KPMG in Malaysia is urging institutions to ensure they are well equipped to meet all requirements stipulated in Bank Negara Malaysia’s revised Anti Money Laundering / Counter Financing of Terrorism (AML/ CFT) guidelines. Announced as an exposure draft earlier in September, the revised guideline is targeted to take effect on 1 January 2020.
Institutions will have a grace period of six months to comply with the new regulations. In accordance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, individuals or institutions who are deemed non-compliant are liable to either: a fine not exceeding one million ringgit, imprisonment for a term not exceeding three years, or both.
“The clock has already started ticking as institutions have an incredibly short time frame in which to construct a solid AML/CFT framework,” said Khurram Pirzada, Executive Director of Anti-Money Laundering (AML) and Sanctions practice at KPMG in Malaysia. “This includes time needed for a retrospective implementation, lest institutions risk compromising their operations or effectiveness in mitigating risks and exposure to money laundering and terrorism financing (ML/TF).
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