The following write ups were excerpts from the Accountants Today (August 2008)- a professional journal of the Malaysian Institute of Accountants (MIA). It is an important reminder for all accounting professionals.
Following the September 11 tragedy in the USA in 2001, a new law known as the Anti Money Laundering and Anti Terrorism Financing Act (AMLATFA 2001) was introduced in Malaysia. The Financial Action Task Force (FATF)research highlighted a trend in the use of complex commercial arrangements by money launderers and terrorism financiers to hide their money trail. These arrangements often use the services of professionals such as lawyers, accountants and company secretaries. Arising from this trend, the FATF standards require countries to improve their Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT)on Designated Non-Financial Businesses and Professions (DNFBPs) Sector. In Malaysia, the DNFBPs include casinos,real estate agents, dealers in precious metals and stones, lawyers, companies secretaries, accountants and other independent legal professions. All have been made reporting institutions. Reporting institutions shall report to the Financial Intelligent Unit (FIU) in Bank Negara, any transactions where the identity of the persons involved, the transaction itself or any other circumstances concerning that transactions give any officer or employee of that reporting institutions, reasons to suspect that the transactions involve proceeds of an unlawful activity. Research in this are is still limited and ARI is in the best position to lead research in this AML/CFT sector....