Kuala lumpur: Global financial crime watchdog Financial Action Task Force and Asia/Pacific Group on Money Laundering have reported that Malaysia has seen a significant increase in asset recovery efforts, with a 15-fold rise noted since the 2015 mutual evaluation report. This has resulted in the recovery of RM37.63 billion in assets, highlighting the country’s focused approach at both policy and operational levels.
According to BERNAMA News Agency, the mutual evaluation report released today indicates that Malaysian authorities have prioritized asset recovery, particularly through civil processes such as tax recovery, non-conviction-based forfeiture, and the Securities Commission (SC) disgorgement. The National Coordination Committee to Counter Money Laundering (NCC) policy roadmap has guided law enforcement authorities in devising targeted action plans and forming dedicated teams focused on asset seizure and forfeiture.
Between 2019 and February 2025, Malaysia successfully recovered 8.11 billion euros through a multifaceted strategy. This strategy effectively utilized asset repatriation related to the 1MDB case (75.1 percent), tax and duty recovery by the Inland Revenue Board and the Royal Malaysian Customs Department (22.2 percent), conviction and non-conviction-based forfeiture (2.6 percent), and disgorgement and restitution mechanisms (0.2 percent).
Excluding the 1MDB case, Malaysia’s asset recovery of 2.03 billion euros marks a notable improvement from the 2015 mutual evaluation report. However, it is relatively modest compared to the total assets recovered in relation to 1MDB, considering the country’s risk and context. The report suggests that while Malaysia has shown proficiency in handling complex, large-scale cases, there is a need to enhance systematic asset recovery efforts across a broader range of cases to achieve more consistent outcomes.
The report also highlights that Malaysia’s asset recovery framework is not entirely aligned with its risk profile, particularly in addressing the full range of high- and medium-high risk predicate offenses. Improvements have been noted in the system for declaring and identifying cross-border currency movements, with an increase in the submission of declaration forms compared to the 2015 report. However, the country is not confiscating falsely declared or undeclared cross-border currency in line with its risk profile, and the sanctions for violating these declaration requirements are deemed ineffective, proportionate, and dissuasive.