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

Abstract

Purpose The purpose of this paper is to provide a conceptual discussion and analysis of the Covid-19 impact on financial crime and regulatory compliance. The analysis is conducted to make a comparison of the financial crime and regulatory compliance patterns before and after the Covid-19 pandemic 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 compliance not at a satisfactory stage even before the Covid-19 pandemic, let alone during the pandemic. Practical implications This study implies that the financial institutions must work together to combat the risks of financial crimes, not only amongst the institutions but also with the regulators. Digitalisation and robust risk management need to be improved at a massive level to beat the criminals’ high fintech skills and systems. The initiatives of fund packages from the governments to assist the companies especially the small firms need to be fully used by the companies to improve regulatory compliance. Originality/value Whilst some studies discussed the impact of Covid-19 on the economy, there are still scarce resources on the comparative analysis on the financial crime and regulatory compliance, not to mention the before and after effect of the Covid-19 pandemic. This is the first paper to integrate the issues surrounding the Covid-19 impact, financial crimes and regulatory compliance in Malaysia.

مدى إدراك المراجعین لدور المراجعة المستمرة فی تخفیض مخاطر المراجعة فی مصر خلال جائحة كورونا- دراسة تجریبیة(باللغة الانجلیزیة)

“…Regulators, preparers, and auditors have described the June 2020 financial reporting period as one of the most challenging reporting periods ever, as reporting entities were faced with uncertainty due to the COVID-19 pandemic (Kend and Nguyen, 2022). Also, the epidemic's effects on e-commerce and the advancement of financial technology's digitization have both accelerated dramatically (Jamil et al, 2022). However, thus far, there is little about how changes in the COVID-19 environment have affected audit tasks completed by auditors, including judgments on what to include in audit reports and the informational value of those reports to investors.…”

Work From Home Acceptance and Challenges in KYPJ: A Dual Perspective

“…Covid-19 is a new strain of SARS (SARS-CoV-2) which has spread throughout several nations, becoming a worldwide epidemic (WHO, 2020). To adhere to social distance instruction, many companies in Malaysia were required to shift their normal working arrangement to WFH (Jamil et al,2021). WFH can be defined as performing work activities by utilizing technology at home or an alternate location to the workplace (Imhanrenialena et al, 2021).…”

Covid-19 Pandemic and Online Fraud: Malaysian Experience

“…Prior research has found that Covid-19 has a variety of effects, including on people's health (Boyle et al, 2020;Xiang et al, 2021), e-commerce (Jlkova & Kralova, 2021;Bhatti et al, 2020;Sayyida et al, 2021), education (Daniel, 2020;Kogan et al, 2020), and criminal (Jamil et al, 2021;Hawdon, Parti & Dearden, 2020;Tharshini, Hassan, & Mas'ud, 2021;Ashby, 2020). For instance, Jamil et al (2021) point out that Covid-19 and related measures have an impact on both physical and online criminalization.…”

“…Prior research has found that Covid-19 has a variety of effects, including on people's health (Boyle et al, 2020;Xiang et al, 2021), e-commerce (Jlkova & Kralova, 2021;Bhatti et al, 2020;Sayyida et al, 2021), education (Daniel, 2020;Kogan et al, 2020), and criminal (Jamil et al, 2021;Hawdon, Parti & Dearden, 2020;Tharshini, Hassan, & Mas'ud, 2021;Ashby, 2020). For instance, Jamil et al (2021) point out that Covid-19 and related measures have an impact on both physical and online criminalization. Prior studies (Nivette et al, 2021;Boman & Gallupe, 2020;Ashby, 2020;Campedelli et al, 2021;Gerell et al, 2020;Halford et al, 2020;Hodgkinson & Andresen, 2020;Mohler et al, 2020;Langton et al, 2021) highlight that the nationwide lockdown, which obliged residents to remain at home, had a positive and considerable influence on reducing physical crimes.…”

“…The rising usage of digital technology, such as smartphones, laptops, tablets, desktop computers, and smart televisions, has resulted in a surge in online fraud, scams, invasions, and security breaches. Indeed, Jamil et al (2021) argue that the pandemic has created an environment of insecurity, allowing fraudsters to use new technology to commit numerous crimes. As of April 2020, Hamid (2020) reported a 42 percent increase in cybercrime cases in Malaysia, with a total of 4,596 cases.…”