REPORTING OBLIGATIONS

AMLAFTA 2001 - REPORTING OBLIGATIONS (Section 13 - 28)

Simple interpretation and understanding  of Reporting Obligations in Anti-Money Laundering and Anti-Terrorism Financing Act 2001

Reporting Institution ("RI") refers to any person, including branches and subsidiaries outside

Malaysia of that person, who carries on any activity listed in the First Schedule to the AMLATFA 2001.

Central Bank of Malaysia / Bank Negara Malaysia ("BNM") refers asd a competent authority in Malaysia

S13. Record–keeping by reporting institutions

Reporting Institution (“RI”) – record all local and other currencies transaction which more than BNM limit in a form including information such as name, address, account no., type of transaction & account, name of reporting institution, date, time and amount of transaction.

  

S14. Report by reporting institutions

RI must report to BNM about the transaction exceeding such amount on daily basis. Officer of RI should they suspect any concern with unlawful activity (14B).

S15. Centralisation of information

RI provide the centralization of information.

S16. Identification of account holder

RI need to have identification (document/passport/IC/birth cert) of real account holder only by verifying and maintaining the information such as name, occupation, business, account number etc and not anonymous account holder.(domicile, legal capacity, occasional or usual client) – AS Didik anak & UOB S’pore opening of account (sample).

S17. Retention of records

All the records need to be kept and maintained by RI for not less than 6 years from the date of transaction closed, completed or terminated except the records transmitted to BNM. Failure to follow this section, RI shall be fined RM1 million or imprisonment for less than a year or both FATF 5 years, IRB 7 years (sample).

S18. Opening account in false name

RI need to monitor any false, fictitious or incorrect name in opening an account and checked the information with BNM. The person who tried to false their names will be fined RM1 million or imprisonment for less than a year in this section or both.

   

S19. Compliance programme

RI need to develop and implement internal program, policies and procedures to control and detect any offence in this Act. The programmes are involved such as establishment high standard of employee integrity, the evaluation system on employee information, employment and financial history, employee training i.e. KYC – know your customer and independent audit function to evaluate and check the compliance activities.

S20. Secrecy obligations overridden

The information disclose to RI is no secrecy obligation and overridden any secrecy provision from other act.

S21. Obligations of supervisory or licensing authority

The relevant supervisory or licensing authority of RI such as Securities Commission ("SC"), Malaysia Institute of Accountant ("MIA") etc has obligation to report any suspicious transaction under their jurisdiction (i.e. public listed companies, audit firm etc.) to BNM with assistance of law enforcement agencies such as Royal Malaysia Custom ("RMC") , Malaysia Anti-Corruption Commission ("MACC") etc.

S22. Powers to enforce compliance

RI has powers to enforce and ensure their compliance and report to BNM. Failure to comply, RI shall be fine not more than RM1 million or imprisonment not more than 6 months or both. During the offence case continues after conviction, RI also shall be fined not more than RM1,000 per day

S23. Currency reporting at border

All person need to declare the amount of cash in hand during the leaving from and arriving to Malaysia and the person shall fine not more than RM1 million or imprisonment not more than 1 year or both.

The Exchange Control Act 1953 and the Central Bank of Malaysia Act 1958, the Controller of Foreign Exchange have authority to submit the information received under section 24 or 25 of the Exchange Control Act 1953 to BNM.

Any declaration matter relating to customs in required as per Customs Act 1967.

S24. Protection of persons reporting

The protection and defence provides to any person who have informed and disclosed any suspicious information/report to RI/BNM.

S25. Examination of a reporting institution

BNM has authorised and monitored the RI by examining and questioning all the report and documents relates to this section.

S26. Examination of person other than a reporting institution

BNM also has authorised to request any report, document or information relates to this act from person other than RI such as director, staff of the company, agent, customer etc.

Failure to cooperate and comply this section, the person shall be fined fine not more than RM1 million or imprisonment not more than year or both. During the offence case continues after conviction, the person also shall be fined not more than RM1,000 per day

S27. Appearance before examiner

All the director or officer of RI and other than RI shall appear before they are calling by examiner such as BNM.

Failure to cooperate and comply this section, the person shall be fined fine not more than RM1 million or imprisonment not more than year or both. During the offence case continues after conviction, the person also shall be fined not more than RM1,000 per day

S28. Destruction of examination records

BNM has authority to destroy any examination document received from the person in RI and other than RI which more than 6 years except the copy sent to enforcement agency i.e. Royal Malaysia Police (RMP).