The Covid-19 impact on financial crime and regulatory compliance in Malaysia

Published date31 July 2021
Date31 July 2021
Subject MatterAccounting & finance,Financial risk/company failure,Financial crime
AuthorAinul Huda Jamil,Zuraidah Mohd Sanusi,Najihah Marha Yaacob,Yusarina Mat Isa,Tarjo Tarjo
The Covid-19 impact on f‌inancial
crime and regulatory compliance
in Malaysia
Ainul Huda Jamil and Zuraidah Mohd Sanusi
Accounting Research Institute, Universiti Teknologi MARA,
Shah Alam, Malaysia
Najihah Marha Yaacob
Faculty of Accountancy, Universiti Teknologi MARA Cawangan Terengganu
Kampus Dungun, Malaysia
Yusarina Mat Isa
Faculty of Accountancy, Universiti Teknologi MARA Cawangan Selangor
Kampus Puncak Alam, Malaysia, and
Tarjo Tarjo
Department of Accounting, Universitas Trunojoyo Madura, Bangkalan, Indonesia
Purpose The purpose of this paper is to provide a conceptual discussion and analysis of the Covid-19
impact on f‌inancial crimeand regulatory compliance. The analysis is conductedto make a comparison of the
f‌inancialcrime and regulatory compliance patterns before and after the Covid-19pandemic occurred.
Design/methodology/approach This paper contextualises the impact of Covid-19 on f‌inancial crime and
regulatory compliance. Moreover, this paper explores different ways of conceptualising the Covid-19 impacts in terms
of f‌inancial crimes and regulatory compliance patterns based on the surveys by PricewaterhouseCoopers and Deloitte.
Findings The Covid-19 pandemic has brought both challenges and opportunities to f‌inancial crime and
regulatory compliance. In the aspects of f‌inancial crime patterns, this study found a reduction in physical
crime whilst on the other hand increment in cybercrime. Nevertheless, this study discovered regulatory
compliancenot at a satisfactorystage even before the Covid-19 pandemic, let alone during the pandemic.
Practical implications This study implies that the f‌inancialinstitutions must work together to combat
the risks of f‌inancial crimes,not only amongst the institutions but also with the regulators. Digitalisationand
robust risk managementneed to be improved at a massive level to beat the criminalshigh f‌intech skills and
systems. The initiativesof fund packages from the governments to assist the companiesespecially the small
f‌irms need to be fullyused by the companies to improve regulatory compliance.
Originality/value Whilst some studies discussedthe impact of Covid-19 on the economy, there are still
scarce resourceson the comparative analysis on the f‌inancial crime and regulatorycompliance, not to mention
the before and after effectof the Covid-19 pandemic.This is the f‌irst paper to integrate the issues surrounding
the Covid-19impact, f‌inancial crimes and regulatory compliance in Malaysia.
Keywords Money laundering, Financial crime, Fraud, Covid-19, Regulatory compliance
Paper type Conceptual paper
1. Introduction
Covid-19 had infected over 131 million people worldwideand killed over 2.8 million people
as of mid-April 2021 (WHO, 2021). Most countries are still on lockdown during this early
crime and
Journalof Financial Crime
Vol.29 No. 2, 2022
pp. 491-505
© Emerald Publishing Limited
DOI 10.1108/JFC-05-2021-0107
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