Malaysia legislation
Section 57
Section 57
(a)
any money or other property originating from a transaction, operation or other activity which is a criminal offence under the laws of Malaysia or which, had it been carried out in Malaysia, would have been such an offence; or
(b)
any money or other property the receipt, ownership or control of which is or would be an offence as mentioned in paragraph (a).
(2)
It shall be the duty of a council member, a supervisory person, an officer, or a secretary of a Labuan foundation to forthwith bring it to the notice of the Authority where he—
(a)
has reason to believe that the Labuan foundation has property or has income accruing to it or derived by it and originating from a transaction, operation or other activity which is a criminal offence under the laws of
Malaysia or which, had it been carried out in Malaysia, would have been such an offence; or
(b)
has received or has in its possession or control money or other property the receipt, ownership or control of which is or would be an offence as mentioned in paragraph (a).
(3)
Any council member, supervisory person, officer, or secretary of a Labuan foundation who without reasonable excuse fails to observe the requirements of subsection (1) or fails to comply with the requirements of subsection (2) commits an offence and shall, upon conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding five years or to both.
Labuan Foundations 43
(4)
All moneys or property described in subsections (1) and (2)
shall be forfeited to the Government and become its property absolutely.
Fraudulent disposition