SHAH ALAM, Sept 8 — Drug syndicates are using cryptocurrency transactions and shell companies to move and conceal proceeds from narcotics trafficking, said Federal Narcotics Crime Investigation Department (NCID) director Datuk Hussein Omar Khan.
In an interview with the New Straits Times, he said the tactics have complicated law enforcement efforts, as funds are layered across multiple wallets, routed through mixers, or disguised as business transactions.
“Digital assets offer anonymity, borderless mobility, and decentralisation. This makes it far harder for traditional banking oversight to detect illicit flows,” Hussein told the English daily
“Shell companies, which are created as fronts for laundering, obscure beneficial ownership, provide legal cover and delay investigative processes, creating significant barriers for enforcement agencies.”
He stressed that the borderless nature of cryptocurrencies required international collaboration.
“Effective enforcement depends on real-time intelligence-sharing between countries. Without that, criminals will continue exploiting gaps in oversight,” he said.
Hussein said Malaysia is strengthening cooperation with international enforcement bodies and financial intelligence units to address the trend, adding that NCID would transform to be more proactive in combating drug crimes.
“We want a department that is not only reactive, but also one that can anticipate and adapt quickly to emerging drug threats. Operational accountability and agility must be strengthened at every level.”
Hussein added that NCID would intensify drug-awareness campaigns, boost digital engagement with the public, and enforce stricter compliance checks at the district level to close gaps in enforcement.
