1. COUNTRY REPORT ON CURRENT SITUATION OF ANTI-CORRUPTION AND ANTI-MONEY LAUNDERING IN MALAYSIA - PART III -

2. Respondents Corruption: i). Malaysia Anti-Corruption Commission (MACC) ii). Performance Management Delivery Unit (PEMANDU) iii). Malaysian Institute of Integrity (MII) Money Laundering: i). Central Bank of Malaysia

3. Current Situation of Anti- Corruption In Malaysia

4. Part I : National Anti-Corruption Strategy And Action Plans 1. Does your country have an anti-corruption strategy? ANSWERMACCPEMANDUMII Stand-alone anti-corruption programme or anti-corruption strategy / Umbrella document with separate programmes for sectors or ministries / Section in another policy document, e.g. national development or investment programme Does not exist at all Other (Please specify) Detailed program which cut across various sectors and ministries. It is detailed out in the govt transformation programme roadmap which is available to public

5. Part I : National Anti-Corruption Strategy And Action Plans 2.Which of the following chapters or content is covered in the anti-corruption document in your country? (Please check the relevant one[s]) ANSWERMACCPEMANDUMII Background chapters on levels and trends of corruption and assessment of previous anti- corruption efforts // Level of implementation of previous strategy// Objectives and priority areas/// Chapters on prevention and criminalisation/law- enforcement measures /// Public participation/education/// Monitoring and assessment mechanism and criteria// Other chapters

6. Part I : National Anti-Corruption Strategy And Action Plans 3.Does the anti-corruption strategy have an action plan? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

7. Part I : National Anti-Corruption Strategy And Action Plans 4. Which of the following elements are contained in the Anti-corruption action plan? (Please check the relevant one[s]) ANSWERMACCPEMANDUMII Specific measures for each objective/// Specific institutions responsible for the implementation of each measure /// Time-frame for implementation/// Criteria for assessing implementation// Budget specially allocated for the implementation of the action plan /// Institution responsible for co-ordination, implementation and reporting on the action plan /// Other chapters (Please specify)

8. Part I : National Anti-Corruption Strategy And Action Plans 5. Are the anti-corruption document(s) and action plan(s) publicized? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

9. Part I : National Anti-Corruption Strategy And Action Plans 6. Which the following measures that your country has employed in fighting corruption? ANSWERMACCPEMANDUMII Open and transparency in the operation of agencies/// Development and implementation of entitlements, norms and standards // Administrative reform/// Development and enforcement of the code of conduct and the code of professional ethics /// Penalty forms to heads of the agencies in case of occurrence of corruption / Salary payment via bank account/ Declaration of assets and income/ / / Regulation of returning gift by the public officials/ / / Other chapters (Please specify)

10. Part II : Anti-Corruption Agency 7. Does your country have an anti-corruption agency (ACA) or a specialist authority for anti-corruption? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

11. Part II : Anti-Corruption Agency 8.What are the main responsibilities/functions of the ACA in your country? ANSWERMACCPEMANDUMII Monitor and evaluate the implementation of the anti-corruption strategy /// Collect, centralize and exploit the denunciations // Conduct investigations /// Disseminate knowledge on anti-corruption activities /// Raise public awareness about the fight against corruption /// Identify the causes of corruption and to propose to the competent authorities of measures to help eliminate it /// Draw a risk map of corruption in the country // Anti-corruption screening of legal acts // Research and analysis on corruption /// Keep a database on the statistics regarding cases of corruption year by years /// Research and analysis on conflict of interest in the public management / Other chapters (Please specify)

12. Part II : Anti-Corruption Agency 9.Does your agency re-evaluate bodies/ areas/ activities having high risk of corruption in order to employ appropriate measures to mitigate corruption? ANSWERMACCPEMANDUMII Regularly, periodically/// Sometimes Rarely Never

13. Part II : Anti-Corruption Agency 10.Has your agency established a hotline (a specific telephone number) or a website in order to facilitate citizens to complain of corruption actions? ANSWERMACCPEMANDUMII Yes, we have/// No, we have not established it yet We are in the process of establishing No information to confirm

14. Part III : Legal Background 11.How does your country criminalize different types of corrupted activities? ANSWERMACCPEMANDUMII By a Special law on Anti-corruption/// By the Criminal Law By various laws with certain provisions concerning corruption Other (Please specify)

15. Part III : Legal Background 12. In which of the following types of corruption does your country need to enact new legislation to better prevent and detect the relevant cases of corruption ? ANSWERMACCPEMANDUMII Abuse of position/power Fraud Bribery Criminal breach of trust Extortion Embezzlement Forgery Influence peddling Kickback Nepotism / Other (Please specify)All coveredPolitical Financing

16. Part III : Legal Background 13.Please rank from 1 to 3 (most to least) the following types of measures against corruption based upon your experience in your country? ANSWERMACCPEMANDUMII Preventive policies and measures (improving transparency and accountability etc.) 233 Detective actions (prosecutions, investigations, audits etc.) 112 Punitive measure (Implementing criminal and disciplinary sanctions etc.) 321

17. Part III : Legal Background 14.Does your country have laws and regulations governing the financing of political parties? ANSWERMACCPEMANDUMII Yes No// Other (Please specify)Currently in progress to amend Registrar of Society Act which governs political parties

18. Part III : Legal Background 15.Does your country have laws and regulations governing code of ethics of public officials? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

19. Part III : Legal Background 16.Does your country have laws and regulations governing declaration of assets by public officials? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

20. Part III : Legal Background 17.Does your country have “accounting and auditing standards” for both public and private sectors? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

21. Part III : Legal Background 18.In your country do public officials have legal obligation for public officials to report corruption-related offence? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

22. Part III : Legal Background 19.How would you rate the implementation of the rules/regulation in combating corruptions? ANSWERMACCPEMANDUMII Very poor Poor Fair// Good Very good/

23. Part IV : International Cooperation 20.Has your country have ratified United Nations Convention against Corruption (UNCAC) ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

24. Part IV : International Cooperation 21.If already ratified UNCAC, has your country begun the UNCAC peer review process? ANSWERMACCPEMANDUMII Yes/// No Other (Please specify)

25. Part IV : International Cooperation 22. Is your country a member of any anti-corruption conventions, initiatives or international project (OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions; GRECO etc.)? ANSWERMACCPEMANDUMII Yes (Please specify)/ Permanent Observer / IAACA, OIC, OECD, APEC / No

26. Part IV : International Cooperation 23.In your anti-corruption experience, how do you think about the success level of international cooperation? International CooperationLowModerateHigh 21.1 Extradition PEMANDUMIIMACC 21.2 Mutual legal assistance MIIMACC 21.3 Asset recovery PEMANDUMIIMACC 21.4 Cooperation with law enforcement authorities and between national and international authorities MACC, PEMANDU MII 21.5 Cooperation between national authorities and the private sector and international cooperation MACC, PEMANDU MII

27. Part V : Promoting Awareness And Other Matters 24.How do you assess the effect of media in fighting corruption? ANSWERMACCPEMANDUMII Media have had good effect of helping public to recognise the real situation of corruption and the need to promote anti-corruption / To some extent, media have helped public to recognise the real situation of corruption / To some extent, media have helped public to recognise the real situation of corruption, however, the provided information sometimes inaccurate and un-objective. / Media exaggerate the corruption situation Other (Please specify

28. Part V : Promoting Awareness And Other Matters 25.How do you assess the effect of media in fighting corruption? ANSWERMACCPEMANDUMII Actively and effectively// Actively but not effectively/ Rather actively Not participate

29. Part V : Promoting Awareness And Other Matters 26.How would you compare the level of anti-corruption efforts in your country now with those in past years? Is the current level of anti- corruption efforts...........? ANSWERMACCPEMANDUMII Much higher than past years/// Slightly higher than past years About the same as past years Slightly lower than past years Much lower than past years Other (Please specify)

30. Part V : Promoting Awareness And Other Matters 27. Does your country provide anti-corruption educational/training programs for the followings? (Please check the relevant one[s]) ANSWERMACCPEMANDUMII Public officials/// At schools/// General public/// NGOs// Business associations and private companies/// Media// Other (Please specify)Members of Parliament Politicians

31. Part V : Promoting Awareness And Other Matters 28.In your opinion, which of the following factors inhibit the result of the fight against corruption? ANSWERMACCPEMANDUMII Corrupt people are not severely punished/ The collusion between law enforcers and corrupt people / Authorized officials lack commitment/ Some superiors cover up for their subordinates Afraid of retaliation and victimization/// Have not mobilized well people’s and media’s participation Lack of competent and experienced staff to handle corruption cases / Lack of capacity and financial resources of anti- corruption agencies Other (Please specify)

32. Part V : Promoting Awareness And Other Matters 29.How do you comment on the result of the current fight against corruption? ANSWERMACCPEMANDUMII Have had positive impact, contributed to prevent corruption /// Have not had evident impact nowadays but will have in the future Not effective

33. Part V : Promoting Awareness And Other Matters 30.In your country, do you give the role of citizen participation in fighting corruption as following this table? (If your country gives the role, please checks have) International CooperationHaveNone 23.1 Promoting public sector transparency and accountability and citizen participation. MACC PEMANDU MII 23.2 Engaging civil society in corruption prevention efforts, for example, to invite the civil society organizations (CSOs) in formulation of anti- corruption policy, research funding about anti- corruption, dissemination of knowledge, etc. MACC PEMANDU MII 23.3 Complaint system/ Whistle Blower, and Denunciation: Receiving reports and complaints on corruption from citizen. MACC PEMANDU MII

34. Current Situation of Anti- Money Laundering In Malaysia

35. Current Situation of Anti- Money Laundering Part I : Legal Framework Is Money laundering a criminal offence? Yes Are there specific laws governing AML : Yes Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA) The Law covering all aspects of ML? Yes Implementation rate of AML law : Good Is there a National Financial Intelligent Unit (FIU) : Yes (as national center for collection, analysis & dissemination of information regarding potential ML offences)

36. Current Situation of Anti- Money Laundering Part II : AML Board / Authority Is there an official authority? Yes, Bank Negara Malaysia Measures of AML by authority were applied effectively through: - Identify and update customer information (profiling) - Report, provide & save information (great value & suspicious transaction) - Gather, treat & transform information about AML - Apply temporary measures (block of accounts, sealing of assets) BNM enjoy independence in the terms of : - Legal - Functional - Financial - Recruitment of employees

37. Current Situation of Anti- Money Laundering Part II : AML Board / Authority (continued) Functions performed by BNM: - Developing policies and improving legislation - Data collection, analyzing, evaluation - Supervision - Coordination - Investigations of cases - Raising awareness of the public - Carry out researches, sector-based studies - Carrying out examinations on the cases - Request of information and documents from public institutions and organizations - Exchange of information and documents with counterparts in foreign countries Effectiveness of the following type of measures concerning AML: (1) Preventive policies and measures (regulations, internal control systems, international cooperation) (2) Punitive actions (implementing criminal and disciplinary sanctions) (3) Detective actions (prosecutions, investigations, audits)

38. Current Situation of Anti- Money Laundering Part II : AML Board / Authority (continued) It is possible for citizens to inform the country’s AML Board about a suspected case of money laundering via website or letter? Yes Are they any updated rules and information about the process of AML? Yes

39. Current Situation of Anti- Money Laundering Part III : Financial Institutions All financial institutions are require to have AML & KYC procedures ? Yes Financial institutions have the legal obligations to comply with the AML law of the followings: - Internal controls and procedures to comply with regulatory framework concerning AML - Thorough client identification - Having an AML officer - Client due diligence procedures - Risk focused assessment of customer base and their transactions - Creating and regularly updating list of red flags concerning AML - Prohibition of anonymous accounts - Employees training programs regarding AML - Independent audit / compliance function - Identification and reporting of suspicious activities to the appropriate authorities - Monitoring program for suspicious or unusual activities - Policies covering relationships with politically exposed persons consistent with industry best practices - Policy prohibiting accounts / relationships with shell banks - Policy of protecting employees who report any suspicious transactions

40. Current Situation of Anti- Money Laundering Part III : Financial Institutions (continued) Financial institutions are obliged to comply with the legal obligations or administrative policies in terms of due diligence procedures as follows : - Implementation systems for the identification on its customer, including customer information in the case of recorded transaction, account opening - Collecting information and assessing its customer’s AML policies and practices - Screening its customer’s information against sanction lists issued by the government or international bodies

41. Current Situation of Anti- Money Laundering Part III : Financial Institutions (continued) What are the most common types of suspicious transactions reports (STR) from financial institutions? (Rank from most to least) (1)Large remittance (2)Unusually large cash transactions (3)Inconsistencies with the financial profile of the customer or account (4)Unusual account activities (5)Suspicious behaviors (6)Financial transactions involving the countries considered in the “high risk” category (7)Cutting large amount of transaction into pieces (8)Unusual use /exchange of cash (9)Financial transactions involving the person(s) considered in the “high-risk” category (10)Refusals to show identification

42. Current Situation of Anti- Money Laundering Part III : Financial Institutions (continued) Are financial institutions obliged to comply with the Financial Action Task Force FATF)recommendations? Yes

43. Current Situation of Anti- Money Laundering Part IV : International Cooperation How would you rate your organization ability to cooperate and exchange financial information at international level? Good Is there any cooperation agreements or protocols among the local institutions to share financial information and financial transfers and if it’s involved with money laundering? Yes

44. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) In your country, do you give the role of citizen participation in fighting money laundering as following this table? The Role of Citizen Participation in Fighting Money Laundering HaveNone Promoting public sector transparency and accountability and citizen participation. / Engaging civil society in anti-money laundering efforts, for example, to invite the civil society organizations (CSOs) in formulation of anti- money laundering policy, research funding about anti-money laundering, dissemination of knowledge, etc. / Complaint system/ Whistle Blower, and Denunciation: Receiving reports and complaints on money laundering from citizen. /

45. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) How do you think about the punishment of money laundering incidents? : The penalties are too light. AGC is amending the law to impose heavier penalty In your opinion, which of the following factors inhibit the result of the fight against money laundering? i). Money laundering criminals are not severely punished ii).Limitation of citizen’s knowledge about money laundering criminal iii).Lack of competent and experienced staff to handle money laundering cases iv).Lack of capacity and financial resources of anti money laundering agencies

46. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) Does your country provide anti- money laundering educational/training programs for the followings? (Please check the relevant one[s]) i).Public officials ii).NGOs iii).Financial institutions iv).Business associations and private companies Do you think that the controlling systems are the keystone and deterrent for fighting against money laundering? Yes

47. Current Situation of Anti- Money Laundering Part IV : International Cooperation (continued) Are there any high institutions providing training workshops for the employees of controlling agencies about methods to detect money laundering? Yes How do you comment on the result of the current fight against-money laundering? Have had positive impact, contributed to prevent money laundering

48. Thank You