Slide 1

COUNTRY REPORT ONCURRENT SITUATION OF ANTI-CORRUPTION AND ANTI-MONEY LAUNDERING IN MALAYSIA- PART III -RespondentsCorruption: i). Malaysia Anti-Corruption Commission (MACC) ii). Performance Management Delivery Unit (PEMANDU) iii). Malaysian Institute of Integrity (MII)

Money Laundering: i). Central Bank of MalaysiaCurrent Situation of Anti- Corruption In Malaysia

Part I : National Anti-Corruption Strategy And Action PlansDoes your country have an anti-corruption strategy?

ANSWERMACCPEMANDUMIIStand-alone anti-corruption programme or anti-corruption strategy/Umbrella document with separate programmes for sectors or ministries/Section in another policy document, e.g. national development or investment programmeDoes not exist at allOther (Please specify)Detailed program which cut across various sectors and ministries. It is detailed out in the govt transformation programme roadmap which is available to publicPart I : National Anti-Corruption Strategy And Action Plans2.Which of the following chapters or content is covered in the anti-corruption document in your country? (Please check the relevant one[s])

ANSWERMACCPEMANDUMIIBackground chapters on levels and trends of corruption and assessment of previous anti-corruption efforts//Level of implementation of previous strategy//Objectives and priority areas///Chapters on prevention and criminalisation/law-enforcement measures///Public participation/education///Monitoring and assessment mechanism and criteria//Other chaptersPart I : National Anti-Corruption Strategy And Action Plans3.Does the anti-corruption strategy have an action plan?

ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part I : National Anti-Corruption Strategy And Action Plans4. Which of the following elements are contained in the Anti-corruption action plan? (Please check the relevant one[s])

ANSWERMACCPEMANDUMIISpecific measures for each objective///Specific institutions responsible for the implementation of each measure///Time-frame for implementation///Criteria for assessing implementation//Budget specially allocated for the implementation of the action plan///Institution responsible for co-ordination, implementation and reporting on the action plan///Other chapters (Please specify)Part I : National Anti-Corruption Strategy And Action PlansAre the anti-corruption document(s) and action plan(s) publicized?

ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part I : National Anti-Corruption Strategy And Action PlansWhich the following measures that your country has employed in fighting corruption?

ANSWERMACCPEMANDUMIIOpen and transparency in the operation of agencies///Development and implementation of entitlements, norms and standards//Administrative reform///Development and enforcement of the code of conduct and the code of professional ethics ///Penalty forms to heads of the agencies in case of occurrence of corruption/Salary payment via bank account/Declaration of assets and income///Regulation of returning gift by the public officials///Other chapters (Please specify)Part II : Anti-Corruption Agency7. Does your country have an anti-corruption agency (ACA) or a specialist authority for anti-corruption?

ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part II : Anti-Corruption Agency8.What are the main responsibilities/functions of the ACA in your country? ANSWERMACCPEMANDUMIIMonitor and evaluate the implementation of the anti-corruption strategy///Collect, centralize and exploit the denunciations//Conduct investigations///Disseminate knowledge on anti-corruption activities ///Raise public awareness about the fight against corruption///Identify the causes of corruption and to propose to the competent authorities of measures to help eliminate it///Draw a risk map of corruption in the country//Anti-corruption screening of legal acts//Research and analysis on corruption///Keep a database on the statistics regarding cases of corruption year by years///Research and analysis on conflict of interest in the public management /Other chapters (Please specify)Part II : Anti-Corruption Agency9.Does your agency re-evaluate bodies/ areas/ activities having high risk of corruption in order to employ appropriate measures to mitigate corruption?

ANSWERMACCPEMANDUMIIRegularly, periodically///SometimesRarelyNeverPart II : Anti-Corruption Agency10.Has your agency established a hotline (a specific telephone number) or a website in order to facilitate citizens to complain of corruption actions?

ANSWERMACCPEMANDUMIIYes, we have///No, we have not established it yetWe are in the process of establishingNo information to confirmPart III : Legal Background11.How does your country criminalize different types of corrupted activities?

ANSWERMACCPEMANDUMIIBy a Special law on Anti-corruption///By the Criminal Law By various laws with certain provisions concerning corruptionOther (Please specify)Part III : Legal Background12.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? ANSWERMACCPEMANDUMIIAbuse of position/powerFraudBriberyCriminal breach of trustExtortionEmbezzlementForgeryInfluence peddlingKickbackNepotism/Other (Please specify)All coveredPolitical FinancingPart III : Legal Background13.Please rank from 1 to 3 (most to least) the following types of measures against corruption based upon your experience in your country?

ANSWERMACCPEMANDUMIIPreventive policies and measures (improving transparency and accountability etc.) 233Detective actions (prosecutions, investigations, audits etc.)112Punitive measure (Implementing criminal and disciplinary sanctions etc.) 321Part III : Legal Background14.Does your country have laws and regulations governing the financing of political parties?ANSWERMACCPEMANDUMIIYesNo//Other (Please specify)Currently in progress to amend Registrar of Society Act which governs political partiesPart III : Legal Background15.Does your country have laws and regulations governing code of ethics of public officials?ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part III : Legal Background16.Does your country have laws and regulations governing declaration of assets by public officials?ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part III : Legal Background17.Does your country have accounting and auditing standards for both public and private sectors?ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part III : Legal Background18.In your country do public officials have legal obligation for public officials to report corruption-related offence?ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part III : Legal Background19.How would you rate the implementation of the rules/regulation in combating corruptions?ANSWERMACCPEMANDUMIIVery poorPoorFair//GoodVery good/Part IV : International Cooperation20.Has your country have ratified United Nations Convention against Corruption (UNCAC)ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part IV : International Cooperation21.If already ratified UNCAC, has your country begun the UNCAC peer review process?ANSWERMACCPEMANDUMIIYes///NoOther (Please specify)Part IV : International Cooperation22. 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.)?ANSWERMACCPEMANDUMIIYes (Please specify)/Permanent Observer/IAACA, OIC, OECD, APEC/NoPart IV : International Cooperation23.In your anti-corruption experience, how do you think about the success level of international cooperation?

International CooperationLowModerateHigh21.1 ExtraditionPEMANDUMIIMACC21.2 Mutual legal assistanceMIIMACC21.3 Asset recoveryPEMANDUMIIMACC21.4 Cooperation with law enforcement authorities and between national and international authoritiesMACC, PEMANDUMII21.5 Cooperation between national authorities and the private sector and international cooperationMACC, PEMANDUMIIPart V : Promoting Awareness And Other Matters24.How do you assess the effect of media in fighting corruption?

ANSWERMACCPEMANDUMIIMedia have had good effect of helping public to recognise the real situation of corruption and the need to promote anti-corruption/To some extent, media have helped public to recognise the real situation of corruption/To some extent, media have helped public to recognise the real situation of corruption, however, the provided information sometimes inaccurate and un-objective./Media exaggerate the corruption situationOther (Please specifyPart V : Promoting Awareness And Other Matters25.How do you assess the effect of media in fighting corruption?

ANSWERMACCPEMANDUMIIActively and effectively//Actively but not effectively/Rather activelyNot participatePart V : Promoting Awareness And Other Matters26.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 ...........?

ANSWERMACCPEMANDUMIIMuch higher than past years///Slightly higher than past yearsAbout the same as past yearsSlightly lower than past yearsMuch lower than past yearsOther (Please specify)Part V : Promoting Awareness And Other Matters27. Does your country provide anti-corruption educational/training programs for the followings? (Please check the relevant one[s])

ANSWERMACCPEMANDUMIIPublic officials///At schools ///General public///NGOs//Business associations and private companies///Media//Other (Please specify)Members of ParliamentPoliticiansPart V : Promoting Awareness And Other Matters28.In your opinion, which of the following factors inhibit the result of the fight against corruption?

ANSWERMACCPEMANDUMIICorrupt people are not severely punished/The collusion between law enforcers and corrupt people/Authorized officials lack commitment/Some superiors cover up for their subordinatesAfraid of retaliation and victimization///Have not mobilized well peoples and medias participation Lack of competent and experienced staff to handle corruption cases/Lack of capacity and financial resources of anti-corruption agenciesOther (Please specify)Part V : Promoting Awareness And Other Matters29.How do you comment on the result of the current fight against corruption?

ANSWERMACCPEMANDUMIIHave had positive impact, contributed to prevent corruption///Have not had evident impact nowadays but will have in the futureNot effectivePart V : Promoting Awareness And Other Matters30.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)

International CooperationHaveNone23.1 Promoting public sector transparency and accountability and citizen participation.MACCPEMANDUMII23.2 Engaging civil society in corruption prevention efforts, for example, to invite the civil society organizations (CSOs) in formulation of anti- corruption policy, research funding about anti- corruption, dissemination of knowledge, etc.MACCPEMANDUMII23.3 Complaint system/ Whistle Blower, and Denunciation: Receiving reports and complaints on corruption from citizen.MACCPEMANDUMIICurrent Situation of Anti- Money Laundering In Malaysia

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)

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

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)

Current Situation of Anti- Money Laundering Part II : AML Board / Authority (continued)

It is possible for citizens to inform the countrys AML Board about a suspected case of money laundering via website or letter? YesAre they any updated rules and information about the process of AML? Yes

Current Situation of Anti- Money Laundering Part III : Financial Institutions

All financial institutions are require to have AML & KYC procedures ? YesFinancial 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

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 customers AML policies and practices - Screening its customers information against sanction lists issued by the government or international bodiesCurrent 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

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

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 its involved with money laundering? Yes

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?

The Role of Citizen Participation in Fighting Money LaunderingHaveNonePromoting public sector transparency and accountability and citizen participation. /Engaging civil society in anti-money laundering efforts, for example, to invite the civil society organizations (CSOs) in formulation of anti-money laundering policy , research funding about anti-money laundering, dissemination of knowledge, etc./Complaint system/ Whistle Blower, and Denunciation: Receiving reports and complaints on money laundering from citizen./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 punishedii).Limitation of citizens knowledge about money laundering criminaliii).Lack of competent and experienced staff to handle money laundering casesiv).Lack of capacity and financial resources of anti money laundering agencies

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 officialsii).NGOsiii).Financial institutionsiv).Business associations and private companies

Do you think that the controlling systems are the keystone and deterrent for fighting against money laundering? Yes

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

Thank You