Author
Dr RAJA MADIHAH RAJA ALIAS
Organisation/Institution
Universiti Sultan Zainal Abidin (UniSZA)
Country
MALAYSIA
Panel
Banking and Finance
Title
Anti-Money Laundering Compliance in the ASEAN Region: Challenges and Trends
Abstract
Anti-Money Laundering (AML) compliance has become a critical concern in the Association of Southeast Asian Nations (ASEAN) as the region experiences rapid economic growth, deepening financial integration, and increasing exposure to transnational financial crime. While member states have progressively aligned their domestic legal and regulatory frameworks with international standards, including the Financial Action Task Force (FATF) Recommendations, challenges remain in achieving consistent and effective implementation. Differences in institutional capacity, political will, and legal infrastructures across ASEAN countries have created uneven levels of compliance, leaving gaps that money launderers and terrorist financiers may exploit. In addition, emerging trends such as the proliferation of financial technology (fintech), the use of digital assets, and the expansion of cross-border remittance networks are reshaping the AML landscape. These developments, while promoting financial inclusion, also pose heightened risks of anonymity and regulatory arbitrage. Regional initiatives such as the ASEAN Banking Integration Framework (ABIF) and cooperation with global standard-setting bodies demonstrate efforts to address these vulnerabilities through harmonisation and capacity building. This paper examines the key challenges and evolving trends in AML compliance across the ASEAN region. It highlights regulatory disparities, enforcement difficulties, and technological disruptions while exploring opportunities for enhanced regional cooperation. The study argues that strengthening cross-border collaboration, investing in technological solutions, and fostering consistent legal frameworks are essential for safeguarding financial integrity and sustaining trust in ASEAN’s financial systems.
Biography
Raja Madihah Raja Alias is a lecturer at the Faculty of Law and International Relations (FUHA), Universiti Sultan Zainal Abidin (UniSZA), where she teaches subjects related to Islamic Banking and Finance Law, public law, and legal studies. She holds a Ph.D. from the Ahmad Ibrahim Kulliyyah of Laws (AIKOL), International Islamic University Malaysia (IIUM), with her doctoral research focusing on anti-money laundering and countering the financing of terrorism (AML/CFT) compliance within the money services business sector. Before joining UniSZA, she served as an Advocate & Solicitor, practising in various areas including civil litigation, legal opinions and drafting, conveyancing, and corporate matters. Her legal career involved attending hearings, appeals, and trial proceedings. She has published several academic articles and a book chapter on AML/CFT issues in financial institutions, and has presented her research at national and international conferences in Thailand, the Philippines, Singapore, Indonesia, and Brunei. Her current academic and research interests include AML/CFT compliance, Islamic finance regulation, financial integrity, and governance in the halal supply chain.
