Regulation Glossary

Malaysia's primary anti-money laundering legislation, enacted in 2002 and subsequently amended, providing the legal framework for combating money laundering.

Bank Negara Malaysia is the central bank of Malaysia. It is responsible for promoting monetary and financial stability, and acts as a banker and adviser to the Government of Malaysia. It is the primary regulator for financial institutions and the authority for AML/CFT compliance.

The natural person who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted.

A report that all banks and financial institutions must file with the FIU-MY for all cash transactions where the total value exceeds a certain monetary threshold (currently RM10 lakh in a month).

The legislation that governs the incorporation, regulation, and winding up of companies in Malaysia. It replaced the Companies Act 1965 and introduced significant changes, such as the concept of a single member/director company and new requirements for corporate governance and beneficial ownership reporting.

Unique identifier assigned by the Companies Commission of Malaysia (SSM) to all registered companies. Format varies by company type (e.g., Sdn Bhd, Berhad). Essential for KYC and beneficial ownership identification.

Additional customer identification procedures required for high-risk customers, including PEPs and customers from high-risk jurisdictions.

An inter-governmental body that sets international standards to prevent global money laundering and terrorist financing. It maintains a list of 'grey-listed' and 'black-listed' countries.

Malaysia's central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspicious financial transactions.

An act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in Malaysia.

Malaysian Tax Filing Status indicating taxpayer's compliance level. 'A' = Active (compliant), 'I' = Inactive (non-compliant), 'D' = Dormant (suspended filing).

The Income Tax Reference Number (Nombor Rujukan Cukai Pendapatan) is a unique identifier assigned by the LHDN to every taxpayer in Malaysia, including individuals and companies. This number is used for all tax-related matters.

Malaysia's primary legislation governing income taxation. Provides framework for tax assessment, collection, and enforcement. Contains provisions for information sharing with financial intelligence units for tax evasion investigations.

Unique identifier assigned by LHDN to Malaysian taxpayers for income tax purposes. Used to cross-reference financial transactions with tax declarations and identify potential tax evasion.

The process of verifying the identity of customers and assessing potential risks of illegal intentions for the business relationship.

The Inland Revenue Board of Malaysia responsible for the administration of direct taxes.

The enforcement agency responsible for investigating and preventing corruption in Malaysia.

12-digit identification number for Malaysian citizens and permanent residents. Format: YYMMDD-PB-XXXG where YY=birth year, MM=month, DD=day, PB=place of birth, XXX=sequential number, G=gender digit.

The national identification card issued to Malaysian citizens by Jabatan Pendaftaran Negara (JPN).

Malaysian National Registration Identity Card Number (12 digits). Primary identification document for Malaysian citizens, used for banking, taxation, and regulatory compliance verification.

An individual who is or has been entrusted with a prominent public function. PEPs present a higher risk for potential involvement in bribery and corruption by virtue of their position and influence.

Individuals who are or have been entrusted with prominent public functions, including their family members and close associates, requiring enhanced due diligence.

Suruhanjaya Syarikat Malaysia, or the Companies Commission of Malaysia. It is the statutory body that regulates companies and businesses in Malaysia. SSM's primary function is to serve as an agency to incorporate companies and register businesses as well as to provide company and business information to the public.

The Companies Commission of Malaysia responsible for company and business registration.

Malaysian Company Registration Number issued by Suruhanjaya Syarikat Malaysia (SSM). A unique identifier for all registered companies in Malaysia, required for business operations and tax compliance.

Malaysia’s indirect tax regime that replaced GST, consisting of sales tax and service tax.

A consumption tax implemented in Malaysia from September 1, 2018, replacing the Goods and Services Tax (GST). It consists of two elements: Sales Tax, which is a single-stage tax levied on manufactured and imported goods, and Service Tax, which is levied on specific prescribed services.

The process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins.