SCOPE OF WORKSHOP. AICB/Vijayaraj R Kanniah/Visioon Business Solutions Sdn Bhd

Transcription

1 By VIJAYARAJ R KANNIAH MIBM, ACIS Advocate & Solicitor LLM (Malaya), LLB (Hons) London CLP (Malaya), ICSA (MAICSA) CCP (IBBM), CCP-i (IBFIM), AML/CFT (ICA) B.Soc Science [Econs] (Hons) USM Int. Diploma [AML/CFT] (Manchester) The materials used are solely for Asian Institute Of Chartered Bankers conference program. The materials are strictly prohibited from reproduction, circulation or any type of distribution / discussions other than for Asian Institute Of Chartered Bankers training purposes. SCOPE OF WORKSHOP 2 1

2 MALAYSIAN REGULATIONS ON AML/CFT * Anti-Money Laundering & Anti-Terrorism Financing (Declaration of Specified Entities & Reporting Requirements) Order PARLIAMENT AML/CFT GUIDELINE Anti-Money Laundering Act January 2002 Anti-Money Laundering & Anti Terrorism Financing Act 2001 Amended in 2003 Anti-Money Laundering & Anti-Terrorism Financing Act 2001 And Regulations Amended in 2007 Anti-Money Laundering, Anti-Terrorism Financing And Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001) Amended in

3 BANK NEGARA MALAYSIA AML/CFT GUIDELINE GP9 : Know Your Customer Policy UPW/GP1: Standard Guideline On Anti-Money Laundering & Counter Financing of Terrorism Amended in Nov 2006 & Feb 2009 Anti-Money Laundering & Counter Financing of Terrorism AML/CFT Banking & Deposit Taking Institutions (Sector 1) Amended in 15 September (OLD) 2013 (NEW) a) Standard Guidelines on Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT). b) Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) Sectoral Guidelines 1 For Offshore Financial Institutions Licensed & Registeres Under Offshore Banking Act c) ) Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) Sectoral Guidelines 2 For Offshore Insurance & Insurance-Related Companies. LFSA AML/CFT GUIDELINE a) Guidelines on Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) Banking Sector. b) Guidelines on Anti-Money Laundering & Counter Financing Terrorism (AML/CFT) Insurance & Takaful Sectors. c) Guidelines on Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) Trust Company Sector. d) Anti-Money Laundering & Counter Financing of Terrorism (AML/CFT) Sectoral Guidelines 3 For Capital Markets Industries. d) Guidelines on Anti-Money Laundering & Counter Financing Terrorism (AML/CFT) Capital Market & Other Business Sectors. 6 3

4 INTERNATIONAL REGULATIONS ON AML/CFT 7 FATF & APG FINANCIAL ACTION TASK FORCE (FATF) Recommendations and Special Recommendations (SR) [Issued in 1990 & revised in 2001 & 2003] ASIA PACIFIC GROUP (APG) Regional body adopting FATF policies Malaysia member since 2000 FATF new structure of 40 Recommendations (9 SR on terrorist financing merged into revised 40 general recommendations) [Latest Issuance in 2012]. Membership by invitation only (Malaysia is member since 19 February 2016) Conduct Mutual Evaluation (ME) on members M sian ME 2001 & 2007 Recent ME 2014 (outcome?) 8 4

5 APG MUTUAL EVALUATION REPORT SEPTEMBER 2015 Areas of Improvement Identified :- Implementation on Risk Based Approach (RBA) Number of STRs Submission Obligations related to countering terrorism financing (TF) & proliferation financing (PF) Obligation to ascertain ownership (BO) information 9 MAJOR CHANGE IN AML/CFT APPROACH 1. RULED BASED TO RISK BASED 2. FINE TO FINE & SHAME 10 5

6 AML/CFT BNM FINE Offence Ref. Main Section 14 & 86 Report by reporting institutions 16 & 86 Customer Due Diligence 19 & 86 Compliance Programme Source : BNM Offence Description No. of offence(s) Amount Delay (>30 days) in submitting CTR (14a) ,000 Failure to submit CTR (14a) 3 30,000 Failure to submit STR (14b) ,000 Failure to conduct ECDD on high risk 1 10,000 Failure to verify license of purported money changer No CDD for cash transaction RM 50k & ABOVE Failure to conduct transaction monitoring for customers from high risk country highlighted by FATF 1 10, , ,000 Insufficient ongoing CDD 1 10,000 Insufficient ongoing CDD resulting in non submission of STR 5 50,000 Total 263 2,290, AML/CFT BNM FINE 19 (1) & 48(1) & 86 Main Section Compliance Programme & Investigation powers in relation to a financial institution 35 & 88(a) Tipping-off & Offence by an individual Offence Description Failure to implement internal programmes, policies, procedures and controls to guard against and detect any offence under AMLATFPUAA Failure to adopt, develop implement internal programmes, policies, procedures and controls to guard against and detect any offence under AMLATFPUAA Failure to adopt, develop & implement internal programmes, policies, procedures & controls to guard against and detect any offence under AMLATFPUAA and Failure to comply with standards specified by BNM Tipped-of customer whose name was in order issued under s48 No. of offence(s) Amount 3 285, , ,900, ,000 Source : BNM 12 6

7 AML/CFT BNM FINE Main Section 44 & 86 Freezing of property 50(3) Seizure of moveable property in financial institution Offence Description No. of offence(s) Amount Release funds from frozen account 1 125,000 Breach of seizure order 3 1,090,000 Total 11 5,977,500 Source : BNM 13 WHAT IS MONEY LAUNDERING? A process of converting cash/property which is derived from criminal activities to give it the appearance of having been obtained from a legitimate source. PREDICATE OFFENCES AMLATFPUAA 2001 SECOND SCHEDULE List of 358 predicate offences from 42 pieces of legislation Who assist criminals in money laundering and what are their role in laundering the proceeds? To mitigate this assistance S4A AMLATFPUAA

8 AMLATFPUAA SECOND SCHEDULE List of 358 predicate offences from 42 pieces of legislation AMLATFPUAA 2001 Anti-Trafficking In Persons & Anti- Smuggling of Migrants Act 2007 Betting Act 1953 Capital Market & Services Act 2007 Child Act 2001 Common Gaming Houses Act 1953 Companies Act 1965 Control of Supplies Act 1961 Control of Supplies Regulations 1974 Copyright Act 1987 Corrosive & Explosive Substances & Offensive Weapons Act 1958 Customs Act 1967 Dangerous Drugs Act 1952 Dangerous Drugs (Forfeiture of Property) Act 1988 Development Financial Institutions Act 2002 Direct Sales & Anti-Pyramid Scheme Act 1993 Excise Act 1976 Explosives Act 1957 Financial Services Act 2013 Firearms (Increased Penalties) Act 1971 Income Tax Act 1967 International Trade In Endangered Species Act 2008 AMLATFPUAA SECOND SCHEDULE List of 358 predicate offences from 42 pieces of legislation Islamic Financial Services Act 2013 Kidnapping Act 1961 Kootu Funds (Prohibition) Act 1971 Labuan Financial Services & Securities Act 2010 Labuan Islamic Financial Services & Securities Act 2010 Malaysian Anti-Corruption Commission Act 2009 Malaysian Palm Oil Board Act 1998 Malaysian Palm Oil Board (Licensing) Regulations 2005 Malaysian Timber Industry Board (Incorporation) Act 1973 Moneylenders Act 1951 Money Services Business Act 2011 Optical Discs Act 2000 Pawnbrokers Act 1972 Penal Code Sales Tax Act 1972 Service Tax Act 1975 Strategic Trade Act 2010 Strategic Trade (United Security Council Resolutions) Regulations 2010 Trade Descriptions Act 2011 Wildlife Conservation Act

9 EXERCISE 1 17 WHAT IS FINANCING OF TERRORISM? Process of financing terrorist activity(ies) either through legitimate or illegitimate source. PENAL CODE [AMLATFPUAA 2 nd SCHEDULE] Close to 24 predicate offence related to terrorism financing 18 9

10 PENAL CODE [AMLATFPUAA 2 nd SCHEDULE] Section 125 Waging war against any power in alliance with the Yang di-pertuan Agong Section 125A Harbouring or attempting to harbour any person in Malaysia or person residing in a foreign State at war or in hostility against the Yang di-pertuan Agong Section 121 Waging or attempting to wage war or abetting the waging of war against the Yang di-pertuan Agong, a Ruler oryang di-pertua Negeri Section121A Offences against the person of the Yang dipertuan Agong, Ruler or Yang di-pertua Negeri 19 PENAL CODE [AMLATFPUAA 2 nd SCHEDULE] Section 121B Offences against the authority of the Yang di- Pertuan Agong, Ruler or Yang di-pertua Negeri Section 121C Abetting offences under section 121A or 121B Section 120B Punishment of criminal conspiracy Section130C Committing terrorist acts Section 130D Providing devices to terrorist groups Section 130E Recruiting persons to be members of terrorist groups or to participate in terrorist acts Section 130F Providing training and instruction to terrorist groups and persons committing terrorist acts Section 130G Inciting, promoting or soliciting property for the commission of terrorist acts 20 10

11 PENAL CODE [AMLATFPUAA 2 nd SCHEDULE] Section 130H Providing facilities in support of terrorist acts Section 130I Directing activities of terrorist groups Section 130J Soliciting or giving support to terrorist groups or for the commission of terrorist acts Section130K Harbouring persons committing terrorist acts Section 130L Criminal conspiracy Section 130M Intentional omission to give information relating to terrorist acts Section 130N Providing or collecting property for terrorist acts Section 130O Providing services for terrorist purposes Section 130P Arranging for retention or control of terrorist property 21 TERRORISM DETECTION METHOD o List Screening from three main database:

12 TO CATCH A CROOK YOU MUST THINK LIKE A CROOK 23 CHANGING PATTERN / MODUS OPERANDI IN MONEY LAUNDERING BUSINESS OLD METHOD 1.Laundry 2.Hotel 3.Restaurant / Pub 4.Furniture Shop 5.Cash Based Business NEW METHOD 1.Internet Biz / Games 2.Real Estate 3.Int. Trade 4.Sports 5.Movie / Concert / Paintings 24 12

13 CHANGING PATTERN / MODUS OPERANDI IN TERRORISM FINANCING OLD METHOD 1.Legitimate Funding 2.Illegal Activities [HAWALA] NEW METHOD 1.On-line University 2.Cyber Terrorism 3.Donation 4.Prepaid Card 5.Economic Terrorism 25 CRIMINALS ARE LIKE FINANCIAL INSITUTIONS (FI) KNOW YOUR CUSTOMER [FI] KNOW YOUR FI [CRIMINAL] Risk vs Reward 26 13

14 MONEY LAUNDERING RISK? Risk Based Approach PREDICATE OFFENCES FINANCIAL PRODUCT Customer Assessment, Risk Profiling & Mitigation Customer Due Diligence / Enhanced CDD RBA not completed, can we reject customer? 27 ARE WE FAMILIAR WITH HIGH RISK AREAS? DRUG LISTED COUNTRIES CORRUPTION COUNTRIES INTERNATIONAL BASEL INDEX SCORE & RANKING FOR ML/TF HUMAN TRAFFICKING COUNTRIES 28 14

15 BASEL INDEX SCORE & RANKINGS NO COUNTRY SCORE 1. Iran Afghanistan Tajikistan Guinea-Bissau Mali Cambodia Mozambique Uganda Swaziland Myanmar 7.78 *Measures risk of money laundering & terrorist financing based on publicly available sources in CONCERN FOR OFFSHORE FINANCIAL INSTITUTIONS (FI) o Customer Know To Us - Really? o Verifying Document Without Sighting Original Notary Public Risk? o Existence of Business Site Visit Done? o Financials Details Obtained PDPA issue? o Source of funds verified? o Approval level complied Senior Management? 30 15

16 CONCERN FOR OFFSHORE FINANCIAL INSTITUTIONS (FI) o Is customer background information sufficient to do risk assessment & profiling? o Is there is a system for profiling? o Are the profiling being reviewed / on-going monitoring done? o Are the correct questions being asked during KYC process? [KYCc completed] o Quality vs Quantity STR reporting? 31 WHAT ARE THE IMPLICATIONS OF NON COMPLIANCE ON FINANCIAL INSTITUTIONS REPUTATION & FINANCIAL LOSSES MANAGEMENT / EMPLOYEE IMPRISONMENT IMPLICATION REVOCATION / SUSPENSION OF LICENSE FREEZING & FORFEITURE OF ASSETS 32 16

17 JP MORGAN BNP PARIBAS French bank BNP Paribas pleaded guilty to criminal charges for breaching U.S. sanctions and will pay a record penalty of almost USD9 billion. The settlement concludes a long-running criminal investigation into allegations that BNP Paribas violated U.S. money laundering laws by helping clients dodge sanctions on Iran, Sudan and other countries. 33 HSBC The Guardian, Thursday, 4 June 2015 RIZAL COMMERCIAL BANKING CORPORATION (RCBC) HSBC has been ordered to pay a record 40m Swiss francs ( 28m) and been given a final warning by the Geneva authorities for organisational deficiencies which allowed money laundering to take place in the Bank s Swiss subsidiary. On 12 th August 2016, Philippine Central Bank slapped P1b (US$21.3m) supervisory enforcement action on Rizal Commercial Banking Corporation (RCBC) for not raising enough questions when $81m in questionable funds flowed through its system to local gaming industry. The $81m was stolen from Bangladeshi Central Bank accounts

18 REVOCATION OF LICENCES EC TRUST LABUAN LICENCE REVOKED Its director & Trust officer, Peter Kent Searle disqualified by LFSA. 400 investor from Australia & New Zealand cheated of USD 23million & missing interest income. Capital One (Fund Mgmt Co) domiciled in Labuan with EC trust acted as trustee for the investment fund. 35 FREEZING OF MOVABLE PROPERTY Section 50 AMLATFPUAA provides that any person who fails to comply with a freezing order shall on conviction be liable to a fine not exceeding FIVE times the amount which has been parted with. SEIZURE OF IMMOVABLE PROPERTY Section 51 AMLATFPUAA provides that any person who does any act which results in contravention shall on conviction be liable to a fine not exceeding FIVE times the value of the property

19 POWERS TO ENFORCE COMPLIANCE Section 22 AMLATFPUAA provides that a reporting institution that failed without excuse to comply in whole / in part any obligations under this Act, the officers / employee shall on conviction be liable to a fine not exceeding RM1.0 million and/or imprisonment not exceeding 3 years. 37 ANTI-MONEY LAUNDERING, ANTI-TERRORISM FINANCING AND PROCEEDS OF UNLAWFUL ACTIVITIES ACT 2001 [AMLATFPUAA 2001] 38 19

20 KEY CHANGES IN AMLATFPUAA 2001 Providing Clarity On Reporting Obligations Increase In Penalties KEY CHANGES Strengthening Measures Relating To Cross-Border Transportation Strengthening Investigation and Prosecution Powers 39 REPORTING INSTITUTION OBLIGATION RECORD KEEPING [S13] COMPLIANCE PROGRAMME [S19] [Penalty : 3yrs jail / RM1.0m OR both & RM3k if offence continues] AMLATFPUAA RI OBLIGATIONS REPORTING SUSPICIOUS TRANSACTIONS [S14] PROHIBITION AGAINST DISCLOSURE OF REPORTS & RELATED INFORMATION [S14A] OPENING ACCOUNT IN FALSE NAME [S18] [Penalty : 5yrs / 3m OR both] CUSTOMER DUE DILIGENCE [S16] RETENTION OF RECORDS [S17] [Penalty : 5yrs / 3m OR both] CENTRALISATION OF INFORMATION [S15] 20

21 S16 AMLATFPUAA CUSTOMER DUE DILIGENCE (PART OF RBA) 1. Account must be maintained in name of account holder ONLY. 2. No account to be opened in anonymous, fictitious, false or incorrect name. 3. Undertake customer due diligence by reliable means: Identity Representative capacity Domicile Legal capacity Occupation (for individuals) Business purpose (for non-individuals) 4. Take reasonable measures to obtain & record such particulars when establishing biz r/ship / conducting any transaction. 41 KEY CHANGES IN AMLATFPUAA 2001 S4 AMLATFPUAA 2001 S4A AMLATFPUAA 2001 S14A AMLATFPUAA 2001 Implication to be increased from 5 years to 15 years & fine from RM5million or 5 times amount laundered depending on which is the higher figure Anyone who assist in such act to be fined not more than 5 times the value of transaction at time of offence or a jail term not exceeding 7 years or both Forbids disclosure of suspicious in transactions reports and related information provided to authorities during investigation, punishable by fine not exceeding RM3million or jail not exceeding 5 years or both 42 21

22 KEY CHANGES IN AMLATFPUAA 2001 S44A AMLATFPUAA 2001 An order to freeze property issued under S44 may be varied / revoked by enforcement agency that issued the order PART 4A AMLATFPUAA 2001 Consisting 12 new sections (S28A-S28L) which provide for monitoring of cross border movement of cash & negotiable instrument e.g. S28G no person shall structure, direct, assist or participate in structuring any cross border transportation / movement of cash / bearer negotiable instrument to avoid making a declaration. Penalty : 7 years or 5 times amount or both 43 LFSA AML/CFT POLICY 44 22

23 WHAT IS RISK BASED APPROACH Measures to prevent or mitigate money laundering and terrorist financing that commensurate to the risk identified. Resources should be directed in accordance with priorities so that the greatest risk receive the highest attention. 45 RISK BASED APPROACH Document processes & findings Consider overall risk factors before determining level/type of mitigation applied Periodic assessment/or as when specified by BNM Appropriate mechanism to provide risk assessment info to supervisory authorities Customers Countries Geographical areas Products Services Transactions/Delivery channels RISK ASSESSMENT RISK MITIGATION RISK PROFILING Have the policies, control and procedures approved by Board of Directors and Senior Management to manage & mitigate risk Monitor implementation of those controls and enhance them if necessary Enhance measures to manage and mitigate higher risk identified RI required to identify & assess risk of customers during establishment of business relation i.e. risk profiling Measures implemented by RI shall commensurate with risk profile of particular customer 46 23

24 RBA CHECKLIST SHOULD INCLUDE :- 1. Country of origin (HT, C, DT, UN / OFAC List) 2. Company incorporated (Outside / Inside Malaysia) 3. Company business (cash based?) & source of funds 4. Directors / shareholders details (any beneficial owner?) 5. Individual acct (type of business / occupation & source of income) 47 RBA CHECKLIST SHOULD INCLUDE :- 6. All relevant document required before onboarding new client 7. Letter of confirmation / information from Labuan Financial Service Authority (for Labuan Incorporated Companies) 8. Documents to be duly certified by company secretary (inside Malaysia) or by Notary Public / Malaysian Embassy 48 24

25 RISK BASED APPROACH 1. Customer Due Diligence RISK ASSESSMENT Identify & verify customer (identify/sight documents) Identify & verify legal arrangement, beneficial ownership/control of such transaction (take copies of ID document) How? Individual Corporate (identify the natural person who is the beneficial owner) 2. Enhanced Customer Due Diligence [Higher Risked Customers] More detailed info i.e. purpose & source of funds Approval from senior management 49 IDENTIFYING BENEFICIAL OWNER IDENTIFY AND VERIFY BENEFICIAL OWNER a) Name, legal from and proof of existence b) Powers that regulate and bind customers c) Address of registered office Identification / verification of the beneficial owners up to the level of natural persons who are controlling entities Identify and take reasonable measures to verify beneficial owner Identify of the natural person who has ultimately has controlling interest in the legal person. At minimum, this includes: i.identification of directors / shareholders with equity interest of 25% or more; ii.nric / Passport to identify the authorised person. If in doubt, document all measures taken and proceed to the following: If there is a doubt on the controlling interest the identity of the natural person exercising control through other means. If there is no natural person identified in (a) or (b), document all measures taken and proceedto the following: Where there is no natural person identified the identity of the natural person who holds the senior management position

26 4 IMPORTANT STEPS IN RISK BASED APPROACH i) Identify The Risk Factors ii) Quantify Risk Factors iii) Risk Grade Relationship iv) Manage & Monitor In Risk Based Manner 51 EXERCISE

27 CHALLENGES FACED BY LABUAN FI 1. Companies incorporated overseas how familiar are you with those documents 2. The need to verify Notary Public existence in foreign country 3. Availability of Malaysian embassy to certify documents 4. Invoices provided by foreign incorporated companies can be fabricated (cost too high to get all certified) 53 CHALLENGES FACED BY LABUAN FI 5. Investment holding company wide range of activity & unable to verify actual business 6. Trading companies business not commenced but insist to open account 7. Over depend on confirmation given by Trust Company / Overseas agent that CDD is completed 8. Transaction volume too big to monitor unable to verify documents 54 27

28 WHAT IS PEP? Question : Are any of these people PEPs? 55 PEPS DEFINITION IN LFSA AML/CFT POLICY POLITICALLY EXPOSED PERSON (PEPs) o Foreign / Domestic PEPs are individuals entrusted with prominent public function i.e. Head of State / Govt, Senior Politician, Senior Government, Judiciary / Military Officials, Senior Executives of State owned corporation and important political party officials incl. family members & associate. o Person entrusted with a prominent function by an international organisation

29 LFSA AML/CFT POLICY POLITICALLY EXPOSED PERSON (PEPs) o RI required to:- a) Put in place measure to determine customer / beneficial owner is PEP b) Adopt following measures :- i. Obtain SM approval before establishing biz relationship ii. Reasonable measure to establish source of wealth / funds iii.conduct enhance CDD and on-going monitoring on PEPs 57 LFSA AML/CFT POLICY PRACTICAL CHALLENGES IN DEFINING PEP o PEP defined differently across RI according to its owns assessment o No out-off level of political party functions (National vs State) o Inclusion of Royalties? o No single reference point of information o Over reliance on 3 rd party vendor s database 58 29

30 LFSA AML/CFT POLICY PRACTICAL CHALLENGES IN DEFINING PEP o Cost involve to get PEP declaration o Once a PEP always a PEP? When do we un-tag? o Is BO considered a PEP? o Criminal / Civil record not readily available o Not enough resources / level of knowledge to detect PEP. 59 LFSA AML/CFT POLICY ON-GOING MONITORING o RI required to conduct on-going CDD which include:- a) Scrutiny of transactions undertaken consistent with customer business & profile b) Ensuring doc, data or info collected under CDD process is kept up to date o RI to examine & clarify any transactions / business relationship that appears unusual, does not make economic purpose or legality not clear 60 30

31 LFSA AML/CFT POLICY EXISTING CUSTOMER MATERIALITY & RISK o RI to apply CDD to existing customer on basis of materiality & risk at appropriate times o RI in assessing materiality & risk may consider the following factors :- (a) nature & circumstances of transaction (b) materiality change in acct / biz (c) insufficient information / change to customer s info. 61 LFSA AML/CFT POLICY LEGAL PERSON & LEGAL ARRANGEMENT o RI required to identify the customer & verify identity thru following info:- a) Name, legal form & proof of existence incl. M&A, F24 & F49 COI or any other reliable references to verify identity. b) Powers that regulate & bind the customer incl. Power of Attorney, Trust Deed or other doc. c) If RI in doubt, conduct search & verify authenticity of information

32 LOCAL AMLATFPUAA REPORTED CASES 63 CASE STUDY 1 Characteristics: Unclear investment schemes Member find members (pyramid scheme/ponzi) Market products only to foreigners Malaysians are not allowed to participate Internet based Payme Inc. Incorporated in offshore centre Payme Inc. Local agent operating in Malaysia Open account in local bank Local Bank Hundreds of investors from throughout the world deposited their investment Report STRs Disclosed to Enforcement Agency Charged In Court LEA FIED, BNM 64 32

33 CASE STUDY 2 LAND Forging 2 Land Titles Sale to Innocent 3 rd parties. [Cheating] RM4 million (Cheques) Credited cheques into Bank Acct Issues Cheque for RM2 million to GKB Standard Chartered Bank Nominee Acct (SAF) Fund Transfer of RM1 million to IH wife account in CIMB 65 CASE STUDY 3 Bank A Report STR Government servant with financial activities (e.g numerous deposits and withdrawals to/from various accounts, transfer of funds) not commensurate with his employment FIED Analyse STR Analysis shows funds are transferred from the government servant s account to his and other people s accounts in several banks There are other financial activities from other banks, insurance companies and stock broking firms None of these institutions reported his suspicious activities Other banks - Findings 7 other banks did not report any STR 2 insurance companies did not report any STR mortgage, household items and motor insurance Huge over the counter cash transaction by third party on his behalf Huge cash payment for insurance policy Early settlement of loan was not reported origin of funds may be suspicious High value property (more than RM500,000) with loan application only for 30% - 50% of the value 66 33

34 COMPLIANCE COMPLEMENTS BUSINESS 67 THANK YOU Mr. VIJAYARAJ R KANNIAH Managing Partner SHEILA HUSSAIN VIJAY & PARTNERS Advocate & Solicitors 8trium Menara 2, Level 6, M2-6-03, Jalan Cempaka SD 12/5, Bandar Sri Damansara PJU 9, Kuala Lumpur. Tel : Fax : H/P : vjrajss@gmail.com Associate : Managing Director VISIOON BUSINESS SOLUTIONS SDN BHD (COMPLIANCE TRAINING & ADVISORY) 68 34