Case Explained:This article breaks down the legal background, charges, and implications of Case Explained: The rising complexity of financial crime in Malaysia – Legal Perspective
The Malaysian Bar takes note of the recent statement by Mohammad Faiz Azmi, the chairman of the Securities Commission Malaysia, highlighting the increasing complexity of financial crime and reported losses amounting to RM54bn.
This figure is striking, both in scale and implication, as it reflects harm suffered by tens of thousands of victims nationwide.
These losses represent not only serious financial damage but a deeper erosion of public trust, market integrity and confidence in regulatory and enforcement systems.
Financial crime in Malaysia has evolved far beyond isolated acts of fraud. It is increasingly sophisticated, technology-driven and cross-border in nature, often structured to exploit gaps among regulatory frameworks, enforcement agencies and jurisdictions.
Many scams now operate through digital platforms, social media and messaging services, frequently involving phishing, identity theft and fraudulent investment schemes.
As highlighted in Bank Negara’s Annual Report 2024, the current financial crime landscape requires robust, intelligence-driven responses. Preventive and detection measures have been strengthened, including enhanced authentication controls, national fraud reporting mechanisms and inter-institutional data sharing.
These efforts have helped avert significant attempted losses and supported more efficient investigations by law enforcement authorities.
The Malaysian Bar agrees that stronger inter-agency coordination is essential.
However, coordination alone is insufficient unless it is supported by clear accountability, effective information sharing and a legal framework capable of keeping pace with emerging threats.
Enforcement strategies must be cohesive, adequately resourced and able to address both traditional and evolving forms of misconduct, including digital fraud, market manipulation, investment scams and complex money-laundering activities.
Complex financial crime cases demand specialised expertise at every stage, from investigation and prosecution to adjudication. Continuous training and capacity-building for investigators, prosecutors and judges are critical to ensure that cases are handled effectively, resolved within a reasonable time and capable of withstanding legal scrutiny.
Public awareness must also be strengthened. The high incidence of scams, coupled with under-reporting, suggests gaps in public confidence and uncertainty over available reporting and restitution pathways. Sustained public education efforts are necessary to reduce vulnerability, encourage timely reporting and strengthen deterrence.
The Malaysian Bar affirms its responsibility, as an independent statutory body, to speak where systemic risks undermine the rule of law, public confidence and access to justice. Financial crime on this scale cannot be addressed in silos or through fragmented responses. It requires a coherent legal framework, capable institutions and sustained commitment across the enforcement and justice ecosystem.
The Malaysian Bar stands ready to engage constructively with regulators, enforcement agencies, policymakers and stakeholders to strengthen Malaysia’s legal and institutional response to financial crime, in the public interest and in defence of the long-term integrity and credibility of the nation’s financial system. — Bar
Mohamad Ezri Abdul Wahab is the president of the Malaysian Bar.
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