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Anti-Money Laundering Act 2001

Anti-Money Laundering

LAWS OF MALAYSIA

RepRint

Act 613

AntI-MOneY LAunderIng

Act 2001

Incorporating all amendments up to 1 January 2006 published by

the CommissioneR of law Revision, malaysia

undeR the authoRity of the Revision of laws aCt 968 in CollaboRation with

peRCetakan nasional malaysia bhd

2006

AntI-MOneY LAunderIng Act 2001

date of Royal assent... ... ... ... ... 5 June 00 date of publication in the Gazette ... 5 July 00

Previous rePrint

First Reprint ... ... ... ... ... 2002

LAWS OF MALAYSIA

Act 613

AntI-MOneY LAunderIng Act 2001

aRRanGement of seCtions

part i

pReliminaRy

section

. short title and commencement

. application

. interpretation

part ii

money laundeRinG offenCes

4. offence of money laundering

5. protection of informers and information

6. Restriction on revealing disclosure under section 5 part iii

finanCial intelliGenCe

7. functions of the competent authority

8. provisions relating to the competent authority

9. authorization to release information

0. Communication to a foreign state . prohibited disclosure

. permitted disclosure

4 Laws of Malaysia Act 613

PART iv

RepoRtinG obliGations

section

. Record-keeping by reporting institutions

4. Report by reporting institutions

5. Centralization of information

6. identification of account holder

7. Retention of records

8. opening account in false name

9. Compliance programme

0. secrecy obligations overridden . obligations of supervisory or licensing authority . powers to enforce compliance

. Currency reporting at border

4. protection of persons reporting

5. examination of a reporting institution

6. examination of person other than a reporting institution

7. appearance before examiner

8. destruction of examination records paRt v

investiGation

9. investigation by competent authority and enforcement agencies

0. appointment of investigating officer . powers of an investigating officer

. power to examine persons

. search of a person

4. obstruction to exercise of powers by an investigating officer

5. tipping-off

6. Requirement to provide translation

7. delivery of property, record, report or document

8. seizing of property, record, report or document 5Anti-Money Laundering

9. Release of property, record, report or document seized

40. statement to be admissible

4. investigating officer may arrest without warrant

4. arrested person to be made over to police officer

4. investigating officer deemed to be public servant and public officer paRt vi

fReeZinG, seiZuRe and foRfeituRe

44. freezing of property

45. seizure of movable property

46. further provisions relating to seizure of movable property

47. advocates and solicitors to disclose information

48. investigation powers in relation to a financial institution

49. public prosecutor's powers to obtain information

50. seizure of movable property in financial institution

5. seizure of immovable property

5. special provisions relating to seizure of a business

5. prohibition of dealing with property outside malaysia

54. dealing with property after seizure to be void

55. forfeiture of property upon prosecution for an offence

56. forfeiture of property where there is no prosecution

57. validity of freeze, seizure or sale

58. vesting of forfeited property in the federal Government

59. pecuniary orders

60. Release of property seized

6. Bona fide third parties

6. disposition of forfeited property

6. absconded person

64. forfeiture order where person has absconded

65. effect of death on proceedings

66. service of documents on absconders section

6 Laws of Malaysia Act 613

paRt vii

misCellaneous

section

67. property tracking

68. additional powers of competent authority and enforcement agency

69. agent provocateur

70. standard of proof

7. admissibility of documentary evidence

7. admissibility of statements by accused persons

7. admissibility of statements and documents of persons who are dead or cannot be traced, etc.

74. admissibility of translation of documents

75. evidence of corresponding law or foreign law

76. proof of conviction and acquittal

77. indemnity

78. service of notices

79. preservation of secrecy

80. exemptions

8. modifications

8. Jurisdiction

8. power to issue guidelines, etc.

84. Regulations

85. amendment of schedules

86. General offence

87. offence committed by any person acting in an official capacity

88. offence by an individual

89. falsification, concealment and destruction of document, etc.

90. seizable offence

9. Joinder of offences

9. power of competent authority to compound offences

9. prosecution FiRsTschedule

secondschedule

7Anti-Money Laundering

LAWS OF MALAYSIA

Act 613

AntI-MOneY LAunderIng Act 2001

an act to provide for the offence of money laundering, the measures to be taken for the prevention of money laundering and to provide for forfeiture of property derived from, or involved in, money laundering, and for matters incidental thereto or connected therewith.

[15 January 2002; P.U. (B) 15/2002]

part i

pReliminaRy

Short title and commencement

1. () this act may be cited as the anti-money laundering act

00. () this act comes into operation on a date to be appointed by the minister of finance by notification in the Gazette. Application

2. () this act shall apply to any serious offence, foreign serious offence or unlawful activity whether committed before or after the commencement date.

() this act shall apply to any property, whether it is situated in or outside malaysia.

() nothing in this act shall impose any duty or confer any power on any court in or in connection with any proceedings under this act against a person for a serious offence in respect of which he has been convicted by a court before the commencement date.

8 Laws of Malaysia Act 613

Interpretation

3. () in this act, unless the context otherwise requires-- "enforcement agency" includes a body or agency that is for the time being responsible in malaysia for the enforcement of laws relating to the prevention, detection and investigation of any serious offence;

"unlawful activity" means any activity which is related, directly or indirectly, to any serious offence or any foreign serious offence;

"bank negara malaysia" means the Central bank of malaysia established by the Central bank of malaysia act 958 [Act 519];

"thing" includes material;

"specify" means specify in writing, and a power to specify includes the power to specify differently for different persons or different classes of persons and to amend any specification; "prescribed" means prescribed by regulations made under this act, and a power to prescribe includes the power to make different provisions in the regulations for different persons or classes of persons;

"document" has the same meaning as in the evidence act 950 [Act 56];

"constituent document", in relation to an institution, means the statute, charter, memorandum of association and articles of association, rules and by-laws, partnership agreement, or other instrument, under or by which the institution is established and its governing and administrative structure and the scope of its functions and business are set out, whether contained in one or more documents;

"proceeds of an unlawful activity" means any property derived or obtained, directly or indirectly, by any person as a result of any unlawful activity;

9Anti-Money Laundering

"property" means movable or immovable property of every description, whether situated in or outside malaysia and whether tangible or intangible and includes an interest in any such movable or immovable property;

"financial institution" means--

(a) an institution licensed under the islamic banking act 98 [Act 276], the takaful act 984 [Act 312], the

banking and financial institutions act 989 [Act 372], the insurance act 996 [Act 553] and the money-Changing act 998 [Act 577];

(b) a person licensed under the securities industry act 98 [Act 280], the securities Commission act 99 [Act 498] and the futures industry act 99 [Act 499]; or

"offshore financial institution" has the same meaning as in the labuan offshore financial services authority act 996 [Act 545];

"reporting institution" means any person, including branches and subsidiaries outside malaysia of that person, who carries on any activity listed in the first schedule;

"serious offence" means--

(a) any of the offences specified in the second schedule; (b) an attempt to commit any of those offences; or (c) the abetment of any of those offences;

"foreign serious offence" means an offence--

(a) against the law of a foreign state stated in a certificate purporting to be issued by or on behalf of the government of that foreign state; and

(b) that consists of or includes an act or activity which, if it had occurred in malaysia, would have constituted a serious offence;

"client" includes a customer;

0 Laws of Malaysia Act 613

"labuan offshore financial services authority" means the authority established by the labuan offshore financial services authority act 996;

"material" includes any book, document or other record in any form and any container or article relating to it; "minister of home affairs" means the minister charged with the responsibility for internal security;

"minister of finance" means the minister charged with the responsibility for finance;

"foreign state" means any country or territory outside malaysia;

"controller", in relation to an institution, means-- (a) the chief executive officer of the institution or of a body corporate of which them institution is a subsidiary; (b) a person, either alone or with any associate-- (i) has interest in one third or more of its voting shares;

(ii) has the power to appoint, or cause to be appointed, a majority of its directors; or

(iii) has the power to make a decision, or cause a decision to be made, in respect of its business

or administration;

"money laundering" means the act of a person who-- (a) engages, directly or indirectly, in a transaction that involves proceeds of any unlawful activity;

(b) acquires, receives, possesses, disguises, transfers, converts, exchanges, carries, disposes, uses, removes from or brings into malaysia proceeds of any unlawful activity; or (c) conceals, disguises or impedes the establishment of the true nature, origin, location, movement, disposition, title of, rights with respect to, or ownership of, proceeds of any unlawful activity;

Anti-Money Laundering

where--

(aa) as may be inferred from objective factual circumstance, the person knows or has reason to believe, that the property is proceeds from any unlawful activity; or (bb) in respect of the conduct of a natural person, the person without reasonable excuse fails to take reasonable steps to ascertain whether or not the property is proceeds from any unlawful activity;

"competent authority" means the person appointed under subsection 7();

"premises" includes--

(a) a structure (whether or not movable or offshore), building, tent, vehicle, vessel, hovercraft or aircraft;

(b) a place (whether or not enclosed or built upon); and (c) part of any premises (including premises of a kind referred to in paragraph (a) or (b));

"process" means any summons, warrant, order or other document in respect of a criminal matter that is issued--

(a) out of any court; or

(b) out of any court of a foreign state;

or by any judge, magistrate or officer of such a court, as the case may be;

"criminal proceedings" means a trial of a person for a serious offence or foreign serious offence, as the case may be, and includes any proceedings to determine whether a particular person should be tried for the offence;

"relative", in relation to a person, means--

(a) a spouse of that person;

(b) a brother or sister of that person;

(c) a brother or sister of the spouse of that person; or (d) any lineal ascendant or descendant of that person; Laws of Malaysia Act 613

"associate", in relation to a person, means--

(a) any person who is a nominee or an officer of that person;

(b) any person who manages the affairs of that person; (c) any firm of which such person, or any nominee of his, is a partner or a person in charge or in control of its business or affairs;

(d) any corporation within the meaning of the Companies act 965 [Act 125], of which such person, or any nominee of his, is a director or is in charge or in control of its business or affairs, or in which such person, alone or together with any nominee of his, has or have a controlling interest, or shares to the total value of not less than thirty per centum of the total issued capital of that corporation; or

(e) the trustee of any trust, where--

(i) the trust has been created by that person; or (ii) the total value of the assets contributed by that person to the trust at any time, whether before

or after the creation of the trust, amounts, at any time, to not less than twenty per centum of the

total value of the assets of the trust;

"securities Commission" means the securities Commission established under the securities Commission act 99; "transaction" includes an arrangement to open an account involving two or more persons and any related transaction between any of the persons concerned and another;

"dealing", in relation to any property, includes-- (a) receiving or acquiring the property;

(b) concealing or disguising the property (whether by concealing, or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it or otherwise);

Anti-Money Laundering

(d) bringing the property into or removing the property from malaysia;

(e) using the property to borrow money, or as security (whether by way of charge, mortgage or pledge or otherwise); or

(f) where a debt is owed to the person holding the property, making a payment to any person in reduction of the amount of the debt.

() for the purposes of this act--

(a) a reference to a foreign state includes a reference to-- (i) a territory of that foreign state; and

(ii) a ship or aircraft of, or registered in, that foreign state; and

(b) a reference to the law of a foreign state includes a reference to the law in force in any part of that foreign state.

PARTii

money laundeRinG offenCes

Offence of money laundering

4. () any person who-- (a) engages in, or attempts to engage in; or

(b) abets the commission of,

money laundering, commits an offence and shall on conviction be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both.

() a person may be convicted of an offence under subsection () irrespective of whether there is a conviction in respect of a serious offence or foreign serious offence or that a prosecution has been initiated for the commission of a serious offence or foreign serious offence.

4 Laws of Malaysia Act 613

Protection of informers and information

5. () where a person discloses to an enforcement agency his knowledge or belief that any property is derived from or used in connection with money laundering or any matter on which such knowledge or belief is based--

(a) if he does any act in contravention of subsection 4() and the disclosure relates to the arrangement concerned, he does not commit an offence under that subsection if the disclosure is made--

(i) before he does the act concerned, being an act done with the consent of the enforcement agency; or

(ii) after he does the act, but the disclosure is made on his initiative and as soon as it is reasonable for him to make it;

(b) notwithstanding any other written law, the disclosure shall not be treated as a breach of any restriction on the disclosure of information imposed by any law, contract or rules of professional conduct; and

(i) the disclosure; or

(ii) any act done or omitted to be done in relation to the property in consequence of the disclosure.

() where any information relating to an offence under this act is received by an officer of the competent authority or reporting institution, the information and the identity of the person giving the information shall be secret between the officer and that person and everything contained in such information, the identity of that person and all other circumstances relating to the information, including the place where it was given, shall not be disclosed except for the purposes of subsection 8() or section 4. restriction on revealing disclosure under section 5

6. () no person shall, subject to subsection ()-- (a) reveal that a disclosure was made under section 5; (b) reveal the identity of any person as the person making the disclosure; or

5Anti-Money Laundering

(c) answer any question if the answer would lead, or would tend to lead, to the revealing of any fact or matter referred to in paragraph (a) or (b).

() subsection () shall not apply to a witness in any civil or criminal proceedings--

(a) for an offence under subsection 4() or subsection () of this section; or

(b) where the court is of the opinion that justice cannot fully be done between the parties without revealing the disclosure or the identity of any person as the person making the disclosure.

() no person shall publish in writing or broadcast any information, including a report of any civil or criminal proceedings but excluding information published for statistical purposes by a competent authority or the Government, so as to reveal or suggest--

(a) that a disclosure was made under section 5; or (b) the identity of any person as the person making the disclosure.

(4) subsection () shall not apply in respect of proceedings against the person making the disclosure for an offence under subsection 4() or subsection ().

(5) if information is published or broadcast in contravention of subsection (), each of the following persons, namely-- (a) in the case of publication as part of a newspaper or periodical publication, any proprietor, editor, publisher and distributor of the newspaper or periodical publication; (b) in the case of a publication otherwise than as part of a newspaper or periodical publication, any person who publishes it and any person who distributes it;

(c) in the case of a broadcast, any person who broadcasts the information and, if the information is contained in a programme, any person who transmits or provides the programme and any person having functions in relation to the programme corresponding to those of the editor of a newspaper or periodical publication,

6 Laws of Malaysia Act 613

commits an offence and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. (6) in this section, "broadcast" includes any broadcast by radio, film, videotape, television or electronic media. PARTiii

finanCial intelliGenCe

Functions of the competent authority

7. *() the minister of finance may, by order published in the Gazette, appoint a person to be the competent authority and such person shall have all the functions conferred on the competent authority by this act.

() the competent authority may authorize any of its officers or any other person to perform any or all of its functions or render such assistance in the performance of its functions under this act as it may specify.

Provisions relating to the competent authority

8. () the minister of finance may, upon the recommendation of the competent authority, who shall consult the relevant supervisory authority of a reporting institution, by order published in the Gazette, invoke any or all of the provisions of part iv in respect of that reporting institution.

() for the avoidance of doubt, it is declared that a competent authority may exercise its powers under this section in respect of reporting institutions carrying on any or all of the activities listed in the first schedule, and shall--

(a) receive and analyze information and reports from any person, including reports issued by reporting institutions under section 4;

*NOTE--the minister appoints bank negara malaysia as the competent authority for the purposes of the act with effect from 5 January 00�see p.u. (a) 9/00. 7Anti-Money Laundering

(b) send any report received under paragraph (a) or any information derived from any such report to an

enforcement agency if it is satisfied or has reason to believe or suspect that a transaction involves proceeds of an unlawful activity or a serious offence is being, has been or is about to be committed; and

(c) send any information derived from an examination carried out under part iv to an enforcement agency if it has reason to suspect that a transaction involves proceeds of an unlawful activity or a serious offence is being, has been or is about to be committed.

() the competent authority may--

(a) compile statistics and records;

(b) give instructions to a reporting institution in relation to any report or information received under section 4; (c) make recommendations to the relevant supervisory authority, enforcement agency and reporting institutions arising out of any report or information received under subsection (); and

(d) create training requirements and provide training for any reporting institutions in respect of their transactions and reporting and record-keeping obligations under part iv.

Authorization to release information

9. () subject to subsection (), the competent authority may, in writing, authorize any enforcement agency or its designated officers to have access to such information as the competent authority may specify for the purposes of performing the enforcement agency's functions.

() in respect of any information received from a reporting institution carrying on any business activity listed under part ii of the first schedule, the competent authority shall authorize labuan offshore financial services authority or its designated officers to have access to that information.

() the competent authority may, in writing, authorize the attorney General or his designated officer to have access to 8 Laws of Malaysia Act 613

such information as the competent authority may specify for the purpose of dealing with a foreign state's request in relation to mutual assistance in criminal matters.

communication to a foreign State

10. () notwithstanding any other written law or rule of law, the competent authority may communicate any thing disclosed to it under section 4 to a corresponding authority of a foreign state if--

(a) there exists an arrangement between malaysia and a foreign state under which the corresponding authority of the foreign state has agreed to communicate to malaysia, upon malaysia's request, information received by the corresponding authority that corresponds to any thing required to be disclosed to the competent authority under section 4; and

(b) the competent authority is satisfied that the corresponding authority has given appropriate undertakings--

(i) for protecting the confidentiality of any thing communicated to it; and

(ii) for controlling the use that will be made of it, including an undertaking that it will not be used as evidence in any proceedings.

() in this section, "corresponding authority", in relation to a foreign state, means the authority of that foreign state responsible for receiving information that corresponds to any thing required to be disclosed to a competent authority under section 4. Prohibited disclosure

11. subject to section , no person who has obtained information from competent authority under part iv shall--

(a) while he is authorized under section 9, disclose or communicate the information except to another officer authorized under that section, for the purposes of, or in connection with, the performance of his duties; and 9Anti-Money Laundering

(b) when he is no longer authorized under section 9, make a record of the information, or disclose or communicate the information in any circumstances.

Permitted disclosure

12. () nothing in section shall prevent the communication of the competent authority's information under this part with respect to a prosecution or legal proceedings in connection with the commission of a serious offence, a foreign serious offence or an offence under subsection 4().

() nothing in section shall prevent the communication of the competent authority's information under this part in respect of the affairs of a person by the person authorized under section 9 to--

(a) if the person is not a company, that person;

(b) if the person is a company--

(i) any person who is, or has been, a director or an officer of the company; or

(ii) any person who is, or has been directly involved in, or responsible for, the preparation of information furnished on behalf of the company; or

() no person to whom the competent authority or person authorized under section 9 communicates any information under this part and the information does not relate to the affairs of the person shall make a record of the information or disclose, or communicate the information to any person in any circumstances. (4) any person who contravenes subsection () commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.

(5) except where it is necessary to do so for the purposes of carrying into effect the provisions of this act, a person who obtains information from the competent authority under this part 0 Laws of Malaysia Act 613

shall not be required to produce in court any document containing any of the information or to disclose or communicate to any court such information.

PART iv

RepoRtinG obliGations

record-keeping by reporting institutions

13. () a reporting institution shall keep a record of any transaction involving the domestic currency or any foreign currency exceeding such amount as the competent authority may specify. () the record referred to in subsection () shall be in such form as the competent authority may specify.

() the record referred to in subsection () shall include the following information for each transaction:

(a) the identity and address of the person in whose name the transaction is conducted;

(b) the identity and address of the beneficiary or the person on whose behalf the transaction is conducted, where applicable;

(d) the type of transaction involved, such as deposit, withdrawal, exchange of currency, cheque cashing, purchase of cashier's cheques or money orders or other payment or transfer by, through, or to such reporting institution; (e) the identity of the reporting institution where the transaction occurred; and

(f) the date, time and amount of the transaction, and shall also include such other information as the competent authority may specify in writing.

(4) for the purposes of this part, multiple cash transactions in the domestic or foreign currency which, in aggregate, exceeds the amount specified by the competent authority pursuant to Anti-Money Laundering

subsection () shall be treated as a single transaction if they are undertaken by or on behalf of any one person during any one day or such other period as the competent authority may specify. report by reporting institutions

14. a reporting institution shall promptly report to the competent authority any transaction--

(a) exceeding the amount specified by the competent authority under subsection (); and

*(b) where the identity of the persons involved, the transaction itself or any other circumstances concerning that transaction gives any officer or employee of the reporting institution reason to suspect that the transaction involves proceeds of an unlawful activity.

centralization of information

15. a reporting institution shall provide for the centralization of the information collected pursuant to this part.

Identification of account holder

16. () a reporting institution-- (a) shall maintain accounts in the name of the account holder; and

(b) shall not open, operate or maintain any anonymous account or any account which is in a fictitious, false or incorrect name.

() a reporting institution shall--

(a) verify, by reliable means, the identity, representative capacity, domicile, legal capacity, occupation or business purpose of any person, as well as other identifying information on that person, whether he be an occasional or usual client, through the use of documents such as *NOTE--the minister invokes paragraph 4(b) and sections 0 and 4 of the act on institutions carrying on banking business, finance company business, merchant banking business and islamic banking business�see p.u. (a) 0/00.

Laws of Malaysia Act 613

identity card, passport, birth certificate, driver's licence and constituent document, or any other official or private document, when establishing or conducting business relations, particularly when opening new accounts or passbooks, entering into any fiduciary transaction, renting of a safe deposit box, or performing any cash transaction exceeding such amount as the competent authority may specify; and

(b) include such details in a record.

() a reporting institution shall take reasonable measures to obtain and record information about the true identity of the person on whose behalf an account is opened or a transaction is conducted if there are any doubts that any person is not acting on his own behalf, particularly in the case of a person who is not conducting any commercial, financial, or industrial operations in the foreign state where it has its headquarters or domicile. (4) for purposes of this section, "person" shall include any person who is a nominee, agent, beneficiary or principal in relation to a transaction.

retention of records

17. () notwithstanding any provision of any written law pertaining to the retention of documents, a reporting institution shall maintain any record under this part for a period of not less than six years from the date an account has been closed or the transaction has been completed or terminated.

() a reporting institution shall also maintain records to enable the reconstruction of any transaction in excess of such amount as the competent authority may specify, for a period of not less than six years from the date the transaction has been completed or terminated.

() subsections () and () will not apply where a reporting institution has transmitted the record to the competent authority or an enforcement agency.

(4) any reporting institution which contravenes subsection () or () commits an offence and shall on conviction be liable to a Anti-Money Laundering

fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.

Opening account in false name

18. () no person shall open, operate or authorize the opening or the operation of an account with a reporting institution in a fictitious, false or incorrect name.

() where a person is commonly known by two or more different names, the person shall not use one of those names in opening an account with a reporting institution unless the person has previously disclosed the other name or names to the reporting institution.

() where a person using a particular name in his dealings with a reporting institution discloses to it a different name or names by which he is commonly known, the reporting institution shall make a record of the disclosure and shall, upon request in writing from the competent authority, give the competent authority a copy of that record.

(4) for the purposes of this section--

(a) a person opens an account in a false name if the person, in opening the account, or becoming a signatory to the account, uses a name other than a name by which the person is commonly known;

(b) a person operates an account in a false name if the person does any act or thing in relation to the account (whether by way of making a deposit or withdrawal or by way of communication with the reporting institution concerned or otherwise) and, in doing so, uses a name other than a name by which the person is commonly known; and (c) an account is in a false name if it was opened in a false name, whether before or after the commencement date of this act.

(5) any person who contravenes this section commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.

4 Laws of Malaysia Act 613

compliance programme

19. () a reporting institution shall adopt, develop and implement internal programmes, policies, procedures and controls to guard against and detect any offence under this act.

() the programmes in subsection () shall include-- (a) the establishment of procedures to ensure high standards of integrity of its employees and a system to evaluate the personal, employment and financial history of these employees;

(b) on-going employee training programmes, such as "know- your-customer" programmes, and instructing employees with regard to the responsibilities specified in sections , 4, 5, 6 and 7; and

() a reporting institution shall implement compliance programmes under subsection () on its branches and subsidiaries in and outside malaysia.

(4) a reporting institution shall also designate compliance officers at management level in each branch and subsidiary who will be in charge of the application of the internal programmes and procedures, including proper maintenance of records and reporting of suspicious transactions.

(5) a reporting institution shall develop audit functions to evaluate such policies, procedures and controls to test compliance with the measures taken by the reporting institution to comply with the provisions of this act and the effectiveness of such measures.

Secrecy obligations overridden

*20. the provisions of this part shall have effect notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by any written law or otherwise. *NOTE--the minister invokes paragraph 4(b) and sections 0 and 4 of the act on institutions carrying on banking business, finance company business, merchant banking business and islamic banking business--see p.u. (a) 0/00.

5Anti-Money Laundering

Obligations of supervisory or licensing authority

21. () the relevant supervisory authority of a reporting institution or such other person as the relevant supervisory authority may deem fit may--

(a) adopt the necessary measures to prevent or avoid having any person who is unsuitable from controlling, or participating, directly or indirectly, in the directorship, management or operation of the reporting institution; (b) examine and supervise reporting institutions, and regulate and verify, through regular examinations, that a reporting institution adopts and implements the compliance

programmes in section 9;

(c) issue guidelines to assist reporting institutions in detecting suspicious patterns of behaviour in their clients and these guidelines shall be developed taking into account modern and secure techniques of money management and will serve as an educational tool for reporting institutions' personnel; and

(d) cooperate with other enforcement agencies and lend technical assistance in any investigation, prosecution or proceedings relating to any unlawful activity or offence under this act.

() the licensing authority of a reporting institution may, upon the recommendation of the competent authority, revoke or suspend the reporting institution's licence if it has been convicted of an offence under this act.

() the relevant supervisory authority shall report promptly to the competent authority any information received from any reporting institutions relating to transactions or activities that could be related to any unlawful activity or offence under this act.

Powers to enforce compliance

22. () an officer of a reporting institution shall take all reasonable steps to ensure the reporting institution's compliance with its obligations under this part.

6 Laws of Malaysia Act 613

() the competent authority, upon application to the high Court and satisfying the Court that a reporting institution has failed without reasonable excuse to comply in whole or in part with any obligations in this act, shall obtain an order against any or all of the officers or employees of that reporting institution on such terms as the Court deems necessary to enforce compliance with such obligations.

() notwithstanding subsection (), the competent authority may direct or enter into an agreement with any reporting institution that has without reasonable excuse failed to comply in whole or in part with any obligations in this part to implement any action plan to ensure compliance with its obligations under this part. (4) any person who contravenes subsection () or fails to comply with a directive under subsection () commits an offence and shall on conviction be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding six months or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. currency reporting at border

23. () a person leaving or entering malaysia with an amount in cash, negotiable bearer instruments or both, exceeding such value as the competent authority may prescribe by order published in the Gazette, shall declare to the competent authority such amount in such form as the competent authority may specify. () any person who contravenes subsection () commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.

() notwithstanding the exchange Control act 95 [Act 17] and the Central bank of malaysia act 958, the Controller of foreign exchange shall have authority to submit to the competent authority information received under section 4 or 5 of the exchange Control act 95.

(4) any declaration required to be made or given under subsection () shall for the purposes of the Customs act 967[Act 235] be deemed to be a declaration in a matter relating to customs. 7Anti-Money Laundering

Protection of persons reporting

*24. () no civil, criminal or disciplinary proceedings shall be brought against a person who--

(a) discloses or supplies any information in any report made under this part; or

(b) supplies any information in connection with such a report, whether at the time the report is made or afterwards; in respect of--

(aa) the disclosure or supply, or the manner of the disclosure or supply, by that person, of the information referred to in paragraph (a) or (b); or

(bb) any consequences that follow from the disclosure or supply of that information,

unless the information was disclosed or supplied in bad faith. () in proceedings against any person for an offence under this part, it shall be a defence for that person to show that he took all reasonable steps and exercised all due diligence to avoid committing the offence.

examination of a reporting institution

25. () for the purposes of monitoring a reporting institution's compliance with this part, the competent authority may authorize an examiner to examine--

(a) any of the reporting institution's records or reports that relate to its obligations under this part, which are kept at, or accessible from, the reporting institution's premises; and

(b) any system used by the reporting institution at its premises for keeping those records or reports.

*NOTE--the minister invokes paragraph 4(b) and sections 0 and 4 of the act on institutions carrying on baking business, finance company business, merchant banking business and islamic banking business�see p.u. (a) 0/00.

8 Laws of Malaysia Act 613

() in carrying out the examination under subsection (), the examiner may--

(a) ask any question relating to any record, system or report of a reporting institution; and

(b) make any note or take any copy of the whole or part of any business transaction of the reporting institution. examination of person other than a reporting institution

26. () an examiner authorized under section 5 may examine--

(a) a person who is, or was at any time, a director or an officer of a reporting institution or of its agent; (b) a person who is, or was at any time, a client, or otherwise having dealings with a reporting institution; or

(c) a person whom he believes to be acquainted with the facts and circumstances of the case, including an auditor or an advocate and solicitor of a reporting institution, and that person shall give such document or information as the examiner may require within such time as the examiner may specify.

() any person who contravenes subsection () commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. () notwithstanding any other written law, an agent, including an auditor or an advocate and solicitor of a reporting institution, shall not be liable for breach of a contract relating to, or a duty of, confidentiality for giving any document or information to the examiner.

Appearance before examiner

27. () a director or an officer of a reporting institution examined under subsection 5(), or a person examined under subsection 6(), shall appear before the examiner at his office upon being 9Anti-Money Laundering

called to do so by the examiner at such time as the examiner may specify.

28. the competent authority may destroy any document or copy of such document made or taken pursuant to an examination under sections 5 and 6 within six years of the examination except where a copy of the document has been sent to an enforcement agency.

PART v

investiGation

Investigation by competent authority and enforcement agencies

29. () where-- (a) the competent authority has reason to suspect the commission of an offence under part iii or iv; or

(b) an enforcement agency having the power to enforce the law under which a related serious offence is committed has reason to suspect the commission of an offence under any other provisions of this act,

the competent authority or the relevant enforcement agency shall cause an investigation to be made and for such purpose may exercise all the powers of investigation provided for under this act.

() the competent authority or the relevant enforcement agency, as the case may be, may instruct any person to take such steps as may be necessary to facilitate an investigation under subsection ().

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() the competent authority and the relevant enforcement agency shall coordinate and cooperate with any other enforcement agency in and outside malaysia, with respect to an investigation into any serious offence or foreign serious offence, as the case may be.

Appointment of investigating officer

30. () for purposes of an investigation under this part, the competent authority or relevant enforcement agency, as the case may be, may appoint its employee or any other person to be an investigating officer.

() an investigating officer who is not an employee of the competent authority or the relevant enforcement agency shall be subject to, and enjoy such rights, protection, and indemnity as may be specified in this act or other written law applicable to an employee of the competent authority or the relevant enforcement agency, as the case may be.

() an investigating officer shall be subject to the direction and control of the competent authority or the relevant enforcement agency, which has authorized him to act on its behalf, as the case may be.

Powers of an investigating officer

31. () where an investigating officer is satisfied, or has reason to suspect, that a person has committed an offence under this act, he may, without a search warrant--

(a) enter any premises belonging to or in the possession or control of the person or his employee, and in the case of a body corporate, its director or manager;

(b) search the premises for any property, record, report or document;

(d) take possession of, and remove from the premises, any property, record, report or document so seized and detained and detain it for such period as he deems necessary; Anti-Money Laundering

(e) search any person who is in, or on, such premises, if the investigating officer has reason to suspect that that person has on his person any property, record, report or document, including personal document, necessary, in the investigating officer's opinion, for the purpose of investigation into an offence under this act;

(f) break open, examine and search any article, container or receptacle; or

(g) stop, detain or search any conveyance.

() an investigating officer may, if it is necessary to do so--

(a) break open any outer or inner door of such premises or conveyance and enter such premises or conveyance; (b) remove by force any obstruction to such entry, search, seizure, detention or removal as he is empowered to effect; or

() an investigating officer may seize, take possession of, and detain for such duration as he thinks necessary, any property, record, report or document produced before him in the course of his investigation or found on the person who is being searched by him.

(4) an investigating officer, in the course of his investigation or search, shall--

(a) prepare and sign a list of every property, record, report or document seized; and

(b) state in the list the location in which, or the person on whom, the property, record, report or document is found.

(5) the occupant of the premises entered in the course of investigation, or any person on his behalf, shall be present during the search, and a copy of the list prepared under subsection (4) shall be delivered to such person at his request. Laws of Malaysia Act 613

Power to examine persons

32. () notwithstanding any written law, or oath, undertaking or requirement of secrecy or confidentiality to the contrary, or an obligation under an agreement or arrangement, express or implied, to the contrary, an investigating officer conducting an investigation shall have the power to administer an oath or affirmation to the person being examined.

() an investigating officer may order, orally or in writing, any person whom he believes to be acquainted with the facts and circumstances of the case--

(a) to attend before him for examination;

(b) to produce before him any property, record, report or document; or

() any person who contravenes subsection () commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. (4) the person examined under subsection () shall be legally bound to answer all questions relating to such case put to him by the investigating officer, but he may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture. (5) a person making a statement under paragraph ()(c) shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to the questions of the investigating officer.

(6) an investigating officer examining a person under subsection () shall first inform that person of the provisions of subsections (4) and (5).

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(7) a statement made by any person under paragraph ()(c) shall, whenever possible, be reduced into writing and signed by the person making it or affixed with his thumb print-- (a) after it has been read to him in the language in which he made it; and

(b) after he has been given an opportunity to make any correction he may wish.

(8) any person who--

(a) fails to appear before an investigating officer as required under paragraph ()(a);

(b) refuses to answer any question put to him by an investigating officer under subsection (4); or

(c) furnishes to an investigating officer any information or statement that is false or misleading in any material particular,

commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. Search of a person

33. () an investigating officer searching any person under paragraph ()(e) may detain the person for such period as may be necessary to have the search carried out, which shall not in any case exceed twenty-four hours without the authorization of a magistrate, and may, if necessary, remove the person in custody to another place to facilitate such search.

() no person shall be searched under this part except by an investigating officer of the same gender and such search shall be carried out with strict regard to decency.

4 Laws of Malaysia Act 613

Obstruction to exercise of powers by an investigating officer

34. any person who-- (a) refuses any investigating officer access to any premises, or fails to submit to the search of his person;

(b) assaults, obstructs, hinders or delays an investigating officer in effecting any entrance which he is entitled to effect;

(c) fails to comply with any lawful demands of any investigating officer in the execution of his duties under this part; (d) refuses to give to an investigating officer any property, document or information which may reasonably be required of him and which he has in his power to give;

(e) fails to produce to, or conceal or attempt to conceal from, an investigating officer, any property, record, report or document, which the investigating officer requires; (f) rescues or attempts to rescue any thing which has been duly seized;

(g) furnishes to an investigating officer as true any information which he knows or has reason to believe to be false; or

(h) before or after any search or seizure, breaks or otherwise destroys any thing to prevent its seizure, or the securing of the property, record, report or document,

35. () any person who-- (a) knows or has reason to suspect that an investigating officer is acting, or is proposing to act, in connection with an investigation which is being, or is about to be, conducted under or for the purposes of this act or any 5Anti-Money Laundering

subsidiary legislation made under it and discloses to any other person information or any other matter which is likely to prejudice that investigation or proposed investigation; or

(b) knows or has reason to suspect that a disclosure has been made to an investigating officer under this act and discloses to any other person information or any other matter which is likely to prejudice any investigation which might be conducted following the disclosure, commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.

() nothing in subsection () makes it an offence for an advocate and solicitor or his employee to disclose any information or other matter--

(a) to his client or the client's representative in connection with the giving of advice to the client in the course and for the purpose of the professional employment of the advocate and solicitor; or

(b) to any person in contemplation of, or in connection with and for the purpose of, any legal proceedings.

() subsection () does not apply in relation to any information or other matter which is disclosed with a view to furthering any illegal purpose.

(4) in proceedings against a person for an offence under this section, it is a defence to prove that--

(a) he did not know or suspect that the disclosure made under paragraph ()(b) was likely to prejudice the investigation; or

(b) he had lawful authority or reasonable excuse for making the disclosure.

(5) an investigating officer or other person does not commit an offence under this section in respect of anything done by him in the course of acting in connection with the enforcement, or intended enforcement, of any provision of this act or of any other written law relating to a serious offence.

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requirement to provide translation

36. () where an investigating officer finds, seizes, detains, or takes possession of any property, record, report or document which, wholly or partly, is in a language other than the national language or english language, or is in any sign or code, the investigating officer may, orally or in writing, require the person who had the possession, custody or control of the property, record, report or document to furnish to him a translation in the national language or english language within such period as he may specify. () no person shall knowingly furnish a translation under subsection () which is not an accurate, faithful and true translation of the document.

() any person who fails to comply with the requirement in subsection () or contravenes subsection () commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. (4) where the person required to furnish a translation under subsection () is not the person who is suspected to have committed the offence, the competent authority or the relevant enforcement agency, as the case may be, may pay him reasonable fees and reimburse him for such reasonable expenses as he may have incurred in furnishing the translation.

delivery of property, record, report or document

37. () an investigating officer may, by a notice in writing, require any person to deliver to him any property, record, report or document which he has reason to suspect has been used in the commission of an offence under this act or is able to assist in the investigation of an offence under this act that is in the possession or custody of, or under the control of, that person or within the power of that person to furnish.

() an investigating officer may grant permission to any person to inspect the property, record, report or document he had detained and taken possession of under subsection () if the person is entitled to inspect such property, record, report or document under this act.

7Anti-Money Laundering

() a person who--

(a) fails to deliver any property, record, report or document that is required by an investigating officer; or

(b) obstructs or hinders an investigating officer while exercising any of his powers under subsection (),

38. an investigating officer may seize, take possession of and retain for such duration as he deems necessary, any property, record, report or document produced before him in the course of an examination under paragraph ()(a) or (b), or search of the person under subsection (), for ascertaining whether anything relevant to the investigation is concealed, or is otherwise, upon such person.

release of property, record, report or document seized

39. () an investigating officer shall, unless otherwise ordered by any court--

(a) at the close of an investigation or any proceedings arising from the investigation; or

(b) with the prior written consent of the competent authority or the relevant enforcement agency, as the case may be, or of any investigating officer superior to him in rank, at any time before the close of an investigation, release any property, record, report or document seized, detained or removed by him or any other investigating officer, to such person as he determines to be lawfully entitled to the property, record, report or document if he is satisfied that it is not required for the purpose of any prosecution or proceedings under this act, or for the purpose of any prosecution under any other written law. 8 Laws of Malaysia Act 613

() the investigating officer effecting the release under subsection () shall record in writing the circumstances of, and the reason for, such release.

() where the investigating officer is unable to determine the person who is lawfully entitled to the property, record, report or document or where there is more than one claimant to the property, record, report or document, or where the investigating officer is unable to locate the person under subsection () who is lawfully entitled to the property, record, report or document, the investigating officer shall report the matter to a magistrate who shall then deal with the property, record, report or document as provided for under subsections 4(ii), (iii) and (iv) and sections 44, 45 and 46 of the Criminal procedure Code [Act 593]. Statement to be admissible

40. the record of an examination under paragraph ()(a), any property, record, report or document produced under paragraph ()(b) or any statement under paragraph ()(c) shall, notwithstanding any written law or rule of law to the contrary, be admissible as evidence in any proceedings in any court for, or in relation to, an offence or any other matter under this act or any offence under any other written law, regardless whether such proceedings are against the person who was examined, or who produced the property, record, report or document, or who made the written statement on oath or affirmation, or against any other person.

Investigating officer may arrest without warrant

41. an investigating officer appointed under section 0 may arrest without warrant a person whom he reasonably suspects to have committed or to be committing any offence under this act. Arrested person to be made over to police officer

42. an investigating officer, other than a police officer, making an arrest under section 4 shall make over the person so arrested to the nearest police officer or, in the absence of a police officer, take such person to the nearest police station, and the person 9Anti-Money Laundering

arrested shall be dealt with according to the law relating to criminal procedure for the time being in force as if he had been arrested by a police officer.

Investigating officer deemed to be public servant and public officer

43. an investigating officer shall be deemed to be a public servant for the purposes of the penal Code [Act 574], and to be a public officer for the purposes of the Criminal procedure Code. PART vi

fReeZinG, seiZuRe and foRfeituRe

Freezing of property

44. () subject to section 50, where an enforcement agency, having the power to enforce the law under which a serious offence is committed, has reasonable grounds to suspect that an offence under subsection 4() has been, is being or is about to be committed by any person, it may issue an order freezing any property of that person, wherever the property may be, or in his possession, under his control or due from any source to him. () an order under subsection () may include--

(a) an order to direct that the property, or such part of the property as is specified in the order, is not to be disposed of, or otherwise dealt with, by any person, except in such manner and in such circumstances, if any, as are specified in the order; and

(b) an order to authorize any of its officers to take custody and control of the property, or such part of the property as is specified in the order if the enforcement agency is satisfied that the circumstances so require.

() the enforcement agency in making the order under subsection () may give directions to the person named or described in the order as to--

(a) the duration of the order;

40 Laws of Malaysia Act 613

(b) the disposal of that property, for the purpose of-- (i) determining any dispute as to the ownership of or other interest in the property or any part of it; (ii) its proper administration during the period of the order;

(iii) the payment of debts incurred in good faith due to creditors prior to the order;

(iv) the payment of money to that person for the

reasonable subsistence of that person and his

family; or

(v) the payment of the costs of that person to defend criminal proceedings against him; or

(4) an order made under subsection () may direct that the person named or described in the order shall--

(a) be restrained, whether by himself or by his nominees, relatives, employees or agents, from selling, disposing of, charging, pledging, transferring or otherwise dealing with or dissipating his property;

(b) not remove from or send out of malaysia any of his money or property; and

(c) not leave or be permitted to leave malaysia and shall surrender any travel documents to the director General of immigration within one week of the publication of the order.

(5) an order made under subsection () shall cease to have effect after ninety days from the date of the order, if the person against whom the order was made has not been charged with an offence under this act.

(6) an enforcement agency shall not be liable for any damages or cost arising directly or indirectly from the making of an order under this section unless it can be proved that the order under subsection () was not made in good faith.

4Anti-Money Laundering

(7) where an enforcement agency directs that frozen property be administered or dealt with, the person charged with the administration of the property shall not be liable for any loss or damage to the property or for the cost of proceedings taken to establish a claim to the property or to an interest in the property unless the court before which the claim is made finds that the person charged with the administration of the property has been negligent in respect of the administration of the property. Seizure of movable property

45. () in the course of an investigation into an offence under subsection 4(), an investigating officer may, upon obtaining approval from an investigating officer senior in rank to him, seize any movable property which he has reasonable grounds to suspect to be the subject matter of such offence or evidence relating to such offence.

() a list of all movable property seized pursuant to subsection () and of the places in which they are respectively found shall be prepared by the investigating officer effecting the seizure and signed by him.

() a copy of the list referred to in subsection () shall be served as soon as possible on the owner of such property or on the person from whom the property was seized.

(4) this section shall not apply to any movable property liable to seizure under subsection () which is in the possession, custody or control of a financial institution.

Further provisions relating to seizure of movable property

46. () where any movable property is seized under this act, the seizure shall be effected by removing the movable property from the possession, custody or control of the person from whom it is seized and placing it under the custody of such person, and at such place, as the investigating officer may determine. () where it is not practicable, or it is otherwise not desirable, to remove any property under subsection (), the investigating officer may leave it at the premises in which it is seized under the custody of such person as he may determine for the purpose. 4 Laws of Malaysia Act 613

() notwithstanding subsection (), when any movable property, including any movable property referred to in subsection (6), has been seized under this act, an investigating officer, other than the investigating officer who effected the seizure, upon obtaining approval from an investigating officer senior in rank to him, may--

(a) temporarily return the movable property to its owner, or to the person from whose possession, custody or control it was seized, or to such person as may be entitled to it, subject to such terms and conditions as may be imposed, and subject in any case, to sufficient security being furnished to ensure that the movable property shall be surrendered on demand being made by the investigating officer who authorized the release and that such terms and conditions, if any, shall be complied with; or (b) return the movable property to the owner, or to the person from whose possession, custody or control it was seized, or to such person as may be entitled to the movable property, with liberty for the person to whom the movable property is so returned to dispose of the movable property, such return being subject to security being furnished in an amount which is not less than an amount which represents the open market value of that property on the date on which it is so returned.

(4) where any person to whom movable property is temporarily returned under paragraph ()(a) fails to surrender the movable property on demand or comply with any term or condition imposed under that paragraph--

(a) the security furnished in respect of such movable property shall be forfeited; and

(b) that person commits an offence and shall on conviction be liable to a fine of not less than two times the amount of the security furnished by him or to imprisonment for a term not exceeding two years or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.

(5) where an order of forfeiture is made by the court in respect of movable property returned under paragraph ()(b), such 4Anti-Money Laundering

forfeiture shall be effected by forfeiting the security furnished by the person to whom the property was returned.

(6) when any movable property seized under this act consists of money, shares, securities, stocks, debentures or any chose-in-action in the possession or under the custody or control of any person other than the person against whom the prosecution is intended to be taken, the seizure shall be effected by an investigating officer serving an order on such person--

(a) prohibiting him from using, transferring, or dealing with such property; or

(b) requiring him to surrender the property to an investigating officer in the manner and within the time specified in the order.

(7) where any movable property seized is liable to speedy decay or deterioration, or is property which cannot be maintained without difficulty, or which is not practicable to maintain, and which cannot be dealt with under subsection (), an investigating officer may sell or cause the property to be sold and shall hold the proceeds of the sale, after deducting the costs and expenses of the maintenance and sale of the movable property, to abide by the result of any proceedings under this act.

Advocates and solicitors to disclose information

47. () notwithstanding any other law, a Judge of the high Court may, on application being made to him in relation to an investigation into any offence under subsection 4(), order an advocate and solicitor to disclose information available to him in respect of any transaction or dealing relating to any property which is liable to seizure under this act.

() nothing in subsection () shall require an advocate and solicitor to comply with any order under that subsection to the extent that such compliance would disclose any privileged information or communication which came to his knowledge for the purpose of any pending proceedings.

Investigation powers in relation to a financial institution

48. () notwithstanding the provisions of any other written law or any rule of law, the public prosecutor, if he is satisfied that it 44 Laws of Malaysia Act 613

is necessary for the purpose of any investigation into an offence under subsection 4(), may authorize in writing an investigating officer to exercise in relation to any financial institution specified in the authorization all the powers of investigation set out in part v and in subsection ().

() an investigating officer authorized under subsection () may, in relation to the financial institution in respect of which he is so authorized--

(a) inspect and take copies of any book, record, report or document belonging to or in the possession, custody or control of the financial institution;

(b) inspect and take copies of any share account, purchase account, expense account or any other account of any person kept in the financial institution;

(d) request for any other information relating to any record, report, document, account or article referred to in paragraphs (a), (b) and (c).

() notwithstanding anything in subsection (), an investigating officer authorized under subsection () may take possession of any account, book, record, report, document, title, securities or cash to which he has access under that subsection where in his opinion--

(a) the inspection of them, the copying of them, or the taking of extracts from them, cannot reasonably be undertaken without taking possession of them;

(b) they may be interfered with or destroyed unless he takes possession of them; or

(4) any person who wilfully fails or refuses to disclose any information or to produce any account, book, record, report, document or article under subsection () to the investigating officer authorized under subsection () commits an offence and shall on conviction be liable to a fine not exceeding one million 45Anti-Money Laundering

ringgit or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.

(5) where any person discloses any information or produces any account, book, record, report, document or article to an investigating officer authorized under subsection (), neither the first-mentioned person nor any other person on whose behalf or direction or as whose agent or officer the first-mentioned person may be acting shall, on account of such disclosure or production, be liable to any prosecution for any offence under any law, or to any proceedings or claim by any person under any law, or under any contract, agreement or arrangement, or otherwise. Public Prosecutor's powers to obtain information

49. () notwithstanding any law or rule of law to the contrary, the public prosecutor, if he has reasonable grounds to believe, based on the investigation carried out under this act, that an offence under subsection 4() has been committed, may by written notice--

(a) require any person suspected of having committed such offence;

(b) any relative or associate of the person referred to in paragraph (a); or

(c) any other person whom the public prosecutor has reasonable grounds to believe is able to assist in the investigation,

to furnish a statement in writing on path or affirmation-- (aa) identifying every property, whether movable or immovable, whether in or outside malaysia, belonging to him or in his possession, or in which he has any interest, whether legal or equitable, and specifying the date on which each of the properties so identified was acquired and the manner in which it was acquired, whether by way of any dealing, bequest, devise, inheritance, or any other manner;

(bb) identifying every property sent out of malaysia by him or on his behalf during such period as may be specified in the notice;

46 Laws of Malaysia Act 613

(cc) setting out the estimated value and location of each of the properties identified under paragraphs (aa) and (bb), and if any of such properties cannot be located, the reason for it;

(dd) stating in respect of each of the properties identified under paragraphs (aa) and (bb) whether the property is held by him or by any other person on his behalf, whether it has been transferred, sold to, or kept with any person, whether it has been diminished in value since its acquisition by him, and whether it has been commingled with other property which cannot be separated or divided without difficulty;

(ee) setting out all other information relating to his property, business, travel, or other activities as may be specified in the notice; and

(ff) setting out all his sources of income, earnings or property.

() an officer of any financial institution, or any person who is in any manner or to any extent responsible for the management and control of the affairs of any financial institution, shall furnish a copy of all accounts, books, records, reports or documents relating to any person to whom a notice may be issued under subsection ().

() every person to whom a notice is sent by the public prosecutor under subsection () shall, notwithstanding any law or rule of law to the contrary, comply with the terms of the notice within such time as may be specified in the notice, and any person who wilfully neglects or fails to comply with the terms of the notice commits an offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. (4) every person to whom a notice or direction is sent by the public prosecutor under this section shall be legally bound to state the truth and shall disclose all information which is within his knowledge, or which is available to him, or which is capable of being obtained by him.

47Anti-Money Laundering

(5) where any person discloses any information or produces any accounts, books, records, reports or documents in response to a notice under subsection (), such person, his agent or employee, or any other person acting on his behalf or under his direction, shall not, by reason only of such disclosure or production, be liable to prosecution for any offence under any law, or to any proceedings or claim by any person under any law or under any contract, agreement or arrangement, or otherwise. (6) subsection (5) shall not bar, prevent or prohibit the institution of any prosecution for any offence as provided by this section or the giving of false information in relation to any statement on oath or affirmation furnished to the public prosecutor pursuant to this section.

Seizure of movable property in financial institution

50. () where the public prosecutor is satisfied on information given to him by an investigating officer that any movable property, including any monetary instrument or any accretion to it, which is the subject matter of an offence under subsection 4() or evidence in relation to the commission of such offence, is in the possession, custody or control of a financial institution, he may, notwithstanding any other law or rule of law, after consultation with bank negara malaysia, the securities Commission or the labuan offshore financial services authority, as the case may be, by order direct the financial institution not to part with, deal in, or otherwise dispose of such property or any part of it until the order is revoked or varied.

() a financial institution or any agent or employee of a financial institution shall not, on account of complying with an order of the public prosecutor under subsection (), be liable to any prosecution under any law or to any proceedings or claim by any person under any law or under any contract, agreement, or arrangement, or otherwise.

() any person who fails to comply with an order of the public prosecutor under subsection () commits an offence and shall on conviction be liable to a fine not exceeding two times the amount which was parted with, dealt in or otherwise disposed of in contravention of the public prosecutor's order or one million 48 Laws of Malaysia Act 613

ringgit, whichever is the higher, or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction. (4) in this section, "monetary instrument" includes the domestic currency or any foreign currency, travellers' cheque, personal cheque, bank cheque, money order, investment security or negotiable instrument in bearer form or otherwise in such form that title to it passes upon delivery or upon delivery and endorsement. Seizure of immovable property

51. () where the public prosecutor is satisfied on information given to him by an investigating officer that any immovable property is the subject matter of an offence under subsection 4() or evidence of the commission of such offence, such property may be seized, and the seizure shall be effected-- (a) by the issue of a notice of seizure by the public prosecutor setting out the particulars of the immovable property which is seized in so far as such particulars are within his knowledge, and prohibiting all dealings in such immovable property;

(b) by publishing a copy of such notice in two newspapers circulating in malaysia, one of which shall be in the national language and the other in the english language; and

(c) by serving a copy of such notice on the land administrator or the Registrar of titles, as the case may be, in peninsular malaysia, or on the Registrar of titles or Collector of land Revenue, as the case may be, in sabah, or on the director of lands and surveys or the Registrar responsible for land titles, as the case may be, in sarawak, of the area in which the immovable property is situated. () the land administrator, the Collector of land Revenue, the director of lands and surveys, the Registrar of titles or the Registrar responsible for land titles, as the case may be, referred to in subsection () shall immediately upon being served with 49Anti-Money Laundering

a notice of seizure under that subsection endorse the terms of the notice of seizure on the document of title in respect of the immovable property in the Register at his office. () where an endorsement of a notice of seizure has been made under subsection (), the notice shall have the effect of prohibiting all dealings in respect of the immovable property, and after such endorsement has been made no dealing in respect of the immovable property shall be registered, regardless whether it was effected before or after the issue of such notice or the making of such endorsement.

(4) subsection () shall not apply to a dealing effected by an officer of a public body in his capacity as such officer, or otherwise by or on behalf of the federal Government of malaysia or the Government of a state, or a local authority or other statutory authority.

(5) any person who contravenes subsection () or () or does any act which results in, or causes, a contravention of subsection () or () commits an offence and shall on conviction be liable to a fine not exceeding twice the value of the property in respect of which the public prosecutor's order had been contravened, or one million ringgit, whichever is the higher, or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.

(6) where a notice of seizure has been issued under subsection (), a registered proprietor of the immovable property which is seized under such notice, or any other person having any interest in such immovable property, who has knowledge of such notice, and who knowingly enters into any agreement with any person to sell, transfer, or otherwise dispose of or deal with, the whole or any part of such immovable property, commits an offence and shall on conviction be liable to a fine not exceeding twice the value of such property, or one million ringgit, whichever is the higher, or to imprisonment for a term not exceeding one year or to both, and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.

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Special provisions relating to seizure of a business

52. () where an enforcement agency has reason to believe that any business--

(a) is being carried on by or on behalf of any person against whom prosecution for an offence under subsection 4() is intended to be commenced;

(b) is being carried on by or on behalf of a relative or an associate of such person;

(c) is a business in which such person, or a relative or associate of his, has an interest which amounts to or carries a right to not less than thirty per centum of the entire business; or

(d) is a business over which such person or his relative or associate has management or effective control, either individually or together,

the enforcement agency may seize the business in the manner provided under this Part or by an order in writing-- (aa) direct the extent and manner in which the business may be carried on;

(bb) specify any person to supervise, direct or control the business, including its accounts, or to carry on the business or such part of it as may be specified;

(cc) direct that all or any proportion of the proceeds or profits of the business be paid to the accountant General and retained by him pending further directions in respect of it by the enforcement agency;

(dd) prohibit any director, officer or employee or any other person from being in any manner involved in the business with effect from the date of the letter of prohibition; or

(ee) direct that the premises where the business was carried on to be closed and, if necessary or expedient, placed under guard or custody.

() where an order is made by an enforcement agency under subsection (), it may include in the order, or may subsequently give any further direction orally or in writing of an ancillary or consequential nature, or which may be necessary, for giving effect to, or for the carrying out of, the order. 51Anti-Money Laundering

(3)An order under subsection (1) may at any time be varied orrevokedbyanenforcementagency andwhere it sovariesor revokes the order, it may give any direction of an ancillary or consequentialnature,orwhichmaybenecessary,forgivingeffect to,orforthecarryingoutof,suchvariationorrevocation. (4)Subject to subsection (5), neither the Federal Government noranypersonshall,inconsequenceofanyorderundersubsection (1) be responsible for the payment of any money, dues, debts, liabilities or charges payable to any person in respect of the business, or in respect of any movable or immovable property owned, possessed, occupied or used, by any person in relation tothebusiness.

(5)Whereapersoniscarryingonanyactivitiesofthebusiness in pursuance of an order under subsection (1), he shall be responsible for the payment of the wages of such employees of the business as are engaged in performing any work in relation tothoseactivitiesfortheperiodduringwhichsuchpersoncarries onthoseactivitiesandsuchwagesshallbepaidoutoftheprofits derivedfromsuchactivitiesor,iftherearenosuchprofitsorif such profits are insufficient, from the assets and the properties of thebusiness.

(6) Inthissection--

(a) "wages"meansthewagespayableunderthecontractof employmentbetweentheemployeeandthebusiness;

(b) "business" means any business registered under any writtenlawprovidingfortheregistrationofbusinesses and includes a corporation incorporated or registered undertheCompaniesAct1965andanassociateofthat

companyasdefinedinsection3.

Prohibition of dealing with property outside Malaysia

53. Where the Public Prosecutor is satisfied that any property isthesubjectmatterofanoffenceundersubsection4(1)orwas usedinthecommissionoftheoffence,andsuchpropertyisheld or deposited outside Malaysia, he may make an application by way of an affidavit to a Judge of the High Court for an order prohibiting the person by whom the property is held or with whomitisdepositedfromdealingwiththeproperty.

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Dealing with property after seizure to be void

54. (1) WhereanypropertyhasbeenseizedunderthisAct,and solongassuchseizureremainsinforce,anydealingeffectedby any person or between any persons in respect of such property, except any dealing effected under this Act by an officer of a public body in his capacity as such officer, or otherwise by or on behalf of the Federal Government, or the Government of a State, or a local authority or other statutory authority, shall be nullandvoid,andshallnotberegisteredorotherwisebegiven effectto byanypersonorauthority.

(2)Subsection(1)shallbeinadditiontoandnotinderogation of subsections51(3)and(4).

(3)For so long as a seizure of any property under this Act remains in force, no action, suit or other proceedings of a civil natureshallbeinstituted,orifitispendingimmediatelybefore suchseizure,bemaintainedorcontinuedinanycourtorbefore anyotherauthorityinrespectofthepropertywhichhasbeenso seized,andnoattachment,executionorothersimilarprocessshall be commenced, or if any such process is pending immediately before such seizure, be maintained or continued, in respect of such property on account of any claim, judgment or decree, regardless whether such claim was made, or such judgment or decreewasgiven,beforeoraftersuchseizurewaseffected,except attheinstanceoftheFederalGovernmentortheGovernmentof aState,orattheinstanceofalocalauthorityorotherstatutory authority,orexceptwiththepriorconsentinwritingofthePublic Prosecutor.

Forfeiture of property upon prosecution for an offence

55. (1) Subjecttosection61,inanyprosecutionforanoffence under subsection 4(1), the court shall make an order for the forfeitureofanypropertywhichisprovedtobethesubjectmatter of the offence or to have been used in the commission of the offencewhere--

(a) theoffenceisprovedagainsttheaccused;or

(b) the offence is not proved against the accused but the courtissatisfied--

(i) thattheaccusedisnotthetrueandlawfulowner

ofsuchproperty;and

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(ii) that no other person is entitled to the property as a purchaser in good faith for valuable

consideration.

(2)Where the offence is proved against the accused but the property referred to in subsection (1) has been disposed of, or cannot be traced, the court shall order the accused to pay as a penalty a sum which is equivalent to, in the opinion of the court, the value of the property, and any such penalty shall be recoverableasafine.

(3)In determining whether the property is the subject matter ofanoffenceorhasbeenusedinthecommissionofanoffence undersubsection4(1)thecourtshallapplythestandardofproof requiredincivilproceedings.

Forfeiture of property where there is no prosecution

56. (1) Subjecttosection61,whereinrespectofanyproperty frozenorseizedunderthisActthereisnoprosecutionorconviction foranoffenceundersubsection4(1),thePublicProsecutormay, beforetheexpirationoftwelvemonthsfromthedateofthefreeze or seizure, apply to a judge of the High Court for an order of forfeiture of that property if he is satisfied that such property hadbeenobtainedasaresultoforinconnectionwithanoffence undersubsection4(1).

(2)Thejudgetowhomanapplicationismadeundersubsection (1) shall make an order for the forfeiture of the property if he issatisfied--

(a) thatthepropertyisthesubjectmatteroforwasusedin the commission of an offence under subsection 4(1); and

(b) that there is no purchaser in good faith for valuable considerationinrespectofthe property.

(3)Anypropertythathasbeenseizedandinrespectofwhich noapplicationismadeundersubsection(1)shall,attheexpiration oftwelvemonthsfromthedateofitsseizure,bereleasedtothe personfromwhomitwasseized.

(4)Indeterminingwhetherornotthepropertyhasbeenobtained asaresultoforinconnectionwithanoffenceundersubsection 54 Laws of Malaysia Act 613

4(1),thecourtshallapplythestandardofproofrequiredincivil proceedings.

Validity of freeze, seizure or sale

57. Where the freeze, seizure or sale of any property has been effectedunderthisAct,thevalidityofsuchfreeze,seizureorsale, orotherformofdisposalofsuchproperty,orofanydestruction ofthepropertyinaccordancewiththeprovisionsofthisAct,in consequenceofsuchfreeze,seizureorsale,shallnotbeaffected byanyobjectiontoitrelatingtothemannerinwhichthefreeze, seizureorsalewaseffected,ortheplaceatwhichitwaseffected, orthepersonfromwhomitwaseffected,orthepersontowhom anynoticeofthefreeze,seizureorsalewasgiven,oromittedto begiven,oranyfailuretoconformtoanyproceduralprovision of thisAct or of any other written law in effecting the freeze, seizureorsale.

Vesting of forfeited property in the Federal Government

58. (1) Where any property is forfeited under this Act, the property shall vest in the Government free from any right, interest or encumbrance of any person except a right, interest or encumbrance which is held by a purchaser in good faith for valuableconsiderationandwhichisnototherwisenullandvoid underanyprovisionofthisAct.

(2)Where any person who holds any encumbrance to which thepropertyissubjectclaimsthatheholdstheencumbranceas apurchaseringoodfaithforvaluableconsiderationandthatthe encumbranceisnototherwisenullandvoidunderanyprovision ofthisAct,andtheFederalGovernmentdisputessuchclaim,the PublicProsecutormayapplytotheSessionsCourttodetermine the question and the court shall determine the question after giving an opportunity to be heard to the person holding the encumbrance and hearing the reply of the Public Prosecutor to anyrepresentationswhichmaybemadebeforethatcourtbythe person holdingtheencumbrance.

(3)Where any property is vested in the Federal Government under subsection (1), the vesting shall take effect without any transfer, conveyance, deed or other instrument and where any registrationofsuchvestingisrequiredunderanylaw,theauthority 55Anti-Money Laundering

empowered to effect the registration shall do so in the name of such public officer, authority, person or body as the Public Prosecutormayspecify.

(4)WherethepropertyvestedintheFederalGovernmentunder subsection (1) is immovable property, the vesting shall upon productiontotheRegistrarofTitlesortheLandAdministrator,in PeninsularMalaysia,ortotheRegistrarofTitlesortheCollector of Land Revenue, in Sabah or the Registrar of Titles or the DirectorofLandsandSurveys,asthecasemaybe,inSarawak oftheorderofthecourtforfeitingtheimmovableproperty,orin thecaseofpropertyforfeitedundersubsection55(1),acertificate ofthePublicProsecutorcertifyingthatithasbeenforfeited,be registeredinthenameoftheFederalLandsCommissioner. Pecuniary orders

59. (1) UponapplicationbyanenforcementagencytoaSessions Court, a pecuniary penalty order may be made against a person fromwhompropertyisforfeitedinrespectofbenefitsderivedby thepersonfromthecommissionofanoffenceundersubsection 4(1).

(2)Where--

(a) an application is made to a court for an order under subsection(1)inrespectofbenefitsderivedbyaperson

from the commission of an offence under subsection 4(1);and

(b) thecourtissatisfiedthatthepersonderivedbenefitsfrom thecommissionofthatoffence,

thecourtmay,ifitconsidersitappropriate,assessinaccordance with the manner prescribed by the Minister of Home Affairs by order published in the Gazette, the value of the benefits so derivedandorderthatpersontopaytotheFederalGovernment a pecuniarypenaltyequaltotheamount.

(3)Where a forfeiture order has been made under sections 55 and 56 against any property that is proceeds of an offence under subsection 4(1), the pecuniary penalty to be paid under subsection (2) shall be reduced by an amount equal to the value of the property as at the time of making the order under subsection(2).

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(4)Indeterminingwhetherornotanybenefitisderivedfrom anoffenceundersubsection4(1)thecourtshallapplythestandard ofproofrequiredincivilproceedings.

Release of property seized

60. (1) Where property has been seized under this Act, an investigating officer other than the investigating officer who effectedtheseizure,mayatanytimebeforeitisforfeitedunder thisAct, release such property to such person as he determines tobelawfullyentitledtothepropertyifheissatisfiedthatsuch property is not liable to forfeiture under this Act or otherwise requiredforthepurposeofanyproceedingsundertheAct,orfor thepurposeofanyprosecutionunderanyotherlaw,andinsuch event neither the officer effecting the seizure, nor the Federal Government, or any person acting on behalf of the Federal Government,shallbeliabletoanyproceedingsbyanypersonif theseizureandreleasehadbeeneffectedingood faith.

(2)The officer effecting any release of any property under subsection(1)shallmakearecordinwritinginrespectofsuch release, specifying in the record in detail the circumstances of, and the reason for, such release, and he shall send a copy of suchrecordtothePublicProsecutor.

Bona fide third parties

61. (1) TheprovisionsinthisPartshallapplywithoutprejudice totherightsofbona fide thirdparties.

(2)Thecourtmakingtheorderofforfeitureundersection55or thejudgetowhomanapplicationismadeundersubsection56(1) shallcausetobepublishedanoticeintheGazette callingupon any third party who claims to have any interest in the property to attend before the court on the date specified in the notice to showcauseastowhythepropertyshallnotbeforfeited.

(3)A third party's lack of good faith may be inferred, by the courtoranenforcementagency,fromtheobjectivecircumstances of thecase.

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(4)Thecourtorenforcementagencyshallreturntheproperty to theclaimantwhenitissatisfiedthat--

(a) the claimant has a legitimate legal interest in the property;

(b) noparticipation,collusionorinvolvementwithrespectto the offence under subsection 4(1) which is the object oftheproceedingscanbeimputedtotheclaimant;

knowledge,didnotfreelyconsenttoitsillegaluse;

(d) the claimant did not acquire any right in the property from a person proceeded against under circumstances that give rise to a reasonable inference that any right wastransferredforthepurposeofavoidingtheeventual

subsequentforfeitureoftheproperty;and

(e) theclaimantdidallthatcouldreasonablybeexpectedto preventtheillegaluseoftheproperty.

Disposition of forfeited property

62. Wheneverpropertythatisnotrequiredtobedestroyedand thatisnotharmfultothepublicisforfeitedundersection55or 56,thecourtoranenforcementagencymay,inaccordancewith thelaw--

(a) retain it for official use, or transfer it to the Federal Government;or

(b) sell it and transfer the proceeds from such sale to the FederalGovernment.

Absconded person

63. (1) For the purposes of thisAct, a person shall be treated as if he had been convicted of a serious offence if the person abscondsinconnectionwithaseriousoffenceandanyreference in this Part to the defendant shall include a reference to such person.

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(2)Forthepurposesofsubsection(1),apersonshallbetreated as if he had absconded in connection with a serious offence if, before orafterthecommencementdate--

(a) aninvestigationforaseriousoffencehasbeencommenced againsttheperson;and

(b) theperson--

(i) diesbeforeproceedingsinrespectoftheoffence

were instituted, or if such proceedings were

instituted,thepersondiesbeforeheisconvicted

oftheoffence;or

(ii) attheendoftheperiodofsixmonthsfromthe

date on which the investigation referred to in

paragraph(a) wascommencedagainsthim,cannot

befound,apprehended orextradited.

Forfeiture order where person has absconded

64. Whereapersonis,byreasonofsection63,treatedasifhe had been convicted of a serious offence, a court may make a forfeitureorderunderthisPartifthecourtissatisfied-- (a) on the evidence adduced before it that, on the balance ofprobabilities,theperson hasabsconded;and

(b) havingregardtoalltheevidencebeforethecourt,that suchevidenceifunrebuttedwouldwarranthisconviction fortheoffence.

Effect of death on proceedings

65. (1) Proceedingsundersection64shallbeinstitutedorcontinued against the personal representatives of a deceased defendant or, if there are no personal representatives, such beneficiary of the estateofthedeceaseddefendantasmaybespecifiedbythecourt uponthe applicationofthePublicProsecutor.

(2)Where the power conferred by thisAct to make an order istobeexercisedinrelationtoadeceaseddefendant,theorder shallbe madeagainsttheestateofthe deceased defendant. 59Anti-Money Laundering

(3)Inthissection,"deceaseddefendant"meansapersonwho dies--

(a) after an investigation into a serious offence has been commencedagainsthim; and

(b) beforeproceedingsinrespectoftheoffencehavebeen instituted, or if such proceedings have been instituted, beforeheisconvictedof theoffence.

(4)Inthissection,areferencetopropertyorinterestinproperty shallincludeareferencetoincomeaccruingfromsuchproperty orinterest.

Service of documents on absconders

66. WhereanydocumentisrequiredunderthisActtobeserved on a person who cannot be found or who is outside Malaysia and cannot be compelled to attend before a court in respect of proceedingsunderthisAct,thecourtmaydispensewithservice ofthedocumentuponhimandtheproceedingsmaybecontinued totheirfinalconclusioninhisabsence.

PartVII

MISCELLANEOUS

Property tracking

67. (1) Where the competent authority or an enforcement agency, as the case may be, has reason to believe that a person is committing, has committed or is about to commit an offence under thisAct, the competent authority or enforcement agency, asthecasemaybe,mayorder--

(a) that any document relevant to identifying, locating or quantifyinganyproperty,oridentifyingorlocatingany document necessary for the transfer of the property, belongingto,orinthepossessionorunderthecontrol

of that person or any other person, be delivered to it; or

(b) any person to produce information on any transaction conductedbyorforthatpersonwiththefirst-mentioned

person.

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(2)Any person who does not comply with an order under subsection(1)commitsanoffenceandshallonconvictionbeliable toafinenotexceedingonemillionringgitortoimprisonmentfor a term not exceeding one year or to both, and, in the case of a continuingoffence,toafurtherfinenotexceedingonethousand ringgit for each day during which the offence continues after conviction.

Additional powers of competent authority and enforcement agency

68. (1) Fortheavoidanceofdoubt,thefunctionsconferredon the competent authority or an enforcement agency under this Actshallbeinadditiontoitsfunctionsunderanyotherwritten law.

(2)Where an enforcement agency enforcing the law under which a related serious offence is committed gathers evidence with respect to any investigation relating to that offence, such evidenceshallbedeemedtobeevidencegatheredinaccordance withthisAct.

Agent provocateur

69. (1) Notwithstandinganylaworruleoflawtothecontrary, in any proceedings against any person for an offence under this Act, no agent provocateur, whether he is an officer of an enforcement agency or not, shall be presumed to be unworthy of credit by reason only of his having attempted to commit or toabet,orhavingabettedorhavingbeenengagedinacriminal conspiracytocommit,suchoffenceifthemainpurposeofsuch attempt,abetmentorengagementwastosecureevidenceagainst suchperson.

(2)Notwithstanding any law or rule of law to the contrary, a conviction for any offence under this Act solely on the uncorroborated evidence of any agent provocateur shall not be illegalandnosuchconvictionshallbesetasidemerelybecause thecourtwhichtriedthecasehasfailedtoreferinthegrounds of its judgment to the need to warn itself against the danger of convictingonsuchevidence.

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Standard of proof

70. (1) Any question of fact to be decided by a court in proceedings under this Act shall be decided on the balance of probabilities.

(2)Subsection (1) shall not apply in relation to any question of fact that is for the prosecution to prove in any proceedings foranoffenceunderthisActoranysubsidiarylegislationunder it.

Admissibility of documentary evidence

71. Where the Public Prosecutor or any enforcement agency has obtained any document or other evidence in exercise of his powers under thisAct or by virtue of thisAct, such document orcopyofthedocumentorotherevidence,asthecasemaybe, shallbeadmissibleinevidenceinanyproceedingsunderthisAct, notwithstandinganythingtothecontraryinanywrittenlaw. Admissibility of statements by accused persons

72. (1) Inanytrialorinquirybyacourtintoanoffenceunder this Act, any statement, whether the statement amounts to a confession or not or is oral or in writing, made at any time, whether before or after the person is charged and whether in thecourseofaninvestigationornotandwhetherornotwholly or partly in answer to questions, by an accused person to or in thehearingofanofficerofanyenforcementagency,whetheror notinterpretedtohimbyanyotherofficerofsuchenforcement agency or any other person, whether concerned or not in the arrest of that person, shall, notwithstanding any law or rule of lawtothecontrary,beadmissibleathistrialinevidenceand,if thatpersontendershimselfasawitness,anysuchstatementmay beusedincross-examinationandforthepurposeofimpeaching his credit.

(2)Nostatementmadeundersubsection(1)shallbeadmissible or used as provided for in that subsection if the making of the statement appears to the court to have been caused by any inducement, threat or promise having reference to the charge againsttheperson,proceedingfromapersonintheenforcement agencyandsufficientintheopinionofthecourttogivethatperson 62 Laws of Malaysia Act 613

groundswhichwouldappeartohimreasonableforsupposingthat bymakingithewouldgainanyadvantageoravoidanyevilof atemporal natureinreferencetotheproceedings againsthim. (3)Where any person is arrested or is informed that he may beprosecutedforanyoffenceunderthisAct,heshallbeserved withanoticeinwriting,whichshallbeexplainedtohim,tothe followingeffect:

"Youhavebeenarrested/informedthatyoumaybeprosecuted for ... (the possible offence under thisAct). Do you wish to sayanything?Ifthereisanyfactonwhichyouintendtorely in your defence in court, you are advised to mention it now. Ifyouholditbacktillyougotocourt,yourevidencemaybe lesslikelytobebelievedandthismayhaveanadverseeffect onyourcaseingeneral.Ifyouwishtomentionanyfactnow, and youwouldlikeitwrittendown,thiswillbedone."

(4)Notwithstandingsubsection(3),astatementbyanyperson accusedofanyoffenceunderthisActmadebeforethereistime to serve a notice under that subsection shall not be rendered inadmissible in evidence merely by reason of no such notice havingbeenservedonhimifsuchnoticehasbeenservedonhim assoonasisreasonablypossibleafter thestatement ismade. (5)No statement made by an accused person in answer to a written notice served on him pursuant to subsection (3) shall be construed as a statement caused by any inducement, threat or promise as is described in subsection (2), if it is otherwise voluntary.

(6)Where in any criminal proceedings against a person for an offence under this Act, evidence is given that the accused, on being informed that he might be prosecuted for it, failed to mention any such fact, being a fact which in the circumstances existing at the time he could reasonably have been expected to mentionwhensoinformed,thecourt,indeterminingwhetherthe prosecutionhasmadeoutaprima facie caseagainsttheaccused and indeterminingwhethertheaccused isguiltyoftheoffence charged, may draw such inferences from the failure as appear proper;andthefailuremay,onthebasisofthoseinferences,be treated as, or as capable of amounting to, corroboration of any evidencegivenagainsttheaccusedinrelationtowhichthefailure is material.

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(7)Nothing in subsection (6) shall in any criminal proceedings--

(a) prejudicetheadmissibilityinevidenceofthesilenceor other reaction of the accused in the face of anything saidinhispresencerelatingtotheconductinrespectof

which he is charged, in so far as evidence of it would beadmissibleapartfromthatsubsection;or

(b) betakentoprecludethedrawingofanyinferencefrom anysuchsilenceorotherreactionoftheaccusedwhich

couldbedrawnapartfrom thatsubsection.

Admissibility of statements and documents of persons who are dead or cannot be traced, etc.

73. Notwithstanding any written law to the contrary, in any proceedingsagainstanypersonforanoffenceunderthisAct-- (a) anystatementmadebyanypersontoanofficerofany

enforcement agency in the course of an investigation underthisAct;and

(b) any document, or copy of any document, seized from anypersonbyanofficerofanyenforcementagencyin

exerciseofhispowersunderthisAct,

shallbeadmissibleinevidenceinanyproceedingsunderthisAct before any court, where the person who made the statement or thedocumentorthecopyofthedocumentisdead,orcannotbe tracedorfound,orhasbecomeincapableofgivingevidence,or whoseattendancecannotbeprocuredwithoutanamountofdelay orexpensewhichappearstothecourtunreasonable.

Admissibility of translation of documents

74. (1) Where any document which is to be used in any proceedings against any person for an offence under this Act is in a language other than the national language or English language,atranslationofsuchdocumentintothenationallanguage or English language shall be admissible in evidence where the translation is accompanied by a certificate of the person who translatedthedocumentsettingoutthatitisanaccurate,faithful and true translation and the translation had been done by such person at the instance of the Public Prosecutor or an officer of any enforcementagency.

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(2)Subsection(1)shallapplytoadocumentwhichistranslated, regardlesswhetherthedocumentwasmadeinoroutsideMalaysia, or whether the translation was done in or outside Malaysia, or whetherpossessionofsuchdocumentwasobtainedbythePublic Prosecutororanofficerofanyenforcementagencyinoroutside Malaysia.

Evidence of corresponding law or foreign law

75. (1) A document purporting to be issued by or on behalf ofthegovernmentofaforeignStateandpurportingtostatethe termsof--

(a) acorrespondinglawinforceinthatforeign State; or (b) alawinrelationtoaforeignseriousoffenceinforcein thatforeignState,

shall be admissible in evidence for the purpose of proving the mattersreferredtoinsubsection(2)inanyproceedingsunderthis ActonitsproductionbytheAttorneyGeneralorbyanyperson dulyauthorizedbyhiminwriting.

(2)Adocumentshallbesufficientevidence--

(a) ifissuedbyoronbehalfofthegovernmentoftheforeign Statestatedinthedocument;

(b) thatthetermsofthecorrespondinglaworthelawofthe foreignStateareasstatedinthe document;and

Proof of conviction and acquittal

76. (1) ForthepurposesofanyproceedingsunderthisAct,the factthatapersonhasbeenconvictedoracquittedofanoffence by or before any court in Malaysia or by a foreign court shall be admissible in evidence for the purpose of proving, where relevant to any issue in the proceedings, that he committed or didnotcommitthatoffence,whetherornotheisapartytothe proceedings, and where he was convicted whether he was so convicteduponpleaofguiltorotherwise.

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(2)Thecourtshallaccepttheconvictionreferredtoinsubsection (1)asconclusiveunless--

(a) it is subject to review or appeal that has not yet been determined;

(b) ithasbeenquashedorsetaside;or

(3)Apersonprovedtohavebeenconvictedofanoffenceunder thissectionshallbetakentohavecommittedtheactandtohave possessedthestateofmind,ifany,whichatlawconstitutethat offence.

(4)Any conviction or acquittal admissible under this section may beproved--

(a) in the case of a conviction or acquittal before a court inMalaysia,byacertificateofconvictionoracquittal, signedbytheRegistrarofthatcourt;or

(b) inthecaseofaconvictionoracquittalbeforeaforeign court, by a certificate or certified official record of proceedings issued by that foreign court and duly authenticated by the official seal of a Minister of that foreignState,

givingthesubstanceandeffectofthechargeandoftheconviction oracquittal.

Indemnity

77. Noaction,suit,prosecutionorotherproceedingsshalllieor be brought, instituted, or maintained in any court or before any otherauthorityagainst--

(a) the competent authority or the relevant enforcement agency;

(b) anydirectororofficerofthecompetentauthorityorthe relevantenforcementagency,eitherpersonallyorinhis officialcapacity;or

66 Laws of Malaysia Act 613

(c) any person lawfully acting in compliance with any direction, instruction or order of a director or officer ofthecompetentauthorityortherelevantenforcement

agency,

fororonaccountof,orinrespectof,anyactdoneorstatement made or omitted to be done or made, or purporting to be done or made or omitted to be done or made, in pursuance of or in executionof,orintendedpursuanceoforexecutionof,thisAct oranyorderinwriting,direction,instructionorotherthingissued underthisActifsuchactorstatementwasdoneormade,orwas omittedto bedoneormade,ingoodfaith.

Service of notices

78. Alettercontaininganoticeorotherdocumenttobeserved byanenforcementagencyunderthisActshallbedeemedtobe addressedtotheproperplaceifitisaddressedtothelastknown address of theaddressee.

Preservation of secrecy

79. (1) Exceptforthepurposeoftheperformanceofhisduties ortheexerciseofhisfunctionsunderthisActorwhenlawfully required to do so by any court or under the provisions of any written law, no person shall disclose any information or matter whichhasbeenobtainedbyhimintheperformanceofhisduties orthe exerciseofhisfunctionsunderthisAct.

(2)Nopersonwhohasanyinformationormatterwhichtohis knowledgehasbeendisclosedincontraventionofsubsection(1) shalldisclosethatinformationormatter toanyotherperson. (3)Anypersonwhocontravenessubsection(1)or(2)commits anoffenceandshallbeliableonconvictiontoafinenotexceeding onemillionringgitortoimprisonmentforatermnotexceeding one yearortoboth.

Exemptions

80. The Minister of Finance may, upon the recommendation of the competent authority, if he considers it consistent with the purposes of this Act or in the interest of the public, by order 67Anti-Money Laundering

publishedintheGazette,exemptapersonorclassofpersonsfrom all or any of the provisions of Part III or IV for such duration andsubjecttosuchconditionastheMinistermayspecify. Modifications

81. (1) TheMinisterofFinancemay,upontherecommendation of the competent authority who shall consult with the Labuan OffshoreFinancialServicesAuthority,byorderpublishedinthe Gazette, provide that any provisions of this Act or part of the provision,specifiedintheorder,shallnotapplyinrelationtoan offshorefinancialinstitutionorshallapplywithsuchmodifications asmaybesetoutintheorder.

(2)Thetermsoftheordermadeundersubsection(1)mustbe consistentwiththeintentandpurposeofthisAct.

(3)In this section, "modification" includes amendment, adaptation, alteration, variation, addition, division, substitution orexclusion.

Jurisdiction

82. (1) AnyoffenceunderthisAct-- (a) on the high seas on board any ship or on any aircraft registeredinMalaysia;

(b) byanycitizenoranypermanentresidentonthehighseas onboardanyshiporonanyaircraft;or

maybedealtwithasifithadbeencommittedatanyplacewithin Malaysia.

(2)NotwithstandinganythinginthisAct,nochargeastoany offence shall be inquired into in Malaysia unless a diplomatic officerofMalaysia,ifthereisone,intheterritoryinwhichthe offence is alleged to have been committed certifies that, in his opinion,thechargeoughttobebroughtinMalaysia;andwhere there is no such diplomatic officer, the sanction of the Public Prosecutorshallberequired.

68 Laws of Malaysia Act 613

(3)Anyproceedingstakenagainstanypersonunderthissection which would be a bar to subsequent proceedings against that person for the same offence if the offence had been committed in Malaysia shall be a bar to further proceedings against him underanywrittenlawrelatingtoextraditionorthesurrenderof fugitive criminals in force in Malaysia in respect of the same offenceinanyterritorybeyondthelimitsofMalaysia.

(4)Forthepurposesofthissection,theexpression"permanent resident" has the meaning assigned by the Courts of Judicature Act1964[Act 91].

Power to issue guidelines, etc.

83. The competent authority may, upon consultation with the relevantsupervisoryauthority,issuetoareportinginstitutionsuch guidelines, circulars, or notices as are necessary or expedient to give full effect to or for carrying out the provisions of this Act and in particular for the detection or prevention of money laundering.

Regulations

84. (1) The Minister of Finance or the Minister of Home Affairs, as the case may be, may make such regulations as are necessary or expedient to give full effect to or for carrying out theprovisionsofthisAct.

(2)Without prejudice to the generality of subsection (1), regulationsmaybemade--

(a) toprescribeanythingthatisrequiredorpermittedtobe prescribedunderthisAct;

(b) toprovidethatanyactoromissionincontraventionof anyprovisionofsuchregulationsshallbean offence;

imprisonmentforatermnotexceedingoneyearorboth;

and

69Anti-Money Laundering

(d) to provide for the imposition of an additional penalty for a continuing offence which shall not exceed one thousandringgitforeachdaythattheoffencecontinues

afterconviction.

Amendment of Schedules

85. The Minister of Finance may, by order published in the Gazette,amendtheFirstandSecondSchedules.

General offence

86. Anypersonwhocontravenes-- (a) anyprovisionofthisActorregulationsmadeunderit; or

(b) anyspecificationorrequirementmade,oranyorderin writing, direction, instruction, or notice given, or any limit,term,conditionorrestrictionimposed,intheex- erciseofanypowerconferredunderorpursuanttoany

provisionofthisActorregulationsmadeunderit,

commits an offence and shall on conviction, if no penalty is expresslyprovidedfortheoffenceunderthisActortheregula- tions, be liable to a fine not exceeding two hundred and fifty thousandringgit.

Offence committed by any person acting in an official capacity

87. (1) Whereanoffenceiscommittedbyabodycorporateor an associationofpersons,aperson--

(a) whoisitsdirector,controller,officer,orpartner;or (b) whoisconcernedinthemanagementofitsaffairs,

atthetimeofthecommissionoftheoffence,isdeemedtohave committedthatoffenceunlessthatpersonprovesthattheoffence was committed without his consent or connivance and that he exercisedsuchdiligencetopreventthecommissionoftheoffence asheoughttohaveexercised,havingregardtothenatureofhis functioninthatcapacityandtothe circumstances.

70 Laws of Malaysia Act 613

(2) An individual may be prosecuted for an offence under subsection (1) notwithstanding that the body corporate or asso- ciation of personshasnotbeenconvictedoftheoffence. (3) Subsection(1)shallnotaffectthecriminalliabilityofthe bodycorporateorassociationofpersonsfortheoffencereferred tointhatsubsection.

(4) Anypersonwhowouldhavecommittedanoffenceifany acthadbeendoneoromittedtobedonebyhimpersonallycom- mits that offence and shall on conviction be liable to the same penalty if such act had been done or omitted to be done by his agent or officer in the course of that agent's business or in the courseofthatofficer'semployment,asthecasemaybe,unless heprovesthattheoffencewascommittedwithouthisknowledge orconsentandthathetookallreasonableprecautionstoprevent the doing of,oromissiontodo,suchact.

Offence by an individual

88. WhereapersonisliableunderthisActtoapenaltyforany act, omission, neglect or default, he shall be liable to the same penaltyfortheact,omission,neglectordefaultofhisemployee, director,controller,oragentiftheact,omission,neglectordefault wascommittedby--

(a) his employee in the course of the employee's employ- ment;

(b) hisdirectorincarryingout the functionofadirector; (c) hiscontrollerincarryingoutthefunctionofacontroller; or

(d) hisagentwhenactingonhisbehalf.

Falsification, concealment and destruction of document, etc. 89.A person, with intent to deceive, in respect of a document to be produced or submitted under any provision of this Act, who makes or causes to be made a false entry, omits to make, or causes to be omitted, any entry, or alters, abstracts, conceals ordestroys,orcausestobealtered,abstracted,concealedorde- stroyed,anyentry,forgesadocument,ormakesuseoforholds in his possession a false document, purporting to be a valid 71Anti-Money Laundering

document, alters any entry made in any document, or issues or usesadocumentwhichisfalseorincorrect,whollyorpartially, or misleading commits an offence and on conviction shall be liable to a fine not exceeding one million ringgit or to a term of imprisonment not exceeding one year or to both, and, in the caseofacontinuingoffence,toafurtherfinenotexceedingone thousandringgitforeachdayduringwhichtheoffencecontinues after conviction.

Seizable offence

90. EveryoffencepunishableunderthisActshallbeaseizable offence.

Joinder of offences

91. Notwithstanding anything contained in any other written law, where a person is accused of more than one offence under thisAct, he may be charged with and tried at one trial for any numberoftheoffencescommittedwithinanylengthoftime. Power of competent authority to compound offences

92. (1) Thecompetentauthorityorrelevantenforcementagency, asthecasemaybe,may,withtheconsentofthePublicProsecu- tor, compound any offence under thisAct or under regulations made under this Act, by accepting from the person reasonably suspected of having committed the offence such amount not exceeding fifty per centum of the amount of the maximum fine forthatoffence,includingthedailyfine,ifany,inthecaseofa continuingoffence,towhichthatpersonwouldhavebeenliable ifhehadbeenconvictedoftheoffence,withinsuchtimeasmay bespecifiedinitswrittenoffer.

(2) Any money paid to the competent authority or relevant enforcementagencypursuanttosubsection(1)shallbepaidinto and formpartoftheFederalConsolidated Fund.

(3) An offer under subsection (1) may be made at any time after the offence has been committed, and where the amount specifiedintheofferisnotpaidwithinthetimespecifiedinthe 72 Laws of Malaysia Act 613

offer,orsuchextendedtimeasthecompetentauthorityorrelevant enforcementagencymaygrant,prosecutionfortheoffencemay be instituted at any time after that against the person to whom theofferwasmade.

(4) Whereanoffencehasbeencompoundedundersubsection (1), no prosecution shall be instituted in respect of the offence againstthepersontowhomtheoffertocompoundwasmade.

Prosecution

93. NoprosecutionforanoffenceunderthisActshallbeinstituted exceptbyorwiththewrittenconsent ofthePublic Prosecutor. 73Anti-Money Laundering

First Schedule

[Section3,definitionof"reportinginstitution"]

PartI

1. Bankingbusiness,financecompanybusiness,merchantbankingbusiness, discounthousebusinessandmoney-brokingbusinessasdefinedintheBank- ingandFinancialInstitutionsAct1989.

2. IslamicbankingbusinessasdefinedintheIslamicBankingAct1983.

3. Buildingcreditbusiness,developmentfinancebusiness,factoringbusiness andleasingbusinessasdefinedintheBankingandFinancialInstitutionsAct

1989.

4. Insurancebusiness,insurancebrokingbusinessandadjustingbusinessas definedorprovidedin the InsuranceAct1996.

5. Takafulbusinessasdefined in theTakafulAct1984.

6. Dealinginsecurities,asdefinedintheSecuritiesIndustryAct1983,but not including the activity of providing investment advice by an investment adviserasdefinedintheSecuritiesIndustryAct1983.

7. Money-changingbusinessasdefinedintheMoney-ChangingAct1998.

8. Futuresbrokingbusinessandfuturesfundmanagementbusinessasdefined intheFuturesIndustryAct1993.

9. Businessactivitiescarriedoutbytheprescribedinstitutionsasdefinedin theDevelopmentFinancialInstitutionsAct2002[Act 618].

10. Activities carried out by Lembaga Tabung Haji established under the TabungHajiAct1995[Act 535].

11. Postalfinancialservicesasprovidedundersubsection24(3)inthePostal ServicesAct1991[Act 465].

12. GamingcarriedoutincommongaminghousesasdefinedintheCommon GamingHousesAct1953[Act 289].

13. Issuance of designated payment instrument and operation of payment systemasprovidedunderthePaymentSystemsAct2003[Act 627].

14. Activities carried out by a member as defined in the Accountants Act 1967[Act 94].

15. ActivitiescarriedoutbyanadvocateandsolicitorasdefinedintheLegal ProfessionAct1976[Act 166].

74 Laws of Malaysia Act 613

16. Activities carried out by a person admitted as an advocate pursuant to theAdvocateOrdinanceSabah 1953[Sabah Cap. 2].

17. Activities carried out by a person admitted as an advocate pursuant to theAdvocateOrdinanceSarawak1953[Sarawak Cap. 110].

18. ActivitiescarriedoutbyapersonprescribedbytheMinisterorlicensed by the Registrar of Companies to act as a secretary of a company pursuant tosection139AoftheCompaniesAct1965[Act 125].

19. Activities carried out by a licensee as defined in the Pool Betting Act 1967[Act 384].

20. Activities carried out by a totalizator agency as defined in the Racing (TotalizatorBoard)Act1961[Act 494].

21. Activities carried out by a racing club as defined in the Racing Club (Public Sweepstakes)Act1965[Act 404].

22. ActivitiescarriedoutbyanotarypublicasdefinedintheNotariesPublic Act1959[Act 115].

23. Activitiescarriedoutbyalistingsponsorandatradingagentasdefined intheLabuanOffshoreSecritiesIndustryAct1998[Act 579]. PartII

Offshore financial services as defined in the Labuan Offshore Financial ServicesAuthorityAct1996.

75Anti-Money Laundering

SecondSchedule

[Section3,definitionof"seriousoffence"]

Offences Description*

1. Subsection4(1) of Offenceofmoneylaundering

thisAct

Anti-Corruption Act 1997 [Act 575]

2. Section10 Offenceofacceptinggratification

3. Section11 Offenceingivingoracceptinggratification byagent

4. Section12 Acceptor or giver of gratification to be guilty notwithstanding that purpose was

not carried out or matter not in relation

toprincipal'saffairsorbusiness

5. Section13 Corruptlyprocuringwithdrawaloftender 6. Section14 Briberyof officerofpublicbody

7. Section15 Misuseofposition

8. Section18 Dealingwith,using,holding,receivingor concealing gratification or advantage in

relationtoanyoffence

9. Section20 Attempts,preparations,abetmentsandcriminal conspiraciespunishableasoffences

Banking and Financial Institutions Act 1989 [Act 372] 9a. Section4 Carrying on banking, finance company, merchant banking, discount house and

money-broking business without a valid

licence

10. Section25 Receiving,takingoracceptanceofdeposits prohibitedexceptunderandinaccordance

withavalidlicencegrantedundersubsection

6(4)

10a. Section26 Unsolicitedcalls

10b. Section27 Advertisements for deposits by person otherthanlicensedinstitutions

76 Laws of Malaysia Act 613

10c. Section28 Fraudulent inducement in relation to deposits

10d. Section112 Attempts, preparations, abetments and conspiraciespunishableasoffences

10e. Section115 Prohibitiononreceiptofgifts,commissions, etc.

Betting Act 1953 [Act 495]

11. Section4 Common betting-houses and betting

informationcentres

12. Subsection6(3) Betting in a common betting-house, and book-making

Child Act 2001 [Act 611]

12a. Section43 Offences relating to selling, procuring, detention,etc.,oranyattemptsthereto,of

achildforprostitution

12b. Section48 Unlawful transfer of possession, custody orcontrolofchild

12c. Section49 Importationofchildbyfalsepretences Common Gaming Houses Act 1953 [Act 289]

13. Section4 Commongaminghouses

14. Section4A Assisting in carrying on a public lottery, etc.

Companies Act 1965 [Act 125]

15. Section27 Invitationtopublicbyprivatecompanies 16. Section38 Invitation to public to lend or deposit moneywithacorporation

17. Section366 Inducing personstoinvestmoney

18. Section41 Infringementofcopyright

Offences Description*

77Anti-Money Laundering

Corrosive and Explosive Substances and Offensive Weapons Act 1958 [Act 357]

19. Section3 Possessionofcorrosiveorexplosivesubstance for thepurposeofcausinghurt

Customs Act 1967 [Act 235]

19a. Section133 Makingincorrectdeclarationsandfalsifying documents

20. Section135 Smugglingoffences

20a. Subsections137(1) Offeringorreceivingbribes and(2)

Dangerous Drugs Act 1952 [Act 234]

21. Section4 Restrictiononimportationofrawopium, cocaleaves, poppy-strawandcannabis

22. Section5 Restriction on exportation of raw opium, coca leaves,poppy-strawandcannabis

23. Section12 Restrictiononimportandexportofcertain dangerousdrugs

24. Subsection 19(4) Exportofdangerousdrugs

25. Subsection 20(5) Importofdangerousdrugs

26. Section39B Traffickingindangerousdrugs

Dangerous Drugs (Forfeiture of Property) Act 1988 [Act 340] 27. Section3 Use of property for activity constituting certainoffences

28. Section4 Dealingwith,orusing,holding,receiving orconcealingillegalproperty

29. Section56 Attempts,abetmentsandcriminalconspiracies punishable asoffences

Development Financial Institutions Act 2002 [Act 618] 29a. Section108 Falsification,concealmentanddestruction ofdocuments

Offences Description*

78 Laws of Malaysia Act 613

29b. Paragraph114(1)(b) Attempts, preparations, abetments and inrelationto conspiraciespunishableasoffences

offencesunder

sections108and

118

29c. Section118 Prohibitiononreceiptofgifts,commission etc.

Explosives Act 1957 [Act 207]

30. Subsection4(2) Powertoprohibitthemanufacture,possession or importation of specially dangerous

explosives

31. Section5 Actscausing explosionsorfire

32. Section6 Causingexplosionlikelytoendangerlife orproperty

33. Section7 Attempttocauseexplosion,ormakingor

keepingexplosivewithintenttoendanger

lifeorproperty

34. Section8 Making or possessing explosives under suspiciouscircumstances

Firearms (Increased Penalties) Act 1971 [Act 37]

34a. Section7 Traffickinginfirearms

Futures Industry Act 1993 [Act 499]

35. Section3 Establishmentoffuturesmarkets

36. Section16 Futuresbrokerstobelicensed

37. Section16a Futuresfundmanagerstobelicensed

37a. Section52a Segregation of clients' money and property

37b Section52d Operationoftrustaccounts

37c Section52e Applicationofclient'smoneyorproperty 38. Section79 Falsetrading

Offences Description*

79Anti-Money Laundering

39. Section80 Bucketing

40. Section82 Manipulationofpriceoffuturescontract andcornering

41. Section83 Employmentofdevices,etc.,todefraud 42. Section86 Prohibitionorabuseofinformationobtained inofficialcapacity

Insurance Act 1996 [Act 553]

42a. Section9 Carryingoninsurance,insurancebroking oradjustingbusinesswithoutalicence

42b. Section10 Holdingoutasaninsurer,insurancebroker oradjusterwithoutalicence

42c. Section184 Actingasagentorinsurancebrokerforan unlicensedpersonwithouttheapprovalof

theBank

42d. Section205 Falsifying,omitting,altering,etc.,entries indocumentswithintenttodeceive

42e. Section212 Attempts,abetmentsandconspiracies Internal Security Act 1960 [Act 82]

42f. Section5 Prohibitionofquasi-militaryorganizations 42g. Section6 Illegaldrilling

Islamic Banking Act 1983 [Act 276]

42h Subsection 3(1) Carrying on of Islamic banking business withoutlicence

42i Section49 Prohibition on receipt of commission by staff

Kidnapping Act 1961 [Act 365]

43. Section3 Abduction,wrongfulrestraintorwrongful confinementforransom

44. Section5 Knowinglyreceivingransom

45. Section6 Knowingly negotiating to obtain, or for paymentof,ransom

Offences Description*

80 Laws of Malaysia Act 613

Money-Changing Act 1998 [Act 577]

45a. Section4 Carrying on money-changing business withoutalicence

Optical Discs Act 2000 [Act 606]

46. Section4 Manufacturingwithoutavalidlicence

47. Section21 Applyingfalsemanufacturer'scode

Payment Systems Act 2003 [Act 627]

47aa. Subsection5(1) Operating payment systems without writtennotificationfromCentralBankof

Malaysia

47ab. Subsection25(1) Issuing designated payment instruments without written approval from Central

Bank ofMalaysia

Penal Code [Act 574]

47a. Section125 Wagingwaragainstanypowerinalliance withtheYangdi-PertuanAgong

47b.Section125a Harbouring or attempting to harbour any personinMalaysiaorpersonresidingina

foreignStateatwarorinhostilityagainst

theYangdi-PertuanAgong

47c.Section121 Waging or attempting to wage war or abetting the waging of war against the

Yang di-PertuanAgong, a Ruler orYang

di-PertuaNegeri

47d.Section121a Offences against the person of the Yang di-PertuanAgong,RulerorYangdi-Pertua

Negeri

47e.Section121b OffencesagainsttheauthorityoftheYang di-PertuanAgong,RulerorYangdi-Pertua

Negeri

47f.Section121c Abetting offences under section 121a or 121b

Offences Description*

81Anti-Money Laundering

Offences Description*

48.Section161 Publicservanttakingagratification,other than legal remuneration, in respect of an

officialact

49.Section162 Takingagratificationinorder,bycorrupt or illegal means, to influence a public

servant

50.Section163 Takingagratification,fortheexerciseof personalinfluencewithapublic servant

51.Section164 Abetmentbypublicservantoftheoffences undersection163

52.Section165 Public servant obtaining any valuable thing, without consideration from person

concerned in any proceeding or business

transactedbysuchpublicservant

53.Section207 Fraudulent claim to property to prevent itsseizureasaforfeitureorinexecution

ofadecree

54.Section213 Taking gifts, etc., to screen an offender frompunishment

55. Section 214 Offeringgiftorrestorationofpropertyin considerationofscreeningoffender

56. Section215 Taking gift to help to recover stolen property,etc.

57. Section216a Harbouringrobbers organg-robbers,etc. 58. Section217 Public servant disobeying a direction of law with intent to save person from

punishment,orpropertyfrom forfeiture

59. Section218 Publicservantframinganincorrectrecord orwritingwithintenttosavepersonfrom

punishment,orpropertyfromforfeiture

59a. Section300 Murder

60. Section 327 Voluntarilycausinghurttoextortproperty ortoconstraintoanillegalact

61. Section329 Voluntarilycausinggrievoushurttoextort propertyortoconstraintoanillegalact

82 Laws of Malaysia Act 613

Offences Description*

62. Section330 Voluntarilycausinghurttoextortconfession ortocompelrestorationofproperty

63. Section331 Voluntarilycausinggrievoushurttoextort confession or to compel restoration of

property

64. Section347 Wrongfulconfinementforthepurposeof extorting property or constraining to an

illegalact

65. Section348 Wrongful confinement for the purpose of extorting confession or of compelling

restorationof property

66. Section363 Kidnapping

67. Section364 Kidnapping or abducting in order to murder

68. Section365 Kidnapping or abducting with intent to secretly and wrongfully to confine a

person

69. Section366 Kidnapping or abducting a woman to compelhermarriage,etc.

70. Section367 Kidnappingorabductinginordertosubject apersontogrievoushurt,slavery,etc.

71. Section368 Wrongfully concealing or keeping in confinementakidnappedperson

72. Section369 Kidnapping or abducting child under 10 yearswithintenttostealmovableproperty

fromthepersonofsuchchild

73. Section370 Buying or disposing of any person as a slave

74. Section371 Habitualdealingin slaves

75. Section372 Exploiting any person for purposes of prostitution

75a. Section372a Persons living on or trading in prostitution

75b. Section372b Solicitingforpurposesofprostitution 83Anti-Money Laundering

76. Section373 Suppressionofbrothels

77a. section374 Unlawfulcompulsorylabour

78. Section379 Theft

79. Section379a Theftofamotorvehicle

80. Section380 Theftindwellinghouse, etc.

81. Section381 Theft by clerk or servant of property in possessionofmaster

82. Section382 Theft after preparation made for causing deathorhurtinordertocommittheft

83. Section384 Extortion

84. Section385 Putting person in fear of injury in order to commitextortion

85. Section386 Extortion by putting a person in fear of deathorgrievoushurt

86. Section387 Puttingpersoninfearofdeathorofgrievous hurtinorder tocommitextortion

87. Section389 Putting person in fear of accusation of offence,inordertocommitextortion

88. Section392 Robbery

89. Section394 Voluntary causing hurt in committing robbery

90. Section395 Gang-robbery

91. Section396 Gang-robbery withmurder

92. Section 399 Making preparation to commit gang- robbery

93. Section400 Belongingtogangofrobbers

94. Section 402 Assembling for purpose of committing gang-robbery

95. Section403 Dishonestmisappropriationofproperty Offences Description*

84 Laws of Malaysia Act 613

96. Section404 Dishonest misappropriation of property possessed by a deceased person at the

timeofhisdeath

97. Section406 Criminalbreachoftrust

98. Section 407 Criminalbreachoftrustbycarrier,etc. 99. Section408 Criminal breach of trust by clerk or servant

100. Section409 Criminalbreachoftrustbypublicservant, orbybanker,merchantoragent

101. Section411 Dishonestlyreceivingstolenproperty 102. Section412 Dishonestly receiving property stolen in thecommissionofagang-robbery

103. Section413 Habituallydealingin stolenproperty 104. Section414 Assisting in concealment of stolen property

104a. section415 Cheating

104b. section416 Cheatingbypersonation

104c. section418 Cheatingwiththeknowledgethatwrongful loss may be thereby caused to a person

whose interest the offender is bound to

protect

105. Section420 Cheatinganddishonestlyinducingdelivery ofproperty

106. Section421 Dishonest or fraudulent removal or concealment of property to prevent

distributionamongcreditors

107. Section422 Dishonestorfraudulentlypreventingfrom being made available for his creditors a

debtordemandduetotheoffender

107a. Section423 Dishonestorfraudulentexecutionofdeed oftransfercontainingafalsestatementof

consideration

Offences Description*

85Anti-Money Laundering

Offences Description*

108. Section424 Dishonest or fraudulent removal or concealmentofconsideration

109. Section 465 Forgery

109a. Section466 ForgeryofarecordofaCourt,orapublic RegisterofBirths,etc.

109b. Section467 Forgeryofavaluablesecurityorwill 110. Section468 Forgeryforthepurposeofcheating

110a. Section471 Usingasgenuineaforgeddocument

110b. Section472 Making or possessing a counterfeit seal, plate,etc.,withintenttocommitaforgery

punishableundersection467

110c. Section473 Making or possessing a counterfeit seal, plate,etc.,withintenttocommitaforgery

punishableotherwise

110d. Section474 Having possession of a valuable security orwillknowntobeforged,withintentto

useit asgenuine

110e. Section475 Counterfeiting a device or mark used for authenticating documents described

in section 467, or possessing counterfeit

markedmaterial

110f. Section476 Counterfeitinga device ormarkusedfor authenticatingdocumentsotherthanthose

described in section 467, or possessing

counterfeitmarkedmaterial

110g. Section477 Fraudulent cancellation, destruction, etc., ofawill

110h. Section477a Falsificationofaccounts

111. Section489a Forging or counterfeiting currency notes orbanknotes

111a. Section489b Using as genuine, forged or counterfeit currencynotes orbanknotes

112. Section489c Possessionofforgedorcounterfeitcurrency notesorbanknotes

86 Laws of Malaysia Act 613

Offences Description*

112a. Section489d Making or possessing instruments or materials for forging or counterfeiting

currencynotesorbanknotes

Securities Commission Act [Act 498]

112aa. Section32b Falseormisleadingstatements

112ab. Section55 Criminalliabilityforfalsestatements,etc. inprospectus

Securities Industry Act 1983 [Act 280]

113. Section7 Establishmentofstockmarkets

114. Section12 Dealer'slicence

115. Section15a Fundmanager'slicence

115a. Section44 Certain money received by dealers to be paidintoatrustaccount

115b. Section47c Operationoftrustaccount

115c. Section47d Client'smonies

116. Section84 Marketrigging

117. Section85 Marketmanipulation

118. Section87a Use of manipulative and deceptive devices

119. Section89e Insider trading

119a. Section122b FalsereportstoCommission,stockexchange orrecognisedclearing house

Takaful Act 1984 [Act 312]

120. Section 4 Carrying on business as takaful operator withoutalicence

120a. Section5 Holding out as a registered takaful operator

87Anti-Money Laundering

121. Section35 Carryingontakafulbusinessasanagentor brokerforapersonotherthanalicensed

takafuloperator

121a. Subsection37(1) Actingorholdingoutasatakafulbroker withoutlicence

121b. Subsection38(1) Actingorholdingoutasanadjusterunless theholderofalicence

Offences Description*

*NOTE--TheshortdescriptionofoffencesinthisScheduleisforreferenceonly. 88 Laws of Malaysia Act 613

LAWS OF MALAYSIA

Act 613

ANTI-MONEY LAUNDERING ACT 2001

LISTOFAMENDMENTS

Amendinglaw Shorttitle Inforcefrom

P.U.(A)18/2002 Anti-MoneyLaundering(Amendment 15-01-2002 ofSecondSchedule)Order2002

P.U.(A)13/2003 Anti-MoneyLaundering(Amendment 15-01-2003 ofFirstSchedule)Order2003

P.U.(A)14/2003 Anti-MoneyLaundering(Amendment 15-01-2003 ofSecond Schedule)Order2003

P.U.(A)338/2004 Anti-MoneyLaundering(Amendment 30-09-2004 ofFirstSchedule)Order2004

P.U.(A)339/2004 Anti-MoneyLaundering(Amendment 30-09-2004 ofSecondSchedule)Order2004

P.U.(A)111/2005 Anti-MoneyLaundering(Amendment 31-03-2005 ofFirst Schedule)Order2005

P.U.(A)112/2005 Anti-MoneyLaundering(Amendment 31-03-2005 ofSecondSchedule)Order2005

P.U.(A)416/2005 Anti-MoneyLaundering(Amendment 20-10-2005 ofFirstSchedule)(No.2)Order2005

P.U.(A)417/2005 Anti-MoneyLaundering(Amendment 20-10-2005 ofSecondSchedule)(No2)Order2005

ActA1208 Anti-MoneyLaundering(Amendment) Notyet Act2003 inforce

89Anti-Money Laundering

LAWS OF MALAYSIA

Act 613

ANTI-MONEY LAUNDERING ACT 2001

LISTOFSECTIONSAMENDED

Section Amendingauthority Inforcefrom

first schedule P.U.(A)13/2003 15-01-2003

P.U.(A)338/2004 30-09-2004

P.U.(A)111/2005 31-03-2005

P.U.(A)416/2005 20-10-2005

second schedule P.U.(A)18/2002 15-01-2002

P.U.(A)14/2003 15-01-2003

P.U.(A)339/2004 30-09-2004

P.U.(A)112/2005 31-03-2005

P.U.(A)417/2005 20-10-2005

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