Malaysia

LEGAL SYSTEM AND OPERATIONAL ISSUES
3
Malaysia has a largely compliant, broad and lexible legal regime and a strong focus on recovery of
property and is seeing some successes, particularly through administrative recovery. Tax and goods
smuggling coniscations through the Special Taskforce are achieving excellent results and reducing
these types of offending, as demonstrated by increased voluntary compliance with tax laws. However
results in remaining high risk areas (drugs, fraud and corruption) are low, and there has been a
substantial decline in AMLA forfeitures. Malaysia has coniscated property from immediate targets
but not the higher level organisers of crime; LEAs have dificulties linking property to offences and
targeting more complex cases
The scope of coniscation cases has been limited: Malaysia has not coniscated property in terrorism or
TF matters; Malaysia has not prioritised targeting foreign predicate offences or following the proceeds
of Malaysian offences moved offshore; and IRB does not target all property types (only bank accounts
and land titles in the name of the taxpayer).
The implementation of the cross border cash declaration regime has not produced substantial outcomes
to date and results are declining, which is signiicant in light of the risks Malaysia faces regarding
cash smuggling at the border. Implementation needs to be more thorough and more coordination and
information sharing is needed, especially between RMC and RMP and BNM.
46 Anti-money laundering and counter-terrorist inancing measures in Malaysia - 2015 © FATF and APG 2015