Malaysian FIU

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<ul><li><p>*Malaysian FIU Establishing an FIU, Issues and ResolutionsBy: Datuk Zamani Abdul GhaniDeputy GovernorBank Negara Malaysia30 March 2005International Seminar on Anti-Money Laundering</p></li><li><p>*OverviewEstablishing an FIUAMLANational Coordination Committee to Counter Money LaunderingFIU in Bank Negara Malaysia Background MissionOrganisational StructureCore partners of the FIUIssues and ResolutionsBuilding Stakeholders ConfidenceBuilding Reporting Institutions Confidence in the FIUEnsuring Compliance among Reporting InstitutionsBuilding Expertise among StakeholdersCompliance with International StandardsChallenges</p><p>FIU- Malaysian Experience</p><p>*ANTI-MONEY LAUNDERING ACT 2001 (AMLA)April 2000Inaugural meeting of National Co-ordinating Committee to Counter Money Laundering (NCC)Malaysian Government approved AMLA concept paperDewan Rakyat (Lower House) passed AMLADewan Negara (Upper House) passed AMLAAMLA came into forceOctober 2000May 2001June 2001January 2002AMLA (Amendment) Act 2003 gazetted as lawDecember 2003</p><p>FIU- Malaysian Experience</p><p>*National Coordinating Committee to Counter Money Laundering (NCC)Coordinate the implementation of the national anti-money laundering / combating the financing of terrorism (AML/CFT) programmeDevelop and ensure proper implementation of measures to counter money laundering based on internationally accepted standards Comprises 13 government Ministries and agenciesEach agency is responsible to study, provide information, and report the development of any decision in the NCC meeting</p><p>FIU- Malaysian Experience</p><p>*NCC MembersAnti-Corruption Agency Attorney-Generals Chambers Companies Commission of MalaysiaInland Revenue BoardLabuan Offshore Financial Services AuthorityMinistry of Domestic Trade and Consumers Affairs</p><p>Bank Negara MalaysiaMinistry of FinanceMinistry of Foreign AffairsMinistry of Internal SecurityRoyal Malaysian CustomsRoyal Malaysian PoliceSecurities Commission</p><p>FIU- Malaysian Experience</p><p>*FIU in Bank Negara Malaysia - BackgroundEstablished in August 2001FIU in Bank Negara MalaysiaEstablished under the Anti-Money Laundering Act 2001 (AMLA) The Minister of Finance appointed Bank Negara Malaysia as Competent Authority under the AMLA on 15 January 2002Powers and functions under the AMLA</p><p>FIU- Malaysian Experience</p><p>*Powers accorded by AMLATo receive suspicious transaction reports and analyse information Share financial intelligence with enforcement agenciesTo compile statistics and records pertaining to compliance with AMLAMake recommendations to the relevant supervisory authorities, enforcement agencies and reporting institutionsCreate training requirements and provide training for reporting institutions</p><p>FIU- Malaysian Experience</p><p>*Mission and Purpose</p><p>MissionFormulate and implement AML/CFT laws and measures to deter and detect financial crimes by gathering and sharing financial intelligence </p><p>PurposeTo facilitate the implementation and enforcement of the AMLA nationwide and to co-operate with other countries in the global fight against money laundering and serious crimes.</p><p>FIU- Malaysian Experience</p><p>*Organisational StructureDeputy DirectorIntelligenceAnalysisClerical OfficersSenior ExecutivesSenior ExecutivesSenior ExecutivesStrategic and PolicyComplianceInvestigationSupportRelationship ManagementDeputy DirectorDirectorManagers ManagersManagerManagerSenior ExecutivesPersonal AssistantAdmin. AssistantSTRATEGIC DEVELOPMENTINTELLIGENCE MANAGEMENT</p><p>FIU- Malaysian Experience</p><p>*Core functionsTo carry out roles and functions set out in the AMLASpearhead national efforts in combating money laundering and serious crimes by providing value-added contributions to national and international supervisory/enforcement agenciesFormulate and implement comprehensive national anti-money laundering regimePromote awareness of money laundering and terrorism financing issues and the AMLAAct as Secretariat to, and coordinate, the NCCs initiatives</p><p>FIU- Malaysian Experience</p><p>*Core partners of the FIUSUPERVISORY &amp; REGULATORY AGENCIESBank Negara MalaysiaSecurities CommissionLabuan Offshore Financial Services AuthorityCompanies Commission of MalaysiaREPORTING INSTITUTIONSw.e.f. 15/01/2002Commercial banksMerchant banksFinance companiesIslamic banksw.e.f. 15./04/2002Discount housesInsurersInsurance brokersTakaful operatorsOffshore banksOffshore insurersOffshore trust companiesw.e.f 1/06/2002Money changersw.e.f 15/01/2003Pilgrims Fund Board Pos Malaysia BerhadBank Simpanan NasionalBank Kerjasama Rakyat Malaysia BerhadLicensed casinoENFORCEMENT AGENCIESBank Negara MalaysiaRoyal Malaysian PoliceRoyal Malaysian CustomAnti-Corruption AgencyCompanies Commission Of MalaysiaSecurities CommissionFOREIGN FIUsFINANCIAL INTELLIGENCE UNITFINANCE MINISTERw.e.f 31/03/2004StockbrokersFutures brokersw.e.f 30 September 2004LawyersAccountantsCompany SecretariesBar CouncilMalaysian Institutes of AccountantsMalaysian Institute of Chartered Secretaries and AdministratorsOther company secretaries bodiesSELF-REGULATORY ORGANISATIONS</p></li><li><p>*Issues and Resolutions</p><p>FIU- Malaysian Experience</p><p>*Issue and ResolutionsIssue: Building stakeholders confidenceResolutions: Regular consultation with the relevant supervisory and regulatory authorities Agreement sought on the implementation strategiesGuidelines on AML/CFT issued by relevant regulatory and self-regulatory authoritiesAMLA briefing sessionsAdequate manpower in the FIU</p><p>FIU- Malaysian Experience</p><p>*Issues and ResolutionsIssue: Building reporting institutions confidence in the FIUResolutions: STR submitted in a highly confidential mannerFIU deals directly with the compliance officerCompliance officers protected by civil, criminal or disciplinary actions under the AMLA for reporting STRTipping off is an offence under the AMLAFinancial Intelligence System (FINS) to ensure efficient and secure reporting</p><p>FIU- Malaysian Experience</p><p>*Financial Intelligence System (FINS)To facilitate speedy and efficient submission of STRs or Account Statements (when the need arises) from the reporting institutions through secure online environment</p><p>To ensure that submitted information is handled with high security and confidentiality without possible means of interruption throughout the transmission</p><p>FIU- Malaysian Experience</p><p>*Intelligence ProcessInvestigating AgenciesProsecuting AgencyData SubmissionDatabaseAnalysisForeign FIUsRelated AgenciesReporting InstitutionInformation for prosecutingExchange of informationProvide inputAnalyses informationFIU</p><p>FIU- Malaysian Experience</p><p>*Inward TransferBANK A BERHADBANK Z OVERSEASFIU Bank Negara MalaysiaMR. JOHN DOEMR. RUDY FIASCOROYAL MALAYSIAN POLICE BANK B BERHADBANK C BERHADMR. JOHN DOEMR. JOHNNY DOEMR. JOHNNY DOEARRESTEDBANK Y OVERSEASMR. RUDY FIASCOOutward Transfer</p><p>FIU- Malaysian Experience</p><p>*Issues and ResolutionsIssue: Ensuring compliance among reporting institutionsResolutions: Establishing a comprehensive legal framework that consists of:regulatory/ supervisorycompliance enforcement </p><p>FIU- Malaysian Experience</p><p>*Ensuring Compliance</p><p>FIU- Malaysian Experience</p><p>*Supervisory FrameworkManagement OversightPolicies and ProceduresInternal ControlHuman Resource and TrainingManagement Information System</p><p>FIU- Malaysian Experience</p><p>*Supervisory Framework</p><p>Evaluate adequacy and effectiveness of AML/CFT policies, procedures, systems and controlsEvaluate adequacy and effectiveness of AML/CFT programmes at FIsDetermine compliance with AMLAAssess adequacy and comprehensiveness of AML/CFT training and education programmesRecommend corrective actionsAssess AML risk management structure and highlight high risk areas to be reviewed</p><p>FIU- Malaysian Experience</p><p>*Issues and ResolutionsIssue: Building expertise among stakeholdersResolutions: Conduct regular briefing sessionsCollaborate with training institutesCollaborate with international bodies for specialised training</p><p>FIU- Malaysian Experience</p><p>*Building expertiseFIUReporting InstitutionsSRAs, SROs and LEAsAwareness programmeTraining in collaboration with training institutesAwareness programmeTraining in collaboration with training institutes and international bodiesExternalInternalSpecialised training programmesTraining in collaboration with international bodiesInternational Orgns. (ASEM,APG)</p><p>FIU- Malaysian Experience</p><p>*Issues and ResolutionsIssue: Compliance with international standardsResolutions:Membership and participation in various international groupsBenchmarking compliance with FATFs 40+9 RecommendationsInformation sharing (MoUs)Mutual legal assistance </p></li><li><p>*Challenges</p><p>FIU- Malaysian Experience</p><p>*ChallengesOrganisational effectivenessImplementation of FATF 40+9 Recommendations Timely response to emerging ML/TF trends </p><p>**************************</p></li></ul>