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TABLE OF CONTENTS
CORPORATE STATEMENT....................................................................................................................................3
1. Introduction................................................................................................................................................4
2. Applicability ................................................................................................................................................4
4. Scope of Application..................................................................................................................................5
7. Staff Integrity.............................................................................................................................................8
15. Training......................................................................................................................................................19
GLOSSARY ...........................................................................................................................................................22
2
CORPORATE STATEMENT
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1. Introduction
Mayban Fortis group of Operating Entities (herein referred as ‘the Group’) is committed to
prevent its operations and those of its subsidiaries from being abused for money
laundering or other financial crimes, including the financing of terrorism. The Group
values an impeccable reputation as a trustworthy insurance services group and therefore
will not enter into relationships with individuals or organisations engaged in or suspected
of illegal or unethical activities. New customers are accepted with due care and the Group
shall be protected at all times from being abused by criminal organisations or individuals.
The Group also committed to pursue high standards of Anti Money Laundering and
Counter Financing of Terrorism (AML/ CFT) policy and requires all staff to adhere to these
standards.
2. Applicability
This manual is applicable to all operation under the Group including branches and
subsidiaries outside Malaysia. Overseas branches and subsidiaries shall comply with this
manual and where there is conflict between the manual and the regulatory requirement of
the host country, the more stringent requirement shall be adopted to the extent that it is
permitted by the host country’s laws and regulations. In addition, special attention should
be given to overseas subsidiaries/ branches operating in countries which have insufficiently
implemented the internationally accepted AML/ CFT measures.
In the event an overseas branch or subsidiary is unable to observe the more stringent
requirements, including the reporting of suspicious transaction to the Financial Intelligence
Unit (FIU) of Bank Negara Malaysia (BNM) due to the prohibition of the host country’s law
and regulations, Compliance Officer of such overseas branch or subsidiary shall issue an
exception report to the centralised AML & Fraud Prevention Unit under Compliance Division,
which shall inform the FIU. The Board of Directors (BoD) may consider cease the operation
of overseas branch or subsidiary that failed to observe the AML/ CFT requirement or put in
place the necessary mitigating control.
This manual is applicable to all products and services offered by both the insurance and
takaful industries. The conventional terms used in this manual correspond to the Islamic
products, terms and concepts listed in Appendix I.
i) Money laundering covers all activities and processes to change the identity of illegally
obtained money so that it appears to have been originated from a legitimate source.
Money laundering is defined as the act of a person who-
a) Engages, directly or indirectly, in a transaction that involves proceeds of an
unlawful activity.
b) Acquires, receives, possesses, disguises, transfers, converts, exchanges, carries,
disposes, uses, removes from or brings into Country proceeds of any unlawful
activity.
c) Conceals, disguises or impedes the establishment of the true nature, origin,
location, movement, disposition, title of, rights with respect to, or ownership of,
proceeds of an unlawful activity.
d) Participate in, be an accomplice in, attempt to, aid to, exhort to, facilitate or
provide counsel regarding any of the acts referred to the above.
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where:-
a) The person has knowledge, facts or reason to believe that the property is proceeds
from any unlawful activity.
b) Negligence in taking reasonable steps under normal circumstances to ascertain
whether or not the property is proceeds from any unlawful activity.
ii) Financing of terrorism involves any transactions linked to terrorists’ activities. The fund
used may be legitimate and not necessarily owned by terrorist but focus is on the
primary intention that is to assist terrorism activities. Essentially, financing of terrorism
involves:-
a) Providing or collecting property for carrying out an act of terrorism.
b) Providing services for terrorism purposes.
c) Arranging for retention or control of terrorist property.
d) Dealing with terrorist property.
a) Placement
The criminal introduces his illegal profits and ill-gotten gains into the financial
system. This is the physical disposal or dealing of the initial proceeds derived from
illegal activities.
b) Layering
In this phase, the criminal engages in a series of conversions or movements of the
funds to distance them from their source. The illicit proceeds are separated from
their source by creating complex layers of financial transactions designed to
disguise the audit trail and provide an appearance of legitimacy as well as
anonymity.
c) Integration
Once layering succeeds, the criminal proceeds have been successfully laundered,
i.e. cleaned and are regarded for all intent and purposes as legitimate funds and
then reintroduced, i.e. bring back into the financial system through investment,
purchase of assets, etc.
4. Scope of Application
The provisions of the Malaysian laws list various acts covering serious offences. Please refer
to Appendix II for the details of relevant and applicable laws.
Commitment and leadership of BoD and Senior Management play significant role in the
success of AML/ CFT implementation.
i) Board of Directors
a) The BoD or a committee of the Board shall be responsible for overseeing the
overall management of compliance risk, including the approval and implementation
of AML/CFT measures.
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b) Ensure necessary steps are taken to rectify AML/ CFT issues effectively and
expeditiously.
c) To determine the risk appetite with regards to AML/ CFT.
The approach towards the management of AML/CFT compliance within the Group shall be
similar to the management of other types of risk, which is premised on three lines of
defence as follows:-
i) Business Units
Business units shall be constantly vigilant in deterring criminals and prevent the Group
from being part of money laundering and financing of terrorism activities.
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c) Provisions affecting the business units and the staff, such as keeping of records,
the recruitment of staff and training.
d) Identification of money laundering and financing of terrorism risks associated with
new products or services or arising from insurance service provider’s operational
changes, including the introduction of new technology and processes.
Business units shall be responsible for the day-to-day management of compliance with
AML/CFT that inherent in their operation and activities.
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i) Identify and know every person entering into a business and obligation to identify
the persons for whom, as the case may be, their customers are acting and the
ultimate economic beneficial owner.
j) Identify the originator of every occasional transaction and retain copies of the
documents connected with the identification and the transactions carried out.
7. Staff Integrity
i) The highest standard of staff integrity should be maintained at all the times.
Appropriate staff assessment system (commensurate with the size of operations and
risk exposure of the business units to money laundering and financing of terrorism)
that is approved by the BoD should be in place to screen its staff.
ii) The assessment system should include evaluation of an staff’s personal information,
including criminal records, employment and financial history as part of the recruitment
process.
To preserve the integrity and reputation of the Group, only the following new customers are
accepted:
i) Whose identity is correct, complete and ascertained by means of valid documents such
as passports or identity cards.
ii) Whose moral standing is irreproachable.
iii) Whose source of wealth and funds can be reasonably established to be legitimate.
iv) Who are not subject to economic or trade sanctions or legal freeze lists.
v) In case of a corporate customer, its legal existence, good financial standing, proper
management and correct business activity are ascertained.
vi) The same criteria apply to:
a) Representatives and/or beneficial owners of policy owners.
b) Main shareholders and top management of policy owners.
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Front line staff, FE and agents should verify and satisfied with the identity of their customers
and the nature and legitimacy of the insurance transactions to be undertaken, be it
individual, group, corporate or even direct-mail customers.
They should gather such information, including by consulting available external data deemed
useful in order to find out more about the new customer. The front line staff, FE and agents
should satisfy themselves that the new customers demonstrate beyond doubt that this rule is
complied with.
The relevant supporting documents should be sighted, and details of the applicant
must be verified against original documents. For insurance policies (both single and
annual insurance premium policies) with insurance premium exceeding RM50,000 and
RM100,000 per annum in respect of individual and group policies respectively, a copy
of the verified documents should be retained by the business units as follows.
ii) For corporate customers, verify and/ or substantiate against the original
document:-
a) Memorandum/ Article/ Certificate of Incorporation/ Partnership.
b) Identification document of Directors/ Shareholders/ Partners.
c) Board of Directors’ Directors Resolution.
d) Authorisation for any person to represent the company/ business.
e) Identification document of authorised person.
f) Identify the source of fund and beneficial owner in case of changes in
business structure or ownership or payment profile.
g) Where there is doubt:-
o Conduct a basic search or enquiry on the background.
o Verify with the Companies Commission.
o Understand the ownership and control structure.
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iii) For clubs, societies and charities, verify and/ or substantiate against the original
document :-
a) Relevant constitution documents (or other similar documents).
b) The identification of the office bearer.
c) Authorisation for any person to represent the club, society or charity.
iv) For legal arrangements, verify and/ or substantiate against the original
document:-
a) Establish customer relationship with a party to a legal arrangement, for e.g.
trustee or nominees.
b) Understand the relationship among the relevant parties handling a trustees
or nominee business and obtain satisfactory evidence of its legal status, the
identity of the said trustee, settler or nominee, authorised signatories,
beneficiaries and the nature of their capacity and duties as trustee or
nominee.
c) Business units are allowed to rely on verification of identity of beneficial
owner performed by trustee or nominee. For this purpose, it is a
requirement to obtain written undertaking from trustee or nominee that
identification and documentation process have been conducted according to
the Group standard. The record shall be made available upon request.
v) For beneficial ownership and control, verify and/ or substantiate against the
original document:-
a) If the transaction appears to be conducted on behalf other person,
business units should pay attention to the person who ultimately owns or
controls the transaction.
b) CDD process should cover at least the same process that covered individual
customer.
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viii) Foreign Politically Exposed Person (PEP).
Business relationship with PEP, company or family members or close associate
clearly related to them may expose the Group to reputation and/or legal risk.
Business units, in addition to perform normal due diligence measures, should:
a) Have appropriate risk management process to determine whether the
customer is PEP – gather sufficient and appropriate information from the
customer and through publicly available information.
b) Obtain Senior Management approval for establishing business relationship
with PEP.
c) Take reasonable measure to establish the source of wealth and source of
funds.
d) Conduct enhanced ongoing due diligence through the business relationship
with foreign PEP.
ix) Intermediaries
Business units are permitted to rely on intermediaries (FE, agents and brokers)
or other third parties to perform CDD process or to introduce business provided
the following criteria are met:
a) Intermediaries have adequate CDD process.
b) Intermediaries have a reliable mechanism to verify customer identity.
c) Immediately obtain the necessary information of CDD process and take
adequate steps to satisfy that copies of identification data and other
relevant documentation relating to the CDD requirements will be made
available from the third party upon request without delay.
d) Intermediaries are regulated, supervised and has measures in place to
comply with CDD requirements.
x) Reinsurance arrangements
Due to the nature of the business and the lack of contractual relationship
between the insurance policy owner and the reinsurer, business units are
required to carry out verification only on the ceding company, and not their
ceding company’s customers. The following verification procedure applies to
reinsurance arrangements:
a) Verification is not required where the ceding company is licensed under the
Insurance Act 1996 or the Offshore Insurance Act 1990, or a takaful
operator licensed under The Takaful Act 1984.
b) Reinsurers should take necessary steps to verify that the ceding company is
authorised to carry on insurance business in its home jurisdiction which
enforce AML standards equivalent those in AMLA.
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b) Examples of higher risk customers are as follows:
o High net worth individuals.
o Non-resident customers.
o Countries with inadequate AML/CFT laws and regulations such NCCT.
o Foreign PEP.
o Excessive cash based businesses.
o Unregulated industries.
Business units should pay attention to all complex, unusual large transactions, which
have no apparent economic or visible lawful purpose. If business units suspect or have
reasonable grounds to suspect that funds are the proceeds of a criminal activity or are
related to terrorism financing, the background and purpose of such transaction should
be properly examined, the findings established in writing and helpful to Compliance
Officers. AML law and regulation required prompt reporting of suspicious case to FIU.
Business units should pay special attention to any money laundering threats from new
and developing technologies that might favour anonymity and take measures to
prevent their use in money laundering schemes.
Business units should ensure effectiveness of the on going CDD process that would
enable detection of money laundering and financing of terrorism transactions at the
point of customer contact.
Business units should not commence business relations or perform any transaction, or
in case of existing business relations with customers, it should terminate such business
relations if the customer fails to comply with the customer due diligence requirement
and consider lodging a suspicious transaction report to AML and Fraud Prevention of
Compliance Division for deliberation. However, business units should assess its
contractual obligation before making such decision.
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8.4 Cases Exempted From Verification
Where customer due diligence has previously been conducted by the reporting
institution, further verification by the reporting institution is not required:
i) For renewal and reinstatement of policies with no significant changes to the
terms and conditions of the policy (including benefits under the policy).
ii) For application of pure insurance covers which do not provide for payment of
surrender values, including hospital and surgical insurance, critical illness
insurance and pure term life insurance covers if the annual insurance premium
does not exceed RM5,000 per annum or RM10,000 for single insurance premium.
iii) For general insurance application if the annual insurance premium does not
exceed RM5,000 per annum.
Functional Head should ensure appropriate risk management process with regards to
AML/CFT is in place. Business units should determine the level of risk whether prohibited,
caution (extra verification effort need to be carried out) or allowable. Sometimes a single
indicator is sufficient for this purpose, but in most cases a combination of indicators is
involved and it is a matter of looking for and establishing the connection between them.
To assess the risk, the business unit should conduct the risk assessment. This assessment
should weight a number of factors, including the risk identification and measurement of
products and services, customers (for e.g. PEP, Non Resident Alien (NRA), non-
governmental organisations (NGO) and charities) and geographic locations (for e.g.
embargoes, countries supporting terrorism, Non-cooperative Countries & Territories
(NCCT)). As change in existing products and services and the Group expands through
mergers and acquisitions, management of AML/CFT should evolve. Furthermore, even
without such changes, the management of AML/CFT should be periodically reassessed.
i) Geographical Location
The Group regards the Organisations for Economic Corporations and Development
(OECD) countries as safe and no additional measures is required, provided there is no
indication (for e.g. on the basis of other risk indicators) of a higher risk. All
geographical elements need to be taken into account (for e.g. country of beneficiary,
country of insured risk, country of policy owners/participants).
a) Prohibited
Various sanction regimes apply towards certain countries and/or regions. In
some cases the sanction regimes are de facto aimed exclusively at certain
specific individuals. Sometimes these financial sanction regimes prohibit, limit or
otherwise influence the provision of financial services to certain countries,
companies or individuals. The regimes may also involve a requirement for the
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freezing of balances. UN Security Council resolutions and European Union
regulations underlie these sanction regimes.
b) Cautioned Risk
FATF is an intergovernmental organisation with the task of developing and
promoting policy at international level in order to combat money laundering.
One of the areas of attention is the identification and monitoring of NCCT
countries. The FATF has drawn up a list of NCCT countries that display serious
shortcomings with respect to the combating of money laundering and/or fight
against terrorism financing. In the case of direct or indirect links with an NCCT
country the non-routine acceptance procedure is followed.
For countries falling outside the scope of the Group core business (for e.g. a
new country for the Group) there is a risk-increasing factor and acceptance
takes place on a non-routine basis. This is because the current activities of the
Group are not geared to the characteristics of these countries and other
countries generally also attract different types of customers which might require
a different kind of customer due diligence.
a) Prohibited
The Group does not provide any services to persons involved with illegal
practices or to industries falling outside the strategy. These include illegal
activities, such as trafficking in ivory, exotic animals, people and drugs. It also
includes firms and individuals whose financial resources are suspected to have
come from such activities. Non-strategic are trade and industry in diamonds,
gambling and sex. Gambling is qualified as non-strategic if it is not regulated by
the government. The trade and industry in gambling and sex are regarded as
non-strategic on account of money laundering and reputational risks. Trade and
industry in diamonds are regarded as non-strategic if the diamonds are mined in
countries suffering from civil war and it is clear or there is evidence to suggest
that the war and related matters are financed with diamonds.
b) Caution Risk
For activities falling outside the scope of the Group (for e.g. a new market or
industry) there is a risk-increasing factor and acceptance takes place on a non-
routine basis. This is because the current activities of the Group are not geared
to the characteristics of these divergent activities and other services generally
also attract different types of customers which might require a different kind of
customer due diligence.
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If a person may be regarded as forming part of the weapons industry or its
activities, products and/or services are related to the weapons industry and/or
arms trade or if there is a link with war-related activities (either offensive or
defensive), there is then an increased risk for the Group and the acceptance of
the customer takes place on a non-routine basis.
a) Prohibited
Cash consignments are prohibited if these take place at the request of a
customer, whereby the staff is asked to play an active role in the physical
transport of the money.
b) Caution Risk
Naturally, life insurances present a bigger risk than property insurances.
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prevent a reputational risk from being incurred and/or an ambiguous structure from
being used to recycle funds.
a) Prohibited
The Group shall not have any business relationship with blacklisted or freeze list
UN Security Council resolutions and European Union.
b) Caution Risk
Some of the OFAC are aimed at drug traffickers and terrorisms. The Group also
may be exposed to reputation or other risks if there is any business relationship
with PEP. Such individuals or networks are in a position to abuse their power for
purposes of unauthorised enrichment; in brief, these are individuals or networks
whose position makes it possible for them to abuse their power. This risk also
exists for their families and close associates.
It must be possible to establish with certainty that the firm is in fact a corporate
entity and not projecting itself as such, or that for example a corporate entity is
being used by a natural person so as to use anonymous accounts. The
management of a firm can also be an indicator of an increased risk. Here again
the reputation must be known and sound and it must be possible to establish
with whom the Group is dealing. Risk increasing factors are negative publicity
and/or a doubtful or poor reputation, frequent changes in management, not
personally known and/or not known in the past or an unusual shareholder
structure under which one or several minority shareholders have extensive
decision-making powers. The examples of factors that give rise to particular
vigilance in case of a life insurance policy are as follows:
o a customer who is not interested at all in the return of his life insurance
investment,
o a customer who seems preoccupied by his right of termination and by
recuperating his investment,
o a customer who proposes abnormal payment schemes (for e.g. cash
payments, complicated money transfers),
o a customer who gives an unusual domicile (for e.g. in a country with which
he has no connection, a P.O. Box).
Business units should update existing customer records and profile, including further
evidence in identifying the existing customers, to ensure compliance with customer due
diligence requirements.
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Causes for particular vigilance in the case of a life insurance policy are for e.g.:
¾ Inexplicable termination.
¾ Premature surrender.
¾ Surrender by a third party who does not have a legitimate connection with the policy
owners/ participants.
Subsequent payments by a third party that does not have a legitimate connection with the
policy owners/ participants are also cause for further investigation.
i) Maintain any records for a minimum period seven (7) years from the date an account
has been closed or the transaction has been completed or terminated.
ii) Maintain records to enable the reconstruction of any transaction in excess of such
amount as the competent authority may specify, for a minimum period seven (7)
years from the date the transaction has been completed or terminated. Subject to on
going investigation or prosecution in court, the record must be retained until it satisfies
the requirement by the competent authority.
The business units have to ensure that, there are adequate procedures and records to
access:
i) Details of personal data, including the names and addresses of the policy owner and
any other parties connected to contract.
ii) Transaction details should be recorded and include the nature of transactions, contract/
certificate prices and valuation (for unit-linked policies), destinations of funds,
memoranda of instructions and authorities, the date of transaction and the mode of
premium payment.
All the records should be kept in readily retrievable forms and be accessed with ease. The
records may be retained by way of original document or as scanned documents.
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Any records maintained by vendors, through any outsourced agreements, are regarded as
readily retrievable only if the Group is satisfied, as contracted, that the vendor is able and
willing to keep such records and to disclose them as and when required.
The business units have to maintain a separate register or logbook for all enquiries made to
them by any law enforcement authority. The minimum details to be put in the register are:
Upon the detection of a suspicious transaction, the front line staff, FE or agents should report
to the Head of Department, for recommendation and endorse it before forwarding this
suspicious transaction, using the "Internal Suspicious Transaction Report on Money
Laundering/ Financing of Terrorism” form (as per Appendix V) to the respective Compliance
Officers.
After investigation of the file and of the disclosed unusual financial transactions in particular,
the Compliance Officers will evaluate whether such transactions are effectively suspicious
within the nature of money laundering or financing of terrorism. Upon affirmation of the
same, the Compliance Officers shall forward this via a prescribed form to the FIU for their
further action. If the customers’ names perfectly match any name in the database,
Compliance Officer should update FIU promptly and the business units should immediately:
o Reject the customer, if the transaction has not commenced.
o Freeze the customer’s transaction, if it is an existing customer.
If there is no reasonable ground for suspicion, the Compliance Officer should document the
decision and ensure it is supported by the relevant document and file the report. The Senior
Management and the BoD will be informed and updated accordingly.
a) Refrain from making any comment with regard to the customer concerned.
b) Gather as much information as possible concerning: the transaction and the
reason (why, context) for the transactions.
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c) Remain vague about the competent internal decision making circuits of the
Business units for the assessment and the taking of the decision about the
proposals made and/or the transactions proposed.
d) Abstain from providing any document with the Group letterhead.
Agencies Intermediaries
/ Front line staff
The responsibilities of the compliance function should be carried out under compliance
program that sets out its planned activities, such as the implementation and review of
specific policies and procedures, risk assessment, compliance testing and educating staff on
compliance matters. The compliance program should be risk-based and subject to oversight
by the Head of Compliance to ensure appropriate coverage across businesses and co-
ordination among risk management functions.
15. Training
All staff, Financial Executives (FE) and agents should be made aware of their responsibilities
with regards to reporting and identification of suspicious transactions relating to money
laundering and financing of terrorism activities.
The training and awareness program should be conducted regularly and supplemented with
refresher courses for staff, with special emphasis for those staff who are exposed to higher
risk of potential money laundering and financing of terrorism activities, for example front-line
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staff. These programs should update staff on the latest AML/ CFT development such as
products or transaction modes, which are vulnerable to the risk of money laundering and
financing of terrorism and remind them of their responsibilities under the AML/ CFT program.
The minimum training requirements should at least adapt the needs to the following levels of
staff:
i) New Staff
a) General background on money laundering and financing of terrorism.
b) Requirement and obligation under Group policy to monitor and report suspicious
transactions to the Compliance Officer of AML and Fraud Prevention unit under
Compliance Division.
c) Importance of ‘Know Your Customer’ policy.
The Act stipulates various offences that will subject staff or any person to a fine and
imprisonment as follows:
i) Any person is subject to a fine maximum of RM 250,000 for failure to comply with any
provision under the Act (Section 86).
ii) Bank Negara Malaysia has right to take appropriate enforcement action, including
obtaining Court Order against any or all of the officers or staff of the reporting
institution, for failure to comply with reporting obligation (Section 22).
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iii) The Officers is subject to a fine maximum RM100,000 or maximum 6 months
imprisonment or both for failure to comply with the Act, or failure to implement specific
compliance program as instructed by Bank Negara Malaysia (Section 22).
iv) Additional fine maximum 50% of the maximum fine for that offence, including daily
fine for continuing offence (Section 92).
v) Fine maximum RM100,000 for refusing to comply with guidelines by relevant
authorities (Section 66E(5)).
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APPENDIX I
GLOSSARY
Contribution/ Premium The monetary contribution payable once or periodically by a
participant to a takaful operator/ insurance company for the
purpose of investment and tabarru’.
Politically Exposed Person Senior foreign political figures and their immediate family
members and close associates.
Policy Owners/ Participants The person who has legal title to a policy and include
a) Where a policy has been assigned, the assignee.
b) The personal representative of a deceased policy
owner, where such personal representative is entitled
as against the insurer to the benefit of a policy.
c) In relation to a policy providing for the payment of
annuity, an annuitant; and
d) Where under a policy, moneys are due to payable,
whether periodically or otherwise, the person to whom
the moneys are due or payable.
Beneficial owner Refers to any natural person(s) who ultimately owns or controls
a customer and/or the person on whose behalf a transaction is
being conducted. It also incorporates those persons who
exercise ultimate effective control over a legal person or
arrangement.
o For companies the person(s) who ultimately owns or controls
a customer and/or the person on whose behalf a
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APPENDIX I
(Cont’d)
transaction is being conducted includes the natural person
with a controlling interest and the natural persons who
comprise the mind and management of company.
Property Means:
a) Assets of every kind, whether corporeal or incorporeal,
moveable or immovable, tangible or intangible, however
acquired.
b) legal documents or instruments in any form, including
electronic or digital, evidencing title to, or interest in, such
assets, including bank credits, traveler’s cheques, bank
cheques, money orders, shares, securities, bonds, drafts
and letters of credit.
Reporting institution Means any person, including branches and subsidiaries outside
Malaysia of that person, who carries on any activity listed in the
First Schedule to the AMLA.
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APPENDIX I
(Cont’d)
f) Involves releasing into the environment or any part of the
environment or distributing or exposing the public or any
part of the public to-
i) Dangerous, hazardous, radioactive or harmful
substance.
ii) Toxic chemical.
iii) Microbial or other biological agent or toxin.
g) Designed or intended to disrupt or seriously interfere with
any computer system or the provision of any services
directly related to communications infrastructure, banking
or financial services, utilities, transportation or other
essential infrastructure.
h) Designed or intended to disrupt, or seriously interfere with
the provision of essential emergency services such as
police, civil defence or medical services.
i) Involves prejudice to national security or public safety.
j) Involves any combination of any of the acts specified in
paragraphs (a) to (i)
ACCRONYM
24
APPENDIX I
(Cont’d)
25
APPENDIX II
26
APPENDIX II
(Cont’d)
27
APPENDIX II
(Cont’d)
28
APPENDIX II
(Cont’d)
47D Section 121A Offences against the person of the Yang Di-Pertuan Agong, Ruler or
Yang Di-Pertua Negeri
47E Section 121B Offences against the Authority of the Yang Di-Pertuan Agong, Ruler
or Yang Di-Pertua Negeri
47F Section 121C Abetting offences under section 121A or 121B
48 Section 161 Public servant taking gratification, other than legal remuneration in
respect of an official act
49 Section 162 Taking gratification in order, by corrupt or illegal means, to
influence a public servant
50 Section 163 Taking a gratification, for the exercise of personal influence with a
public servant
51 Section 164 Abetment by public servant of the offences under section 163
52 Section 165 Public servant obtaining any valuable thing, without consideration,
from person concerned in any proceeding or business transacted by
such public servant
53 Section 207 Fraudulent claim to property to prevent its seizure as a forfeiture or
in execution of decree
54 Section 213 Taking gifts, etc, to screen an offender from punishment
55 Section 214 Offering gifts or restoration of property in consideration of
screening offender
56 Section 215 Taking gifts to help recover stolen property, etc
57 Section 216A Harbouring robbers or gang-robbers etc
58 Section 217 Public servant disobeying a direction of law with intent to save
person from punishment, or property from forfeiture
59 Section 218 Public servant framing an incorrect record or writing with intent to
save person from punishment or property forfeiture
59A Section 300 Murder
60 Section 327 Voluntarily causing hurt to extort property or to constrain to an
illegal act
61 Section 329 Voluntarily causing grievous hurt to extort property, or to constrain
to an illegal hurt
62 Section 330 Voluntarily causing hurt to extort confession or to compel
restoration or property
63 Section 331 Voluntarily causing grievous hurt to extort confession or to compel
restoration of property
64 Section 347 Wrongful confinement for the purpose of extorting property or
constraining to illegal act
65 Section 348 Wrongful confinement for the purpose of extorting confession or of
compelling restoration of property
66 Section 363 Kidnapping
67 Section 364 Kidnapping or abducting in order to murder
68 Section 365 Kidnapping or abducting with intent to secretly and wrongfully to
confine a person
29
APPENDIX II
(Cont’d)
30
APPENDIX II
(Cont’d)
100 Section 409 Criminal breach of trust by public servant, or by banker, merchant
or agent
101 Section 411 Dishonest receiving stolen property
102 Section 412 Dishonest receiving property stolen in the commission of a gang-
robbery
103 Section 413 Habitual dealing in stolen property
104 Section 414 Assisting in concealing of stolen property
105 Section 420 Cheating and dishonestly inducing delivery of property
106 Section 421 Dishonest or fraudulent removal or concealment of property to
prevent distribution among creditors
107 Section 422 Dishonest of fraudulently preventing from being made available for
his creditors a debit or demand due to the offender
108 Section 424 Dishonest or fraudulent removal or concealment of consideration
109 Section 465 Forgery
110 Section 468 Forgery for the purpose of cheating
111 Section 489A Forging or counterfeiting currency notes or bank notes
111A Section 489B Using as genuine, forged or counterfeit currency notes or bank
notes
112 Section 489C Possession of forged or counterfeit currency notes or bank notes
112A Section 489D Making or possessing instruments or materials for forging or
counterfeiting currency notes or bank notes
SECURITIES INDUSTRY ACT 1983 (ACT 280)
113 Section 7 Establishment of stock market
114 Section 12 Dealer’s license
115 Section 15A Fund Manager’s license
116 Section 84 Market rigging
117 Section 85 Market manipulation
118 Section 87A Use of manipulative and deceptive devices
119 Section 89E Insider trading.
TAKAFUL ACT 1984 (ACT 312)
120 Section 4 Carrying on business as takaful operator without a license
121 Section 35 Carrying on takaful business as an agent or broker for a person
other than a licensed takaful operator
31
APPENDIX III
Life Business
a) New Business
1. Premium via cash exceeding RM50,000 per annum.
2. New Business with Total Sum At Risk (TSAR) exceeding RM1,000,000.
3. A customer introduced by an overseas broker, affiliate or other intermediary, when
both customer and introducer are based in Non Cooperative Countries Territory (NCCT)
or countries where production of drugs or drug trafficking may be prevalent.
4. Single premium proposal.
5. A customer with no discernible reason for using the insurer’s service, e.g. customers
with distant addresses who could find the same service nearer their home base, or
customers whose requirement are not in the normal pattern of or inconsistent with the
insurer’s business and could be more easily serviced elsewhere.
6. A personal line customer for whom verification of identity proves unusually difficult,
who is evasive or reluctant to provide full details.
7. A corporate/ trust customer where there are difficulties and delays in obtaining a copy
of statements of accounts or other documents of incorporation.
d) Payment
1. Policies’ premium/contributions paid by third party cheques.
2. Pre-payment or early payment of premium/contributions.
3. Unmatched Premium/contribution exceeding RM100,000 for regular
premium/contribution & exceeding RM500,000 per annum for single
premium/contribution.
4. Large or unusual payment of insurance premiums or transaction settlement by cash.
APPENDIX III
(Cont’d)
a) New Business
1. Premium via cash RM 50,000.
2. Premium payment with exceeding RM50,000 (individual) and RM100,000 (group plan)
per annum.
3. Any transaction in which the insured is unknown ( for e.g. treaty reinsurance, business
introduced under binding authorities, etc.)
4. A customer introduced by an overseas broker, affiliate or other intermediary, when
both customer and introducer are based in Non Cooperative Countries Territory (NCCT)
or countries where production of drugs or drug trafficking may be prevalent.
5. A personal line customer for whom verification of identity proves unusually difficult,
who is evasive or reluctant to provide full details.
6. A corporate/ trust customer where there are difficulties and delays in obtaining a copy
of statements of accounts or other documents of incorporation.
7. A customer with no discernible reason for using the insurer’s service, e.g. customers
with distant addresses who could find the same service nearer their home base, or
customers whose requirement are not in the normal pattern of or inconsistent with the
insurer’s business and could be more easily serviced elsewhere.
b) Payment
1. Multiple policy taken out by the same insured for low insurance premiums, each
purchased for cash and then cancelled with return of insurance premium to third party.
2. Large or unusual payment of insurance premiums or transaction settlement by cash.
3. Overpayment of insurance premiums with a request to refund the excess to a third
party or different country.
4. Payment by way of third party cheque or money transfers where there is a variation
between the account holder, the signatory and the prospective insured.
5. Policy loan repayment.
34
APPENDIX IV
Contact Persons
Compliance Staff
Nizar Mohamed Daud
nizar@maybanlife.com.my
03-22971710
Compliance Staff
Radhiha Bt Mohd Naim
RadhihaN@TakafulNasional.com.my
03-26125336
APPENDIX V
Note: The person reporting should exercise due care to ensure that the customer does not become
aware that such a report has been made against him.
Name Department
(authorisation i/d)
PF number Tel.
Date
Individual Customers:
Copy of identity card(s) and/or passport(s) for the policy owners/ participants and life
insured; and
Copy of the life insurance proposal, nomination form, trust application form, and
assignments, if any; and/or
Any other related documents:
……………………………………………………………………………………………..
Corporate customers:
Copy signature card(s);
Copy power(s) of attorney;
Copy articles of association and any modifications thereof;
Copy minutes of the extraordinary and/or annual general meetings;
Copy evidence of registration in the trade register;
Copy accounting documents;
Copy statement of account – ledger;
Copy of the life insurance proposal, policy owners/ participants document regarding the
life insurance;
Other documents (to be detailed):
……………………………………………………………………………………………..
1. Identity and residence of the policy owners/ participants (if it concerns a individual customer as
well as a body corporate).
…………………………………………………………………………………………
…………………………………………………………………………………………
2. Did the policy owners/ participants readily disclose proper address for residence or business
establishment?
Yes
No
If NO, why not?
…………………………………………………………………………………………
3. Is your branch the nearest to the policy owners/ participants’ place of residence or place of
business
• inform the immediate supervisor about the unusual situation with which he has been
confronted.
Yes
No
If NO, why does he call on you?
…………………………………………………………………………………………
No
If YES, since when and in what capacity?
…………………………………………………………………………………………
5. Overall information
a) Do you know the origin of the money that is being used to pay the
premium/contribution?
Yes
No
If YES, tick one:
Lump sums derived from a previous investment ?
Sale of real estate or corporation ?
Inheritance or donation
Revenues derived from the normal occupational or corporate business
Others (to be specified):
……………………………………………………………………………………
APPENDIX V
(Cont’d)
No
If NO, specify:
………………………………………………………………………………………
………………………………………………………………………………………
No. Please specify the relationship between the third party and the policy owners/
participants.
8. Is the policy owners/ participants acting on his own behalf or that of a third party?
Yes
No
If YES, what is the relationship of such third party with the policy owners/ participants?
…………………………………………………………………………………………
Specify hereafter any useful information which does not match any where else.
.....................................................................................................................................…..
..........................................................................................................................................
APPENDIX V
(Cont’d)
A. Transaction Details
1. Policy Number / Proposal No. / Claim No.: (Please only indicate the Proposal No. or Policy No. if others are not applicable)
2. Policy
3. Commencement Date:
4. Payment
5. Payment (Cash/Cheque/Debit ac/Credit Card)
6.
7. Premium Amount:
8. Payment/Issue Amount:
(Top-up/Increase in Sum Assured/Reinstatement/Cancellation/Refund of Unmatched Premium/All other refunds/Maturity/Claim Amount/Surrender/Withdrawal)
9. Sum Assured:
10. TSAR Amount:
11. Request (functional areas as defined in the parameters)
D. Particulars of Assignee
25. Name:
26. NRIC. No. / Passport No. / Business Reg. No.:
27. Relationship to Policyowner/Life Assured:
28.
29. Occupation / Business:
30. Address
This report is to be submitted to AML and Fraud Prevention Unit by the staff authorising the transaction
APPENDIX V
(Cont’d)
The Head of Division/Department/Unit is required to put forward his recommendation based on the
information given by the person reporting the suspicious transaction.
………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………….
*Note
APPENDIX VI
SECRET
FIU/STR/02/02
Please send completed form to:
REFERENCE NUMBER:
FINANCIAL INTELLIGENCE UNIT
BANK NEGARA MALAYSIA
JALAN DATO' ONN, 50480 KUALA LUMPUR
Tel: 03- 26988044 ext 8071 / 7367 Fax: 03 - 26933625
b. Under section 24 of the AMLA, no civil, criminal or disciplinary proceedings shall be brought against a person who makes a report unless it
was made in bad faith.
1. Name(s):
(Include all aliases / commonly used names. If organisation, please provide registered business / organisation name.)
3. Nationality:
4. Occupation / Business:
(Where appropriate, principal activity of the person conducting the transaction, if known to the person making the report.)
5. Address:
9. Name(s) of intermediary:
(Include all aliases / commonly used names. If organisation, please provide registered business / organisation name.)
41
APPENDIX VI
(Cont’d)
29. Give details of the nature and the circumstances surrounding it:
42