Malaysia tightens rules on anti-money laundering, terrorism financing

The Bank Negara Malaysia. (Photo: malaysiandigest.com)

The document provides guidelines for designated non-financial businesses and professions (DNFBPs) and non-bank financial institutions (NBFIs) such as licensed casinos carrying on gaming business, moneylenders and pawnbrokers.

According to an announcement on the bank’s website, this policy document sets out obligations of reporting institutions with respect to the requirements imposed under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), implementation of a comprehensive risk-based approach in managing money laundering and terrorism financing risks, and requirements on targeted financial sanctions.

It is, however, not intended to be applicable to lawyers, accountants and company secretaries who are internal professionals that are employees of other types of businesses, nor to professionals working for government agencies, the BNM said.

In the document, BNM said some enhancements to the existing AML/CFT reporting obligations were proposed to ensure areas of higher risk are subject to enhanced controls, in view of money laundering and terrorism financing being financial crimes with far-reaching and deleterious socio-economic effects./.

VNA