Investigation and prosecution of money laundering cases in Malaysia

Zakiah Muhammaddun Mohamed, Khalijah Ahmad

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

PurposeThe purpose of this paper is to examine money laundering cases investigated by the Central Bank of Malaysia under the Anti‐Money Laundering and Anti‐Terrorism Financing Act 2001. Design/methodology/approachThis study analyzes the contents of public releases by the enforcement division of the Central Bank for period 2007 to 2011. Analysis of data is carried out based on three categories: the predicate offence, the perpetrators and current status of the cases. FindingsFindings reveal that most cases investigated by the Central Bank relate to sec 4(1) of AMLATFA 2001 and the main predicate offence related to the money laundering charges are on illegal deposit taking. Further it is found that directors of companies are the leading group of people charged under the Act for money laundering. In addition, findings also show that only half of the cases investigated have been charged in court. Research limitations/implicationsData from this research only come from enforcement releases from the Central Bank of Malaysia. Since AMLATFA2001 is administered by multiple agencies, the research may not provide a comprehensive view of all the cases investigated. Future research should look at other agencies and in particular the Royal Police of Malaysia. Practical implicationsFindings from the study suggest that prosecuting money laundering cases by Bank Negara Malaysia are limited to cases with predicate offence of illegal deposit taking. The agency should explore other predicate offences and the concept of “irresistible inference” to increase its effort in prosecuting money laundering activities in the country. Originality/valueThe paper documents and analyzes the actual cases being investigated for money laundering offences. It provides basis for the standard setters to evaluate their effort to curb money laundering activities in Malaysia.

Original languageEnglish
Pages (from-to)421-429
Number of pages9
JournalJournal of Money Laundering Control
Volume15
Issue number4
DOIs
Publication statusPublished - 5 Oct 2012

Fingerprint

money laundering
prosecution
Malaysia
central bank
offense
act
Central bank
director
terrorism
bank
police
methodology

Keywords

  • Anti‐Money Laundering Act 2001
  • Bank Negara Malaysia
  • Investigation
  • Malaysia
  • Money laundering
  • Prosecution

ASJC Scopus subject areas

  • Law
  • Public Administration
  • Economics, Econometrics and Finance(all)

Cite this

Investigation and prosecution of money laundering cases in Malaysia. / Mohamed, Zakiah Muhammaddun; Ahmad, Khalijah.

In: Journal of Money Laundering Control, Vol. 15, No. 4, 05.10.2012, p. 421-429.

Research output: Contribution to journalArticle

@article{4b8bfbb4c38f44ccac474531084a03ad,
title = "Investigation and prosecution of money laundering cases in Malaysia",
abstract = "PurposeThe purpose of this paper is to examine money laundering cases investigated by the Central Bank of Malaysia under the Anti‐Money Laundering and Anti‐Terrorism Financing Act 2001. Design/methodology/approachThis study analyzes the contents of public releases by the enforcement division of the Central Bank for period 2007 to 2011. Analysis of data is carried out based on three categories: the predicate offence, the perpetrators and current status of the cases. FindingsFindings reveal that most cases investigated by the Central Bank relate to sec 4(1) of AMLATFA 2001 and the main predicate offence related to the money laundering charges are on illegal deposit taking. Further it is found that directors of companies are the leading group of people charged under the Act for money laundering. In addition, findings also show that only half of the cases investigated have been charged in court. Research limitations/implicationsData from this research only come from enforcement releases from the Central Bank of Malaysia. Since AMLATFA2001 is administered by multiple agencies, the research may not provide a comprehensive view of all the cases investigated. Future research should look at other agencies and in particular the Royal Police of Malaysia. Practical implicationsFindings from the study suggest that prosecuting money laundering cases by Bank Negara Malaysia are limited to cases with predicate offence of illegal deposit taking. The agency should explore other predicate offences and the concept of “irresistible inference” to increase its effort in prosecuting money laundering activities in the country. Originality/valueThe paper documents and analyzes the actual cases being investigated for money laundering offences. It provides basis for the standard setters to evaluate their effort to curb money laundering activities in Malaysia.",
keywords = "Anti‐Money Laundering Act 2001, Bank Negara Malaysia, Investigation, Malaysia, Money laundering, Prosecution",
author = "Mohamed, {Zakiah Muhammaddun} and Khalijah Ahmad",
year = "2012",
month = "10",
day = "5",
doi = "10.1108/13685201211266006",
language = "English",
volume = "15",
pages = "421--429",
journal = "Journal of Money Laundering Control",
issn = "1368-5201",
publisher = "Emerald Group Publishing Ltd.",
number = "4",

}

TY - JOUR

T1 - Investigation and prosecution of money laundering cases in Malaysia

AU - Mohamed, Zakiah Muhammaddun

AU - Ahmad, Khalijah

PY - 2012/10/5

Y1 - 2012/10/5

N2 - PurposeThe purpose of this paper is to examine money laundering cases investigated by the Central Bank of Malaysia under the Anti‐Money Laundering and Anti‐Terrorism Financing Act 2001. Design/methodology/approachThis study analyzes the contents of public releases by the enforcement division of the Central Bank for period 2007 to 2011. Analysis of data is carried out based on three categories: the predicate offence, the perpetrators and current status of the cases. FindingsFindings reveal that most cases investigated by the Central Bank relate to sec 4(1) of AMLATFA 2001 and the main predicate offence related to the money laundering charges are on illegal deposit taking. Further it is found that directors of companies are the leading group of people charged under the Act for money laundering. In addition, findings also show that only half of the cases investigated have been charged in court. Research limitations/implicationsData from this research only come from enforcement releases from the Central Bank of Malaysia. Since AMLATFA2001 is administered by multiple agencies, the research may not provide a comprehensive view of all the cases investigated. Future research should look at other agencies and in particular the Royal Police of Malaysia. Practical implicationsFindings from the study suggest that prosecuting money laundering cases by Bank Negara Malaysia are limited to cases with predicate offence of illegal deposit taking. The agency should explore other predicate offences and the concept of “irresistible inference” to increase its effort in prosecuting money laundering activities in the country. Originality/valueThe paper documents and analyzes the actual cases being investigated for money laundering offences. It provides basis for the standard setters to evaluate their effort to curb money laundering activities in Malaysia.

AB - PurposeThe purpose of this paper is to examine money laundering cases investigated by the Central Bank of Malaysia under the Anti‐Money Laundering and Anti‐Terrorism Financing Act 2001. Design/methodology/approachThis study analyzes the contents of public releases by the enforcement division of the Central Bank for period 2007 to 2011. Analysis of data is carried out based on three categories: the predicate offence, the perpetrators and current status of the cases. FindingsFindings reveal that most cases investigated by the Central Bank relate to sec 4(1) of AMLATFA 2001 and the main predicate offence related to the money laundering charges are on illegal deposit taking. Further it is found that directors of companies are the leading group of people charged under the Act for money laundering. In addition, findings also show that only half of the cases investigated have been charged in court. Research limitations/implicationsData from this research only come from enforcement releases from the Central Bank of Malaysia. Since AMLATFA2001 is administered by multiple agencies, the research may not provide a comprehensive view of all the cases investigated. Future research should look at other agencies and in particular the Royal Police of Malaysia. Practical implicationsFindings from the study suggest that prosecuting money laundering cases by Bank Negara Malaysia are limited to cases with predicate offence of illegal deposit taking. The agency should explore other predicate offences and the concept of “irresistible inference” to increase its effort in prosecuting money laundering activities in the country. Originality/valueThe paper documents and analyzes the actual cases being investigated for money laundering offences. It provides basis for the standard setters to evaluate their effort to curb money laundering activities in Malaysia.

KW - Anti‐Money Laundering Act 2001

KW - Bank Negara Malaysia

KW - Investigation

KW - Malaysia

KW - Money laundering

KW - Prosecution

UR - http://www.scopus.com/inward/record.url?scp=85017340243&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85017340243&partnerID=8YFLogxK

U2 - 10.1108/13685201211266006

DO - 10.1108/13685201211266006

M3 - Article

AN - SCOPUS:85017340243

VL - 15

SP - 421

EP - 429

JO - Journal of Money Laundering Control

JF - Journal of Money Laundering Control

SN - 1368-5201

IS - 4

ER -