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    Anti Money Laundering

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    CHONG LI WEN
    1. There is a RM50,000 limit for cash transactions in Malaysia. Any transactions above this limit must be done electronically, by cheque, or through the banking system. 2. There is no limit for online transactions through RENTAS or payments to and from Bank Negara Malaysia and government agencies. 3. If a transaction is over the limit or is deemed suspicious, the bank is required to report it to Bank Negara Malaysia. The bank must provide information on the suspicious transaction. 4. Individuals and companies only need to be aware of the cash transaction limit - they do not directly report transactions to authorities. The reporting responsibility belongs to the bank.

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    Anti Money Laundering

    Uploaded by

    CHONG LI WEN
    93 views4 pages
    1. There is a RM50,000 limit for cash transactions in Malaysia. Any transactions above this limit must be done electronically, by cheque, or through the banking system. 2. There is no limit for online transactions through RENTAS or payments to and from Bank Negara Malaysia and government agencies. 3. If a transaction is over the limit or is deemed suspicious, the bank is required to report it to Bank Negara Malaysia. The bank must provide information on the suspicious transaction. 4. Individuals and companies only need to be aware of the cash transaction limit - they do not directly report transactions to authorities. The reporting responsibility belongs to the bank.

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    Anti Money laundering

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    1. There is a RM50,000 limit for cash transactions in Malaysia. Any transactions above this limit must be done electronically, by cheque, or through the banking system. 2. There is no limit for online transactions through RENTAS or payments to and from Bank Negara Malaysia and government agencies. 3. If a transaction is over the limit or is deemed suspicious, the bank is required to report it to Bank Negara Malaysia. The bank must provide information on the suspicious transaction. 4. Individuals and companies only need to be aware of the cash transaction limit - they do not directly report transactions to authorities. The reporting responsibility belongs to the bank.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    93 views4 pages

    Anti Money Laundering

    Uploaded by

    CHONG LI WEN
    1. There is a RM50,000 limit for cash transactions in Malaysia. Any transactions above this limit must be done electronically, by cheque, or through the banking system. 2. There is no limit for online transactions through RENTAS or payments to and from Bank Negara Malaysia and government agencies. 3. If a transaction is over the limit or is deemed suspicious, the bank is required to report it to Bank Negara Malaysia. The bank must provide information on the suspicious transaction. 4. Individuals and companies only need to be aware of the cash transaction limit - they do not directly report transactions to authorities. The reporting responsibility belongs to the bank.

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    © All Rights Reserved
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    of 4

    Limit of the transfer amount

    ❖ Cash Transaction limit - RM50，000

    ● A limit on physical cash transactions (i.e. currency notes and coins), as


    provided under Clause 21 of the Currency Bill 2019 that was passed by
    Dewan Rakyat and Dewan Negara in December. Any transactions above this
    limit will have to be made electronically, by cheque or through the banking
    system. This will cover all physical cash transactions i.e. consumer-to-
    consumer, entity-to-entity, entity-to consumer (vice versa)
    ●
    ● To illustrate the application of the measure, the cash transaction limit is
    assumed to be at RM50,000, with exemptions for most financial institutions
    and exigent circumstances. Any physical cash payments above RM50,000 in
    a single transaction is not allowed. Multiple transactions are also considered
    as a single transaction if it is made with the same person, for the same
    purpose, and within the same day. Actions to circumvent the application of
    the limit is an offence.
    chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://
    www.bnm.gov.my/documents/20124/761679/CTL+InfoPack+Eng.pdf

    ❖ No limit for online transaction


    ● Real Time Electronics Transfer of Funds and Securities (RENTAS)
    ● No limit set for the transfer of funds between members. However, the
    minimum transaction amount for third party payments (payments that
    originate from a non-RENTAS member or beneficiary) is set at RM10,000.
    This limit does not apply for payments to and from Bank Negara Malaysia and
    government agencies.
    https://www.bnm.gov.my/types-of-payment-systems

    Is there any step that needs to be done if the amount is over the limit?
    (report to normal bank or report to Bank Negara or any step?)
    (after reporting to bank, any further steps need to do or the further liability is on the bank)

    Customer Due Diligence (CDD) is a requirement under the Anti-Money Laundering, Anti-
    Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) and Money
    Services Business Act 2011 (MSBA). CDD shall be conducted on customer conducting
    transactions involving an amount equivalent to RM3,000 and above. Please produce your
    identification document before making any transaction involving an amount equivalent to
    RM3,000 and above.

    GUIDELINES ON PREVENTION OF MONEY LAUNDERING AND TERRORISM


    FINANCING FOR CAPITAL MARKET INTERMEDIARIES
    Paragraph 6.3 : The board of directors must ensure the reporting institution regularly
    reviews its policies, procedures and controls to ensure effectiveness and in line with
    international developments, particularly the FATF Recommendations on combating.
    Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial
    Sanctions for Financial Institutions (AML/CFT and TFS for FIs)

    chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.bnm.gov.my/
    documents/20124/938039/AMLCFT+PD.pdf

    22.1 General
    S 22.1.1 Reporting institutions are required to promptly submit a suspicious transaction
    report to the Financial Intelligence and Enforcement Department, Bank Negara Malaysia
    whenever the reporting institution suspects or has reasonable grounds to suspect that the
    transaction (including attempted or proposed), regardless of the amount:
    (a) appears unusual;
    (b) has no clear economic purpose;
    (c) appears illegal;
    (d) involves proceeds from an unlawful activity or instrumentalities of an offence; or
    (e) indicates that the customer is involved in ML/TF.

    22.1.2 Reporting institutions must provide the required and relevant information that gave
    rise to doubt in the suspicious transaction report form, which includes but is not limited to the
    nature or circumstances surrounding the transaction and business background of the person
    conducting the transaction that is connected to the unlawful activity.

    S 22.1.3 Reporting institutions must establish a reporting system for the submission of
    suspicious transaction reports.

    Triggers for Submission of Suspicious Transaction Report


    22.3.1 Reporting institutions are required to establish internal criteria (“red flags”) to detect
    suspicious transactions.

    22.3.2 Reporting institutions must consider submitting a suspicious transaction report when
    any of its customer’s transactions or attempted transactions fits the reporting institution’s list
    of “red flags”.

    22.3.3 Reporting institutions may refer to Appendix 4 of this policy document for examples of
    transactions that may constitute triggers for the purpose of reporting suspicious transactions.

    22.3.4 Reporting institutions may be guided by examples of suspicious transactions provided


    by Bank Negara Malaysia or other corresponding competent authorities, supervisory
    authorities and international organisations.

    Example of Suspicious transactions given by Suruhanjaya Sekuriti


    1. Large Cash Transactions Larger or unusual settlements of securities transactions in
    cash form.
    2. Opening of trading accounts with large cash sum (above RM 50,000).
    3. The crediting of a customer’s margin account using cash and by means of numerous
    credit slips by a customer such that the amount of each deposit is not substantial, but
    the total of which is substantial.
    4. Depositing large cash amounts in the reporting institution’s multiple bank accounts in
    the same day [Updated 21/4/2014]

    Summary :
    1. no limit for online transaction, but limit for cash transaction
    2. individual/company no need do report if transfer big amount
    3. the bank need to do report to bank negara if there is suspicious transaction
    4. individuals/companies only need to be aware the transaction won't be suspicious.

    Steps to prevent money laundering - Reporting Institution

    Six steps to ensure the practice of due diligence and the compliance with the Anti Money
    Laundering audit report is taken

    Step 1: Know Your Clients


    The information used for verification must come from a reliable and independent source
    document, information, or data. If information is not accessible through these sources, you
    must obtain the necessary documentation from your client directly. If the client is unwilling to
    cooperate, immediately file a Suspicious Transaction Report (STR), and under no
    circumstances should you commence a business relationship with him/her.

    Customer due diligence is the process of identifying and verifying the identity of your
    customer. A reporting institution must be satisfied that the customers are whom they say
    they are. This includes knowing: the identity of the customer* the identity of beneficial owner
    i.e. people behind the transaction the identity of person conducting transaction if the
    transaction is done on behalf of someone else or the person you dealing with is a
    representative appointed by a legal person the purpose i.e. why the transaction is
    undertaken

    Sub-paragraph 6.2 (e)GUIDELINES ON PREVENTION OF MONEY LAUNDERING


    AND TERRORISM FINANCING FOR CAPITAL MARKET INTERMEDIARIES :
    Customer Due Diligence: A reporting institution must have an effective procedure to
    identify its customers and obtain satisfactory evidence to verify its customer's’
    identity.

    Step 2: Screening
    At this stage of the AML/CFT screening, you need to examine your potential client’s name
    against the Ministry of Home Affairs (MOHA) and the United Nations Security Council
    Resolutions (UNSCR) Sanctions Lists for Terrorism, Proliferation, and other UN-Sanctions
    Regimes for a possible positive name match. If there is a positive name match, conduct the
    following steps: freeze the client’s funds, block all transactions, and reject the client
    immediately.

    Step 3: Risk Profiling


    Risk profiling should be conducted based on the following risk factors: client,
    product/services, geographical location, and form of the delivery channel used. If no prior
    risk profiling has been done before, please refer to the Appendix 8 of Policy Document for
    Anti-Money Laundering, Countering Financing of Terrorism (AML/CFT) and Targeted
    Financial Sanctions for Designated Non-Financial Businesses and Professions (DNFBPs) &
    Non-Bank Financial Institutions (NBFIs) on how you can perform risk profiling.

    Step 4: Enhanced Due Diligence


    For clients that are of a higher risk, enhanced customer due diligence is needed for you to
    conduct meticulous checks on your customers. Information regarding their sources of
    income must be gathered. Afterwhich, you would need to seek approval from your senior
    management before commencing a business relationship with said client. If you get
    suspicious about your client during the term of your business relationship, please file a
    Suspicious Transaction Report (STR) immediately.

    Step 5: Submit STR


    If a STR needs to be filed, you can submit it through email or fax it to the relevant authorities
    at Email: [email protected] , Fax: +603-2693 3625

    Step 6: Record Keeping


    Lastly, Bank Negara Malaysia may inspect reporting institutions for their compliance with the
    AML/CFT regulations and the Anti Money Laundering audit report would be examined.
    Therefore, it is crucial that you keep all KYC information, copies of ID, transaction details,
    and analyses done for STR (if any) submitted

    Ensure that all of the information is easily accessible only to the relevant authorised persons
    as records have to be kept for a minimum of six years.

    If there are any changes to your client’s information, the AML/CFT screening process must
    be repeated for you to update the necessary information accurately. This process is done to
    ensure that your client complies with the Anti Money Laundering rules of Malaysia and
    fosters a sense of integrity and stability in the business community.

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