Money laundering propensity amongst accountants in Malaysia

Based on the International Narcotics Control Strategy Report (2018), Malaysia is used as a transit country to move drugs globally. Launderers are continuously updating their new routes for laundering their illegal funds (FATF, 2012). Currently they like to use the services and consultancy from the Designated Non-Financial Business and Professions (DNFBPs) especially those in accounting, company secretarial and legal professions. Accountants are vulnerable towards involvement in money laundering as they are the gatekeepers as well as the bridge to commit money-laundering activities (Omar and Johari, 2015). This paper discusses the factors influencing the propensity for money laundering amongst accountants in the Northern Region of Malaysia. The dependent variable is propensity for money laundering, whereas the independent variables consist of familiarity with Financial Task Force Action (FATF) familiarity with Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (AMLATFAPUAA) Act 2001 and familiarity with Anti-Money Laundering (AML) Requirements. This study is a conceptual paper.