The proliferation of weapons of mass destruction (WMD) represents one of the paramount threats to international peace and security in the 21st century, as established by the United Nations Security Council Resolutions (UNSCRs).
The Financial Action Task Force (FATF), in response, has mandated countries and their Designated Non-Financial Businesses and Professions (DNFBPs), and Non-Bank Financial Institutions (NBFIs) – collectively known as Reporting Institutions (RIs) – to identify and assess the risks of potential breaches, non-implementation or evasion of the targeted financial sanctions related to proliferation financing (PF), and to take actions to mitigate these risks as well as to enhance domestic coordination.
In alignment with FATF standards, Bank Negara Malaysia (BNM) issued revised policy documents on Anti-Money Laundering/Counter Financing of Terrorism/Counter Proliferation Financing (AML/CFT/CPF) and Targeted Financial Sanctions (TFS) for both Financial Institutions (FIs), and DNFBPs and NBFIs on 5 February 2024.
KPMG’s thought leadership on Proliferation Financing delves into the regulatory imperatives initiated by the central bank, providing insights for navigating the complexities of PF risks to achieve enhanced risk mitigation strategies.
