MOF: Low Instances Of Using Cryptocurrency In Money Laundering

KUALA LUMPUR, Dec 18 (Bernama) -- The Ministry of Finance (MoF) has found that instances of using cryptocurrency as a medium for money laundering in Malaysia are low.

Deputy Finance Minister Lim Hui Ying said that this conclusion was based on the latest Virtual Assets Risk Assessment conducted by the National Coordination Committee to Counter Money Laundering (NCC) based on observations from the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM).

“The government’s strategy regarding cryptocurrency regulation is through the imposition of reporting obligations on all registered digital asset exchange (DAX) operators under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613).

“These DAX operators are also regulated by the SC. To ensure effective implementation, appropriate strategies and action plans have been discussed and will be detailed through the NCC platform,” she said.

Lim made this statement during the winding-up session of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Amendment) Bill 2024 in the Dewan Negara today.

She also emphasised that Malaysia is not on the Financial Action Task Force’s (FATF) “grey list” or “blacklist”.

The FATF is an international body consisting of 40 countries, including Malaysia, Singapore, and Indonesia, as members of the ASEAN bloc, with over 200 countries adhering to FATF’s standards and recommendations.

“FATF standards provide recommendations for countries to prevent and combat the risks of money laundering, terrorism financing, and proliferation financing (ML/TF/PF). As a FATF member country, Malaysia implements FATF standards to prevent and combat ML/TF/PF risks both domestically and internationally.

“In implementing these measures, the sovereignty of the country is always ensured to be preserved,” Lim noted.

The Dewan Negara session passed the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Amendment) Bill 2024 with majority support after being debated by 18 senators.

Earlier, Lim explained that the bill would contribute to promoting economic growth and a financially sound sector while improving Malaysia’s compliance with international standards.

“This will support Malaysia’s economic transformation agenda,” she said.

The Dewan Negara session resumes tomorrow.

-- BERNAMA