THE Nation has marked a significant milestone in combating financial crime, successfully recovering assets worth around €8 billion (RM37.63 billion) between 2019 and 2025, according to the latest joint FATF-APG 2025 assessment report released today.
The figure represents a substantial increase compared to the previous evaluation conducted in 2015.
The report emphasises that Malaysian authorities now place serious focus on asset recovery as a key strategy to dismantle criminal networks.
Between 2019 and February 2025, Malaysia recovered €8.11 billion (RM38.93 billion), with €6.08 billion (RM29.18 billion) linked to the high-profile 1MDB case.
“Most of the 1MDB-related assets were returned through civil forfeiture and settlements abroad,” the report noted.
However, the remaining €2.03 billion (RM9.74 billion) in non-1MDB assets raised concerns, as much of it was recovered through tax mechanisms administered by the Inland Revenue Board of Malaysia (LHDN), indicating a heavy reliance on administrative rather than criminal forfeiture methods.
The FATF-APG, comprising the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG), highlighted that Malaysia relies more on non-conviction based forfeiture (NCBF) than conviction-based forfeiture (CBF), reflecting challenges in prosecuting and securing convictions for money laundering offences.
“Although FATF methodology does not favour any specific form of forfeiture, the low use of CBF illustrates broader difficulties in prosecuting and obtaining convictions for money laundering,” the report said.
The report further noted that while significant progress has been made in corruption and fraud cases, asset recovery related to drug trafficking, organised crime, and smuggling remains disproportionate to Malaysia’s risk profile, particularly given the cross-border nature of such crimes and their designation as high-risk threats in the national risk assessment (NRA).
Beyond 1MDB, Malaysia’s capacity to recover assets linked to predicate offences abroad or assets located overseas remains limited.
Overall, while 1MDB recovery efforts are significant, other asset recovery measures have yet to fully align with the national crime risk exposure, particularly for high- and medium-risk predicate offences.
The report praised Malaysian investigative teams for their specialised expertise in tracing and freezing assets across borders, supported by advanced data technologies that allow authorities to track illicit funds more efficiently.
“The sharp increase in recovered assets is also driven by a surge in financial crime investigations. Since 2015, the number of money laundering investigations has roughly tripled, reflecting a more aggressive approach by authorities,” it said.
Despite these achievements, FATF-APG recommended that Malaysia diversify asset recovery strategies beyond high-profile cases like 1MDB to ensure alignment with other crime risks such as smuggling and organised crime.
The report acknowledged that focusing on high-profile cases has successfully restored public confidence but noted that it can impact enforcement agencies’ capacity to pursue other money laundering cases simultaneously.
The assessment highlighted improvements in Malaysia’s legal framework for asset forfeiture, including more effective utilisation of Section 44 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). - December 11, 2025
Financial Crime, Asset Recovery, FATF-APG, 1MDB, Money Laundering, Anti-Money Laundering, AMLA, Organised Crime, Corruption, International Compliance
