During the financial period from 1 Jul 2024 to 31 Dec 2024, the Practice Review Department (“PRD”) had finalised 5 first review reports. The outcomes of the first reviews are as follows:

The above statistics represent high-risk firms selected based on a risk-based approach and are NOT representative of the audit profession as a whole. The selection of firms assessed as higher risk would naturally result in the selection of firms that are more likely to have difficulties passing the Practice Review process.

Besides, MIA, as a regulatory body for the accountancy profession, has a role in ensuring compliance and effective implementation of AMLA requirements from its members, specifically members who are reporting institutions (RIs) carrying out the activities as outlined under Paragraph 9 of the First Schedule of the Anti-Money Laundering, Anti- Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

During the financial period from 1 Jul 2024 to 31 Dec 2024, PRD conducted eleven (11) joint examinations with Bank Negara Malaysia (BNM) to assess the members’ compliance with the key requirements of AML/CFT. The results of our joint examinations are as follows:

• Two (2) firms fully met the regulatory requirements;
• Six (6) firms were required to submit a progress report on fully implemented approved action plans within four (4) months after receiving the final report from MIA/BNM; and
• Three (3) firms declared they do not provide any Gazetted Activities as stipulated under paragraph 3.3 of the Anti-Money Laundering, Countering Financing of Terrorism, Countering Proliferation Financing and Targeted Financial Sanctions for Designated Non-Financial Businesses and Professions (DNFBPs) and Non-Bank Financial Institutions (NBFIs) Policy Document.