Thursday, August 2, 2012
A 2004 amendment to the Anti-Money Laundering and Anti-Terrorism Financing Act (AMLA) redefined “reporting institutions” to include accountants. In the Financial Action Task Force on Money Laundering (FATF) context, accountants are part of the Designated Non-financial Businesses and Professions (DNFBPs) sector. FATF research highlighted a trend in the use of complex commercial arrangements by money launderers and terrorism financiers to hide their money trail. These arrangements often use the services of professionals such as lawyers, accountants and company secretaries. Arising from these typologies, the FATF standards require countries to improve their Anti- Money Laundering and Counter Financing of Terrorism (AML/CFT) measures on DNFBPs. In Malaysia, DNFBPs consist of casinos, real estate agents, dealers in precious metals or precious stones, lawyers, company secretaries, accountants and other independent legal professionals. All have been made reporting institutions (RIs). Dealers in precious metals or precious stones were incorporated with effect from December 2007. (Extracted from the Accountants Today - August 2008).