KYC Requirements in Malaysia
Navigate KYC compliance, onboard new customers, and detect fraudulent activity – everything from deepfakes to account takeover (ATO) – in an end-to-end platform. Entrust Identity Verification Solutions help businesses in Malaysia build secure digital onboarding journeys, support customer due diligence, and address evolving Bank Negara Malaysia (BNM) eKYC expectations. Fight sophisticated fraud, deliver exceptional customer experiences, and support higher-assurance identity verification using document, biometric, and fraud-risk signals.
Solution Highlights
Navigate Malaysia's evolving KYC landscape
Build configurable identity verification journeys that support customer due diligence, fraud-risk management, and alignment with BNM eKYC expectations.
Deliver secure digital onboarding
Use eKYC, biometric verification, and digital identity technologies to balance regulatory requirements, convenience, and customer trust – while addressing emerging fraud risks.
Strengthen identity assurance and fraud-risk controls
Combine document, biometric, and fraud-risk signals to help identify suspicious activity and reduce exposure to identity fraud and account takeover.
of fraud in crypto occurs during onboarding, driven by sign-up incentives and rapid account creation.
Source: Entrust 2024 Identity Fraud Report
of fraud observed in digital banking was associated with account takeover (ATO) in the cited Entrust research.
of surveyed organizations agreed that AI-powered IDV is vital to stopping sophisticated fraud.
How Can Entrust Help?
Support alignment With Bank Negara Malaysia eKYC Framework
Build digital onboarding journeys that support alignment with BNM eKYC expectations. Use configurable workflows to combine document verification, biometric matching and liveness detection for fast, secure, and scalable onboarding.
Digitize onboarding with confidence
Grow your business across digital channels without compromising on local regulatory needs. Entrust’s Identity Verification Solution, including document, biometric, and data verification methods gives you a clear, unified view of customer identity.
Prevent organized fraud
Reduce the risk of identity fraud by identifying fraudsters before they access your products or services using passive signals, powered by our award-winning AI.
Reduce complexity
Our end-to-end Identity Verification Solution makes IDV policies simple. Global document coverage, trusted databases, and no-code workflows provide you with the tools you need to know your customers.
Prepare for Malaysia’s evolving digital identity ecosystem
MyDigital ID is helping shape the future of secure online identity verification in Malaysia. Entrust verification capabilities can help businesses create flexible onboarding journeys as the country’s digital identity ecosystem.
Our partnership with Entrust allows us to deliver an onboarding experience where security happens naturally. It keeps the sign-up process simple, intuitive, and secure for Malaysians.
- Khuan Yew Lee, Executive Director, GXBank
What Are the eKYC Requirements in Malaysia?
Malaysia’s eKYC framework supports secure digital onboarding while maintaining strong customer due diligence and fraud-risk controls. BNM’s eKYC Policy Document sets expectations for eligible financial institutions using electronic processes to onboard individuals and businesses. Entrust identity verification capabilities can support these journeys through document verification, biometric checks, and configurable workflows.
How Can Malaysian Businesses Verify Identity?
BNM regulation allows for remote identity verification methods, where users can scan their government ID and facial biometrics using a smartphone or electronic device. Customers can submit an identity document and facial image using a smartphone or other electronic device. Entrust uses automated checks and, where included in the selected service, trained document specialists to assess document, identity, and fraud-risk signals.
How Does Entrust Help?
Our AI-powered solution enables the capture of ID documents and facial biometrics, giving businesses confidence in the identity of their users. Workflow Studio makes it easy to build configurable no-code workflows, automate selected verification steps, and route results through an API or dashboard. Entrust identity verification technology is used by various customers operating across Malaysia’s digital banking and financial services sector.
We want to be a ‘round-the-clock’ app. To do so, we need round-the-clock onboarding which is compliant and built for conversion at scale. With Onfido (now part of Entrust), we get that.
On our path to becoming a digital-first bank, Onfido (now part of Entrust) has been an invaluable partner, helping Union Bank of the Philippines to leverage the power of digital identity verification and move closer to achieving our goal of providing seamless, mobile-first banking services to our valued customers.
Identity Verification Solutions for KYC in Malaysia
Document and Biometric Verification
Have confidence in your customer’s identity by verifying Malaysian-issued photo IDs such as the MyKad. Powered by award-winning AI, our Entrust document verification uses advanced techniques to assess documents for authenticity.
Related Resources
Compliance Manager's Guide to Identity
Learn about the KYC / AML regulatory landscape, and best practices for building identity workflows.
Securely Onboard New Customers and Build Trust
Identity is now at the center of every interaction. As a result, businesses must establish trust at onboarding.
Entrust and GX Bank representatives discuss how modern IDV solutions allow businesses to identify and stop suspicious activity at the earliest stages of the customer journey.
Identity Verification for Banking
Drive customer acquisition, prevent fraud, and help meet compliance requirements.
Streamline KYC Compliance in Australia With Entrust IDV
Navigate Australia’s new KYC/AML regulations, prevent fraud, and onboard customers quickly and securely.
Consumer Payment Preferences in APAC
Cardholders in the Asia-Pacific region are reshaping expectations for how they pay, open accounts, and interact with their financial institutions.
FAQs
Who regulates KYC in Malaysia?
Bank Negara Malaysia (BNM) is the key authority for AML/CTF and eKYC requirements applying to the financial institutions and other reporting institutions within its remit. Financial institutions must implement risk-based controls to verify customer identities, detect suspicious activity, and maintain compliance throughout the customer lifecycle.
What Customer Due Diligence (CDD) measures does BNM require?
BNM’s framework follows a risk-based approach. Customer due diligence typically includes identifying and verifying customers and beneficial owners, understanding the purpose of the relationship, monitoring the relationship, and applying additional checks where higher risks are identified.
How long must Malaysian institutions retain KYC records?
Relevant customer due diligence and transaction records generally need to be retained for at least six years under applicable Malaysian AML/CFT requirements. The relevant starting point and any additional retention period will depend on the record and circumstances.
How does eKYC help financial institutions in Malaysia?
Electronic Know Your Customer (eKYC) helps financial institutions onboard customers remotely using digital identity verification. Depending on the workflow, this may include document verification, biometric matching, liveness detection, and automated routing; helping businesses create faster and more secure onboarding experiences.
What is high-assurance remote identity verification?
High-assurance remote identity verification combines multiple checks to increase confidence in a user’s identity. These may include document verification, biometric matching, liveness detection, and fraud-risk signals.
Our identity experts are available to talk through your requirements, answer questions, and set up a KYC solutions demo.
Regulatory requirements can vary depending on the institution, product, and use case. The information on this page is intended as a general guide only and does not replace independent legal or compliance advice.