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What are the powers accorded under Section 66C?

Section 66C provides the Minister of Home Affairs the power to make orders containing provisions that are necessary or expedient to enable effective application of the measures decided by the UNSC in accordance with Article 41 of the United Nations Charter.

Sanctions Related to Terrorism and Terrorism Financing

Sanctions under UNSCR 1267 (and its successor Resolution) and UNSCR 1988

Sanctions related to terrorism and terrorism financing are financial sanctions issued out by the UNSC for Al Qaida and the Taliban as well as their associated individuals and entities. This obligation is stipulated under Section 66C of the AMLA and has been gazetted.

When an order under Section 66C is made citizen of Malaysia or body corporate are prohibited from being involved or associated with any individuals or entities designated. Among others the prohibition includes directly or indirectly:

  • providing or collecting any property to be used by the listed individual or entity;
  • dealing with property and funds derived from property owned or controlled by the listed individual or entity;
  • entering into any transaction with regard to property of the listed individual or entity;
  • providing any financial or other related services to the listed individual or entity; and
  • making available any property or any financial or related services for the benefit of the listed individual or entity.

The list of individuals and entities sanctioned under these United Nations Security Council Resolutions (UNSCRs) 1267 and its successor Resolutions (Al-Qaida Sanction List) and UNSCR 1988 can be found at the following links at the UNSC website:

http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml
http://www.un.org/sc/committees/1988/list.shtml

Reporting institutions are required to update their internal database based on the updated lists of both UNSC lists at every two weeks to ensure their database are kept updated.

After having been informed by the Ministry of Home Affairs on the Order made under section 66C, communication of the Order to the reporting institutions was made by the following regulators:

  1. Bank Negara Malaysia

  2. For Securities Commission of Malaysia, please refer to the link below:
    http://www.sc.com.my/home/anti-money-laundering-and-anti-terrorism-financing/

  3. For Labuan FSA, please refer to the link below:
    http://www.lfsa.gov.my/web/guest/amla/cft

All reporting institutions are required to report to their respective supervisory authorities if there is any match to the names gazetted and submit suspicious transaction report (STR) to the Financial Intelligence and Enforcement Department, Bank Negara Malaysia. Subsequently, all reporting institutions are required to report the status at every 6 months interval which is by 5th January and 5th July of that year.

Malaysia’s Listing (Country Listing) Related to Terrorism and Terrorism Financing

Section 66B of the AMLA enables Malaysia to issue a domestic listing related to terrorism and terrorism financing in line with the requirements of the UNSCR 1373.

The list is administered by the Ministry of Home Affairs.

The latest gazette order issued under Section 66B could be found at:

http://www.federalgazette.agc.gov.my/
http://www.moha.gov.my/

The Order for implementation of UNSCR 1373 was communicated to the reporting institutions through FINS (8/4/2014), Regulatory Handbook and Bank Negara Malaysia’s website.

After having been informed by the Ministry of Home Affairs (MoHA) on the Order made under section 66B, communication of the Order to the reporting institutions was made by the following regulators:

  1. Bank Negara Malaysia

  2. For Securities Commission of Malaysia, please refer to the link below:
    http://www.sc.com.my/home/anti-money-laundering-and-anti-terrorism-financing/

  3. For Labuan FSA, please refer to the link below:
    http://www.lfsa.gov.my/web/guest/amla/cft

All reporting institutions are required to report to their respective supervisory authorities if there is any match to the names gazetted and submit suspicious transaction report (STR) to the Financial Intelligence and Enforcement Department, Bank Negara Malaysia. Subsequently, all reporting institutions are required to report the status at every 6 months interval which is by 15th May and 15th November of that year.

Important information for Individuals or Entities Affected by the United Nations Security Council Resolutions (UNSCRs) and/or Country Listing
( i ) For individuals or entities designated under UNSCR 1267 (Section 66C of the AMLA):
  • The individuals and entities are included in parallel listing under Section 66C of the AMLA. The internal process is undertaken by the relevant agencies including the Ministry of Home Affairs and Ministry of Foreign Affairs to make effect or make application on behalf of the designated individuals and entities to the Al-Qaida Sanction Committee.
( ii ) For individuals or entities designate by Malaysia and listed under Section 66B of the AMLA:
  • The authority to approve individuals or entities’ applications is the Minister of Home Affairs.
How to Apply for a Delisting?
Individuals or entities listed under Section 66C related to the UNSCR 1267 or Section 66B on domestic list may put their application for delisting to the Ministry of Home Affairs. For individuals or entities listed under UNSCR 1267, the Ministry of Home Affairs will forward the application to the United Nation’s Al-Qaida Sanction Committee through the Ministry of Foreign Affairs.
How to Apply for Variation to the Freezing Order?
Individuals or entities affected by both listings may apply for a variation to the freezing requirements for their necessary basic and extraordinary expenses. All applications for a variation should be submitted directly to the Ministry of Home Affairs.
Procedures for Persons Affected by a “False Positive”
Individuals or entities who are inadvertently affected by the freezing requirements due to a name match (false positive) may seek assistance from the Ministry of Home Affairs to verify their identification status.
Contact Point Relating to the UNSCRs and country listing
For any enquiries on matters relating to the UNSCRs and domestic listing, please refer to the contact point in the Ministry of Home Affairs, as follows :
http://www.moha.gov.my/