While section 14A of the AMLA provides a general prohibition on the disclosure of STRs and related information, sections 14A(3)(a) to (d) allows for disclosure in certain circumstances.

Section 14A(3)(a) of the AMLA allows for disclosure of the STRs/CTRs if it is made in the course of acting in connection with the performance of his/her duties or the exercise of his/her function under the AMLA (e.g. disclosures to the internal audit).

It would be up to the assessment of the respective reporting institution whether such disclosure to the internal audit is warranted based on the above exemption provided under the AMLA.

Internal auditors are allowed to conduct testing on the parameters of reporting under section 14(1) of the AMLA and whether such parameters are able to ensure that the reports which should be submitted to Bank Negara Malaysia (the competent authority) are indeed submitted. 

However, reporting institutions are to note that if the appointed auditor is from an entity outside of Malaysia, written authorization for disclosure of CTR/STR and related information is to be obtained from FIED, BNM.

Whereas section 14A(3)(c) of the AMLA allows such disclosure if it is made as part of performing his/her duty as a director, officer or employee of a reporting institution to the supervisory authority of the reporting institution. As such, Securities Commission is allowed to have access to the STR information so long as the requirements of section 14A(3)(c) is met.

Reporting institutions should have in place appropriate controls in order to safeguard the confidentiality of the STRs in any of the permitted circumstances for disclosure.

Reporting institutions are prohibited from disclosing any suspicious transaction report and cash threshold report, as well as any information related to these reports, in accordance with section 14A of the AMLA.

However, the prohibition under the above does not apply where the exceptions under section 14A(3)(d) of the AMLA apply. Reporting institutions may apply for a written authorisation from Bank Negara Malaysia to share CTR or information related to CTR with their parent company located overseas.