LABUAN FSA DG: INFO SHARING, INNOVATION VITAL TO COMBAT MONEY LAUNDERING

By Jailani Hasan

LABUAN, Nov 27 (Bernama) -- 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.

He said that for decades, compliance was seen as a checklist-ticking exercise -- mere rules to follow rather than strategic function.

“But with the rising complexity of financial crime risks; the rapid growth of technologies such as artificial intelligence (AI), virtual assets and social media platforms; and the increasing volume of cross-border transactions, the fight against financial crimes has become more challenging.

“In this context, strong international cooperation is key,” Affendi said in his opening remarks at the Labuan International Compliance Conference 2025 (LICC 2025) here today.

As a regulator, Labuan FSA too is keeping pace with technology, he noted.

“We’ve also begun to adopt supervisory technology (suptech)-innovations to enhance our supervision. This, when fully completed, would allow more effective and risk-focused market surveillance with greater granularity and efficiency,” he said.

Affendi also underscored the importance of continuous training and development as a strategic investment for reporting institutions in Labuan IBFC to sustain business operation and prepare for the future by understanding compliance obligations, strengthening internal governance, and keeping pace with evolving regulatory standards.

The inaugural LLIC today is a one-day event jointly organised by Labuan FSA, the Compliance Officer Network Group (CONGs) and Universiti Malaysia Sabah (UMS) at the Labuan International School (LIS).

Affendi said 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.

“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,” he said.

Affendi said 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 supporting 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”, which was launched by Affendi during the conference. 

The programme 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.

-- BERNAMA