Putrajaya proposes stiffer penalties for money-laundering

KUALA LUMPUR, Dec 4 — The government sought to introduce stiffer penalties today for money-laundering offences, with proposed amendments to include longer jail sentences and fines that could go beyond RM5 million.

In the proposed amendment to Section 4, those found guilty of money-laundering can now be jailed for up to 15 years and be fined five million ringgit or five times the amount of the proceeds from an unlawful activity, depending on which is the higher figure.In the Anti-Money Laundering and Anti-Terrorism Financing (Amendment) Bill 2013 tabled in Parliament today, the government also sought to extend the existing law’s scope to detect cross-border illegal transfers of money.

Under the existing Section 4 of the Anti-Money Laundering and Anti-Terrorism Financing Act (AMLATFA) 2001, those convicted of carrying out or aiding money-laundering will be jailed for up to five years or be fined up to five million ringgit, or be liable to both imprisonment and a fine.

The Bill will also seek to insert a completely new Part IV A, which will make it mandatory for everyone to declare the amount of money they are bringing in or out of the country, among other things.

According to the Bill’s explanatory note, Part IVA - which covers Sections 28A to Section 28L - is intended “to provide for the monitoring of cross border movements of cash and bearer negotiable instruments to detect and curb money laundering and terrorism financing”.

Under the new clause Section 28B, those leaving or entering Malaysia with cash and bearer negotiable instruments such as travellers cheques have to declare the amount if it exceeds the prescribed value.

Under Section 28C, the amount of cash and bearer negotiable instruments that is moved through the borders of Malaysia through postal, courier or freight forwarding services also has to be declared if it exceeds the prescribed figure.

Failure to comply with both clauses will see a fine of up to RM3 million or jail term of up to five years or both being imposed.

But Section 28D would provide exemptions from the above two clauses for commercial passenger carriers and commercial goods carriers.

Under the new Section 28E, those who receive cash and bearer instruments from outside of Malaysia also need to declare the amount if it exceeds the prescribed value, failing which they will be liable to a fine of up to RM5 million and jail term of up to five years or both.

Under Section 28G, those who structure or are involved in breaking down the transportation of money through Malaysia’s borders to avoid the requirement to declare the amount will jailed up to seven years or be fined up to five times of the combined sum, or both.

The new Section 28I also provides officials the power to arrest a person without a warrant, if there is sufficient reason to believe the suspect has committed or is trying to commit the offences under Section 28B and 28C.