Can the Federal Financial Institutions Examination Council (FFIEC) BSA/AML Compliance Examination Manual (2014) be used as a benchmark to audit the AML controls in Islamic financial institutions in Malaysia?

Author: Aaron Lau In-Tsoi, CAMS – Audit, CFE, CA(M), FCA(Aust)

Rapid growth of the Islamic finance industry may necessitate an examination of whether some of the precepts and principles as contained in the Federal Financial Institutions Examination Council’s (FFIEC) Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Compliance Examination Manual (2014) could be applied to AML audit in IFIs in Malaysia.

In my considered view, with some modifications and redefinition of terms, the FFIEC BSA/AML Compliance Examination Manual examination procedures can be used as a guide for AML audit in the IFI.

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