A. What is AML/CFT?

 Anti-Money Laundering / Counter Financing of Terrorism

B. What is AML (Anti-Money Laundering)?

Meaning?
 A process of converting cash/property which is derived from criminal activities to give it
the appearance of having been obtained from a legitimate source.

Process of AML?
1. Placement – to distant illegal proceeds from its sources
Example:
 placement in financial institutions
 breaking down transaction into smaller amount

2. Layering – to complicate tracing of funds

Example:
 Multiple transfers
 Repeat invoicing
 Re-sale of assets

3. Integration – to integrate illegal proceeds into economy

Example:
 Purchasing of high value items
 Engaging in legal business by providing capital or loans

C. What is CFT (Counter Financing of Terrorism)?

Meaning?
 The act of providing financial support, funded from either legitimate or illegitimate source,
to terrorists or terrorist organisations to enable them to carry out terrorist acts or will
benefit any terrorist or terrorist organisation.
Source of fund: Mostly from illegal activities, but may also derived from legitimate sources
(e.g. salary, business income, donations …)

pg. 1
D. 6 mandatory information to obtain from customer:

(BNM: AML/CFT-MSB Sector 3; 13.4 Specific CDD Measures)

(1) Full Name

(2) ID Number (the photo matched with the customer)

(3) Address

(4) Date of birth

(5) Nationality

(6) Purpose of transaction

E. Actions to be taken when encounter suspicious transactions:

 Submit iSTR to compliance officer

F. Aware of the risk/fraud involved in the business of MSB especially cash handling:

 fake money

 amount receive from customer is tally and well counted

 amount to be given to customer is tally and well counted

 know when to establish CDD and ECDD

G. Front desk officer ethics (appropriate questions to obtain information from

customers):

 Prepare a form to be fill in by the customer to obtain 6 mandatory information.

 If the customer slightly filled the form, the front desk officer may ask directly to the

customer with proper question and courteous customer service.

 normally to ask for the purpose of transaction;

(1) “Sir, are you going to travel somewhere?”

(2) “Sir, may I know what is the purpose for you to change this currency?”

(3) “Sir, are your returning from somewhere?”

pg. 2
H. Aware of penalty to be charged by the authority for non-compliance:

 1 year jail or RM 1 million fine or BOTH

I. Understanding the red flag parameters (14)

 As the list prepared in the attachment

J. Understanding the Staff Roles and responsibility

 As in SOPP

pg. 3