The deposits remain in the accounts only for a limited period of time, where the runners or the agents will withdraw the cash to be further wire-transferred and/or smuggled to another neighbouring country, as instructed by the syndicates. Along with this example, it is also observed that transferring illicit fund overseas has evolved into another preferred laundering method. This is especially so for funds involving prominent personalities, and large value funds arising from illegal investment, illegal deposit taking and other fraudulent activities. All financial institutions are also urged to have adequate controls in place to manage the risks arising from these activities that could potentially affect their operation and reputation. Another notable global AML/CFT trend is the growing emphasis on the result and effectiveness of the implementation of AML/CFT measures. Measuring effectiveness has been a component in the current assessment of national AML/CFT framework undertaken by the FATF, FATF-Style Regional Bodies (FSRBs) and multilateral agencies, including the IMF and the World Bank. In fact, in the recent FATF initiative to identify jurisdictions with significant ML/TF strategic deficiencies, much emphasis has been given as to how well the jurisdiction implemented the AML/CFT measures. This is ultimately measured by the overall result of the implementation. The result is used to measure the effectiveness of every component of AML/CFT measures covering the aspect of legal, preventive measures, financial intelligence and law enforcement, as well as domestic and international cooperation.

We have addressed, since then, most of the recommendations set out in the Mutual Evaluation Report (or MER), including the only Non-Compliant rating in terms of SR IX by implementing the cross border cash transportation declaration system since January 2010. Moving forward, considering the rising threat of cross border money laundering and greater emphasis on the effectiveness of the AML/CFT framework, a more strategic approach is undertaken. This is also undertaken as a tool to support the Malaysia’s National Key Result Areas (NKRAs), particularly the first and the second NKRAs, i.e., initiatives to reduce crime and combat corruption. For this, Malaysia has formulated (in 2009) a 3-year National AML/CFT Strategic Plan 2010–2012 as a strategic tool to achieve the desired results of AML/CFT regime. The Strategic Plan includes a set of strategies to achieve specific Desired Outcomes in four key areas; focused implementation; enhancement of the legal framework; improvement of the institutional framework; and capacity building. The Plan covers not only the aspect of preventive measures for financial institutions and designated non-financial businesses and professions (DNFBPs), but also the aspects of legal, financial intelligence and law enforcement, as well as domestic and international cooperation. As the Strategic Plan will be officially rolled out soon, Bank Negara Malaysia and the relevant agencies have started to implement the action plan in stages. The ML/TF investigation and prosecution have been intensified. To date, there have been 94 money laundering cases at various stages of prosecution, with more than 3000 charges involving proceeds amounting to RM1.2 billion.