The Malaysian Anti-Corruption Commission (MACC) has expressed its readiness to conduct joint investigations with the Inland Revenue Board (IRB) into possible corruption linked to undisclosed offshore financial accounts.
The move follows calls by anti-corruption watchdogs for greater inter-agency cooperation to probe potential corruption, money laundering and tax evasion.
The IRB recently disclosed that nearly 15,000 Malaysians hold offshore accounts containing close to RM10 billion in funds.
MACC Chief Commissioner Tan Sri Azam Baki said cooperation with the IRB would depend on the tax authority’s willingness to share intelligence.
“We do not know which companies are currently on the IRB’s radar. We are willing to carry out joint investigations on corruption-related matters if the IRB is prepared to share information with us,” he told the New Straits Times.
Azam said close collaboration among enforcement agencies was essential to trace the movement of suspicious funds, especially in cases where tax evasion could intersect with corruption, abuse of power or money laundering. He added that MACC stood ready to support any multi-agency initiative aimed at protecting national revenue and strengthening financial governance.
Transparency International Malaysia president Raymon Ram said the government should adopt a whole-of-government approach to address the RM10 billion held in offshore accounts by Malaysian tax residents.
He said the large sum could be linked to money laundering and stressed that where patterns indicate corruption proceeds, abuse of corporate structures or the involvement of professional enablers, MACC and other relevant agencies must intervene.
“This amount of money held offshore by 14,858 individuals should not be treated as mere administrative non-compliance,” he said.
“Offshore secrecy is a well-known enabler of corruption, fraud, organised crime and aggressive tax evasion. It undermines public trust when the majority comply with the system while a minority attempt to opt out,” Raymon added.
He said enforcement efforts should go beyond tax recovery and include investigations into corruption where warranted.
Centre to Combat Corruption and Cronyism (C4) chief executive officer Pushpan Murugiah said the IRB’s findings pointed to deeper and long-standing governance and integrity issues.
“It reflects a familiar pattern seen in the Pandora Papers, Panama Papers and Paradise Papers. Offshore secrecy is not merely about tax planning; it has often been used to conceal wealth, evade scrutiny and, in some cases, launder proceeds from corruption or illicit activities,” he said.
Pushpan said the lessons from previous financial leaks showed that opacity flourishes when enforcement is slow, fragmented or subject to negotiation.
“Malaysia needs enforcement that is predictable, proportionate and insulated from interference,” he said.
Both watchdogs noted that Malaysia already has strong laws and capable agencies to address such issues, but questioned whether there was sufficient political will and institutional coordination to enforce them consistently.
“The IRB already has access to cross-border financial data. This should be followed up with audits, tax recovery, penalties and, where appropriate, coordinated financial crime investigations — not quiet settlements,” Pushpan said.
Raymon also stressed that asset transparency mechanisms should be treated as a single ecosystem, covering taxation, anti-money laundering efforts, counter-terrorism financing, beneficial ownership and public-sector accountability.
He called for asset declarations by individuals in high-risk public positions, including ministers, members of parliament, senior civil servants and leaders of government-linked companies, to be placed on a clear statutory basis.
Such declarations, he said, should include spouses and dependents, be subject to meaningful audits and carry enforceable sanctions.
“Relying on administrative directives or parliamentary motions is not sufficient for long-term deterrence. Asset declarations must move beyond self-reporting,” Raymon said.
He added that independent, risk-based audits and the systematic linking of asset declarations to beneficial ownership data were essential to detect complex or offshore corporate holdings.
“Malaysia has strengthened beneficial ownership requirements under the Companies Act 2016. The next step is to use this data operationally,” he said.
Pushpan also urged the government to publish aggregate figures on how many taxpayers came forward, the amount of tax recovered and the number of cases prosecuted to ensure accountability and deterrence.
