International Journal of Research and Innovation in Social Science (IJRISS)
Examining Compliance Cost Challenges in Suspicious Transaction Reporting among Financial Institutions in Malaysia: A Concept Paper
Published November 29, 2025 • Vol. 9, Issue 11, pp. 919–928Open Access
DOI: 10.47772/IJRISS.2025.91100075
Abstract
Non-compliance with anti-money laundering (AML) laws and regulations, specifically in the timely submission of suspicious transaction reports, renders heavy penalties and unfavourable consequences for financial institutions (FIs) in Malaysia. As a result, FIs need to invest in high-cost compliance measures to mitigate the risk of regulatory breach. This paper aims to examine compliance costs challenges faced by FIs in the submission of high-quality suspicious activity reports, with the key area of concern including the demand for workforce expertise and enhancing technology for monitoring purposes. Additionally, this paper also explores the impact of non-adherence, which will cost FIs a hefty monetary penalty amount that adds to the potential compliance cost faced by FIs.
Keywords: Malaysia’s Fifth National Risk Assessment on Money
| Journal | International Journal of Research and Innovation in Social Science (IJRISS) |
|---|---|
| ISSN | 2454-6186 |
| Volume / Issue | Volume 9, Issue 11 |
| Pages | 919–928 |
| Publication date | November 29, 2025 |
| DOI | 10.47772/IJRISS.2025.91100075 |
| Publisher | RSIS International |
| License | Open Access |
How to cite this article
Aainaa Nazirah Binti Anuar, Siti Sarah Binti Saari, Gustiani Rahmi Binti Khaidir, & Yusri Hazrol Yusoff (2025). Examining Compliance Cost Challenges in Suspicious Transaction Reporting among Financial Institutions in Malaysia: A Concept Paper. International Journal of Research and Innovation in Social Science (IJRISS), 9(11), 919-928. https://doi.org/10.47772/IJRISS.2025.91100075
BibTeX
@article{Aainaa2025,
title = {Examining Compliance Cost Challenges in Suspicious Transaction Reporting among Financial Institutions in Malaysia: A Concept Paper},
author = {Aainaa Nazirah Binti Anuar and Siti Sarah Binti Saari and Gustiani Rahmi Binti Khaidir and Yusri Hazrol Yusoff},
journal = {International Journal of Research and Innovation in Social Science (IJRISS)},
volume = {9},
number = {11},
pages = {919--928},
year = {2025},
doi = {10.47772/IJRISS.2025.91100075},
publisher = {RSIS International}
}