Businesses Engaged In Foreign Transactions Must Exercise Heightened Diligence Under AMLA
KUALA LUMPUR, June 5 (Bernama) -- Malaysian business owners engaged in international transactions are advised to maintain comprehensive records and promptly report any suspicious activity to Bank Negara Malaysia (BNM) to ensure compliance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001(AMLA).
Lawyer Guok Ngek Seong, who has nearly 25 years of experience in civil and criminal litigation, told Bernama that companies operating in high-risk sectors such as maritime, petroleum and logistics, which frequently conduct foreign exchange transactions, must exercise heightened diligence in documenting their operations.
He was speaking on the matter in light of recent actions taken by BNM, which imposed administrative monetary penalties amounting to RM4.95 million on several financial institutions for breaches of statutory and regulatory obligations.
The penalties involved non-compliance with provisions under the Development Financial Institutions Act 2002 as well as failures to adhere to requirements under the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document.
These regulatory actions reflect the heightened scrutiny placed on financial and corporate entities, reinforcing the need for robust compliance measures, especially in sectors exposed to cross-border transactions.
Guok stressed that proper record-keeping may constitute a key line of defence should a company come under investigation for alleged money laundering or involvement in unlawful activities.
'BNM has the authority to conduct annual checks on such entities to ensure compliance with AMLA regulations,' he said.
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