A Review on Compliance Rating: FATF Special Recommendation IX Cross Border Declaration or Disclosure

Zolkaflil, Salwa; Omar, Normah; Abdullah, Wan Noor Hafieza

doi:10.1016/s2212-5671(15)01199-5

Cited by 1 publication

(1 citation statement)

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“…This study compares the technical compliance of FATF Recommendations 30 and 31, also an effectiveness assessment for IO 7 between these countries. It replicates the method used by Omar et al (2014) and Zolkaflil et al (2015), who investigated on compliance characteristics of member countries on Special Recommendation 8 and Special Recommendation 9by reviewing member countries' MERs. In explaining the findings on the effectiveness of the LEAs, this study refers to Cheng (2012), who conducted a study on the effectiveness of money laundering investigation in the USA and Hong Kong.…”

Section: Methodsmentioning

confidence: 92%

Mitigating financial leakages through effective money laundering investigation

Nazri

Zolkaflil

Omar

2019

MAJ

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Purpose This paper aims to conduct a comparison on the effectiveness of the law enforcement agencies (LEAs) of Australia and Malaysia in investigating money laundering cases by looking into the legal system and operational issues faced in conducting the investigation. Design/methodology/approach The purpose of this paper is to review and analyze the data collected from the Financial Action Task Force (FATF) Mutual Evaluation Report, focusing on the information outlined in the third chapter. The legal system and operational issues cover the area of technical compliance and effectiveness compliance, which were introduced in the latest FATF Evaluation Methodology issued in 2013. Findings The results show that both countries have the power needed to investigate money laundering and terrorism financing under their respective Anti-Money Laundering Act. However, Australia is seen to have a better investigative support system to assist LEAs during the investigation process. This explains the reason for difficulties in increasing the number of prosecutions for money laundering and terrorism financing cases. Hence, improvement actions are needed in curbing this issue. Practical implications The result suggests that Malaysia should strengthen the cooperation, coordination and capacity among LEAs to ensure effective targeting, investigation and prosecution of money laundering. The government should also revise the money laundering investigation time frame and broaden the power of LEAs in retrieving information during the investigation process. Malaysia should also enhance the investigative support system, which will be helpful for LEAs in gathering sufficient evidence to support their money laundering charges. Unlimited power in gathering evidence is prominent to charge money launders as it helps to gather information required for prosecution. Originality/value Prior literature focuses on the prevention mechanism, where this paper aims to focus on detection and investigation mechanism focusing on money laundering investigation conducted by LEAs. Lack of study on money laundering investigation calls for this research to be done to understand the strengths and weaknesses to improve its effectiveness in the future.

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Section: Methodsmentioning

confidence: 92%