1 / 23

COUNTRY REPORT ON CURRENT SITUATION OF CORRUPTION AND MONEY LAUNDERING IN MALAYSIA

COUNTRY REPORT ON CURRENT SITUATION OF CORRUPTION AND MONEY LAUNDERING IN MALAYSIA. Respondents. Corruption : Malaysia Anti-Corruption Commission Money Laundering : Central Bank of Malaysia. Prevalence Of Corruption. Moderate and widespread among the public sectors

joann
Download Presentation

COUNTRY REPORT ON CURRENT SITUATION OF CORRUPTION AND MONEY LAUNDERING IN MALAYSIA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. COUNTRY REPORT ON CURRENT SITUATION OF CORRUPTION AND MONEY LAUNDERING IN MALAYSIA

  2. Respondents • Corruption : Malaysia Anti-Corruption Commission • Money Laundering : Central Bank of Malaysia

  3. Prevalence Of Corruption • Moderate and widespread among the public sectors • Slightly lower than previous years • CPI does not fairly reflects the reality of corruption 2011 : score 4.3 / rank 60 2012 : score 49 / rank 54 • GII does not fairly reflects the reality of corruption

  4. Tolerant level Towards Corruption • The country’s population moderately intolerant towards corruption • Steps taken by the govt against corruption - strong • Corruption as one of the 6 National key Result Area • Enhance Enforcement agencies • Combat grand corruption • Transform Auditor General Reporting process; fast-tracking access to AG PA report (thrice yearly), Action Committee, Online dashboard, Putrajaya Inquisition • Enhance govt procurement process; myporecurement portal • Raise public support and enhance punlic education

  5. Pattern Of Corruption • Unpredictable • Occur equally in public and private entities

  6. Types Of Corruption • Most prevalent : Petty, grand & corruption at enterprise level • Most common types(1-9): CBT, bribery, kickback, abuse of position, influence peddling, nepotism, embezzlement, extortion, forgery • Most corrupted sector(1-13) : Law enforcement, customs, state-owned enterprise, local govt, public service delivery, agriculture, environment, health, education, legislature, energy, judiciary, taxation • Greatest probability of corruption occurring at the government level : Procurement contracts, licensing, public fund disbursement procedures, electoral irregularities, revenues(taxes) collection

  7. Petty Corruption • Prevalence : moderate • Most likely involve rank and file employees

  8. Grand Corruption • Prevalence : Low • Most likely people involved : specific business interest and / or political group

  9. Corruption At Budgeting Level • Corruption during bugdet formulation is primarily grand of political corruption : neither agree nor disagree • Unchecked and excessive executive discretion in budget process tends to create opportunities for political corruption : agree • Public Financial Management System weakness during budget formulation can increase the administrative corruption during budget execution : agree

  10. Main Cause Of Corruption • To become rich as quick as possible • Unclear rules and loopholes for manipulation • Culture, customs and habits of giving bribes to get things done • Complicated and cumbersome administrative procedures • Low salary levels • Rapid population and economic growth • Lack of financial rules and procedures • Absence, weakness or failure in regulatory and legal system to combat corruption

  11. Main Cause Of Corruption “ Actually the main cause of grand corruption and petty corruption is derivrd from the patronage-client system” Answer : Strongly agree “ Weak accounting practices, including lack of timely financial management are conditions favorable for corruption Answer : Strongly agree

  12. Consequences of Corruption • Damage done by corruption to the govt budget – Very serious • Damage done by corruption to the private sector - Very serious • Damage done by corruption to the citizens - Very serious

  13. Corruption’s Proceed • Mostly used to ; (1) Acquire assets (2) Invest in real estate (3) Bank deposits (4) Leisure, social activities (5) Stock investment

  14. Enforcement by Anti-Corruption Agency • In terms of monitoring, priority is always essential

  15. Management of Complaints • Complaints lodged with the agency is given highest priority • Recognize the role of whistle blower as extremely important • Whistle blowing a very effectiveavenue to lodge complaints of corruption

  16. Current Situation of Money Laundering • Manageable level • Partially disagree : ML tends to increase in recent years • Partly agree : ML tends to be more sophisticated

  17. Pattern of Money Laundering • Main pattern : Other The common methods for ML include placement in banking system, using nominees of family members, setting up front companies and use cash transactions to conceal money trails • Segment having the highest risk of ML (i) Money service business (2) Finance, banking (3) Real estate

  18. Pattern of Money Laundering • Most common method of ML 1). Cash transaction 2). Money exchange 3). Remittance 4). Through financial institutions 5). Casino 6). Real estate • Environment favorable for ML - International economic integrating - Use of cash and illegal money transfer

  19. Offences Associated With Money Laundering • Embezzlement • Corruption • Drugs Amount of monetary involved : More than USD100M

  20. Root Cause of Money Laundering • Avoiding prosecution • Become legitimate • Evade taxes • Hide illegal accumulated wealth • Increase profit

  21. Consequences of Money Laundering • Increase crime and corruption • Weakened financial institutions • Compromised economy and private sector • Negative impact on foreign investment • Reduce govt. tax revenue and weakened govt. control over the economy • ML caused serious but manageable economic and social consequences • Have serious impact on national security & national reputation

  22. General Assessment of ML • With effective Anti-Money laundering/Counter Financing of Terrorism (AML/CFT) framework and countermeasures in place, money laundering in Malaysia is currently at manageable levels.

  23. Thank You

More Related