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Evolution of Money Laundering Typologies: A Concept Paper

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  • Muhammad Danish Irfan Bin Ibrahim

    (PLO 8 & 9, Jalan Timah, Pasir Gudang Industrial Estate, 81700 Pasir Gudang, Johor, Malaysia)

  • Fatihatul Amirah Binti Mohd Fikri

    (B. Braun Medical Industries B8, No 140 Lebuh Sungai Tiram 1, Taman Perindustrian Bebas Bayan Lepas Fasa 2, 11900 Bayan Lepas, Pulau Pinang, Malaysia)

  • Muhammad Aqib Aiman Bin Puasa

    (Level 29 Menara Hong Leong, No. 6, Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Malaysia)

  • Nur Fachrunnisa Binti Mohd Fadzil

    (CWC & ENG PLT, 38D, 3rd Floor, Jalan Radin Anum, Bandar Baru Sri Petaling, 57000 Kuala Lumpur, Malaysia)

  • Yusri Hazrol Yusoff

    (Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia)

Abstract

Money laundering (ML) remains a significant threat to global financial systems, with increasingly sophisticated typologies that exploit regulatory loopholes, professional enablers, and technological advancements. In Malaysia, the evolution of its Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) legal and regulatory framework since 2001 reflects continuous efforts to combat these illicit financial flows. However, high-profile cases such as the 1Malaysia Development Berhad (1MDB) scandal underscore persistent vulnerabilities across sectors and institutions.This report is motivated by the urgent need to understand how Malaysia’s AML/CFT regime has responded to real-world challenges, particularly those involving cross-border laundering, beneficial ownership opacity, and abuse of professional services. The 1MDB scandal serves as a critical case study, illustrating the interplay between political influence, regulatory gaps, and transnational laundering techniques that enabled the misappropriation of over USD 4.5 billion. This study investigates the development of Malaysia’s AML/CFT legal architecture, typological trends in ML which include ESG and AI driven laundering and sector-specific responses across financial and non-financial domains. It further assesses current enforcement actions, regulatory reforms, and future challenges such as virtual asset regulation, trade-based money laundering, and STR analytics. This paper investigates factors that influence the evolution in money laundering typologies through an article review. Three factors are discussed: technology and innovation, globalization and cross-border transactions, regulatory and legal frameworks, sectoral oversight and professional enablers. With these insights, recommendations are proposed for better evolution in money laundering typologies

Suggested Citation

  • Muhammad Danish Irfan Bin Ibrahim & Fatihatul Amirah Binti Mohd Fikri & Muhammad Aqib Aiman Bin Puasa & Nur Fachrunnisa Binti Mohd Fadzil & Yusri Hazrol Yusoff, 2025. "Evolution of Money Laundering Typologies: A Concept Paper," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 1360-1374, July.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:1360-1374
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    References listed on IDEAS

    as
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