wmlro.com: Malaysian politicicians attack AMLA

A report by state news agency Bernama quotes Datuk Ismail Kasim as saying""Under [the Anti-Money Laundering and Anti-Terrorism Financing Act 2001] , the enforcement agencies have power to act based only on facts of 'grounds for suspicion'...(this) should under this act be changed to 'prima facie'."

Datuk Ahmad Hamzah reportedly said that this "irregularity" should be "rectified" to "prevent doubt and fear among foreign investors."

A further MP, Datuk Bung Moktar Radin, was said to claim that the policy of "grounds for suspicion" would allow "various assumptions" to be made "making it possible for criminal element and maltreatment of the person suspected."

In fact, AMLA, as the Act is universally known, provides for two different standards:

in relation to persons and businesses which are not part of the "reporting institution" regime the test as to whether a person should be convicted of money laundering is "knew or had reason to believe." This is a much higher test than mere suspicion and, unusually for the Malaysian law, is not as strong as that in many other countries where suspicion is the test;

in relation to persons and businesses which are part of the reporting institution, they are required to make reports if they know or have reason to suspect that a person is or may be money laundering.

They were particularly concerned about the freezing of bank accounts by administrative order, saying that this could be done maliciously if an officer came under the influence of bad people.

It is the "reason to suspect" that most exercised the MPs, however.

Yet this test appears on its wording to be the same test as "had reasonable cause to suspect" which is the standard applied in almost all counter-money laundering laws around the world.

Malaysia does not have jury trials. Therefore the determination as to "reason to believe" is made by a judge alone. Judges are used to making objective assessments, and so the apparently stricter wording is appropriate for the tribunal to which it is addressed, it is here submitted.

The action came after the Malaysian Anti Corruption Commission, MACC, charged six people, including an MP with a range of offences. Local newspaper "The Sun" said "groups of politicians.. gathered at the courts complex to show support for those charged."

Abdul Rahman Bakri, an MP, has been charged with eight counts relating, mainly, to making false claims for some MYR80,000 for events which were never held. One of his aids, Mohd Rosli Bushra, wa charged with abetting Abdul. Yap Su Soon, a former assemblyman, is charged with filing claims for functions that were not held. His then aid, Fairdus Abu Zarin is charged with abetting Yap. Wong Chuan How, a special assistant to state councillor Ronnie Liew, is charged with criminal breach of trust and filing a false invoice for flags and to have allegedly misappropriated a cheque for MYR5,000 entrusted to him. Mohd Yahya Mad Sahri is charged that he misled the managing director of a company into giving him MYR50,000 for a celebration and of using a false resolution purporting to be from a political party to open a bank account.

All have pleaded not guilty.

Find out about Malaysia AML / CFT law: www.quicktolearnmore.com