How Are Banking and Financial Services Hiring for Compliance Roles in Malaysia?

Compliance isn’t an expense. It’s a cost-saving measure. 

This common financial phrase rings even more true today, with growing foreign investment into Asia as businesses look benefit from the region’s growth potential. This comes amidst a growing backdrop of increasingly complex financial crime, where groups seek to profit from a rising digital economy. 

In response, government regulators in many countries are stepping up demands for compliance standards for banks and financial institutions to maintain trust and stability in capital markets and the banking system. And while managing compliance requires resources, it is far less costly than dealing with the aftermath of a breach and the loss of reputation and trust in services. 

We previously outlined trends in Banking & Financial Services on a broader scale in our 2024 Hays Asia Salary Guide. But to get a deeper look into compliance trends in Malaysia, we spoke to Ashley Tan, Team Manager at Hays Malaysia for further insights. 

FINANCIAL CRIME COMPLIANCE TALENT IS STEPPING UP 

Banks and financial institutions today face a multitude of risks. Money laundering, terrorist financing, cybercrime and fraud are some of the most common types of crimes being carried out by individuals or groups today. 

This has not gone unnoticed by authorities, who have implemented increasingly stringent compliance requirements for related companies. Organisations looking to meet these compliance obligations find themselves increasingly reliant on compliance departments capable of meeting and reporting on key regulatory objectives. 

In this regard, Malaysia enjoys its status as a hot spot for foreign banks looking to setup up Transactional Monitoring or Anti-Money Laundering (AML) compliance teams via shared services functions. Larger financial institutions further delineate these teams, with focus areas divided into Know Your Customer (KYC), L1, L2 and L3 Screening, Quality Assurance and so on. 

Smaller outfits with limited budgets however are more likely to spread candidates thinly throughout all processes, bundling them within singular roles to keep workforces lean. These specialised candidates with end-to-end knowledge are generally harder to source for, requiring specialised recruitment resources to fulfil demand.

THIRD PARTY RISK MANAGEMENT – A HIGHLY SPECIALISED FUNCTION 

Third party risk management (TPRM) is particularly crucial for financial institutions that are increasingly reliant on external parties for solutions in tech, payments and data management. This reliance reduces direct operational control over activities, introducing new risks into the consumer equation.

At the same time, regulators are increasing the pressure on financial institutions to manage their third-party risk. This comes in no small part to organisations facing disruptions, monetary loss and reputational damage’ due to third-party incidents which have grown within the last three years across to a report from KPMG. 

Organisations remain responsible for minimising this risk and ensuring the security and privacy of consumer data. However, skilled talent remain niche within Malaysia, where financial institutions more commonly allocate related tasks to smaller independent party risk teams, and existing operational risk teams. 

Though a burgeoning field, we expect this role to develop further, especially as regulatory bodies begin to implement requirements for companies to effectively manage their third-party risk. As specialised talent remains limited, companies looking to fill these gaps will want to train internally, raising awareness of TPRM and updating talent on regulatory requirements.  

AUTOMATION IS STREAMLINING COMPLIANCE 

Automation is transforming the way we work across industries by enhancing efficiency, accuracy, and productivity. Financial compliance is no exception to this trend, enabling continuous monitoring, real-time transaction analysis, and swift identification of suspicious activities. 

This is true in Malaysia, where companies with the resources to implement automation have found success streamlining Know Your Customer (KYC) screening procedures for AML. Even so, there are still critical parts of compliance that require a human touch. Banks and financial institutions still require talent capable of adapting to changing local and international regulations, and to apply them towards developing the right policies for the organisation. 

Candidates in Malaysia will want to develop themselves as all-rounders, emphasising analysis and advisory skills to stand out in future. 

WHAT IS COMPLIANCE TALENT TODAY LOOKING FOR? 

THE MOST IN-DEMAND ROLES FOR COMPLIANCE IN BANKING & FINANCIAL SERVICES

These are the top ten most in-demand positions in Banking and Financial Services for Malaysia in 2024, with annual salary ranges:

1. AML Analyst (RM 48,000 - RM120,000)
   Crucial in banking sector due to the need for regulatory compliance, maintaining trust and reputation, preventing financial crimes, managing the risks associated with globalisation and technology. Responsible for implementing measures to safeguard the financial system from illicit activities and ensure its integrity and security. 
2. KYC Analyst (RM 48,000 - RM 84,000)
   The demand for KYC (Know Your Customer) roles in Malaysia's banking sector has increased due to stricter AML regulations, the need to prevent financial crimes, advancements in digital banking, the necessity to comply with global standards, and the importance of maintaining a good reputation. 
3. Third Party Risk Manager (RM 144,000 - RM180,000)
   As banks increasingly outsource certain functions to third-party vendors, they must prioritize Third-Party Risk Management (TPRM) to prevent any financial losses associated with these outsourcing services. 


4. Outsourcing Manager (RM 144,000 - RM180,000)
   With banks outsourcing various functions to third-party vendors, an outsourcing manager ensures that these arrangements are well-governed and comply with regulatory standards. This includes assessing risks associated with outsourcing and implementing effective risk management practices. 


5. Climate Risk (RM 144,000 - RM180,000)
   Malaysian regulators are introducing strict guidelines and policies on climate risk and ESG to ensure sustainable banking practice. This also opens up new market opportunities i.e. green financing and sustainable investment which are increasingly in demand.


6. ESG Manager (RM 120,000 - RM 360,000)
   ESG Managers allow for early detection and mitigation of potential financial losses for organisations. Their responsibilities revolve around ensuring the company meets its environmental, social, and governance goals, which are increasingly important to stakeholders including investors, customers, and employees.


7. Sustainability Reporting Manager (RM 120,000 - RM 240,000)
       A Sustainability Reporting Manager is responsible for managing and overseeing the collection, analysis, and reporting of sustainability data within an organization. This role ensures that the company's sustainability initiatives and performance are accurately documented and communicated to stakeholders.


8. Sustainability Manager (RM 120,000 - RM 360,000)
   Similar to ESG and Sustainability Reporting Managers, Sustainability Managers are focused on developing and executing the overall sustainability strategy and initiatives of the organisation. Many smaller companies hire a sustainability manager to cover end-to-end reporting, ESG management, policies and more. 


9. Compliance Review (RM 60,000 - RM 480,000)
     Compliance review plays a crucial role in identifying and assessing risks associated with financial crimes like money laundering, fraud, and tax evasion. By addressing these risks, banks protect themselves from severe penalties and reputational harm. As Bank Negara Malaysia (BNM) introduces additional regulations, compliance teams may need to expand to meet the growing regulatory requirements.


10. Compliance Advisory (RM 60,000 - RM 480,000)
    Compliance advisors provide guidance on managing risks related to regulatory compliance. They help banks interpret and apply complex regulations effectively and assist business units in understanding and implementing internal policies and external rules. This ensures alignment with legal requirements and industry standards. Compliance advisors monitor activities, assess compliance, and report any deviations.