Tracking Financial Misconduct: 32 Years of Securities Commission Malaysia Enforcement

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.