This study examines anti-money laundering (AML) compliance among Malaysian law firms by investigating how firm characteristics influence adherence to AML regulations. Although AML research has largely focused on financial institutions, empirical evidence on compliance within the legal profession remains limited. Grounded in Routine Activity Theory, the study examines the relationships between law firm size, services offered, engagement with high-risk clients, and perceived AML compliance. A quantitative research design was adopted, using structured questionnaires administered to lawyers practising in Peninsular Malaysia, yielding 379 usable responses. The findings reveal that all three firm-level characteristics significantly and positively influence perceived AML compliance. Larger firms demonstrate stronger compliance due to greater resources, structured governance, and dedicated compliance mechanisms. Similarly, firms offering a wider range of legal services and those serving high-risk clients report higher compliance, reflecting greater exposure to regulatory requirements and financial crime risks. The study extends AML literature by providing theory-driven evidence from the legal profession, an underexplored reporting sector. The findings offer practical implications for legal practitioners, regulators, and the Malaysian Bar by supporting risk-based, firm-specific AML strategies. They also provide a foundation for future research on compliance behaviour within legal services and other designated non-financial businesses and professions.

Keywords:
Anti-Money Laundering
Compliance, Law Firms
High-Risk Clients
Legal Services

*Corresponding Author.
E-mail address: norzi153@uitm.edu.my