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Tracking Financial Misconduct: 32 Years of Securities Commission Malaysia Enforcement

Author

Listed:
  • Nor Aishah Mohd Ali

    (Money Laundering Research Group, Faculty of Accountancy, University Technology MARA, Melaka, Malaysia)

  • Khair Syakira Bustamam

    (Faculty of Accountancy, University Technology MARA, Melaka, Malaysia)

  • Zaharah Abdullah

    (Money Laundering Research Group, Faculty of Accountancy, University Technology MARA, Melaka, Malaysia)

  • Amir Hakim Chan Muhamad Azmi

    (Faculty of Accountancy, University Technology MARA, Melaka, Malaysia)

  • Bayu Tri Cahya

    (Economic Shariah Postgraduate, Institut Agama Islam Kudus, Indonesia)

Abstract

This study examines enforcement actions undertaken by the Securities Commission Malaysia (SC) over the past 32 years, focusing on violations such as insider trading, money laundering, and other financial crimes. Employing qualitative research design by analyzing the data in the Securities Commission website, the research identifies key trends, patterns, and enforcement priorities, uncovering systemic issues in regulatory responses to financial misconduct. This study also investigates the profiles of individuals and organizations prosecuted for these violations, contributing to the discourse on regulatory efficacy in emerging markets. The findings show a rise in insider trading prosecutions indicating stronger regulatory vigilance, alongside cyclical trends in money laundering cases over the 32 years of study. Enforcement actions spiked in 2003-2003, 2015, and 2024, reflecting the influence of regulatory reforms and surveillance improvements. It is worth highlighting that financial misconduct in Malaysia remains driven by individual actors, particularly with prominent positions within an organization. The research offers actionable insights into how enforcement mechanisms influence market behavior, deter misconduct, and promote effective corporate governance.

Suggested Citation

  • Nor Aishah Mohd Ali & Khair Syakira Bustamam & Zaharah Abdullah & Amir Hakim Chan Muhamad Azmi & Bayu Tri Cahya, 2025. "Tracking Financial Misconduct: 32 Years of Securities Commission Malaysia Enforcement," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 1293-1303, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:1293-1303
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    References listed on IDEAS

    as
    1. Arturo Bris, 2005. "Do Insider Trading Laws Work?," European Financial Management, European Financial Management Association, vol. 11(3), pages 267-312, June.
    2. Arturo Bris, 2000. "Do Insider Trading Laws Work?," Yale School of Management Working Papers ysm162, Yale School of Management, revised 01 Jun 2005.
    3. Coffee, John C., Jr., 2007. "Law and the Market: The Impact of Enforcement," Working Papers 07-3, University of Pennsylvania, Wharton School, Weiss Center.
    4. Arturo Bris, 2000. "Do Insider Trading Laws Work?," Yale School of Management Working Papers ysm162, Yale School of Management, revised 01 Jun 2005.
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