Malaysia

Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries

Christopher Lee (christopher.lee@wongpartners.com). Wong & Partners,* Kuala Lumpur, Malaysia. *Correspondent Law Firm of Baker & McKenzie

Introduction

The Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries issued by the Securities Commission (the Guidelines) is to provide guidance to stockbrokers, futures brokers and fund managers (reporting institutions) on money laundering and their obligations under the Anti-Money Laundering Act 2001 (the AMLA). “Money laundering” may be defined as a process to conceal the benefits derived from unlawful activities which are related to serious offences so that the benefits appear to have originated from a legitimate source.The Guidelines outline the three stages of money laundering and provide a set of strategies and rules which reporting institutions should adopt to counteract money laundering.