1. Are there any sanctions imposed against Malaysia?
There are no sanctions imposed on Malaysia.
2. What are the regulated institutions in Malaysia?
Bank, financial institutions, lawyers, accountants and company secretaries , licensed casinos, licensed gaming outlets, registered estate agents, trust companies, dealers in precious metals or precious stones, moneylenders.
3. Who are the local regulatory authorities in Malaysia, and which government authorities are responsible for the investigation and prosecuting money laundering criminal offenses?
Ministry of Home, Royal Malaysian Police, Malaysia Anti-Corruption Commission, Securities Commission, Royal Malaysian Customs, Immigration Department, Labuan Offshore Financial Services Authority, Companies Commission of Malaysia, Attorney General’s Chambers, Ministry of Finance, Ministry of Internal Security, Ministry of Domestic Trade, Co-operatives and Consumerism.
4. What is the status of Malaysia's FATF?
Malaysia is one of the member countries obliged to comply with FATF recommendations. Malaysia is not on the FATF AML Deficient list. FATF's latest Mutual Evaluation Report for Malaysia was made in 2018. According to this evaluation of FATF, Malaysia is highly compatible for 18 of the FATF 40 Recommendations, and for 20 of them.
5. Which global regulations Malaysia have to comply with?
As Malaysia is a FATF member, it has to follow the AML recommendation that FATF member countries should apply.
6. What are the AML obligations of the businesses in Malaysia?
To identify the customer using reliable, independent source documents, data, or information, to understand the purpose and intended nature of the business relationship, to understand the identity of the person concerned, the transaction itself or other conditions related to this transaction, to any officer or employee of the notifying organization, the proceeds of the transaction from illegal activity or reporting any transaction that gives reasons to suspect that it involves the means of an offense, that reporting institutions keep their risk assessments up to date through periodic review, if controls are not proportional to risk levels, the reporting organization continues to monitor the client.
7. What are the local AML laws and regulations in Malaysia?
The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLARFA), Mutual Assistance in Criminal Matters Act 2002 (MACMA), Malaysian Anti-Corruption Commission Act 2009 (MACCA), Dangerous Drugs Act, Malaysian Anti-Corruption Commission Act 2009.
8. What are the penalties for failure to comply with Anti-Money Laundering law in Malaysia?
The maximum penalty for a money laundering offense under section 4 of the AMLATFA is 15 years imprisonment and a fine of not less than five times the sum or value of the illegal activity or means of the crime at the time of the crime.
9. What are the contact details of the relevant regulators in Malaysia?
10. Are violations of anti-money laundering obligations also subject to criminal sanctions in Malaysia?
Pursuant to section 22 of the AMLATFA, in the case of a reporting continuing offense, an additional fine of RM 3,000 per day or part of the offense continues to be committed, and in cases of minor non-compliance, BNM or the relevant supervisory authority may send a warning letter to the reporting organization.
11. What can oblige institutions do to prevent money laundering and to comply with AML regulations in Malaysia?
Obliged entities can protect themselves against risk by complying with AML / CTF regulations and laws. For this, it is necessary to comply with the regulations. In Malaysia, organizations can easily comply with obligations with Sanction Scanner's solutions such as Know Your Customer, Customer Due Diligence, Transaction Monitoring, Adverse Media, and they can also minimize their risks and protect themselves from penalties and reputational losses. For detailed information about Sanction Scanner solutions, you can Contact Us or Request Demo.