The viability of enforcement mechanisms under money laundering and anti‐terrorism offences in Malaysia: An overview

Abstract

Purpose

The purpose of this paper is to give a better insight to the legal society, practitioners and legislators of the working mechanisms of money laundering activities, as well as the functionalities of the Anti‐Money Laundering and Anti‐terrorism Financing Act 2003 (AMLATFA) in Malaysia, in curbing money laundering and terrorism funding activities. At the same time, the paper provides an overview on the applicability and practicability of the enforcement mechanisms in Malaysia by exploring legislations from different jurisdictions that are more developed.

Design/methodology/approach

The paper achieves this by having a cross‐sectional analysis onto the legislation in Malaysia such as AMLATFA and also similar legislations found in countries such as the UK. A complete insight is further gained by having interviews with experts in the judiciary, Bank Negara, as well as the experts from the Attorney General's Chamber in Malaysia regarding their insight into the subject matter. Last but not least, the authors also surveyed into the different points of view from journal articles in Malaysia and globally.

Findings

Malaysia has a legal framework for curbing money laundering but the current AMLATFA provisions are considered to have failed to be effectively enforced. A more comprehensive, specific and well elaborated legal framework will have to be laid down in order to create a better platform for the prosecutors to bring a good case against these money launderers.

Practical implications

This paper will give a deeper insight to the legal society of the capability of AMLATFA and the lack of it, in curbing money laundering in Malaysia and, at the same time, creating awareness among policy makers of the difficulties faced by the enforcement bureaus in prosecuting these money launderers due to the lacunas in the current law.

Originality/value

This paper could be useful source of information for practitioners, academics, policymakers and students and a guide for any possible future amendments to the current insufficiency.

Citation

Dhillon, G., Ahmad, R., Rahman, A. and Yih Miin, N. (2013), "The viability of enforcement mechanisms under money laundering and anti‐terrorism offences in Malaysia: An overview", Journal of Money Laundering Control, Vol. 16 No. 2, pp. 171-192. https://doi.org/10.1108/13685201311318511