Malaysia legislation

Section 19

of *ANTI-MONEY LAUNDERING, ANTI-TERRORISM FINANCING, ANTI-RESTRICTED ACTIVITY FINANCING AND PROCEEEDS OF UNLAWFUL ACTIVITIES ACT 2001

Section 19

(2)

The programmes in subsection (1) shall include—

(a)

the establishment of procedures to ensure high standards of integrity of its employees and a system to evaluate the personal, employment and financial history of these employees;

(b)

on-going employee training programmes, such as “know-your-customer” programmes, and instructing employees with regard to the responsibilities specified in sections 13,

14, 14A, 15, 16 and 17; and

(c)

an independent audit function to check compliance with such programmes.

(3)

A reporting institution shall implement compliance programmes under subsection (1) on its branches and subsidiaries in and outside Malaysia.

(4)

A reporting institution shall also designate compliance officers at management level in each branch and subsidiary who will be in charge of the application of the internal programmes and procedures, including proper maintenance of records and reporting of suspicious transactions.

(5)

A reporting institution shall develop audit functions to evaluate such policies, procedures and controls to test compliance with the

Anti-Money Laundering, Anti-Terrorism 41

Financing and Proceeds of Unlawful

Activities measures taken by the reporting institution to comply with the provisions of this Act and the effectiveness of such measures.

Secrecy obligations overridden

*20. The provisions of this Part shall have effect notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by any written law or otherwise.

Obligations of supervisory or licensing authority

Section 19 — ANTI-MONEY LAUNDERING, ANTI-TERRORISM FINANCING, ANTI-RESTRICTED ACTIVITY FINANCING AND PROCEEEDS OF UNLAWFUL ACTIVITIES ACT 2001