Sanctions Related to TF, PF and Other Sanctions

What is Targeted Financial Sanctions (TFS)?

What is Targeted Financial Sanctions (TFS)?

TFS are the measures of asset freezing and prohibitions to prevent funds or other assets from being made available, directly or indirectly, for the benefit of specified entities or designated persons who are being sanctioned, without delay.

The objective is to prevent:

Terrorists, terrorist organisations and terrorist financiers
Persons and entities involved in the proliferation of weapons of mass destructions

from raising, moving and using funds, consistent with the relevant United Nations Security Council Resolutions (UNSCRs).

Obligations related to Terrorism Financing (TF) and Proliferation Financing (PF)

Maintain and update a sanctions database based on United Nations Security Council Resolutions (UNSCR) list and domestic list by the Minister of Home Affairs
Screen the names of customers and any beneficial owners, beneficiaries (new, existing and potential) and related parties against the sanctions lists

I found a positive match. What do I do?

The reporting institutions are required to immediately and without delay:

Reject transactions for new or potential customers
Freeze or block funds for existing customers
Inform relevant supervisory authority i.e. Bank Negara Malaysia, Labuan Financial Services Authorities, Securities Commission, etc.
File suspicious transaction reports (including attempted transactions) to Financial Intelligence and Enforcement Department (FIED), Bank Negara Malaysia
Inform Inspector General of Police (for TF) only.

Where can I find the sanctions lists?

UN Security Council Resolutions (UNSCR) (Terrorism):
- 1267 Sanctions List
- 1988 Sanctions List
MOHA list
UNSCR (Proliferation of Weapons of Mass Destruction):
- 1718 Sanctions List
- 2231 Sanctions List

When do I conduct screening on customers?

Screening shall be conducted as part of the CDD process and on-going due diligence.

My name is on the sanctions list. What do I do?

Individuals or entities listed under Section 66C related to the UNSCR 1267 or Section 66B of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) on domestic list may apply for delisting to the Minister of Home Affairs.

For individuals or entities listed under UNSCR 1267, the Ministry of Home Affairs will forward the application to the United Nations Security Council Sanctions Committee on ISIL and Al-Qaida through the Ministry of Foreign Affairs.

For individuals or entities listed under UNSCRs 1718 and 2231, the Strategic Trade Secretariat, Ministry of International Trade and Industry will forward the application to United Nations Security Sanctions Committee on Democratic People's Republic of Korea (DPRK) (DPRK) and Iran through Ministry of Foreign Affairs.

Should listed individuals and entities require access to the frozen asset, an application for exemption can be made to the Minister of Home Affairs. This exemption is solely for basic necessities expenses only such as food, fees, utilities and medicines.

More information can be found here.