AMLATFA 2001 (AMLA) A TOOTHLESS PIECE OF LEGISLATION

AMLATFA 2001 (AMLA)  A TOOTHLESS PIECE OF LEGISLATION

In the past few decades, money laundering has become a growing problem in a number of jurisdictions.

Traditionally viewed as financial crimes, the fight against money laundering has now broadened to include terrorist financing subsequent to the events of September 11, 2001. 

In response to mounting concerns over money laundering, the Financial Action Task Force on Money Laundering (‘FATF’) was established in 1989 by the Group of 7 Industrial Democracies (G-7). The FATF is a global money laundering watchdog organisation and has developed recommendations setting out the framework and measures that should be taken by governments around the world to combat money laundering and more recently, terrorist financing.

Pursuant to the latest revision to the FATF Forty Recommendations in June 2003, there has been an extension of the anti-money laundering obligations to professonals

In undertaking the revision to the Forty Recommendations, particularly in respect of accountants, the FATF took into consideration the fact that in recent years, FATF typology reports indicated an increasing role played by non-financial businesses and professionals, in money laundering schemes. 

The FATF typology reports indicated that professionals such as accountants and lawyers were increasingly used by organised crime and other criminal organisations to assist them to launder their funds by acting as financial intermediaries or providing expert advice or by providing other services useful to the money launderers such as the creation and management of companies and other legal entities or arrangements.

Recently, the proposed ammendment to AMLATFA 2001 (AMLA) in 2013 Budget also incorporated Tax offences under Anti-Money Laundering and Anti-Terrorsm Financing Act (AMLAFAT) 2001.

The IRB has on 29 August 2012 released a press statement informing that taxpayers who commit any of three specified tax offences under the AMLATFA 2001 shall be subjected to heavy penalties of a fine up to RM5 million or jail for up to five years or both.   The three tax offences are:  (a) Failure to furnish income tax returns or give notice of chargeability (Section 112 of the Income Tax Act 1967)(b) Submitting incorrect income tax returns (Section 113 of the Income Tax Act 1967) and(c) Wilful evasion of tax (Section 114 of the Income Tax Act 1967)

This is a good move and the enforcement should not be limited to net small fish in country but those who reap the nation's wealth for decades and deprive the rakyat of its Tax money.

The legislation has so far faild to procute cases involving Sabah Chief Minster of the allaged donation from anynomous source. and that of Tan Sri Muhamad Taib, ex- Menteri Besar of Selangor  who smuggled money out of Malaysia and was caught red handed on arrival by the Australian immigration authorities.

In the NFC "Lembu" case, It was understood that the Companies Commission Malaysia is investigating the case under the Companies Act 1965 and the possible offences under Section 364(2), 166A(3), 169(14), 167(1), 167(2) and 132(1) but to no avail. NFC or Shahrizat her self owned expensive properti in Singapore and Germany without the fund being detected or accounted for by authorities. 

In Sarawak there are a few small fish being investigated.  Authorities should concentrate on the big fish who run such activities since many decade ago. The amout is said be be huge and could help elevate the financial position of government. 

The implementation of AUTOMATIC ENFORCEMENT SYSTEM (AES), in various part of Malaysia is justification that the government is good in making money out of the ordinary rakyat

Turn the enforcement into money making mill for the benefit of cronies. 

The rakyat must also bear in mind the the machine/system installed by the enforcement and or agents could enjoyed special Tax relief on the purchase of the system which literally means that it is financed from the rakyat's money.

The government has no mercy and turn to the rakyat and squeeze them dry to run this country.