Mandatory independent auditing for Labuan entities
Under Labuan FSA guidelines, all Labuan Key Reporting Institutions (KRIs) are legally required to ensure an independent audit of their AML/CFT/CPF framework is conducted regularly.
The AML/CFT Independent Audit Report must be tabled to your Board of Directors. After Board review, it must be maintained and made readily available for supervisory desk reviews, on-site examinations, or digital requests via Labuan FSA's Supervisory Intelligence System (SIS) platform.
Who needs this service?
Banking & capital markets
Labuan banks, investment banks, and fund managers.
Insurance sector
Labuan insurers, reinsurers, and takaful operators.
Trust & corporate services
Labuan trust companies and managed trust entities.
Digital & FinTech
Digital asset exchanges, credit token businesses, and digital financial intermediaries.
What Our LFSA Independent AML Audit Covers
Institutional Risk Assessment
We test your risk framework to ensure your business accurately identifies, scores, and manages money laundering, terrorism financing, and proliferation financing (ML/TF/CPF) risks across your clients, products, and operating locations.
Governance & Compliance Oversight
We review your internal controls to confirm that your Board receives proper AML reporting, duties are clearly separated to avoid conflicts of interest, and your Compliance Officer operates independently.
Client Onboarding & KYC Checks
We sample-test actual customer files (CDD, EDD, and e-KYC) to verify that real identities, Ultimate Beneficial Owners (UBOs), and Sources of Wealth/Funds are properly checked and documented.
Sanctions & Targeted Screening
We test your screening systems against local and international Targeted Financial Sanctions (TFS) lists to verify that blacklisted individuals or entities are blocked before any transaction happens.
Transaction Monitoring & Suspicious Reporting
We review how your systems spot unusual account activity, how analysts investigate alerts, and whether Suspicious Transaction Reports (STRs) are escalated and filed with BNM/LFSA on time.
Training, Systems & 7-Year Record Keeping
We verify that your staff receive regular AML training, your management reporting systems are reliable, and all client records are safely stored for the mandatory 7-year minimum period.
Why choose us
- LFSA-Aligned Reporting: We deliver a cleanly structured, audit-ready Independent Audit Report on AML/CFT that meets LFSA's precise reporting criteria, ready for seamless submission via the Supervisory Intelligence System (SIS) platform.
- Strict Independence: We maintain the absolute operational independence required by regulators, ensuring an objective, unbiased evaluation of your compliance framework.
- Actionable Remediation Plans: If we find gaps, we don't just flag them—we provide a clear, practical roadmap to fix them before they catch the eye of regulators.
Frequently asked questions
In conclusion
An independent AML/CFT review is both a regulatory obligation and a safeguard. An objective assessment of your framework — with an audit-ready report and a remediation plan — keeps your entity compliant and your Board informed.
Book your independent AML/CFT review
LFSA-aligned, SIS-ready reporting with a clear remediation roadmap. Speak with a partner.