In prepared welcoming remarks for the National Symposium on Non-Profit Organisations on Oct. 30, 2026, Labuan Financial Services Authority Deputy Director-General Syahrul Imran Mahadzir called for proportionate, risk based safeguards against terrorist financing. Malaysia’s 2024 Non-Profit Organisation Risk Assessment rated the sector’s overall net terrorist financing risk as medium, although exposure varies by activities, funding channels, operating locations and counterparty relationships. Non-Profit Organisations should assess their donors, partners and beneficiaries, strengthen board and management oversight, maintain clear records tracing funds and programs, and apply proportionate due diligence while monitoring targeted financial sanctions. Regulators and financial institutions should avoid treating the entire sector as high risk, with transparent information on governance, funding and overseas activities helping organizations maintain access to financial services and limit unnecessary de-risking. Malaysia received a substantial effectiveness rating under Immediate Outcome 10 in its 2025 Mutual Evaluation for measures preventing terrorist financing, including abuse of the nonprofit sector. The current National Coordination Committee to Counter Money Laundering Roadmap 2024-2026 will support continuing initiatives, while its successor is expected to address remaining gaps and emerging risks from digital fundraising, crowdfunding, social media appeals, virtual assets and cross-border programs.

Original source