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
21. Obligations of regulatory or supervisory authority or licensing authority
Feedback & supportThe relevant regulatory or supervisory authority of a reporting institution may—
adopt the necessary measures to prevent or avoid having any person who is unsuitable from controlling, or participating, directly or indirectly, in the directorship, management or operation of the reporting institution;
obtain from the reporting institution, or the director, officer or employee of the reporting institution any information, document, record or report as it deems fit to monitor the reporting institution from being exposed to money
*NOTE—Invoked pursuant to section 8 of this Act on institutions carrying on banking business, finance company business, merchant banking business and Islamic banking business which omes into operation on 15 January 2002–see P.U. (A) 20/2002.
44 Laws of Malaysia laundering, terrorism financing and restricted activity financing risks;
examine and supervise reporting institutions, and regulate and verify, through regular examinations, that a reporting institution complies with the provisions of this Part;
issue guidelines to assist reporting institutions in detecting suspicious patterns of behaviour in their customers and these guidelines shall be developed taking into account modern and secure techniques of money management and will serve as an educational tool for reporting institutions’
personnel; and
co-operate with other enforcement agencies and lend technical assistance in any investigation, prosecution or proceedings relating to any unlawful activity or offence under this Act.
For the purposes of paragraph (1)(aa), the reporting institution, or the director, officer or employee of the reporting institution shall give the required information, document, record or report to the relevant regulatory or supervisory authority of the reporting institution within such period as the regulatory or supervisory authority may specify.
The licensing authority of a reporting institution may, upon the recommendation of the competent authority, revoke or suspend the reporting institution’s licence if it has been convicted of an offence under this Act.
The relevant regulatory or supervisory authority shall report promptly to the competent authority any information received from any reporting institutions relating to transactions or activities that could be related to any unlawful activity or offence under this Act.
Any reporting institution which, or the director, officer or employee of the reporting institution who, contravenes subsection (1A)
commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit.
Anti-Money Laundering, Anti-Terrorism 45
Financing, Anti-Restricted Activity Financing and Proceeds of Unlawful Activities