WOMEN IN GOVERNANCE AND TECHNOLOGY ASSOCIATION MALAYSIA (WIGTA) STAND ON ILLEGAL ACTIVITIES

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Press "cc" to see the translated captions - WIGTA's stand on illegal activities. Pendirian WIGTA mengenai aktiviti haram.

ALERT DON'T FALL FOR UNLICENSED INVESTMENT - A REMINDER BY NIK ZAFRI

Many individuals remain unaware of the necessity for proper licensing from regulatory bodies when engaging in trading activities related to finance, funds, shares, derivatives, and precious metals. Both individuals and the companies they operate must obtain appropriate licenses.

For detailed information, please consult the Capital Markets and Services Act 2007 (CMSA) administered by the Securities Commission. Further reference can also be made to The Banking and Financial Institutions Act, 1989 or Companies Act 1965.

In the case of Gold, Bullion, or FOREX trading, refer to the Exchange Control Act 1953 (ECA 1953), which falls under the direct jurisdiction of Bank Negara Malaysia.

It is crucial to stay informed about these regulations to prevent direct or indirect involvement in illicit activities such as money laundering (The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 - AMLA) or even bribery (Malaysian Anti-Corruption Commission Act 2009).

Avoid seeking loopholes in these regulations. Exercise caution and skepticism, especially when confronted with photos, screenshots of bank accounts, Get Rich Quick Schemes, unlicensed Multi-Level Marketing/Pyramid Schemes, or any other dubious schemes.

Despite current challenges, refrain from adding unnecessary burdens that may lead to suffering for yourself and your loved ones. Stay vigilant and adhere to regulatory guidelines to ensure a secure and lawful financial environment.

A CASE STUDY OF CORRUPTION IN PROCUREMENT (CONSTRUCTION) THAT WAS OVERLOOKED BY ABMS AUDITORS - BY NIK ZAFRI

True case. That's why ABMS Auditors and the Authorities should also be equipped with some "forensic audit skills" especially when it comes to construction industry.

SOME OF THE SHADY TACTICS OF MONEY LAUNDERING - NIK ZAFRI

1) Professional services firms for example accounting, legal and even consultancy firms may unwittingly or knowingly become entangled in money laundering schemes.

Criminals might exploit them by using complex transactions- creating intricate financial transactions or structures, using services to obfuscate the origin of funds or make illicit gains appear legitimate. On the other hand, some professionals might be complicit in facilitating money laundering by either turning a blind eye to suspicious activities or actively aiding in the creation of complex financial setups that conceal the illegal source of funds.

Oversight and due diligence by these firms may also result in inadvertently processing transactions that involve illicit funds without recognizing the red flags.

A conflict of professional secrecy vs a crime will always be an issue. Professionals might be exploited by criminals to shield their activities from scrutiny, using these professionals to shield their transactions or communication from legal investigations.

I hope regulatory bodies should monitor some of these firms and ensure they too implement anti-money laundering measures and know-your-customer protocols. I know many professional firms are dedicated to comply with anti-money laundering and anti-corruption laws but the authorities should find more effective ways to prevent such misuse.

The reality now is that, I notice gaps in compliance or deliberate evasion may enable criminals to exploit and manipulate these services for money laundering purposes.

2)  The process of money laundering in the realm of cryptocurrency involves criminals using diverse methods and services to route funds through numerous addresses or enterprises, obscuring their initial source. Following this, these funds are moved from a seemingly lawful origin to a specific address or platform for conversion into cash.

This approach involves employing cryptocurrency tumblers and mixing services. These services fragment unlawful funds into smaller sums, dispersing them among various addresses before reuniting them, effectively disconnecting the connection between the initial fund source and where it eventually ends up.

CORRUPTION AND MONEY LAUNDERING TODAY

 I'd sincerely advise those involved in money laundering or corruption: attempting to outwit authorities is not a viable strategy. Eventually, regardless of your cunning, the risk of being caught is high, leading to severe penalties and imprisonment.

Corruption and money laundering constantly evolve as people find new ways to exploit systems.

Cryptocurrency is one of them. Its decentralized and pseudo-anonymous nature makes it attractive for illicit activities. Criminals are hiding behind cryptocurrencies to launder money by converting it into various cryptocurrencies and moving it through multiple accounts.

The good old trick still lives -  - establishing shell companies and trusts in countries with lax regulations allows individuals to obscure their identities and the origins of funds.

Trade-Based Money Laundering is done by manipulating trade invoices or falsify goods and services to move money across borders without detection.

Another old trick is via real estate where launderers invest illicit funds in high-value real estate, which can be sold later, legitimizing the money.

What is on the rise now are online gaming and gambling. These too are using platforms or sites to launder money by placing bets and cashing out with "clean" money.

The authorities should also look into those providing "the so-called" "professional services" hiding behind legal or accounting firms to legitimize illegal funds through transactions or complex financial structures.

Other which has posed so much risk is what I know as Cyber-Enabled Financial Crimes. Techniques like phishing, ransomware, and hacking can generate illicit funds that are then laundered through various means, including cryptocurrency.

Authorities and financial institutions should continuously adapting their strategies to combat these evolving methods. Technologies like AI and machine learning must be employed to detect patterns and anomalies in financial transactions, aiding in the fight against money laundering and corruption.

ANTI-MONEY LAUNDERING, ANTI TERRORISM AND PROCEEDS OF UNLAWFUL ACTIVITIES ACT 2001 - MY THOUGHT FOR THE DAY

The Malaysian Anti-Money Laundering, Anti-Terrorism and Proceeds of Unlawful Activities Act 2001 is clear in terms of enforcement, reporting institutions and entities, detecting of red flags, sanctions, seizures, etc.

However, there is a possibility of overlapping of duties between several agencies, leaving the general public unclear about "who can do what." This includes Bank Negara Malaysia, Security Commission, Company Commission of Malaysia, Malaysian Anti-Corruption Agency, Royal Military Police, and Special Forces. It's important to sort out these duties to ensure transparency and clarity in the system.

Other potential shortcomings include different reporting periods, accessing databases, listing and global sharing of information. I hope to see improvements in the near future.