MALAYSIAN ANTI-CORRUPTION COMMISSION (MACC) FINANCIAL INTELLIGENCE SYSTEM (FINs)

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MALAYSIAN ANTI-CORRUPTION COMMISSION
(MACC)FINANCIAL INTELLIGENCE SYSTEM
(FINs)CORRUPTION REPORTING INFORMATIONSYSTEM
(CRIS)
Presentation by Fikri Ab. Rahim Anti-Money
Laundering Section June 2013 Santiago, Chile
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Law

• According to Section 43, Malaysian Anti-
  Corruption Commission Act 2009,
• Power to intercept
• (1)the Public Prosecution or an officer of the
  Commission of the rank of Commissioner or., if
  he considers that it is likely to contain any
  information which is relevant for the purpose of
  any investigation into an offence under this
  actauthorize any officer of the Commission-
• a) to intercept, detain and open any postal
  article in the course of transmission by post
• b) to intercept any message transmitted or
  received by any telecommunication
• c) to intercept, listen to and record any
  conversation any telecommunication, and listen to
  the recording of the intercepted conversation.
• (2) When any person is charged with an offence
  under this Act, any information obtained by an
  officer of the Commission in pursuance of
  subsection (1), whether before or after such
  person is charged, shall be admissible at his
  trial in evidence.

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Contents

• Law
• IT Resources

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Law

• Section 14, Anti- Money Laundering And Anti-
  Terrorism Financing Act 2001
• Report by reporting institutions
• A reporting institution shall promptly report to
  the competent authority any transaction --
• a) Exceeding such amount as the competent
  authority may specify and
• b) Where the identity of the persons involved,
  the transaction itself or any other circumstances
  concerning that transaction gives any officer or
  employee of the reporting institution reason to
  suspect that the transaction involves proceeds of
  an unlawful activity.
• CTR STR

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Law

• Section 25, Anti- Money Laundering And Anti-
  Terrorism Financing Act 2001
• Examination of a reporting institution
• (1) For the purposes of monitoring a reporting
  institutions compliance with this Part, the
  competent authority may authorize an examiner to
  examine --
• a) Any of the reporting institutions records or
  reports that relate to its obligations under this
  Part, which are kept at, or accessible from, the
  reporting institutions premises and
• b) Any system used by the reporting institution
  at its premises for keeping those records or
  reports.
• Financial Intelligence System (FINs)

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Law

• Section 3, Evidence Act 1950
• Interpretation
• Computer means any device for recording,
  storing, processing, retrieving or producing any
  information or other matter, or for performing
  any one or more of those functions, by whatever
  name or description such device is called and
  where two or more computers carry out any one or
  more of those functions in combination or in
  succession or otherwise howsoever conjointly,
  they shall be treated as a single computer
• Document means any matter expressed, described,
  or howsoever represented, upon any substance,
  material, thing or article, including any matter
  embodied in a disc, tape, film, sound track or
  other device whatsoever, by means of
• a) letters, figures, marks, symbols, signals,
  signs or other forms of expression, description,
  or representation whatsoever.

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Law

• Section 90A, Evidence Act 1950
• Admissibility of documents produced by computer
  and of statements contained therein
• (1) In any criminal or civil proceeding a
  document produced by a computer, or a statement
  contained in such documents, shall be
  admissible.
• (2) For the purpose of this section it may be
  proved that a document was produced by a computer
  in the course if its ordinary use by tendering to
  the court a certificate signed by a person
  who.is responsible for the management of the
  operation of that computer.
• The maker of the document doesnt need to come
  to court to testify see Gnanasegaran
  Pararajasingam v Public Prosecutor (1997) 4 CLJ 6

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IT Resources Analysis for Cases
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CRIS

• Is a database tool which acted as the central
  information depositor for the purpose of share
  and collaborate various information such as in
  achieving faster case solving among the MACCs
  Investigation units/departments.

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FUNCTIONS
CRIS

• to gather all the information of the cases in
  MACC including-
• The details of the reports and actions have been
  taken by investigation officers
• The family tree of suspects or targets
• The background/details of suspects or targets
• The fact of case and
• Information on freezing and forfeiture of
  properties.
• To enable investigation officers to view and
  retrieve all the information of cases in MACC

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BENEFITS
CRIS

• Information of all cases in MACC can be
  centralized.
• Speed up the process of profiling the suspects or
  targets with the term that the suspects or
  targets must involved in others cases before.
• Reduce any duplication / double work by searching
  the facts / information of the cases through CRIS
  before start an investigation paper.
• Easier for top management to find out about each
  case.

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Example Cases
CRIS
Case Name Finding Through CRIS
Hasbies Case ( Ex Secretary of Minister) NFCs Case ( Ex Ministers Family) Found out that the predicate case has been took over by Public Section of Investigation Division Process of profiling the suspects and witnesses of the case settled within few minutes. Success to gathered all the suspects and witnesses statement within few minutes. Conclusion Investigator no need to do double job in gathering the information because all can be retrieved from the system. AMLA Investigator only need to focus on detect and uncover a laundering activities by doing the linking analysis such as finding the money trail for the corrupt money.
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Financial Intelligence System (FINs)

• FINs is a reporting system that is developed by
  Bank Negara Malaysia to cater for submission of
  Suspicious Transaction Reports (STRs) and Cash
  Threshold Transactions(CTRs) from the Reporting
  Institutions (RIs). Its main purpose is to
  establish an effective information management in
  Financial Intelligence Unit(FIU), Bank Negara
  Malaysia.
• The FIU analyses the STRs and if it merits or has
  reason to believe or suspect that the transaction
  involves proceeds of an unlawful activity, FIU
  will disclose such information to the relevant
  enforcement agency such as MACC.

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FUNCTIONS
FINs

• To allow MACCs officers to serve the Order
  S.48(1) AMLATFA to all the Financial Institutions
  in Malaysia via Bank Negara Malaysia for the
  purpose of gathering all the suspects
  information and documents from RIs.
• To allow MACCs officers to view and retrieve the
  STRs /CTRs reports that lodged by RIs upon
  request.
• To allow MACCs officers to view the transmission
  tracking report upon request.

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BENEFITS
FINs

• Speed Up the process of gathering all the
  documents / information from RIs.
• Information gathered from CTRs/STRs reports can
  be used as the references for MACCs officers to
  do the link analysis such as the monies trail for
  suspects and targets
• Transmission tracking report can be used as the
  references that ensuring the investigation
  officer to find out the clues to solve the case
  quickly and effectively.

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Example Cases
FINs
Case Name Finding Through FINs
Hasbies Case ( Ex Secretary of Minister) Alstoms Case ( Ex Great Minister) Success to get all the suspect and witness accounts information from RIs within two weeks Success to trace the suspicious transactions through the CTR/STR report and transmission tracking report that can be retrieved from FINs. Success to gather all the bank statement for accounts belong to suspect and witness within few weeks. Conclusion Speed up the process of gathering all the documents for AMLA investigation officer to do the linking analysis such as finding the money trail of the corrupt money.
NFCs Case ( Ex Ministers Family) Success to get all the suspect and witnesses accounts information from RIs within two weeks Success to gather all the bank statement for the accounts belong to suspect and witnesses from RIs within two week. Success to trace the suspicious transactions through the CTR/STR Reports and Transmission tracking report that can be retrieved FINs. Conclusion Speed up the process of gathering all the documents for increasing the speed of AMLA investigation officer in doing the linking analysis such as finding the money trail of the corrupt money.
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Analysts Notebook 8 (i2)

• Is a analytical tool used to analyst the
  information gathered and do the link analysis
  such as finding phone call patterns and money
  trail for suspects and targets.

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FUNCTIONS
i2

• To consolidate the data gathered by the
  investigation officer.
• To perform suspect link analysis for discovering
  the hidden connections from the disparate sources
  of data gathered.

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BENEFITS
i2

• Faster case resolution due to the ability to do
  faster link analysis and find any duplication of
  work
• Accurate information dissemination would be the
  key success factor for decision making
• More focus on doing the complex link analysis

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Example Cases
i2
Case Name Finding Through i2
Hasbies Case (Ex Secretary of Minister) Success to complete the money trail for the corrupt and laundered monies amounting to millions. The suspect has been charged to the court and now still in the trail proceeding.
NFCs Case (Ex Ministers Family) Success to complete the money trail for the corrupt and laundered monies amounting to millions. The suspect has been charged to the court and still in the trail proceeding.
ALSTOMs Case (Ex Great Minister) Success to complete the money trail for the corrupt and laundered money amounting to millions. Now in the process of getting all the documents from others countries through MLA.

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Thank You