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This paper aims to provide a systematic literature review (SLR) on contemporary cardinal money mule issues.

This paper reviews the most common money mule themes in perpetrating financial crime activities, especially its roles, recruitment and awareness. A systematic review protocol called preferred reporting items for systematic review and meta-analysis protocols is adopted for this study.

Money mules are used by organized criminal groups (OCG) or fraudster to launder illicit funds from outrageous criminal activities. They allow their accounts to be used for money laundering by OCG. The attacker, OCG or fraudsters would layer the stolen funds using money mule accounts. These money mules are recruited using various approaches, oftentimes deceived by opulent lifestyles to captivate the interest of potential money mules.

This paper presents money mule awareness needed by accountant, bank employees and the society. It is an unprecedented SLR on money mule. This paper will be beneficial for future money mule researchers, enforcement agencies and practitioners in banking industry.

This study aims to understand the member countries’ current asset recovery mechanism based on two elements, namely, confiscation policy and asset recovery management framework.

Content analysis was performed on the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of eight countries.

The result showed that only a few countries established a centralised asset recovery centre or special task force to manage recovered assets.

This study is limited to information mentioned in the FATF MER.

This study highlights the need to have a centralised asset recovery management centre as an initiative to improve the outcome of money laundering investigations. The study findings will benefit regulators to understand further the practical challenges of the asset recovery mechanism for future improvement.

FATF recommends that each country establish a centralised asset recovery centre and work closely with the investigating officers and prosecutors in deciding on assets confiscation. However, the implementation is contingent on their local environment and resources at the member countries’ discretion. Therefore, this study aimed to understand the member countries’ current asset recovery mechanism based on two elements, namely confiscation policy and asset recovery management framework.

Terrorism had a profound impact on the global economy, society and security. Malaysia encountered a comparable scenario in the Movida attack. The availability of funds is a crucial determinant for successful terrorist activities. Hence, a guideline was introduced to deal with terrorism financing. As reporting institutions, the compliance officers are the gatekeepers to report any suspicious transaction related to money laundering and terrorism financing. However, lack of study has looked into the role of the compliance officer in reporting potential terrorism financing activities. Hence, this study aims to examine the factors that influence terrorism financing reporting, focusing on terrorism financing policy, terrorism financing red flags and the integrity of the officers.

A total of 120 responses were collected among the compliance officers and 91 responses were analyzed using multiple regression analysis.

Findings show that only terrorism financing policy and terrorism financing red flags influence suspicious transaction reporting among the compliance officers. Hence, there is a need to focus on officer’s competency, by enhancing the training module, especially on the latest terrorism financing trends and red flags.

This will help the compliance officers to be more competent in fulfilling their role as the reporting entity because their roles are vital in preventing terrorism financing.

This study focuses on terrorism financing risk assessment, which is different from prior literature that focuses on money laundering risk assessment. Owing to lack of prior studies, the questionnaire developed in the study was made based on guidelines provided by the authority and regulator.

Malaysia has implemented a comprehensive AML/CFT framework, yet its effectiveness remains questionable due to low number of prosecutions on money laundering cases. Therefore, this study aims to understand the reasons for low number of prosecutions, by addressing the challenges faced by the law enforcement agencies in conducting money laundering investigation. This study then identifies future improvement actions to enhance their effectiveness in combating money laundering in future.

This study distributed surveys to the law enforcement agencies that are responsible for conducting money laundering investigation in Malaysia. In total, 65 surveys were distributed; however, only 61 were returned to the researchers. Out of the 61 surveys returned, only 39 can be analysed due to incomplete answers given by respective respondents.

The results show that the investigating officers are facing difficulties in gathering sufficient information to support their charges. Besides information gathering, they are also facing difficulties due to short investigation timeframe regulated in the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) 2001. This study concludes that, although the law enforcement agencies have the power to investigate money laundering and terrorism financing under the act, Malaysia is lacking in having a good investigative support system to assist the law enforcement agencies during the investigation process.

The results of this study are helpful to the regulators and law enforcement agencies in determining the flaws of the current money laundering investigation practices. This study also provides suggestions for future improvement action.

Lack of study focuses on money laundering investigation conducted by the law enforcement agencies, especially in the Malaysian setting, makes the study valuable to the money laundering research.

This paper aims to conduct a comparison on the effectiveness of the law enforcement agencies (LEAs) of Australia and Malaysia in investigating money laundering cases by looking into the legal system and operational issues faced in conducting the investigation.

The purpose of this paper is to review and analyze the data collected from the Financial Action Task Force (FATF) Mutual Evaluation Report, focusing on the information outlined in the third chapter. The legal system and operational issues cover the area of technical compliance and effectiveness compliance, which were introduced in the latest FATF Evaluation Methodology issued in 2013.

The results show that both countries have the power needed to investigate money laundering and terrorism financing under their respective Anti-Money Laundering Act. However, Australia is seen to have a better investigative support system to assist LEAs during the investigation process. This explains the reason for difficulties in increasing the number of prosecutions for money laundering and terrorism financing cases. Hence, improvement actions are needed in curbing this issue.

The result suggests that Malaysia should strengthen the cooperation, coordination and capacity among LEAs to ensure effective targeting, investigation and prosecution of money laundering. The government should also revise the money laundering investigation time frame and broaden the power of LEAs in retrieving information during the investigation process. Malaysia should also enhance the investigative support system, which will be helpful for LEAs in gathering sufficient evidence to support their money laundering charges. Unlimited power in gathering evidence is prominent to charge money launders as it helps to gather information required for prosecution.

Prior literature focuses on the prevention mechanism, where this paper aims to focus on detection and investigation mechanism focusing on money laundering investigation conducted by LEAs. Lack of study on money laundering investigation calls for this research to be done to understand the strengths and weaknesses to improve its effectiveness in the future.

Money laundering offences occur worldwide, with recent discussions involving issues related to the low levels of compliance among professional accountants towards the anti-money laundering (AML) regime. Under the regime, professional accountants are required to implement compliance programs (Know Your Customer, Clients Due Diligent, Record Keeping) and to submit any suspicious transaction report encounters to the authorities. Due to the lack of research in this sector, this study aims to examine the compliance determinants towards AML regimes among professional accountants in Malaysia.

Premised on protection motivation theory, a questionnaire was developed and distributed among 1,100 professional accountants. Of which 275 questionnaires were returned and subjected to regression analysis.

Based on the findings, “perceived risk of non-compliance” and “awareness of Anti-Money Laundering Act 2001 and Financial Action Task Force standard” were significantly related to the level of compliance towards the AML regimes. Meanwhile, “compliance cost” did not influence the compliance behaviour of professional accountants. Moreover, the findings demonstrated that awareness programs among the reporting institutions should be enhanced, specifically the professional accountants.

This study recommends the professional bodies particularly professional accountants in Malaysia to establish a blueprint as a guideline for money laundering reporting.

This is one of the pioneer studies looking into AML compliance determinants among the professional accountants in Malaysia. This study will provide insights on the current practices and recommend ways to improve the current AML reporting practices among the professional accountants.

This study aims to discuss the Financial Action Task Force (FATF) Special Recommendation IX (SR IX) and the importance of complying with the recommendation, which focuses on cross-border declaration or disclosure with the objective to detect and prevent illicit cross-border transportation of cash and bearer negotiable instruments (BNIs). This study also looks into compliance ratings of Asia Pacific Group (APG) 40 countries on the FATF SR IX.

This study reviews the mutual evaluation reports issued by APG on money laundering from 2006 to 2012. Based on the mutual evaluation reports, this study also looks into recommendations and comments given by respective panels. The compliance ratings together with panel’s recommendations and comments compiled in this study will be helpful to relevant authorities for future improvement.

Complying to FATF SR IX helps relevant authorities in detecting and preventing illicit from cross-border transportation of cash and BNIs. Out of 40, only two countries received compliant rating, which shows the need of improvement to ensure that the country is compliant on FATF SR IX.

This study is limited to the panel’s reviews and recommendations on mutual evaluation report and only focuses on FATF SR IX.

This paper analyzes the compliance characteristics of countries based on their FATF mutual evaluation report. It highlights the comments and recommendation for future improvement to ensure that these countries will comply with FATF SR IX.

The purpose of this paper is to examine the impact of ethnicity on auditor choice for Malaysian listed companies.

This study evaluates the effects of various independent variables on auditor choice behaviour, particularly ethnicity of auditor and ethnicity of management, using a logistic regression analysis approach for 300 companies listed on the Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange‐KLSE) over an 18 year period.

Auditor choice is shown to be significantly influenced by client firm's characteristics, notably changes in management, complexity, and financial risk, lending support to the findings of previous survey studies. Ethnicity was found to be a significant factor influencing auditor choice only for auditor switches between non‐Big 4 and Big 4 firms.

A number of important variables such as corporate governance characteristics, audit fees, client size, and growth that might enhance an understanding of auditor choice behaviour in Malaysia were not incorporated in the regression models, and might be considered in future studies.

The results presented in the paper have important implications for both the auditing profession and regulators in Malaysia.

The purpose of this paper is to examine two factors which influence auditor change: audit and client firms’ characteristics, for Malaysian listed companies. Given the costs involved, it is important to understand the reasons why companies change their auditor and choose a particular level of audit assurance.

This study evaluates the effects of various independent variables on auditor change behaviour and the sensitivity of results to alternative period measurement by using logistic regression analysis.

An examination of 400 companies listed on the Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange‐KLSE) over a period of 18 years reveals auditor change to be significantly influenced by client firm's characteristics, notably changes in management, size of the client firm, complexity, and client's firm growth, lending support to the findings of previous survey studies.

In the cause of brevity, a number of potentially important variables, that might enhance an understanding of auditor change behaviour in Malaysia, were not incorporated in the regression models, and might be considered in future studies.

The results presented in the paper have important implications for both the auditing profession and regulators in Malaysia.

The main purpose of this paper is to examine one aspect of auditor‐client relationship, namely audit tenure and switching behaviour, and factors affecting it. Lengthy audit tenure with the same client has been cited as one of the threats to auditor independence. Given the importance of this issue, this research attempts to shed some light on the effect of audit tenure and switching behaviour on auditor independence in Malaysia.

This study evaluates the effects of various independent variables on switching behaviour and audit tenure using logistic regression analysis.

An examination of 297 companies listed on the Kuala Lumpur Stock Exchange over a period of 11 years reveals audit firm switching to be significantly associated with distressed large clients and that the length and direction of switch depend upon the type of audit firm.

A number of important variables such as corporate governance characteristics, audit and non‐audit fees and types of audit opinion that could enhance our understanding of audit tenure and auditor switching in Malaysia, were not incorporated into our regression models. Hence, future studies may consider such variables.

This study is the first conducted using Malaysian data where audit tenure and switching are used as dependent variables. The results have important implications on the auditing profession and regulators in Malaysia.