KUALA LUMPUR: The proposed amendments to Malaysia’s anti-money laundering law is important to safeguard the integrity of the country’s financial sector, says Deputy Finance Minister Lim Hui Ying.

The amendments include introducing new definitions, extending investigation periods and enhancing the powers of authorities involved in enforcement.

Lim noted that the amendments include proposals expanding the scope of the law to include offences related to the financing of restricted activities.

“We are addressing global trends in financial crimes to ensure our legislation is not only reactive but also proactive,” she said while tabling the amendment Bill of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613) for the second reading in Dewan Rakyat yesterday.

Reiterating the strategic importance of these amendments, Lim said an unsatisfactory rating could have severe implications for our economy, especially in the financial sector.

Malaysia, she added, aims to enhance its legal framework to combat financial crimes in alignment with international standards.

“Our commitment to align with the Financial Action Task Force’s (FATF) recommendations underscores our dedication to maintaining a robust and comprehensive legal framework,” she said.

Lim said the proposed amendments to Act 613 are important as Malaysia prepares for its next Mutual Evaluation by the FATF in 2025, a process that assesses the nation’s legal and enforcement frameworks against global standards.

“The amendments aimed at strengthening enforcement, regulation and monitoring mechanisms. These changes are crucial,” she said.

The upcoming evaluation will be more challenging due to enhanced FATF criteria, and we must ensure our laws are up to the task, she added.

Lim noted that the amendments will include two parts, namely surveillance and enforcement including the definition of serious crimes, while the second part includes the improvement of the reporting obligations of institutions and the powers of the authorities.

She said the amendments to Part 1 of the Act which covers clauses 1 to 4 is meant to prevent and penalise serious funding offences including the weapons of mass destruction.

The amendments to the second part will be through subsection 4(1) to make imprisonment and existing fines for money laundering as mandatory sentences.

“This amendment is important to serve as a deterrent against money laundering crimes in line with the FATF standards,” she said.

She said the new Section 6B is needed in line with the trend of global financial crimes which focuses on funding of restricted activities along with traditional funding crimes such as money laundering and terrorism financing.

“This section will also overcome the gaps faced by domestic enforcement agencies in investigations and prosecutions to cripple funding of restricted activities,” she said.

https://www.thestar.com.my/news/nation/2024/12/12/lim-changes-crucial-to-meet-international-standards