DOCSLIB.ORG

Mutual Evaluation Report Malaysia 2015

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Mutual Evaluation Report Malaysia 2015 Anti-money laundering and counter-terrorist financing measures Malaysia Mutual Evaluation Report September 2015 The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CTF) standard. For more information about the FATF, please visit the website: www.fatf-gafi.org For more information about the APG, please visit the website: www.apgml.org This document and/or any map included herein are without prejudice to the status of or soverignty over any territory, to the delimitation of international frontiers and bounderies and to the name of any territory, city or area. Citing reference: FATF and APG (2015), Anti-money laundering and counter-terrorist financing measures - Malaysia, Fourth Round Mutual Evaluation Report, FATF, Paris and APG, Sydney www.fatf-gafi.org/publications/mutualevaluations/documents/mer-malaysia-2015.html © 2015 FATF and APG. All rights reserved. No reproduction or translation of this publication may be made without prior written permission. Applications for such permission, for all or part of this publication, should be made to the FATF Secretariat, 2 rue André Pascal 75775 Paris Cedex 16, France (fax: +33 1 44 30 61 37 or e-mail: [email protected]). Photocredits coverphoto: ©Thinkstock Contents EXECUTIVE SUMMARY ...................................................................................................................................................5 A Key ϐindings .....................................................................................................................................5 B Risk and General Situation ........................................................................................................8 C Overall level of compliance ........................................................................................................9 D Priority actions ........................................................................................................................... 12 Table 1. Effective Implementation of Immediate Outcomes .................................................. 14 Table 2. Compliance with FATF Recommendations ...................................................................19 MUTUAL EVALUATION REPORT OF MALAYSIA .................................................................................................25 Preface ....................................................................................................................................................... 25 1. ML/TF RISKS AND CONTEXT ...................................................................................................27 1.1 ML/TF Risks .............................................................................................................................................. 27 1.2 Materiality .................................................................................................................................................. 28 1.3 Structural Elements ............................................................................................................................... 28 1.4 Other Contextual Factors..................................................................................................................... 30 1.5 Scoping of Higher-Risk Issues ............................................................................................................ 30 2. NATIONAL AML/CTF POLICIES AND COORDINATION .....................................................33 2.1 Background and Context .....................................................................................................................34 2.2 Technical Compliance (R.1, R.2, R.33) ........................................................................................... 37 2.3 Effectiveness: Immediate Outcome 1 (Risk, Policy and Coordination) ..........................37 2.4 Recommendations on National AML/CTF Policies and Coordination .............................43 3. LEGAL SYSTEM AND OPERATIONAL ISSUES ...................................................................... 45 3.1 Background and Context ..................................................................................................................... 47 3.2 Technical Compliance (R.3, R.4, R.29-32) .................................................................................... 47 3.3 Effectiveness: Immediate Outcome 6 (Financial intelligence) ........................................... 47 3.4 Effectiveness: Immediate Outcome 7 (ML investigation and prosecution) ..................53 3.5 Effectiveness: Immediate Outcome 8 (Coniscation) .............................................................. 61 3.6 Recommendations on legal system and operational issues................................................. 71 4. TERRORIST FINANCING AND FINANCING OF PROLIFERATION .................................. 74 4.1 Background and Context ..................................................................................................................... 75 4.2 Technical Compliance (R.5-8)............................................................................................................ 75 4.3 Effectiveness: Immediate Outcome 9 (TF investigation and prosecution)................... 75 4.4 Effectiveness: Immediate Outcome 10 (TF preventive measures and inancial sanctions) ................................................................................................................................80 4.5 Effectiveness: Immediate Outcome 11 (PF inancial sanctions) ....................................... 86 4.6 Recommendations on Terrorist Financing and Financing of Proliferation ..................90 5. PREVENTIVE MEASURES .......................................................................................................... 92 5.1 Background and Context ..................................................................................................................... 93 5.2 Technical Compliance (R.9-23)..........................................................................................................94 5.3 Effectiveness: Immediate Outcome 4 (Preventive Measures) ............................................ 95 5.4 Recommendations on Preventive Measures .............................................................................103 Anti-money laundering and counter-terrorist inancing measures in Malaysia - 2015 © FATF and APG 2015 1 6. SUPERVISION ..............................................................................................................................105 6.1 Background and Context ...................................................................................................................106 6.2 Technical Compliance (R.26-28, R.34, R.35) .............................................................................106 6.3 Effectiveness: Immediate Outcome 3 (Supervision) .............................................................106 6.4 Recommendations on Supervision ................................................................................................117 7. LEGAL PERSONS AND ARRANGEMENTS ............................................................................119 7.1 Background and Context ...................................................................................................................120 7.2 Technical Compliance (R.24, R.25)................................................................................................120 7.3 Effectiveness: Immediate Outcome 5 (Legal Persons and Arrangements) ................121 7.4 Recommendations on Legal Persons and Arrangements ...................................................128 8. INTERNATIONAL COOPERATION .........................................................................................129 8.1 Background and Context ...................................................................................................................130 8.2 Technical Compliance (R.36-40) ....................................................................................................130 8.3 Effectiveness: Immediate Outcome 2 (International Cooperation) ...............................130 8.4 Recommendations on International Cooperation ..................................................................139 TECHNICAL COMPLIANCE ANNEX .........................................................................................................................141 1. INTRODUCTION ..........................................................................................................................141 2. NATIONAL AML/CTF POLICIES AND COORDINATION ...................................................143 Recommendation 1 – Assessing Risks and applying a Risk-Based Approach ............................143 Recommendation 2 – National Cooperation and Coordination ........................................................144 Recommendation 33 – Statistics ....................................................................................................................145 3. LEGAL SYSTEM AND OPERATIONAL ISSUES ....................................................................147 Recommendation 3 – Money
Load more

Recommended publications
  • Disaster Risk Management in Malaysia: Issues and Challenges from the Persepctive of Agencies
    PLANNING MALAYSIA: Journal of the Malaysian Institute of Planners VOLUME 16 ISSUE 1 (2018), Page 105 – 117 DISASTER RISK MANAGEMENT IN MALAYSIA: ISSUES AND CHALLENGES FROM THE PERSEPCTIVE OF AGENCIES Noraini Omar Chong1 & Khairul Hisyam Kamarudin2 1,2UTM Razak School of Engineering and Advanced Technology UNIVERSITI TEKNOLOGI MALAYSIA Abstract Disaster is a major threat that could jeopardise the development of economic, social and physical elements of a nation as well as the well-being of its people. The damage and loss of property and life caused by disasters are overwhelming and least desired by any country. Review of literature as presented in this research indicated that by having a good disaster risk management (DRM) plan and well- coordinated efforts and commitment among related disaster management agencies at all levels and local stakeholders, would potentially lead to disaster risk reductions, increase preparedness and response, and reduction of damage to assets and loss of life. With a long list of agencies and aid bodies that are currently involved in various stages of DRM, putting the idea into reality has proven to be highly challenging particularly on establishing good coordination between agencies and with other stakeholders for a more effective DRM process. This paper identified three major issues and challenges in DRM in Malaysia, particularly from the perspective of agencies. These issues and challenges include (1) disaster management planning imbalanced between top-down and bottom-up approaches, (2) lack of coordination in disaster management cycle, with greater focus only on the disaster emergency response stage and, (3) lack of planning of long-term recovery (post-disaster) process, which resulted in low level community and stakeholders’ resilience to disasters.
    [Show full text]
  • Environmental Justice: EU Biofuel Demand and Oil Palm Cultivation in Malaysia
    Lund Conference on Earth System Governance 2012 Environmental justice: EU biofuel demand and oil palm cultivation in Malaysia Erika M. Machacek Conference Paper Lund, Sweden, March 2012 "As a metaphorical image, friction reminds us that heterogeneous and unequal encounters can lead to new arrangements of culture and power" (Tsing, 2005) Table of Contents ABSTRACT ........................................................................................................................................... VIII 1 INTRODUCTION ............................................................................................................................ 1 1.1 PROBLEM DEFINITION ................................................................................................................................. 1 1.2 RESEARCH QUESTIONS ................................................................................................................................ 2 1.3 METHOD ...................................................................................................................................................... 2 1.4 LIMITATION AND SCOPE .............................................................................................................................. 2 1.5 AUDIENCE ................................................................................................................................................... 2 1.6 DISPOSITION ...............................................................................................................................................
    [Show full text]
  • Academic Writing Needs of Postgraduate Research Students in Malaysia
    Malaysian Journal of Learning and Instruction: Vol. 17 (No. 2) July 2020: 1-23 1 How to cite this article: Jeyaraj, J. J. (2020). Academic writing needs of postgraduate research students in Malaysia. Malaysian Journal of Learning and Instruction, 17(2), 1-23. ACADEMIC WRITING NEEDS OF POSTGRADUATE RESEARCH STUDENTS IN MALAYSIA Joanna Joseph Jeyaraj Faculty of Social Science and Humanities, Tunku Abdul Rahman University College [email protected] Received: 20/2/2019 Revised: 14/4/2020 Accepted: 4/5/2020 Published:31/7/2020 ABSTRACT Purpose – In this study, the writing needs of postgraduate research students are explored, so that support structures that enable successful completion rates and student satisfaction can be identified. Postgraduate education is expanding in Malaysian public and private higher education institutions; yet research tends to focus on public institutions, because private institutions have traditionally been oriented towards teaching instead of research. Therefore, this study explores the needs of students in a branch campus of a private overseas university in Malaysia. Methodology - Semi-structured exploratory interviews were carried out with six postgraduate students, so that a deeper understanding of their research writing needs could be obtained. Interviews were then analysed using a general inductive approach. Findings – It was found that students required support in three main areas: writing, supervision and ICT. Students sought English language support and more workshops and programmes which specifically dealt with thesis writing. They also believed that peer support groups would be beneficial. Secondly, more guidance was needed from supervisors to enable greater clarity on writing and 2 Malaysian Journal of Learning and Instruction: Vol.
    [Show full text]
  • GWP Southeast Asia
    World Water Day 2011 in Southeast Asia Activities held in celebration of the World Water Day 2011 in Southeast Asia. World Water Day 2011 in Malaysia: • The Rt. Hon. Dato' Sri Mohd Najib Tun Abdul Razak, Prime Minister of Malaysia, officiated the National World Water Day 2011 Celebration in Pekan, Pahang on 12th March 2011. This event is co-organised by the Ministry of Natural Resources and Environment Malaysia, the Ministry of Energy, Green Technology and Water Malaysia, the Ministry of Housing and Local Government Malaysia, UNESCO-IHP and DID Malaysia. • 11th March 2011 at Vistana Hotel in Kuantan, Pahang - A colloquium themed "Water for Cities: Responding to Urban Challenge". The Colloquium is organized by UNESCO-IHP Malaysia, DID Malaysia in collaboration with Institute of Engineers Malaysia. • 11th March 2011 A "Workshop on Domestic Water for Women" held at the same venue in Kuantan, Pahang. This Workshop is also organized by UNESCO-IHP and DID Malaysia. • 21-22 March 2011 at the Dewan Seri Melati, Kompleks Perbadanan Putrajaya, Putrajaya held A "Workshop on Water and Media: Rising up to the Challenge". This workshop is organized by UNESCO-IHP, LESTARI, DID Malaysia in collaboration with the Ministry of Natural Resources and Environment Malaysia, the Ministry of Energy, Green Technology and Water Malaysia, the Ministry of Housing and Local Government Malaysia. World Water Day 2011 in Philippine: The World Water Day (WWD) is being celebrated every March 22 of the year. It is an important event being observed at the international and national levels specifically to highlight the importance of water. This year’s international theme is “Water for Cities: Responding The over-all coordinator for to the Urban Challenge”.
    [Show full text]
  • Agenda Setting of Iraq Image in Malaysian English Newspaper
    Asian Social Science; Vol. 11, No. 2; 2015 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education Agenda Setting of Iraq Image in Malaysian English Newspaper Hanaa Kadum Kassed1,2 & Che Su Mustaffa1 1 School of Multimedia and Technology and Communication, Universiti Utara Malaysia, UUM Sintok, kedah, Malaysia 2 Ministry of Science and Technology, Baghdad, Iraq Correspondence: Che Su Mustaffa, School of Multimedia and Technology and Communication, Universiti Utara Malaysia, 06010 UUM Sintok, kedah, Malaysia. E-mail: [email protected] Received: September 8, 2014 Accepted: October 3, 2014 Online Published: December 20, 2014 doi:10.5539/ass.v11n2p225 URL: http://dx.doi.org/10.5539/ass.v11n2p225 Abstract Mass media news on certain country itself can affect their image on society. The image that will appear could be positive, negative or neutral depending on the content in it. This study employs content analysis of Agenda Setting of Iraq image in Malaysian English newspapers indicated that NSTP and the Star. In total, 535 articles and news stories were obtained from three periods before, during and after the occupation of Iraq. Findings showed that the Agenda Setting for NSTP focused on the issue of "The Malaysia’s policy towards Iraq", "The US policy and the occupation of Iraq" and "The impact of war on Malaysia". While, the Star focused on "Iraq’s needs and suffering". In summary, the newspapers seem to take great care in transmitting images of other countries particularly the Islamic country, which could affect Malaysia and its neighbors politically, economically and socially.
    [Show full text]
  • Oil Palm Biomass & Biogas in Malaysia, 2017
    Oil Palm Biomass & Biogas in Malaysia, 2017 POTENTIALS FOR EUROPEAN SMES Published by: EU-Malaysia Chamber of Commerce and Industry (EUMCCI) Address: Suite 10.01, Level 10, Menara Atlan, 161B Jalan Ampang, 50450 Kuala Lumpur, Malaysia. Tel: +603 2162 6298 Fax: +603 2162 6198 E-mail: [email protected] Website: www.eumcci.com Author: Malaysian-German Chamber of Commerce and Industry (MGCC) Website: www.malaysia.ahk.de Publication Date: December 2017 DISCLAIMER: The content of this “REPORT” does not reflect the official opinion of the European Union. The views expressed in this publication do not necessarily reflect the views of the publisher as the author. However, efforts have been made to publish accurate, valid and reliable information. The information presented is not aimed at addressing any particular circumstances or any individual or any entity. However, EUMCCI shall not be liable for damages, loss or expense including without limitation, direct, incidental, special or consequential damage or economic loss arising from or in connection with the data and/or findings published in this series. CONTENTS List of figures . 4 List of Tables........................................................4 1. Malaysia as the Gateway to ASEAN..................................5 1.1 Economic Overview........................................................ 6 1.2 EU-Malaysia Trade Relations............................................... 8 1.3 Economic Key Facts: EU-ASEAN .............................................. 8 2. Introduction to Malaysian Palm
    [Show full text]
  • Facilities and Bureaucratic Process of Malaysian Local Authorities Influenced on Micro Enterprises Business Performance
    International Journal of Business, Economics and Law, Vol. 10, Issue 2 (Aug.) ISSN 2289-1552 2016 FACILITIES AND BUREAUCRATIC PROCESS OF MALAYSIAN LOCAL AUTHORITIES INFLUENCED ON MICRO ENTERPRISES BUSINESS PERFORMANCE Harun Jasin2, 2Postgraduate student Department of International Business, School of International Studies, College of Law, Government and International Studies, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah Darul Aman. E-mail: [email protected] Mohammad Basir Saud1, 1Lecturer Department of International Business, School of International Studies, College of Law, Government and International Studies, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah Darul Aman. E-mail: [email protected] Mohd Azwardi Md. Isa1, 1Lecturer Department of International Business, School of International Studies, College of Law, Government and International Studies, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah Darul Aman. E-mail: [email protected] Fawad Hussain2 2Postgraduate student Department of International Business, School of International Studies, College of Law, Government and International Studies, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah Darul Aman. E-mail: [email protected]. ABSTRACT In this paper, the researcher will determine how the local authorities influence on Micro Enterprises (MEs) business performance in term of providing facilities and bureaucratic process which plays an important role for the enhancement and development of Malaysian MEs. In addition, the integration of the existing business support by government through its agencies in Malaysia could create a cohesive environment for supporting MEs business growth. This study had used 457 completed and returned questionnaires by MEs from northern region of Malaysia. The findings have indicated that bureaucratic process has no significant relationship on MEs business performance.
    [Show full text]
  • An Assessment of the Implementation of Affirmative Action in Education in Malaysia
    Master programme in Economic Growth, Innovation and Spatial Dynamics An Assessment of the implementation of Affirmative Action in education in Malaysia Ngoc Ha Le [email protected] Abstract: Malaysia, in order to achieve its objective and aspiration in Vision 2020 of being a developed country by 2020 and transforming the economy into a knowledge-based one, considers the human resource development as an important strategy. Despite of Malaysian government’s high investment in education, relative to GDP, the quality and competitiveness of labour force in Malaysia is debatable. The implementation of ethnic-based affirmative action policies in the country is considered as one of the reasons for its ill-prepared workforce. Given the above concerns, this thesis seeks to assess the affirmative action policies in education in Malaysia. Key words: Affirmative action, education, policy, Malaysia, human capital. EKHM52 Master thesis (15 credits ECTS) August 2016 Supervisor: Tobias Axelssson Examiner: Christer Gunnarsson Word Count: 12,244 Table of Contents I. Introduction ........................................................................................................................... 3 II. Methodology and data ........................................................................................................... 4 1. Research design and research methodologies ...................................................................... 4 2. Data .....................................................................................................................................
    [Show full text]
  • Islamic Tourism: the Impacts to Malaysia’S Tourism Industry
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Repository@USM Proceedings of International Conference on Tourism Development, February 2013 Islamic Tourism: The Impacts To Malaysia’s Tourism Industry Lina Munirah Kamarudin and Hairul Nizam Department of Urban and Regional Planning, Faculty of Built Environment, Universiti Teknologi Malaysia, Skudai, Johor, MALAYSIA This paper seeks to explore the evolution of Islamic tourism in the world especially in Malaysia as a multi-cultural nation. Since the religious factors have been brewed in Islamic tourism, it most likely influences the pros and cons of its growth in Malaysia. The data gathered from literature review were critically debated to fill the gaps in understanding the emergence of Islamic tourism. Therefore, the main issue address in this paper is to highlight as to how Islamic tourism (or so called religious/spiritual tourism) could give significant changes and impacts towards Malaysia’s tourism industry. The findings of the study provide the impacts of Islamic tourism from the aspects of economics, socio-culture, politics and environment. Since the tourism industry itself is a profitable chain, it also helps to be as a weapon of poverty reduction to Muslim countries while preserving and conserving the Islamic socio-culture. Islamic tourism helps to stabilize the politic issues and provide less pollution to the environment. Key words: islamic tourism, Malaysia, religious tourism, tourism impacts Introduction The tourism industry is well known with the visitation of tourists from one place to another. Travel and tourism relate to the activities whereby travellers having a trip outside their usual environment with the duration of less than one year (WTTC,2012).
    [Show full text]
  • Intersectoral Linkages in Oil Palm Industry Between Malaysia and Indonesia (Rantaian Hubungan Industri Minyak Sawit Malaysia Dan Indonesia)
    Jurnal Ekonomi Malaysia 49(1) 2015 25 - 35 http://dx.doi.org/10.17576/JEM-2015-4901-03 Intersectoral Linkages in Oil Palm Industry between Malaysia and Indonesia (Rantaian Hubungan Industri Minyak Sawit Malaysia dan Indonesia) Abdul Hamid Jaafar Norlida Hanim Mohd Salleh Universiti Kebangsaan Malaysia Zulkifli Abdul Manaf Malaysian Palm Oil Board (MPOB) ABSTRACT Malaysia and Indonesia are both major producers of palm oil. The palm oil industry in both countries has contributed immensely to rural income and development. The purpose of this paper is to empirically contrast the similarities and differences in linkages between the Malaysian and Indonesian palm oil industry.The assessment is carried out using the hypothetical extraction method. Data used in this study were from Malaysian and Indonesian 2005 Input-Output Table. Empirical findings of this study revealed several similarities and differences of Malaysian and Indonesian palm oil industry. The linkage analyses in this paper indicated that for both Malaysia and Indonesia, the oil palm cultivation sector is economically more linked to the manufacturing sector than to the agriculture or service sectors. In other words, the cultivation sector not only has a strong economic pull on the manufacturing sector, but also strong economic push as well. The processing sector was found to be more backwardly linked to the agriculture sector and more forwardly linked to the manufacturing sector. Comparing the Malaysian palm oil industry to the Indonesian palm oil industry, the empirical findings indicated that the palm oil industry in Malaysia is more interconnected to the rest of the production sectors than it is in Indonesia.
    [Show full text]
  • Exploring the Digital Landscape in Malaysia
    EXPLORING THE DIGITAL LANDSCAPE IN MALAYSIA Access and use of digital technologies by children and adolescents © United Nations Children’s Fund (UNICEF) Malaysia, November 2014 This desk review was produced by UNICEF Voices of Youth and the Communication Section of UNICEF Malaysia. It was initiated in 2013 and authored by Katarzyna Pawelczyk (NYHQ) and Professor Kuldip Kaur Karam Singh (Malaysia), and supported by Indra Nadchatram (UNICEF Malaysia). The publication was designed by Salt Media Group Sdn Bhd and printed by Halus Sutera Sdn Bhd. Permission is required to reproduce any part of this publication. Permission will be freely granted to educational or non-profit organisations. To request permission and for other information on the publication, please contact: UNICEF Malaysia Wisma UN, Block C, Level 2 Kompleks Pejabat Damansara Jalan Dungun, Damansara Heights 50490 Kuala Lumpur, Malaysia Tel: (6.03) 2095 9154 Email: [email protected] All reasonable precautions have been taken by UNICEF to verify the information contained in this publication as of date of release. ISBN 978-967-12284-4-9 www.unicef.my 4 Exploring the Digital Landscape in Malaysia Foreword or Click Wisely programme It is hoped that the data from was launched in 2012. This the studies can be utilized to programme incorporates the promote an informed civil values enshrined in the Rukun society where online services Negara, and is also aligned will provide the basis of with Malaysian values, ethics continuing enhancements and morals, as well as the to quality of work and life, National Policy Objectives especially for young people. of the Communications and Therefore, we encourage Multimedia Act 1998.
    [Show full text]
  • The Social Media Election in Malaysia: the 13Th General Election in 2013
    Kajian Malaysia, Vol. 32, Supp. 2, 2014, 123–147 THE SOCIAL MEDIA ELECTION IN MALAYSIA: THE 13TH GENERAL ELECTION IN 2013 Mohd Azizuddin Mohd Sani School of International Studies, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia Email: [email protected] The 13th General Election (GE13) of 2013 was historic because the Barisan Nasional (BN) won with a slightly reduced majority compared to the last general election in 2008 and surprisingly lost the popular votes to the Pakatan Rakyat (PR) for the first time since 1969. There was a huge swing from the urban and suburban constituencies toward supporting the PR. One of the major contributors to the result was the social media which was once again dominated by the PR, similar to what happened in 2008. Social media is trendy, cheap and easy to access especially for youths who made up half of the voters totalling 13.3 million. Online channels such as Facebook, Twitter, YouTube, news portals and blogs are popular and became the avenues for political parties from both BN and PR alike for campaigning and tools for the leaders and candidates to meet the electorates in respective constituencies. The impact was enormous for PR parties which were able to utilise it to their advantages, letting the 2013 general election become competitive and strengthening the democratic process in Malaysia. Thus, this article studies the correlation between the phenomena of social media and democracy. It then explores the conditions and effects of social media in Malaysia. Finally, this article analyses thoroughly the impact of social media in the GE13.
    [Show full text]