Labuan: Information sharing, innovation, and technology-driven compliance are the pillars of a robust anti-money laundering (AML) regime and for Labuan International Business and Financial Centre (IBFC) to be a trusted financial market, said Labuan Financial Services Authority (Labuan FSA) director-general Affendi Rashdi.
According to BERNAMA News Agency, Affendi emphasized that compliance was historically viewed as a checklist-ticking exercise, rather than a strategic function. However, with the complexity of financial crime risks increasing, and the rapid growth of technologies such as artificial intelligence (AI), virtual assets, and social media platforms, compliance has become more challenging. The increasing volume of cross-border transactions further complicates the fight against financial crimes, making strong international cooperation essential.
Affendi noted that as a regulator, Labuan FSA is keeping pace with technological advancements and has begun to adopt supervisory technology (suptech) innovations to enhance supervision. This adoption aims to allow more effective and risk-focused market surveillance with greater granularity and efficiency once fully completed.
He highlighted the importance of continuous training and development as a strategic investment for reporting institutions in Labuan IBFC. This investment is essential to sustain business operations and prepare for the future by understanding compliance obligations, strengthening internal governance, and keeping pace with evolving regulatory standards.
The inaugural Labuan International Compliance Conference 2025 (LICC 2025) is a one-day event jointly organized by Labuan FSA, the Compliance Officer Network Group (CONGs), and Universiti Malaysia Sabah (UMS) at the Labuan International School (LIS). The conference, themed ‘From Rules to Values: Shaping Compliance to Confidence’, aims to enhance knowledge on anti-money laundering and counter-financing of terrorism and strengthen regulatory compliance standards across reporting institutions in Labuan IBFC.
Affendi remarked that the event is timely, following the recent conclusion of the Financial Action Task Force (FATF) mutual evaluation on Malaysia and Labuan. Discussions at the conference are expected to provide insights to further reinforce compliance culture and supervisory effectiveness in the jurisdiction.
LICC 2025 reflects the collective commitment of regulators, compliance professionals, and academia, anchored on a shared belief that compliance is not a burden but a bridge towards building confidence, credibility, and long-term resilience in Labuan IBFC.
In support of Labuan FSA’s efforts to build industry capacity, particularly among compliance officers, UMS Kampus Antarabangsa Labuan (UMS-KAL) introduced its Micro-Credential Programme on ‘Introduction to AML/CFT’. Launched by Affendi during the conference, the program covers key AML/CFT fundamentals, including the legal framework, know your customer (KYC) processes, and customer due diligence requirements to equip practitioners with the competencies needed to meet rising regulatory demands.