{"title":"Combating Money Laundering in the Banking Industry: Malaysian Experience","authors":"Aspalella A. Rahman","volume":78,"journal":"International Journal of Mechanical and Industrial Engineering","pagesStart":1466,"pagesEnd":1471,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/4054","abstract":"
Money laundering has been described by many as the lifeblood of crime and is a major threat to the economic and social well-being of societies. It has been recognized that the banking system has long been the central element of money laundering. This is in part due to the complexity and confidentiality of the banking system itself. It is generally accepted that effective anti-money laundering (AML) measures adopted by banks will make it tougher for criminals to get their "dirty money" into the financial system. In fact, for law enforcement agencies, banks are considered to be an important source of valuable information for the detection of money laundering. However, from the banks- perspective, the main reason for their existence is to make as much profits as possible. Hence their cultural and commercial interests are totally distinct from that of the law enforcement authorities. Undoubtedly, AML laws create a major dilemma for banks as they produce a significant shift in the way banks interact with their customers. Furthermore, the implementation of the laws not only creates significant compliance problems for banks, but also has the potential to adversely affect the operations of banks. As such, it is legitimate to ask whether these laws are effective in preventing money launderers from using banks, or whether they simply put an unreasonable burden on banks and their customers. This paper attempts to address these issues and analyze them against the background of the Malaysian AML laws. It must be said that effective coordination between AML regulator and the banking industry is vital to minimize problems faced by the banks and thereby to ensure effective implementation of the laws in combating money laundering.<\/p>\r\n","references":"[1] Pendakwa Raya v Ong She Sen (2010) 7 CLJ 220.\r\n[2] Musonda Simwayi & Wang Guohua, The Role of Commercial Banks in\r\nCombating Money Laundering- (2011) 14(4) Journal of Money\r\nLaundering Control, 324.\r\n[3] Norhashimah Mohd Yasin & Mohamed Hadi Abd Hamid, Public\r\nInterest as the Paramount Consideration in Sentencing for Money\r\nLaundering Offences: A Comparative Analysis- (2011) 3 Shariah Law\r\nReport, xxxiv.\r\n[4] M H Fleming, (2005) \"UK Law Enforcement Agency Use and\r\nManagement of Suspicious Activity Reports: Towards Determining the\r\nValue of the Regime.\"7\r\n