It was recently reported that a director of a private company has been detained by the Malaysian Anti-Corruption Commission (MACC) under Section 16(a)(A) of the MACC Act 2009 on suspicion of being paid by an individual with the Datuk Seri title to carry out money laundering activities.
The man was believed to have received a reward of over RM100,000 between 2016 and 2017 for bringing in money through various money exchange agencies which are then deposited into the account of a company owned by an individual.
At the June 16, 2022 hearing for the trial of Dato Seri Ahmad Zahid Hamidi Zahid who is facing 33 charges of receiving bribes amounting to approximately RM43 million from Ultra Kirana Sdn Bhd (UKSB) over 4r years from 2014 to 2018, a former UKSB administrative manager, David Tan told the High Court in Shah Alam that the monies came from their business partners in Hong Kong and not UKSB.
He also said, to quote - the funds from Hong Kong would be channelled into Malaysia through money changers in Kuala Lumpur, and then passed on to him in cash. After receiving the cash, he would keep in the company safe box first, and when the time came for them to make the delivery, he would then take out the required amount and put it in a sealed envelope and pass it to Dato Seri Ahmad Zahid Hamidi at his house in Country Heights KL.
These transactions, totaling approximately RM43 million, was paid, in cash, over a period of 4 years from Oct 2014 to Aug 2018.
It is presumed that the payments to Muhyiddin, Khairy and Reezal were also from funds channeled into Malaysia from Hong Kong through money changers.
Assuming so, a total sum of approximately RM48.6 million was channeled into Malaysia from overseas using the back channel of money changers from Hong Kong during the period from 2014 to 2018.
As stated on its own website, Bank Negara states and acknowledged that money laundering and terrorism financing (ML/TF) may affect the stability of Malaysia’s financial system and socio-economy and criminal networks, money launderers, and terrorist financiers are highly adaptive and quick to exploit any weak links within an increasingly borderless world to obscure detection of such illicit funds.
The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), which imposes reporting obligations on reporting institutions as a counter-measure to prevent or mitigate ML/TF was enacted with the intention to fulfill the international standards imposed by the Financial Action Task Force (FATF).
Does Bank Negara really adhere to what it states in the above statement?
BNM has in its website, proudly proclaimed in a statement dated 9 Dec 2009, it has revoked 41 money changing licences in 2009 that were found to be in contravention of various provisions of the Money-Changing Act 1998 (Act).
FATF, in their report titled `Money Laundering through Money Remittance and Currency Exchange Providers’, admitted that the absence or lax implementation of AML/CFT standards and adequate related policies in the operations of money remittance or currency exchange provider provide opportunities that are exploited by money launderers and other criminals.
Did the former UKSB administrative manager or UKSB make the necessary declaration in Customs Form 22 (Borang Kastam 22) under the Currency Exchange Control Act 1953 and the Customs Act 1967 for the RM45 million that was remitted and received by him from Hong Kong?
Each of those named by the former UKSB administrative manager are seasoned politicians who is fully and well aware that unregulated large amount of funding coming from unknown, and especially foreign sources, could influence the political process in negative ways, such as “vote buying” and in influencing policy decisions. It can even threaten the democratic process and values.
Even though Ahmad Zahid was freed by the High Court of the corruption charges proffered against him in Sept 2022, and for which the prosecution has filed an appeal against, the directors of Ultra Kirana Sdn Bhd should not be absolved of any wrong doing for money laundering activities. (FMT)
Just like the director of the private company detained by the Malaysian Anti-Corruption Commission (MACC) under Section 16(a)(A) of the MACC Act 2009 for bringing in money through various money exchange agencies which are then deposited into the account of a company owned by an individual, Ultra Kirana Sdn Bhd did the same too.
In the hearing in the High Court on 16 June 2022, the company admitted that they bring in cash from Hong Kong into Malaysia through money changers in Kuala Lumpur and they would then keep the cash in the company safe box first before delivering it to the politicians.
And instead of being prosecuted for money laundering, Ultra Kirana became the witness for the prosecution.
Why the double standards?
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