COUNTRY REPORT ON CURRENT SITUATION OF ANTI-CORRUPTION AND ANTI-MONEY LAUNDERING IN MALAYSIA - PART III -

1. COUNTRY REPORT ON CURRENT SITUATION OF ANTI-CORRUPTION AND ANTI-MONEY LAUNDERING IN MALAYSIA - PART III -

2. Respondents • Corruption: i). Malaysia Anti-Corruption Commission (MACC) ii). Performance Management Delivery Unit (PEMANDU) iii). Malaysian Institute of Integrity (MII) • Money Laundering: i). Central Bank of Malaysia

3. Current Situation of Anti- Corruption In Malaysia

4. Part I : National Anti-Corruption Strategy And Action Plans • Does your country have an anti-corruption strategy?

5. Part I : National Anti-Corruption Strategy And Action Plans 2. Which of the following chapters or content is covered in the anti-corruption document in your country? (Please check the relevant one[s])

6. Part I : National Anti-Corruption Strategy And Action Plans 3. Does the anti-corruption strategy have an action plan?

7. Part I : National Anti-Corruption Strategy And Action Plans 4. Which of the following elements are contained in the Anti-corruption action plan? (Please check the relevant one[s])

8. Part I : National Anti-Corruption Strategy And Action Plans • Are the anti-corruption document(s) and action plan(s) publicized?

9. Part I : National Anti-Corruption Strategy And Action Plans • Which the following measures that your country has employed in fighting corruption?

10. Part II : Anti-Corruption Agency 7. Does your country have an anti-corruption agency (ACA) or a specialist authority for anti-corruption?

11. Part II : Anti-Corruption Agency 8. What are the main responsibilities/functions of the ACA in your country?

12. Part II : Anti-Corruption Agency 9. Does your agency re-evaluate bodies/ areas/ activities having high risk of corruption in order to employ appropriate measures to mitigate corruption?

13. Part II : Anti-Corruption Agency 10. Has your agency established a hotline (a specific telephone number) or a website in order to facilitate citizens to complain of corruption actions?

14. Part III : Legal Background 11. How does your country criminalize different types of corrupted activities?

15. Part III : Legal Background 12. In which of the following types of corruption does your country need to enact new legislation to better prevent and detect the relevant cases of corruption?

16. Part III : Legal Background 13. Please rank from 1 to 3 (most to least) the following types of measures against corruption based upon your experience in your country?

17. Part III : Legal Background 14. Does your country have laws and regulations governing the financing of political parties?

18. Part III : Legal Background 15. Does your country have laws and regulations governing code of ethics of public officials?

19. Part III : Legal Background 16. Does your country have laws and regulations governing declaration of assets by public officials?

20. Part III : Legal Background 17. Does your country have “accounting and auditing standards” for both public and private sectors?

21. Part III : Legal Background 18. In your country do public officials have legal obligation for public officials to report corruption-related offence?

22. Part III : Legal Background 19. How would you rate the implementation of the rules/regulation in combating corruptions?

23. Part IV : International Cooperation 20. Has your country have ratified United Nations Convention against Corruption (UNCAC)

24. Part IV : International Cooperation 21. If already ratified UNCAC, has your country begun the UNCAC peer review process?

25. Part IV : International Cooperation 22. Is your country a member of any anti-corruption conventions, initiatives or international project (OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions; GRECO etc.)?

26. Part IV : International Cooperation 23. In your anti-corruption experience, how do you think about the success level of international cooperation?

27. Part V : Promoting Awareness And Other Matters 24. How do you assess the effect of media in fighting corruption?

28. Part V : Promoting Awareness And Other Matters 25. How do you assess the effect of media in fighting corruption?

29. Part V : Promoting Awareness And Other Matters 26. How would you compare the level of anti-corruption efforts in your country now with those in past years? Is the current level of anti-corruption efforts ...........?

30. Part V : Promoting Awareness And Other Matters 27. Does your country provide anti-corruption educational/training programs for the followings? (Please check the relevant one[s])

31. Part V : Promoting Awareness And Other Matters 28. In your opinion, which of the following factors inhibit the result of the fight against corruption?

32. Part V : Promoting Awareness And Other Matters 29. How do you comment on the result of the current fight against corruption?

33. Part V : Promoting Awareness And Other Matters 30. In your country, do you give the role of citizen participation in fighting corruption as following this table? (If your country gives the role, please checks have)

34. Current Situation of Anti- Money Laundering In Malaysia

35. Current Situation of Anti- Money Laundering Part I : Legal Framework • Is Money laundering a criminal offence? Yes • Are there specific laws governing AML : Yes Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA) • The Law covering all aspects of ML? Yes • Implementation rate of AML law : Good • Is there a National Financial Intelligent Unit (FIU) : Yes (as national center for collection, analysis & dissemination of information regarding potential ML offences)

36. Current Situation of Anti- Money Laundering Part II : AML Board / Authority • Is there an official authority? Yes, Bank Negara Malaysia • Measures of AML by authority were applied effectively through: - Identify and update customer information (profiling) - Report, provide & save information (great value & suspicious transaction) - Gather, treat & transform information about AML - Apply temporary measures (block of accounts, sealing of assets) • BNM enjoy independence in the terms of : - Legal - Functional - Financial - Recruitment of employees

37. Current Situation of Anti- Money Laundering Part II : AML Board / Authority (continued) • Functions performed by BNM: - Developing policies and improving legislation - Data collection, analyzing, evaluation - Supervision - Coordination - Investigations of cases - Raising awareness of the public - Carry out researches, sector-based studies - Carrying out examinations on the cases - Request of information and documents from public institutions and organizations - Exchange of information and documents with counterparts in foreign countries • Effectiveness of the following type of measures concerning AML: (1) Preventive policies and measures (regulations, internal control systems, international cooperation) (2) Punitive actions (implementing criminal and disciplinary sanctions) (3) Detective actions (prosecutions, investigations, audits)

38. Current Situation of Anti- Money Laundering Part II : AML Board / Authority (continued) • It is possible for citizens to inform the country’s AML Board about a suspected case of money laundering via website or letter? Yes • Are they any updated rules and information about the process of AML? Yes

39. Current Situation of Anti- Money Laundering Part III : Financial Institutions • All financial institutions are require to have AML & KYC procedures ? Yes • Financial institutions have the legal obligations to comply with the AML law of the followings: - Internal controls and procedures to comply with regulatory framework concerning AML - Thorough client identification - Having an AML officer - Client due diligence procedures - Risk focused assessment of customer base and their transactions - Creating and regularly updating list of red flags concerning AML - Prohibition of anonymous accounts - Employees training programs regarding AML - Independent audit / compliance function - Identification and reporting of suspicious activities to the appropriate authorities - Monitoring program for suspicious or unusual activities - Policies covering relationships with politically exposed persons consistent with industry best practices - Policy prohibiting accounts / relationships with shell banks - Policy of protecting employees who report any suspicious transactions

40. Current Situation of Anti- Money Laundering Part III : Financial Institutions (continued) • Financial institutions are obliged to comply with the legal obligations or administrative policies in terms of due diligence procedures as follows : - Implementation systems for the identification on its customer, including customer information in the case of recorded transaction, account opening - Collecting information and assessing its customer’s AML policies and practices - Screening its customer’s information against sanction lists issued by the government or international bodies

41. Current Situation of Anti- Money Laundering Part III : Financial Institutions (continued) • What are the most common types of suspicious transactions reports (STR) from financial institutions? (Rank from most to least) (1) Large remittance (2) Unusually large cash transactions (3) Inconsistencies with the financial profile of the customer or account (4) Unusual account activities (5) Suspicious behaviors (6) Financial transactions involving the countries considered in the “high risk” category (7) Cutting large amount of transaction into pieces (8) Unusual use /exchange of cash (9) Financial transactions involving the person(s) considered in the “high-risk” category (10) Refusals to show identification

42. Current Situation of Anti- Money Laundering Part III : Financial Institutions (continued) • Are financial institutions obliged to comply with the Financial Action Task Force FATF)recommendations? Yes

43. Current Situation of Anti- Money Laundering Part IV : International Cooperation • How would you rate your organization ability to cooperate and exchange financial information at international level? Good • Is there any cooperation agreements or protocols among the local institutions to share financial information and financial transfers and if it’s involved with money laundering? Yes

44. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) • In your country, do you give the role of citizen participation in fighting money laundering as following this table?

45. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) • How do you think about the punishment of money laundering incidents? : The penalties are too light. AGC is amending the law to impose heavier penalty • In your opinion, which of the following factors inhibit the result of the fight against money laundering? i). Money laundering criminals are not severely punished ii). Limitation of citizen’s knowledge about money laundering criminal iii). Lack of competent and experienced staff to handle money laundering cases iv). Lack of capacity and financial resources of anti money laundering agencies

46. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) • Does your country provide anti- money laundering educational/training programs for the followings? (Please check the relevant one[s]) i). Public officials ii). NGOs iii). Financial institutions iv). Business associations and private companies • Do you think that the controlling systems are the keystone and deterrent for fighting against money laundering? Yes

47. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) • Are there any high institutions providing training workshops for the employees of controlling agencies about methods to detect money laundering? Yes • How do you comment on the result of the current fight against-money laundering? Have had positive impact, contributed to prevent money laundering

48. Thank You