Section 3

any activity which constitutes any serious offence or any foreign serious offence; or

any activity which is of such a nature, or occurs in such circumstances, that it results in or leads to the commission of any serious offence or any foreign serious offence, regardless whether such activity, wholly or partly, takes place within or outside Malaysia;

Anti-Money Laundering, Anti-Terrorism 11

Financing and Proceeds of Unlawful

Activities

“Bank Negara Malaysia” means the Central Bank of Malaysia established by the Central Bank of Malaysia Act 2009 [Act 701];

“thing” includes material;

“specify” means specify in writing, and a power to specify includes the power to specify differently for different persons or different classes of persons and to amend any specification;

“prescribed” means prescribed by regulations made under this Act, and a power to prescribe includes the power to make different provisions in the regulations for different persons or classes of persons;

“document” has the same meaning as in the Evidence Act 1950 [Act 56];

“constituent document”, in relation to an institution, means the statute, charter, memorandum of association and articles of association, rules and by-laws, partnership agreement, or other instrument, under or by which the institution is established and its governing and administrative structure and the scope of its functions and business are set out, whether contained in one or more documents;

“proceeds of an unlawful activity” means any property, or any economic advantage or economic gain from such property, within or outside Malaysia—

which is wholly or partly—

derived or obtained, directly or indirectly, by any person from any unlawful activity;

which, wholly or partly, due to any circumstances such as its nature, value, location or place of discovery, or to the time, manner or place of its acquisition, or the person from whom it was acquired, or its proximity to other property referred to in subparagraph (a)(i), (ii) or (iii), can be reasonably believed to be property falling within the scope of subparagraph

“property” means—

assets of every kind, whether corporeal or incorporeal, moveable or immovable, tangible or intangible, however acquired; or

legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such assets, including currency, bank credits, deposits and other financial resources, traveller’s cheques, bank cheques, money orders, capital market products, drafts and letters of credit, whether situated within or outside Malaysia, and includes a legal or equitable interest, whether full or partial, in any such property;

“terrorist property” has the same meaning as in section 130B of the

Penal Code [Act 574];

“financial institution” means—

a licensed bank, licensed insurer and investment bank under the Financial Services Act 2013 [Act 758];

a licensed international

Islamic bank, licensed international takaful operator, licensed Islamic bank and licensed takaful operator under the Islamic Financial

Services Act 2013 [Act 759];

a prescribed institution under the Development Financial

Institutions Act 2002 [Act 618];

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Financing and Proceeds of Unlawful

Activities

a licensee under the Money Services Business Act 2011

[Act 731];

a person licensed or registered under the *Capital Markets and Services Act 2007 [Act 671];

the central depository established under the Securities

Industry (Central Depositories) Act 1991 [Act 453];

a bank licensee, an insurance licensee, a securities licensee and any entity licensed or registered under the Labuan

Financial Services and Securities Act 2010 [Act 704];

an Islamic bank licensee, a takaful licensee, an Islamic securities licensee and any entity licensed or registered under the Labuan Islamic Financial Services and

Securities Act 2010 [Act 705]; and

a person prescribed by the Minister of Finance under section 12A;

“reporting institution” means any person, including branches and subsidiaries outside Malaysia of that person, who carries on any activity listed in the First Schedule;

“conveyance” includes any vessel, train, motor vehicle, aircraft and any other means of transport by which persons or goods can be carried;

“serious offence” means—

any of the offences specified in the Second Schedule;

an attempt to commit any of those offences; or



*NOTE—This Act has replaced the Securities Industry Act 1983 [Act 280] and the Futures Industry Act 1993

[Act 499] which comes into operation on 28 September 2007 except for Division 2 of Part VI–see subsection 381(2) of Act 671 and P.U. (B) 143/2010 which comes into operation on 1 April 2010.

14 Laws of Malaysia

the abetment of any of those offences;

“foreign serious offence” means an offence—

against the law of a foreign State stated in a certificate purporting to be issued by or on behalf of the government of that foreign State; and

that consists of or includes an act or activity which, if it had occurred in Malaysia, would have constituted a serious offence;

“terrorism financing offence” means any offence under section 130N, 130O, 130P or 130Q of the Penal Code;

“money laundering offence” means an offence under subsection 4(1);

“Labuan Financial Services Authority” means the Authority established under section 3 of the Labuan Financial Services Authority

Act 1996 [Act 545];

“material” includes any book, document or other record in any form and any container or article relating to it;

“Minister of Home Affairs” means the Minister charged with the responsibility for internal security;

“Minister of Finance” means the Minister charged with the responsibility for finance;

“foreign State” means any country or territory outside Malaysia;

“customer” includes a client;

“controller”, in relation to an institution, means—

the chief executive officer of the institution or of a body corporate of which the institution is a subsidiary;

Anti-Money Laundering, Anti-Terrorism 15

Financing and Proceeds of Unlawful

Activities

a person, either alone or with any associate—

has interest in one third or more of its voting shares;

any thing which is used in, or in connection with, the commission of any unlawful activity; or

any property which is wholly or partly used in, or in connection with, the commission of any unlawful activity, whether the thing or property is situated within or outside Malaysia;

“business” means—

any business registered under any written law providing for the registration of businesses;

a corporation incorporated or registered under the

*Companies Act 2016 [Act 777] and an associate of that corporation; or

any venture or concern in any trade, commerce, profession, vocation or any other similar activity, whether or not it is carried on for a pecuniary gain or profit, and whether or not conducted on a regular, repetitive or continuous basis,



*NOTE—This Act has replaced the Companies Act 1965 [Act 125]–see subsection 620(1) of Act 777.

16 Laws of Malaysia and includes all assets derived from or used in or for the purpose of carrying on such business activity, and all interests, rights and liabilities arising from such business activity;

“competent authority” means the person appointed under subsection 7(1);

“premises” includes—

a structure (whether or not movable or offshore), building, tent, vehicle, vessel, hovercraft or aircraft;

a place (whether or not enclosed or built upon); and

part of any premises (including premises of a kind referred to in paragraph (a) or (b));

“capital market products” has the same meaning as in the Capital

Markets and Services Act 2007;

“process” means any summons, warrant, order or other document in respect of a criminal matter that is issued—

out of any court; or

out of any court of a foreign State, or by any judge, magistrate or officer of such a court, as the case may be;

“criminal proceedings” means a trial of a person for a serious offence or foreign serious offence, as the case may be, and includes any proceedings to determine whether a particular person should be tried for the offence;

“relative”, in relation to a person, means—

a spouse of that person;

Anti-Money Laundering, Anti-Terrorism 17

Financing and Proceeds of Unlawful

Activities

a brother or sister of that person;

a brother or sister of the spouse of that person; or

any lineal ascendant or descendant of that person;

“associate”, in relation to a person, means—

any person who is a nominee or an officer of that person;

any person who manages the affairs of that person;

any firm of which such person, or any nominee of his, is a partner or a person in charge or in control of its business or affairs;

any corporation within the meaning of the *Companies Act 2016, of which such person, or any nominee of his, is a director or is in charge or in control of its business or affairs, or in which such person, alone or together with any nominee of his, has or have a controlling interest, or shares to the total value of not less than thirty per centum of the total issued capital of that corporation; or

the trustee of any trust, where—

the trust has been created by that person; or

receiving or acquiring the property;

concealing or disguising the property (whether by concealing, or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it or otherwise);

disposing of or converting the property;

bringing the property into or removing the property from

Malaysia;

using the property to borrow money, or as security

(whether by way of charge, mortgage or pledge or otherwise); or

where a debt is owed to the person holding the property, making a payment to any person in reduction of the amount of the debt.

a reference to a foreign State includes a reference to—

a territory of that foreign State; and

a reference to the law of a foreign State includes a reference to the law in force in any part of that foreign State.