KSY129: Money Laundering, Market Surveillance & Ethical Trading: Strengthening Compliance in Malaysia’s Capital Market
Learning Outcomes
1. Define key concepts of market surveillance, market manipulation, money laundering, terrorism financing, and proliferation financing within Malaysia’s capital-market regulatory framework.
2. Explain the role of surveillance, AML/CFT/CPF controls, and anti-corruption measures in maintaining financial integrity and an orderly market.
3. Describe red flags and indicators of manipulative trading, suspicious transactions, and financial crime risks relevant to Capital Marker Practitioners.
4. Apply Bursa Malaysia rules, CMSA provisions, and AML/CFT/CPF requirements to identify suspicious trading and client behaviour.
5. Analyze case studies involving market misconduct, money laundering typologies, and corruption risks to differentiate legitimate vs. abusive behaviour.
6. Evaluate suspicious trading scenarios and determine appropriate escalation, reporting, or mitigation actions under Bursa, CMSA, and AML/CFT/CPF regulations.
7. Develop good surveillance and compliance practices that enhance market integrity and reduce financial crime risks.
Course Contents
Introduction to Market Surveillance & Financial Integrity
- What is Market Surveillance? • Objectives and role in supporting market integrity • Responsibilities of DRs/Remisiers in risk management and compliance • Introduction to AML, CFT, CPF and their relevance to capital markets • Regulatory Framework: • CMSA, Bursa Rules and AMLA - Case illustrations: How market manipulation and money laundering intersect
Types of Market Manipulation & Money Laundering Red Flags in Trading
- Identification of irregular trading • Abusive/manipulative trading indicators threatening fair and orderly markets • Price Manipulation: Price Marking, Price Leading, Ramping • Volume Manipulation: NCBO, Pre-arranged Trades, Parcel Passing, Rollover, Churning • Order Book Manipulation: Wash Trades, Layering, Spoofing, Giving Up Priority • Money Laundering Typologies Using Capital Markets • Rapid in/out trades • Pump-and-dump schemes connected to ML • Wash trades as ML layering technique • Integrating AML/KYC/CDD requirements into daily dealing/surveillance roles
Anti-Money Laundering, CFT, CPF & Anti-Corruption Compliance for Market Intermediaries
- AML strategies and the risk-based approach • KYC, CDD, ongoing monitoring obligations for DRs/Remisiers • CFT and CPF: threats, indicators, and global initiatives • Anti-corruption obligations under local and international standards • How financial crime can exploit trading accounts • Investigative techniques for detecting suspicious activities • Technology and data analytics in AML surveillance
Case Studies — Market Manipulation, AML Breaches & Regulatory Enforcement
- Actual Bursa and global cases of price/volume manipulation • How irregular trading patterns reveal ML/TF risks • Case study: Churning leading to AML red flags • Case study: Pump-and-dump linked to illegal proceeds • Impact on counters: price volatility, investor confidence • Lessons learned and best practices • Group activity: Identify red flags & justify escalation decisions
Compliance Programme & Practical Implementation for Capital Market Practitioners
- Designing surveillance and AML/CFT/CPF compliance routines for daily operations • Conducting risk assessments and developing risk-mitigation frameworks • Internal controls and record-keeping requirements • When and how to escalate suspicious trading and STR reporting expectations • Building an ethical trading culture • Staff training and continuous professional development