Obligation related to terrorism and terrorism financing
Reporting institutions are required to maintain updated database of individuals and entities listed in the relevant UNSCR list and the Orders gazetted by the Minister of Home Affairs
Reporting institutions must conduct checks on the names of new customers, as well as regular checks on the names of existing customers, and potential customers, against the names in the database. If there is any name match, reporting institutions are required to take reasonable and appropriate measures to verify and confirm the identity of its customers. Once confirmation has been obtained, reporting institutions must immediately:
- freeze the customer’s funds or block the transaction (where applicable), if it involves an existing customer or reject the potential customer, if the transaction has not commenced;
- submit a suspicious transaction report; and
- inform the relevant supervisory authorities.
If there is any individual or entity listed under Section 66C or Section 66B attempts to perform a transaction, reporting institutions must not allow the transaction and submit suspicious transaction report (STR) to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia.