
the establishment of procedures to ensure high standards of integrity of its employees and a system to evaluate the personal, employment and financial history of these employees;
on-going employee training programmes, such as
“know-your-customer”
programmes, and instructing employees with regard to the responsibilities specified in sections 13, 14, 14A, 15, 16 and 17; and
an independent audit function to check compliance with such programmes.
A reporting institution, or the director, officer or employee of the reporting institution shall implement compliance programmes under subsection (1) on its branches and subsidiaries in and outside
Malaysia.
A reporting institution shall also designate compliance officers at management level in each branch and subsidiary who will be in charge of the application of the internal programmes and procedures, including proper maintenance of records and reporting of suspicious transactions.
A reporting institution, or the director, officer or employee of the reporting institution shall develop audit functions to evaluate such policies, procedures and controls to test compliance with the measures taken by the reporting institution to comply with the provisions of this
Act and the effectiveness of such measures.
For the purposes of this section, the competent authority may issue any directions, instruction, guideline, circular, standard, notice,
Anti-Money Laundering, Anti-Terrorism 43
Financing, Anti-Restricted Activity Financing and Proceeds of Unlawful Activities specification or requirement to, or impose any condition on, the reporting institution, or the director, officer or employee of the reporting institution on compliance programmes.
The reporting institution, or the director, officer or employee of the reporting institution shall comply with the directions, instruction, guideline, circular, standard, notice, specification or requirement issued, or the condition imposed under subsection (6).
Any reporting institution which, or the director, officer or employee of the reporting institution who, contravenes subsection (1),
, (4), (5) or (7) commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit.