Speech at SC-LHDN MOU Signing Ceremony

Speaker: Dato’ Mohammad Faiz Azmi, Chairman, Securities Commission Malaysia

Location: Dewan Bangsawan, Menara Hasil, Cyberjaya
Delivered: 19 December 2025

Assalamualaikum and good morning.

Yang Berbahagia Datuk Dr. Abu Tariq bin Jamaluddin, Ketua Pegawai Eksekutif HASiL,
Yang Berbahagia Datuk Hisham bin Rusli, Timbalan Ketua Pegawai Eksekutif (Pematuhan) HASiL,
Yang Berbahagia Datuk Ahmad Khairuddin bin Abdullah, Timbalan Ketua Pegawai Eksekutif (Cawangan Khas) HASiL,
Yang Berusaha Tuan Muhammad Azhari bin Tamrin, Pengarah Jabatan Perisikan dan Profiling,
SC Colleagues,
Distinguished guests.

Financial crimes are becoming increasingly complex, and combating them successfully requires multi-pronged strategies, strong inter-agency collaboration, and approaches that address the multifaceted nature of such crimes. In order to achieve effective enforcement outcomes, it demands coordinated efforts across all law enforcement agencies to address the evolving nature of financial crime.
Recently on 11 December 2025, Malaysia’s FATF/APG Mutual Evaluation Report was released. Our country received an upgrade from the previous evaluation in 2015 to Regular Follow-Up status (the highest category under the FATF Mutual Evaluation process).
This achievement not only demonstrates our strong commitment in combating money laundering, terrorism financing, and proliferation financing through a comprehensive legal and institutional framework but also showcased robust domestic coordination and cooperation among relevant authorities¹.
Such cooperation between law enforcement agencies are even more vital now given financial losses reported in Malaysia amounted to RM54 billion (approximately US$12.8 billion) last year², equivalent to 3% of Malaysia’s GDP.

Possible areas for Collaboration

While the statutory functions of the Securities Commission Malaysia (SC) and Lembaga Hasil Dalam Negeri (LHDN) may appear distinct, there are in fact many areas where both agencies can work closely in addressing the multi-dimensional nature of financial crime.
Let me share two examples.
Firstly, fraudulent investment schemes that involve the collection of funds from investors for purported securities investments may give rise to offences under securities laws. At the same time, any failure by investors or perpetrators to declare income generated from such schemes may also constitute offences under LHDN’s purview.
Second, listed companies on Bursa Malaysia are statutorily obliged to ensure true and accurate financial reporting. Any false, misleading or material omission statements may not only attract possible disclosure breaches under the Capital Markets and Services Act 2007 but also possible tax evasion offences for either reporting profits or inflating losses to avoid tax.

Significance of the MOU

Against this backdrop, it is indeed timely for the SC and LHDN to formalise our cooperation through the signing of today’s Memorandum of Understanding. This MOU marks an important milestone in strengthening inter-agency collaboration, underpinned by our shared commitment to safeguarding the integrity of Malaysia’s financial ecosystem.
It is my hope that this MOU will enable both agencies to work more closely within a secure and structured framework for the exchange of relevant information. Such cooperation will enhance our collective ability to detect, deter, and effectively enforce cases involving tax evasion, market misconduct, and the abuse of the financial system.
Ultimately, our collaboration will not only strengthen the fight against financial crime but also enhance public confidence in our financial system, promote higher standards of governance and support the nation’s growth story.

Platform for knowledge sharing

Beyond information sharing, the MOU also provides a valuable platform for both SC and LHDN to leverage each other’s expertise through knowledge sharing initiatives pertaining to securities laws and tax offences.
Based on public complaints and enquiries received by the SC, financial crimes involving securities offences are not only increasing in frequency but are also evolving in sophistication. New modus operandi has emerged, including the use of mule accounts, cash trust arrangements, and the misuse of unlisted public companies.
Within the public market, funds have been raised by public listed companies (PLCs) through various corporate exercises, only for such funds from the public to be subsequently misappropriated. In market abuse cases, there has been a notable shift from dealer assisted trading to online trading platforms.
In relation to scams and unlicensed activities, social media platforms such as WhatsApp, Telegram, and Facebook are increasingly used to lure victims, often without any physical interaction. The widespread use of these digital channels highlights the urgent need for proactive and coordinated measures to address financial crime in the digital environment.
Where appropriate, the SC and LHDN may also explore secondment opportunities under this MOU. Such arrangements would allow officers from both agencies to gain invaluable hands-on experience, enhance case handling capabilities, and foster a deeper understanding of each other’s operations.

Conclusion

Subject to the scope and terms of cooperation under the MOU, enhanced data and intelligence sharing between the SC and LHDN will facilitate early detection of irregularities and misconduct.
By combining our respective expertise and experience, we may also be better positioned to jointly address and resolve more complex financial crime cases, thereby enhancing trust in the financial system and broader economy.
I am confident that this MOU will foster deeper and more effective collaboration between our two agencies, and I look forward to the continued support and partnership of LHDN.

Thank you.

https://www.fatf-gafi.org/content/dam/fatf-gafi/mer/mer-malaysia-2025.pdf.coredownload.inline.pdf?utm
Source: State of Scam Report 2024