Conceptualizing terrorist financing in the age of uncertainty

2016 ◽  
Vol 19 (4) ◽  
pp. 397-406
Author(s):  
Zaiton Hamin ◽  
Rohana Othman ◽  
Normah Omar ◽  
Hayyum Suleikha Selamat
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Secondary Data ◽  
Penal Code ◽  
Primary Sources ◽  
Content Type ◽  
Secondary Sources ◽  
Online Databases ◽  
International Policies ◽  
Terrorism Financing

Purpose The purpose of this paper is to conceptualize the concept of terrorism, terrorism financing, the relationship between money laundering and terrorism financing and the governance of terrorism financing. Design/methodology/approach This paper adopts a doctrinal, content analysis and secondary data, of which the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and the Penal Code are the primary sources. The secondary sources for this paper include articles in academic journals, books and online databases. Findings Several methods are involved in the commission of terrorism financing such as raising, moving and using of funds. The activities relating to terrorism financing under the Penal Code are broader than such activities. Despite the adherence by Malaysia to international policies established by the Financial Action Task Force, terrorism financing has remained a threat that must be addressed by the relevant authorities. Practical implications This paper could be a useful source of information for the practitioners, academicians, policymakers and students studying this particular area of crime. Originality/value This paper contributes to a discourse on terrorism financing in the Malaysian context.

Airing Dirty Laundry: Reforming the Anti-Money Laundering and Anti-Terrorism Financing Regime in Malaysia

Global Jurist ◽  
2016 ◽  
Vol 16 (1) ◽  
Author(s):  
Zaiton Hamin ◽  
Normah Omar ◽  
Wan Rosalili Wan Rosli
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Primary Source ◽  
Secondary Data ◽  
Secondary Sources ◽  
National Boundary ◽  
Online Databases ◽  
International Policies ◽  
Terrorism Financing ◽  
Financial Action Task

AbstractDealing with money laundering has been one of the toughest struggles nations around the world, including Malaysia, have had to face. Prevalent international concerns over such crime have led to the establishment of international policies and standards by the Financial Action Task Force (FATF), which aimed at preventing and ultimately criminalising such crime within the national boundary. In accordance with such policies, Malaysia has introduced the Anti-Money Laundering Act in 2001 (AMLA) as a legal modality in governing such crime. It has been amended and renamed the AMLATFA in 2003 to include terrorism financing. Again, recently in late 2013, AMLATFA has been amended to keep up with changing standards and times. Within this legal landscape, this paper will highlight the instrumental and normative problems surrounding the said legislation. The authors contend that despite the adherence to global governance standards, legal deficiencies in the AML/ATF law in Malaysia remained, which merits urgent attention and action from the relevant authorities. This paper employs a doctrinal legal research and secondary data of which the AMLATFA is the primary source. The secondary sources for this article include decided cases, articles in academic journals, books and online databases.

Recent changes to the AML/CFT law in Malaysia

2017 ◽  
Vol 20 (1) ◽  
pp. 5-14
Author(s):  
Zaiton Hamin
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Primary Source ◽  
Secondary Data ◽  
International Standards ◽  
Content Type ◽  
Secondary Sources ◽  
Online Databases ◽  
Terrorism Financing ◽  
The Uk

Purpose The aim of this paper is to examine some of the recent changes to the old anti-money laundering and anti-terrorism financing law, which is now known as the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. The paper will highlight the newly consolidated money laundering offences and the newly created offences including structuring of transactions or “smurfing”. Also, the transgression of cross-border movement of cash and negotiable instruments and tipping off about a money laundering disclosure will be assessed. Design/methodology/approach The paper uses a doctrinal legal research and secondary data, with the new AML/CFT legislation as the primary source. For comparative analysis, legislations in the UK, Australia and New Zealand are also examined. Secondary sources include case law, articles in academic journals, books and online databases. Findings The review of the AML/CFT law is timely and indicates the Malaysian government’s efforts to adhere to international standards set by the financial action task force. However, it is imperative that the Malaysian government addresses the remaining instrumental and normative deficiencies in the AML/CFT law to ensure that the recent legal changes are sufficiently comprehensive to prevent and regulate money laundering and terrorist financing within Malaysia. Originality/value This paper is a useful source of information for legal practitioners, academicians, law enforcement, policymakers, legislators, researchers and students.

An analysis of the forfeiture regime under the anti-money laundering law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aspalella A. Rahman
Keyword(s):  
Money Laundering ◽  
Secondary Data ◽  
Primary Sources ◽  
Court Cases ◽  
Sources Of Information ◽  
Content Type ◽  
Terrorism Financing ◽  
Bona Fide ◽  
Descriptive Approach ◽  
Insight Into

Purpose This paper aims to analyze the forfeiture regime under the Malaysian anti-money laundering law. Apart from discussing the relevant provisions, several court cases also were examined to identify the problems which arise in the implementation of such a powerful forfeiture regime. Design/methodology/approach This paper mainly relies on statutes and court cases as its primary sources of information. It is supported by secondary data to justify the analysis. This paper also used analytical descriptive approach to analyze relevant forfeiture provisions from statutes and to examine current court cases regarding the implementation of the forfeiture regime. Findings The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) provides comprehensive procedures for the forfeiture of criminal proceeds. Any limitations of the previous statutory legislations have been addressed, and more importantly, the AMLATFPUAA introduces more powerful and innovative measures that can facilitate the recovery of illegal proceeds from money laundering and any other serious crimes. The AMLATFPUAA also provides avenue for the bona fide third parties to contest the forfeiture order. However, it appears that such right is not easy to be enforced. Originality/value This paper provides an analysis of the forfeiture regime under Malaysian anti-money laundering laws. It is hoped that the content of this paper can provide some insight into this particular area for enforcement authorities, practitioners, academics, policymakers and legal advisers not only in Malaysia but also elsewhere. The findings of this paper also expose any weakness or lacunae in the aspects of application and implementation of the forfeiture regime. Thus, more effective and workable legal solution especially on the issue of civil forfeiture of criminal assets could be considered for further accomplishment.

FATF and money laundering in Iran

2018 ◽  
Vol 21 (3) ◽  
pp. 314-327 ◽  
Author(s):  
Mansour Rahmdel
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Armed Forces ◽  
Penal Code ◽  
Content Type ◽  
Psychotropic Substances ◽  
International Regulations ◽  
Terrorism Financing ◽  
The Subject ◽  
International Conventions

Purpose The aim of this paper is considering that obtaining illegitimate property and obtaining property illegally is morally outrageous. The law also condemns it as a crime. The act of those who launder the proceeds of crime is also condemned. This condemnation is almost universal. So, money laundering as a way of diversion of the origin of the illegal gains into legitimate currency or other assets has been criminalized in most of the countries, including in Iran. Before criminalization of money laundering, there were different laws which referred to the case without referring to the term of money laundry. According to Article 49 of the Iranian Constitution “all proceeds of illegal sources like embezzlement, bribery, gambling and other ways should be confiscated.” Design/methodology/approach Article 662 of the Islamic Penal Code (IPC) ratified in 1996 criminalized dealing with the proceeds of theft and Note 2 of Article 119 of the Penal Code of the Armed Forces criminalized obtaining the proceeds of embezzlement. But, in 2008, to follow the international conventions, especially Article 3 of the psychotropic substances 1988 in Vienna and also Financial Action Task Force (FATF) recommendations on Money Laundering and Terrorism Financing, the legislator ratified the anti-money laundering code (AMLC). The methodology is an analytical one. The author using an analytical method, has analyzed the subject with consideration of Iran’s situation, as well as international documents and FATF’s recommendations. Findings The author has studied the issue, believing that domestic regulations of Iran comply with international regulations and FATF recommendations. The current paper considers the different aspects of the AMLCs in Iran in relation to FATF recommendations. Originality/value The author confirms the originality of the paper and declares that he has referred all the other materials.

Configuring criminal proceeds in money laundering cases in the UK

2014 ◽  
Vol 17 (4) ◽  
pp. 374-384 ◽  
Author(s):  
Zaiton Hamin ◽  
Wan Rosalili Wan Rosli ◽  
Normah Omar ◽  
Awang Armadajaya Pengiran Awang Mahmud
Keyword(s):  
Money Laundering ◽  
Primary Source ◽  
Secondary Data ◽  
Case Law ◽  
Legal Analysis ◽  
Content Type ◽  
Secondary Sources ◽  
Online Databases ◽  
The Uk ◽  
Source Of Information

Purpose – The purpose of this paper is to examine the way in which the courts in the UK have interpreted the meaning of criminal property in the principal money laundering offenses under the Proceeds of Crime Act 2002 (POCA). Design/methodology/approach – This paper employs a doctrinal legal analysis and secondary data, which analyze the primary source, which is POCA itself, and secondary sources including case law, articles in academic journals, books and online databases. Findings – The authors contend that the courts in the UK have been dynamically interpreting the ambit of money laundering offenses in POCA and that despite such judicial activism in the construction of criminal property, it has provided a much needed certainty to the law. Originality/value – This paper could be a useful source of information for the practitioners, academicians, policymakers and students in this particular area of crime.

Role of FATF on financial systems of countries: successes and challenges

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nankpan Moses Nanyun ◽  
Alireza Nasiri
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Evaluation Process ◽  
Peer Pressure ◽  
Policy Framework ◽  
Financial Systems ◽  
Content Type ◽  
Secondary Sources ◽  
Adoption And Implementation ◽  
Successes And Challenges

Purpose This paper aims to examine the extent of successes and challenges of adoption and implementation of Financial Action Task Force (FATF) codes in member states by highlighting the influence of the FATF anti-money laundering policy framework on money laundering (ML) and the way forward in heightening the fight against the fast-evolving nature of ML and terrorist financing activities. Design/methodology/approach This paper, based on a purely qualitative desktop study, is drawn on historical information from FATF’s recommendations, its periodic reports, publications and other secondary sources such as books, journal articles on financial systems and scholarly literature. Findings The challenges found include difficulty in domestic coordination, capacity constraints of countries, inadequate operational resources and assessment complexities in the implementation of FATF standards. Nonetheless, FATF has chalked some successes such as the harmonization of legislation and enforcement efforts through the provision of coordination points. Other successes include flexibility in response to new threats, adoption of the mutual evaluation process, which advanced peer pressure on defaulting members, enhancement of the international financial space and the enhancement of the legitimization of FATF’s processes. Originality/value This paper provides a description of the successes and challenges of the FATF’s 40 + 9 recommendations since its establishment. The outcome would alert countries and players within the international financial space to invest more in capacity building and the entrenchment of the recommendations into their domestic laws.

Institutionalization of risk management framework in Islamic NGOs for suppressing terrorism financing

2014 ◽  
Vol 17 (1) ◽  
pp. 96-109 ◽  
Author(s):  
Radiah Othman ◽  
Rashid Ameer
Keyword(s):  
Risk Management ◽  
Money Laundering ◽  
Process Model ◽  
Task Force ◽  
Political Process ◽  
Asia Pacific ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Terrorism Financing

Purpose – The aim of this paper is to propose solutions for improving internal controls and transparency to alleviate concerns of international community over alleged linked with terrorist groups. Design/methodology/approach – The authors explore the counter-insurgency theory and political process model to explain the current state of counter-terrorism activities aimed at Islamic NGOs after 9/11. Findings – The authors believe the idea of money flow disruption to be of greater importance than freezing the accounts to suppress terrorism financing. Practical implications – Islamic NGOs established for philanthropic and humanitarian aid in third world Muslim countries have been accused of being involved in terrorism financing. This revelation is to the disadvantage of the donors who do not channel their donations for such activities. The authors propose risk management framework useful at operational level to detect and prevent welfare activities financing warfare activities. Originality/value – The proposed risk management framework is to complement various regional and international initiatives championed by Asia/Pacific Group on Money Laundering and Financial Action Task Force to combat money laundering and terrorist financing.

Anti-money laundering obligations and dismissal of bankers: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aspalella A. Rahman ◽  
Harlida Abdul Wahab
Keyword(s):  
Money Laundering ◽  
Secondary Data ◽  
Primary Sources ◽  
Court Cases ◽  
Sources Of Information ◽  
Content Type ◽  
Legal Risks ◽  
Significant Burden ◽  
The Law ◽  
The Right

Purpose This paper aims to analyse the anti-money laundering (AML) obligations imposed on bankers as the main reporting entities under the AML regime in Malaysia. Apart from discussing the relevant provisions, several court cases were also examined to identify the problems which arise in the implementation of the law and the risk of dismissal that bankers may face. Design/methodology/approach This paper mainly relies on statutes and court cases as its primary sources of information. It is supported by secondary data to justify the analysis. This paper also uses an analytical descriptive approach to analyse relevant provisions from statutes and to examine current court cases regarding the implementation of the AML obligations on bankers. Findings It is submitted that the AML legislation imposes a significant burden of reporting requirements on the bankers, failure of which may justify the dismissal or termination of their services. In other words, the law has not only altered the way bankers deal with their customers but also poses substantial legal risks to their security of tenure. Indeed, getting the right balance between the need to combat money laundering and the interests of bankers is a difficult exercise. Originality/value This paper provides an analysis of the liability of bankers under Malaysian AML laws. It is hoped that the content of this paper can provide some insight into this particular area for bankers, enforcement authorities, practitioners, academics, policymakers and legal advisers, not only in Malaysia but also elsewhere. The findings of this paper also highlight the risks that bankers may face for non-compliance with the reporting obligations under the AML laws.

Implications of forfeiting property in money laundering cases in Malaysia

2017 ◽  
Vol 20 (4) ◽  
pp. 334-344
Author(s):  
Zaiton Hamin ◽  
Normah Omar ◽  
Muhammad Muaz Abdul Hakim
Keyword(s):  
Private Property ◽  
Secondary Data ◽  
Legal Analysis ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Secondary Sources ◽  
Online Databases ◽  
Broad Concept ◽  
Bona Fide ◽  
The Uk

Purpose The purpose of this paper is to examine the broad concept of forfeiture, its legal positions in the UK and Malaysia, and to highlight the implications of such forfeiture systems and legislations. Design/methodology/approach This paper uses a doctrinal legal analysis and secondary data, which analyses primary sources, the POCA (2002) and the AMLATFA 2001, and secondary sources including case law, articles in academic journals, books and online databases. Findings The authors contend that the civil forfeiture system and law have far-reaching implications, affecting not only law enforcement agencies, but also on property owners, the courts and bona fide third parties. Also, civil forfeiture law as contained in AMLATFA 2001 represents one of the most serious encroachments on private property rights. Not only that, such a legal rule has made property, and not the owner, guilty until proven innocent. Originality/value This paper could be a useful source of information for practitioners, academicians and students. It could also be a beneficial guide for policymakers for any possible future amendments to the law.

Combating money laundering and the future of banking secrecy laws in Malaysia

2014 ◽  
Vol 17 (2) ◽  
pp. 219-229 ◽  
Author(s):  
Aspalella A. Rahman
Keyword(s):  
Money Laundering ◽  
Primary Sources ◽  
Sources Of Information ◽  
Policy Makers ◽  
Effective Prevention ◽  
Content Type ◽  
Banking Secrecy ◽  
Terrorism Financing ◽  
Flow Of Information ◽  
Proper Balance

Purpose – The purpose of this paper is to analyze banking secrecy laws against the background of the Malaysian anti-money laundering laws. It has been argued that the anti-money laundering law makes greater inroads into the banking secrecy rule when compared to the common law or other statutes. Banks can disclose customer’s information on even grounds of suspicion of money laundering. Banking secrecy is a customer privilege, whereas combating money laundering is critical for public safety and security. Indeed, achieving a proper balance is a desirable goal. But how do we go about achieving such a balance is a question encountered by many law enforcement authorities. This paper looks into these issues. Design/methodology/approach – This paper mainly relies on statutes as its primary sources of information. As such, the relevant Malaysian laws that provide the banking secrecy rule will be identified and analyzed. It will be necessary to examine the banking secrecy rule in the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA) and other relevant statutes in detail, as these are the most important legislation for the purpose of this paper. Findings – On closer inspection, it is submitted that AMLATFA provides sufficient safeguards to ensure that the disclosure of customer’s information is carried out in a manner that is not prejudicial to the interest of legitimate customers. This is a positive approach that could protect the innocent customers from being mistreated by the law. Ultimately, it can be said that the growing threat of global money laundering and terrorism makes the overriding of banking secrecy justified because without a flow of information from the banks, the effective prevention of the menace is not possible. Originality/value – This paper analyzes the inroads into the banking secrecy rule under the Malaysian anti-money laundering laws. It would provide some guidelines into this particular area for academics, banks, their legal advisers, practitioners and policy makers, not only in Malaysia but also elsewhere.

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