Statutory obligations for banks to comply with the anti-money laundering legislation in Malaysia: Lessons from the United Kingdom

Abstract

is a professor of law in the Department of Civil Law at the International Islamic University Malaysia (IIUM). Her areas of expertise are comparative banking law and the legal aspects of money laundering and terrorism financing. She has conducted numerous training courses in both areas of law to banks as well as regulatory and enforcement bodies. She has an LLM and PhD from Warwick University, England. She is also an Advocate and Solicitor in the High Court in Malaya.ABSTRACT As a result of the existence of the 'Forty Recommendations', all countries are expected to have anti-money laundering and anti-terrorism financing legislation and regulations. Because most national legislation came into being due to the existence of the Recommendations, the laws of all countries ought to be in pari materia with each other. To illustrate this fact, this article will compare United Kingdom and Malaysia legislation and regulation and how they match each other. The focus is on banks because although money launderers use many methods to clean their dirty money, the banking system is still a popular way to launder money. The article will look at Part 4 of the Malaysian Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA) and its UK equivalent. It can be seen that despite banks being subject to regulation for at least 20 years, banks in countries such as the United Kingdom are still being given huge fines for not having adequate anti-money laundering procedures.

Effect of Competitive Strategies on Growth of Savings and Credit Cooperative Societies in Tharaka Nithi County, Kenya

“…In UK, SACCOs are outperforming the banks. They are considered by customers to be more trustworthy than their competitors [55]. Marvin further asserts that in USA, there are over 18,000 well established SACCOs serving 70 million members and with more than $ 300 billion in assets.…”

Implementing innovative customer due diligence: proposal for universal model

“…Multiple sources use the "KYC" and "CDD" as equivalents or without proper definition. For example, Yasin seems to be using the terms interchangeably (Yasin, 2015); Mugarura writes: "the core of the global AML paradigm is customer identification also known as "Know Your Customer (KYC)," thus using KYC as equivalent for identification (Mugarura, 2014). Smet and Mention look at the CDD "practices" as the requirement to "Know Your Customer" (Smet and Mention, 2011).…”

Monitoring Lawyer’s Compliance With Anti Money Laundering Legislation: Some Evidence From Malaysia

“…The Mutual Evaluation Report 2015 on Malaysia indicates that the establishment of the FIU is in line with the international standards. Also, Yasin (2015) observes that in carrying out its role as the competent authority for money laundering and https: //dx.doi.org/10.15405/epsbs.2018.12.03.58 Corresponding Author: Saslina Kamaruddin Selection and peer-review under responsibility of the Organizing Committee of the conference eISSN: 2357-1330 590 terrorism financing, the Bank Negara has regularly issued guidelines for all the reporting institutions. The recently released guidelines for the legal profession was done in 2013 (Yasin, 2015).…”

“…However, in Malaysia, research into the roles of the FIU or the Malaysian Bar Council in ensuring lawyers' compliance with the AML regime is rather limited and is not as well-developed as those in the United Kingdom. The available literature tends to focus merely on the money laundering crime only (Hamin et, al, 2014a;Dhillon et al, 2013;Yasin, 2015) and the investigation of money launderers under the existing legislation (Dhillon et al, 2013). Further local literature on AML had addressed the issue of compliance of financial institutions with the AML legislation (Rahman, 2013) and the statutory obligations of lawyers under the AML regime (Hamin et al, 2015a).…”