“Without delay”, in respect of maintenance of sanctions list and freezing, blocking and rejecting is ideally within a matter of hours of designation by the United Nations Security Council (UNSC) or its relevant Sanctions Committee or the Minister of Home Affairs. The aim is to prevent the flight or dissipation of funds or other assets which are linked to terrorists, terrorist activities, financing of terrorism or financing of proliferation of weapons of mass destruction.

Reporting institutions may refer to the following websites for the lists:

UNSCR Lists:

https://www.un.org

Domestic List:

http://www.federalgazette.agc.com.my 

Reporting institutions are required to keep updated with the UNSCR Lists and Domestic List, which is updated without any specific intervals.

In this regard, reporting institutions shall refer the UNSCR and Ministry of Home Affairs' website (and the relevant subsidiary legislation or Gazette Orders) regularly to ensure the lists maintained remain updated and relevant.

No. Removal from UNSCR list does not automatically mean that the entities are removed from the Domestic List. The delisting from Domestic List will only take effect upon publication of the Gazette to declare the removal of such specified entities through the relevant subsidiary legislation issued by the Minister of Home Affairs.

Reporting institutions are required to conduct sanctions screening on existing, potential or new customers against the UNSCR Lists and Domestic List which state names and particulars of specified or designated entities as declared by the UNSC or Minister of Home Affairs, as part of the customer due diligence process and on-going due diligence. 

For customers which are legal persons, reporting institutions are required to screen the name of the customer, i.e. companies, bodies corporate, foundations, partnerships, or associations and other similar entities, as well as the beneficial owners, i.e. directors, shareholders including nominees, against the sanctions lists. 

This refers to various ways of conducting search against the UNSCR Lists and Domestic List, for example, varying sequence and order of keywords of a name or the use of different spelling of a name, to prevent unintended omissions.

Further, to eliminate false positives, reporting institutions may make enquiries for additional information and identification documents from the customer or credible sources to assist in determining whether the potential match is a true match or may direct any query to FIED, BNM, in the case of similar or common names.

Reporting institutions are required to ascertain that potential matches are true matches and not false positives. It is the reporting institution’s responsibility to take further measures or steps (e.g. make further inquiries for additional information, etc.) to determine whether the potential match is a true match.

Reporting institutions are to ensure that the identifiers are strong and corroborative for the reporting institution to make their own assessment on the parameters used to ensure true matches. 

Related party refers to:

1. person related to the funds, other financial assets or economic resources that are wholly or jointly owned or controlled, directly or indirectly, by a designated person; and
2. a person acting on behalf or at the direction of a designated person.

Based on the above, it may extend to shareholders, directors, authorized person, senior management and also the beneficial owner.

Reporting institutions are required to hold or freeze funds deposited by a listed individual or entity into their clients’ account until its delisting or the sanction is uplifted.

Reporting institutions are only allowed to inform the customer on the reason why the account or transaction has been frozen, blocked or rejected for publicly listed names, e.g. under the Gazette Orders, UNSCR Lists, etc.

A loan / financing account should not be frozen and can continue to receive repayments. However, when the repayment is completed, the property, pawn items or vehicle, if any, must not be redeemed, transferred or sold.

Funds are to remain frozen as long as the specified entities remained listed. No dealing with the funds is allowed, which includes the transfer of funds to the Registrar of Unclaimed Moneys.

In relation to unilateral sanction list such as those by the US Department of Treasury, the decision whether to freeze, block, reject or conduct transaction with persons listed under the unilateral list should be based on the reporting institution’s own assessment and its risk appetite.

Reporting institutions may consider submitting STR on any positive name match with individuals or entities listed in other unilateral sanctions list.

Yes. Reporting institutions are permitted to receive payments into the specified entities loan or financing accounts. However, should the payment be for the purchase of assets, the assets should remain frozen even after the full settlement of the financing facilities i.e.  no transfer of ownership to the specified entity or a third party.

In the event of any non-payment of loans, the reporting institution shall not proceed with legal action or any subsequent court process without prior application to, and approval by:

1. the Minister of Home Affairs for Domestic List and UNSCR Lists for terrorism financing; or
2. the Strategic Trade Controller for UNSCR Lists for proliferation financing and others sanctions regime.

Reporting institutions may close any account where loans are not serviced, only upon approval from:

1. the Minister of Home Affairs for Domestic List and UNSCR Lists for terrorism financing; or
2. the Strategic Trade Controller for UNSCR Lists for proliferation financing and others sanctions regime.

Yes. Submission of STR is still required in addition to submission of TFS determination report. The STR should contain further information beyond the information reported in the TFS determination report, for example, details of related transactions or parties.

Reporting institutions are not required to submit determination or periodic reporting form in the event of no name match with the specified entity or designated person.