BNM's AML/CFT Newsletter 01/2023 - Anti Money Laundering / Countering Financing of Terrorism (AML/CFT)

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null BNM's AML/CFT Newsletter 01/2023

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1. Inclusion of Myanmar in the list of high-risk jurisdictions subject to a call for action (black list)

FATF had in October 2022 included Myanmar in the black list due to the its lack of progress in addressing its AML/CFT strategic deficiencies. The majority of Myanmar action items are still not addressed after a year beyond the action plan deadline in September 2021. FATF calls on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risk arising from Myanmar. When applying enhanced due diligence measures, countries should ensure that flows of funds for humanitarian assistance, legitimate NPO activity and remittances are not disrupted. Currently, Democratic People’s Republic of Korea and Iran are in the list of jurisdictions subject to a call for action for countries to apply countermeasures.

FATF Notice Public Statement October 2022

What do you need to do?

AML/CFT Guide for DNFBPs and NBFIs

2. Gazette Order on AMLA (Declaration of Specified Entities and Reporting Requirements) (Amendment) Order 2023

What do you need to do?

Reporting institutions are to act in accordance with the requirements under the Policy Document, including:

1. Update the relevant sanctions list within the firm;
2. Screen existing, potential, and new customers;
3. In the event of a positive name match:

a. Reject transactions for new/potential customers;

b. Freeze funds/ properties for existing customers;

c. Block transactions (where applicable);

4. Report, if positive name match (both STRs and determination form in the Appendix 5 and 6A, 6b, 7A or 7B of the PD)

Infographic on Targeted Financial Sanctions

Please find the relevant forms as linked:

STR forms

Determination Form

3. Call for Action: Suspicious Transaction Report (STR)

Do you have an internal mechanism to detect and submit STR to Bank Negara Malaysia?

Do you know that an effective AML/CFT mechanism put in place in your institutions will enable you to detect suspicious transactions and report STR?

What is suspicious transaction?

How do I identify suspicious transactions?

Please click for more information on STR (STR Infographic)

4. Outcomes of the FATF Plenary, 22-24 February 2023

a) International Cooperative Review

The February 2023 FATF Working Groups and Plenary meetings were held from 20 to 24 February 2023. . The following are the other key outcomes of the Plenary meetings:

North Korea, Iran and Myanmar remain in the list of high-risk jurisdictions subject to a call of action (blacklist) - Reporting institutions are required to apply "enhanced due diligence" on customers from these jurisdictions.
Inclusion of South Africa and Nigeria in the list of jurisdictions under increased monitoring (grey list) - Reporting institutions are required to conduct risk assessment on the customers from these jurisdictions and apply risk mitigating measures according to the risk level.
Removal of Cambodia and Morocco from the list of jurisdictions under increased monitoring (grey list).

b) Policy Development

The FATF Plenary finalised a guidance document which will help countries implement the revised requirements of Recommendation 24 on transparency of legal persons. This also includes assessing and mitigating the money laundering and terrorist financing risks associated with foreign companies countries are exposed to. In addition, this guidance aims to facilitate the implementation of the measures to prevent shell companies from being safe havens for illicit proceeds from crime or terrorism. This Guidance have been published in March 2023 as below:

Please click for the link for FATF Guidance on BO of Legal Person

Please click for the link for Outcomes FATF Plenary, 22-24 February 2023

5. Implementation of Beneficial Ownership (BO) Requirements by Legal Sector

Bank Negara Malaysia (BNM) is issuing a thematic report on the Implementation of Beneficial Ownership (BO) Requirements to the legal sector to deter and prevent the misuse of legal persons for money laundering, terrorism financing or other crimes through the legal sector.

The report highlights on the best practices in identification and verification of BOs of legal persons by law firms as well as common gaps or challenges faced by the sector.

The report is issued as limited circulation to the legal sector and will be circulated through the nominated Compliance Officer, self-regulated bodies and industry association of the legal sector.

6. AML/CFT Data & Compliance Report

BNM will not be issuing the DCR for year 2023 to DNFBP and NBFI reporting institutions (RIs).

Nevertheless, RIs including those who have received their respective report cards, are expected to fully comply with the requirements of the AMLA and AML/CFT and TFS for DNFBPs and NBFIs Policy Document. Bank Negara Malaysia will be pursuing enforcement actions for non-submission of the DCR.

7. Other Updates

a) SSM National Conference 2023 (SSMNC2023)

Register now for the 2023 SSM National Conference with the theme “Shared Responsibility in Strengthening AML/CFT Compliance: Risks, Challenges and Collaboration”. This 2-day virtual conference on 25 & 26 July 2023 aims to bring closer collaborative efforts among all players in the anti-money laundering / countering financing of terrorism (AML/CFT) ecosystem and instil a stronger compliance culture.

For more informtion on the Conference, please visit www.ssm.com.my or click here or scan the QR Code.

Link to Conference information

Link to FAQs of SSMNC 2023

b) AML/CFT Compliance Programmes for Accountants [2023 MIA Webinar Series]

Malaysian Institute of Accountant (“MIA”) is organising webinars on AML/CFT Compliance Programmes as follows:

AML/CFT Masterclass: Workshop 1 - Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) for Designated Non-Financial Businesses and Professions (DNFBPS): An overview for Accountants and Company Secretaries (19 April 2023)
AML/CFT Masterclass: Workshop 2 - Guidance to comply with Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) for Accountants and Company Secretaries - Advance level (25 May 2023)
AML/CFT Masterclass: Workshop 3 -Risk based Approach to comply with Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) for Accountants and Company Secretaries - Advance level (8 June 2023)
Suspicious Transaction Report (STR) - Effective AML/CFT Transaction Monitoring (NEW) (22 June 2023)

Please refer to the brochures as per below link for more details:

Please click for the link for the Masterclass's brochures

Please click for the link for the STR's brochures

DNFBPs and NBFIs AML/CFT Awareness

Notification on Appointment of Compliance Officer

For RIs that have yet to notify BNM on the appointment of, or changes to, the appointed Compliance Officer (CO), please click on the link below for the notification. The e-form is preferred as the process could be fully automated in dispensing the CO reference number.

Click to request for CO's Notification Form

Or copy paste the URL address below to your internet browser:
https://amlcft.bnm.gov.my/co/

Access to BNM's AML/CFT E-Platform

The private E-Platform hosts a repository of awareness video materials including all the AML/CFT Webinar series for the DNBP and NBFI sectors.

For RIs that have yet to register for access to the E-Platform, do so by clicking on the button below:

Click to register for E-Platform access

Or copy paste the URL address below to your internet browser:
https://amlcft.bnm.gov.my/ep/

Note:

CO who is requesting access to the webinar videos must be a registered YouTube account user.
Only CO who has notified their appointment to BNM will be able to view the videos.
Notification with the videos link will be automatically sent to the registered YouTube account.