Malaysia

PREVENTIVE MEASURES
Table A5.2. Number of DNFBPs subject to FIED’s supervision as at 31 December 2014
(continued)
DNFBP
Number of
institutions
Licensing/Registration Body (see
R.28)
AML/CFT Supervisor
Real estate agents 1,764 Board of Valuers, Appraisers and
Estate Agents Malaysia (BVAEA)
FIED
Trust companies (onshore) 28 CCM FIED (with CCM)
Offshore trust companies 38* LFSA LFSA
*as at 30 September 2014
Recommendation 22 – DNFBPs: Customer due diligence
a5.120. In the 2007 MER Malaysia was rated partially compliant for R. 12 due to gaps with record keeping,
PEPs and a number of related measures.
a5.121. With the exception of the minor scope limitation in the coverage of dealers in precious metals and
stones, the full range of DNFBPs plus gaming institutions are covered by the obligations in the AMLA and the
guidelines.
a5.122. The analysis for Recommendations 10, 11, 12, 15 and 17 is largely applicable to DNFBPs as they
are RIs for the purposes of the AMLA. The obligations in the AMLA apply to DNFBPs in the same way as to
FIs. BNM has issued binding a regulatory instrument for all DNFBPs except TCSPs in Labuan. The LFSA has
issued its own guidance for the TCSPs that it regulates. These two guidance documents follow the guidance
for FIs very closely. The analysis for the AMLA is not repeated here, but relevant coverage of the guidelines
for DNFBPs will be spelled out.
a5.123. Criterion 22.1 - CDD requirements are set out in the BNM and LFSA guidelines (s.13) which fulil the
CDD requirements in R.10.
a5.124. Malaysia and Labuan have frameworks in place to support TCSPs and company secretaries conduct
of ongoing CDD on the companies they create.
a5.125. Pursuant to the Labuan Trust Companies Act, every Labuan company must appoint a Labuan licensed
trust company as its resident secretary. The resident secretary maintains knowledge of the purpose of the
business through its responsibility to lodge company documents, including statutory returns with LFSA, its
regular interactions with the board of directors at board and annual meetings and through any changes to the
company’s memorandum. Oversight of inancial operations (e.g. source of funds) occurs as accounting and
other business reports must be kept at the company’s registered ofice; the trust company ofice. By virtue
of the circulars on beneicial ownership issued by LFSA in 2014, the resident secretary must be aware of and
update the beneicial owners register whenever there is a change in beneicial ownership.
a5.126. Onshore TSCPs and company secretaries maintain their knowledge of the purpose and intended
nature of a company’s business through their interactions with the board of directors and presence at meetings
where company operations and activities are discussed, through their requirement to lodge statutory forms
including annual reports and inancial statements and through any changes to the company’s memorandum.
A5
a5.127. Criterion 22.2 - The AMLA and the BNM and LFSA guidelines contain obligations that largely fulil
the DNFBP record keeping requirements, although the minor deiciencies described in R.11 is applicable.
a5.128. Criterion 22.3 - BNM and LFSA guidelines (s.14) include obligations for DNFBPs as described at
R.12 when dealing with PEPs. The minor deiciencies described in R.12 are also applicable to DNFBPs.
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