This paper aims at examining the implications of the asset forfeiture system in Malaysia on the property owners and third party in relation to its 2001 anti-money-laundering legislation. This is a qualitative research in which primary data is obtained from the semi-structured interviews with law enforcement personnel, which is triangulated with the data from Bank Negara. The source of secondary data is the 2001 Anti-Money Laundering Act and relevant literature. Preliminary findings showed the asset forfeiture system not only led to legal ramifications but also economic and financial ones for the law enforcement and property owners and the third party.