COUNTRY REPORT ON
CURRENT SITUATION OF ANTI-CORRUPTION
AND ANTI-MONEY LAUNDERING IN MALAYSIA
- PART III -
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
Current Situation of Anti- Corruption In Malaysia
Part I : National Anti-Corruption Strategy And Action Plans
1.
Does your country have an anti-corruption strategy?
ANSWER
MACC
Stand-alone anti-corruption
programme or anti-corruption strategy
/
PEMANDU
Umbrella document with separate
programmes for sectors or ministries
/
Section in another policy document,
e.g. national development or
investment programme
Does not exist at all
Other (Please specify)
MII
Detailed program which cut
across various sectors and
ministries. It is detailed out
in the govt transformation
programme roadmap which
is available to public
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])
ANSWER
MACC
PEMANDU
Background chapters on levels and trends of
corruption and assessment of previous anticorruption efforts
/
/
Level of implementation of previous strategy
/
/
Objectives and priority areas
/
/
/
Chapters on prevention and criminalisation/lawenforcement measures
/
/
/
Public participation/education
/
/
/
Monitoring and assessment mechanism and criteria
/
/
Other chapters
MII
Part I : National Anti-Corruption Strategy And Action Plans
3. Does the anti-corruption strategy have an action plan?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
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])
ANSWER
MACC
PEMANDU
MII
Specific 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 Plans
5. Are the anti-corruption document(s) and action plan(s)
publicized?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
Part I : National Anti-Corruption Strategy And Action Plans
6.
Which the following measures that your country has employed in
fighting corruption?
ANSWER
MACC
PEMANDU
MII
Open 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 Agency
7.
Does your country have an anti-corruption agency (ACA)
or a specialist authority for anti-corruption?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
Part II : Anti-Corruption Agency
8.
What are the main responsibilities/functions of the ACA in your country?
ANSWER
MACC
PEMANDU
MII
Monitor 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 Agency
9. Does your agency re-evaluate bodies/ areas/ activities
having high risk of corruption in order to employ
appropriate measures to mitigate corruption?
ANSWER
Regularly, periodically
Sometimes
Rarely
Never
MACC
PEMANDU
MII
/
/
/
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?
ANSWER
Yes, we have
No, we have not established it yet
We are in the process of establishing
No information to confirm
MACC
PEMANDU
MII
/
/
/
Part III : Legal Background
11. How does your country criminalize different types of
corrupted activities?
ANSWER
By a Special law on Anti-corruption
By the Criminal Law
By various laws with certain provisions
concerning corruption
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
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?
ANSWER
MACC
PEMANDU
MII
Abuse of position/power
Fraud
Bribery
Criminal breach of trust
Extortion
Embezzlement
Forgery
Influence peddling
Kickback
/
Nepotism
Other (Please specify)
All covered
Political Financing
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?
ANSWER
MACC
PEMANDU
MII
Preventive policies and measures (improving
transparency and accountability etc.)
2
3
3
Detective actions (prosecutions,
investigations, audits etc.)
1
1
2
Punitive measure (Implementing criminal
and disciplinary sanctions etc.)
3
2
1
Part III : Legal Background
14. Does your country have laws and regulations governing the financing
of political parties?
ANSWER
MACC
PEMANDU
MII
Yes
No
Other (Please specify)
/
/
Currently in progress to amend
Registrar of Society Act which
governs political parties
Part III : Legal Background
15. Does your country have laws and regulations governing code of ethics
of public officials?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
Part III : Legal Background
16. Does your country have laws and regulations governing declaration of
assets by public officials?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
Part III : Legal Background
17. Does your country have “accounting and auditing standards” for both
public and private sectors?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
Part III : Legal Background
18. In your country do public officials have legal obligation for public
officials to report corruption-related offence?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
Part III : Legal Background
19. How would you rate the implementation of the rules/regulation in
combating corruptions?
ANSWER
MACC
PEMANDU
MII
/
/
Very poor
Poor
Fair
Good
Very good
/
Part IV : International Cooperation
20. Has your country have ratified United Nations Convention against
Corruption (UNCAC)
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
Part IV : International Cooperation
21. If already ratified UNCAC, has your country begun the UNCAC peer
review process?
ANSWER
Yes
No
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
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.)?
ANSWER
Yes (Please specify)
No
MACC
PEMANDU
MII
/
Permanent
Observer
/
IAACA, OIC,
OECD, APEC
/
Part IV : International Cooperation
23. In your anti-corruption experience, how do you think about the
success level of international cooperation?
International Cooperation
21.1 Extradition
Low
Moderate
High
PEMANDU
MII
MACC
MII
MACC
MII
MACC
21.2 Mutual legal assistance
21.3 Asset recovery
21.4 Cooperation with law
enforcement authorities and
between national and international
authorities
21.5 Cooperation between national
authorities and the private sector
and international cooperation
PEMANDU
MACC,
PEMANDU
MII
MACC,
PEMANDU
MII
Part V : Promoting Awareness And Other Matters
24. How do you assess the effect of media in fighting corruption?
ANSWER
Media 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 situation
Other (Please specify
MACC
PEMANDU
MII
/
/
/
Part V : Promoting Awareness And Other Matters
25. How do you assess the effect of media in fighting corruption?
ANSWER
Actively and effectively
Actively but not effectively
Rather actively
Not participate
MACC
PEMANDU
/
/
MII
/
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 anticorruption efforts ...........?
ANSWER
Much higher than past years
Slightly higher than past years
About the same as past years
Slightly lower than past years
Much lower than past years
Other (Please specify)
MACC
PEMANDU
MII
/
/
/
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])
ANSWER
MACC
PEMANDU
MII
Public officials
/
/
/
At schools
/
/
/
General public
/
/
/
NGOs
/
Business associations and private companies
/
Media
/
Other (Please specify)
/
/
/
/
Members
of
Parliament
Politicians
Part V : Promoting Awareness And Other Matters
28. In your opinion, which of the following factors inhibit the result of
the fight against corruption?
ANSWER
MACC
PEMANDU
Corrupt people are not severely punished
/
The collusion between law enforcers and
corrupt people
/
Authorized officials lack commitment
/
MII
Some superiors cover up for their subordinates
Afraid of retaliation and victimization
/
/
Have not mobilized well people’s and media’s
participation
Lack of competent and experienced staff to
handle corruption cases
Lack of capacity and financial resources of anticorruption agencies
Other (Please specify)
/
/
Part V : Promoting Awareness And Other Matters
29. How do you comment on the result of the current fight against
corruption?
ANSWER
Have had positive impact, contributed to
prevent corruption
Have not had evident impact nowadays but will
have in the future
Not effective
MACC
PEMANDU
MII
/
/
/
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)
International Cooperation
Have
23.1 Promoting public sector transparency and
accountability and citizen participation.
MACC
PEMANDU
MII
23.2 Engaging civil society in corruption prevention
efforts, for example, to invite the civil society
organizations (CSOs) in formulation of anticorruption policy, research funding about anticorruption, dissemination of knowledge, etc.
23.3 Complaint system/ Whistle Blower, and
Denunciation: Receiving reports and complaints on
corruption from citizen.
MACC
PEMANDU
MII
MACC
PEMANDU
MII
None
Current 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 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
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
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
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)
(3)
(4)
(5)
(6)
Unusually large cash transactions
Inconsistencies with the financial profile of the customer or account
Unusual account activities
Suspicious behaviors
Financial transactions involving the countries considered in the “high
risk” category
Cutting large amount of transaction into pieces
Unusual use /exchange of cash
Financial transactions involving the person(s) considered in the
“high-risk” category
Refusals to show identification
(7)
(8)
(9)
(10)
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 it’s 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 Laundering
Have
Promoting 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 antimoney 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.
None
/
/
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).
ii).
iii).
iv).
Money laundering criminals are not severely punished
Limitation of citizen’s knowledge about money laundering criminal
Lack of competent and experienced staff to handle money laundering
cases
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 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
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