For Customers

What is Money Laundering?

Money laundering is a process of converting cash, funds or property derived from criminal activities to give it a legitimate appearance. It is a process to clean 'dirty' money in order to disguise its criminal origin.

Under AMLA, a person commits money laundering when the person: -

• engages directly or indirectly, in a transaction that involves proceeds of an unlawful activity or instrumentalities of an offence;
• acquires, receives, possesses, disguises, transfers, converts, exchanges, carries, disposes of, or uses proceeds of an unlawful activity or instrumentalities of an offence;
• removes from or brings into Malaysia proceeds of an unlawful activity or instrumentalities of an offence proceeds of an unlawful activity or instrumentalities of an offence; or
• conceals, disguises or impedes the establishment of the true nature, origin, location, movement, disposition, title of, rights with respect to, or ownership of proceeds of an unlawful activity or instrumentalities of an offence.

We, as real estate agency, plays a crucial role in preventing money laundering. By complying with AMLA and its Policy Document, we can do our part to help to disrupt financial flows that support criminal activities.

What is Terrorism Financing?

Terrorism financing is the act of providing financial support to terrorists or terrorist organisations to enable them to carry out terrorist acts or to benefit any terrorist or terrorist organisation.

While funds may come from criminal activities, they may also be derived from legitimate sources, for example, through salaries, revenue from legitimate business or donations including through non-profit organisations.

To effectively combat terrorism, we, as real estate agency have a responsibility to implement CTF measures to prevent our services from being misused for terrorist financing purposes. By doing so, we contribute to the broader effort to combat terrorism and protect public safety.

Which AML/CFT Policy Document is applicable to Real Estate Agencies (“REAs”) and Real Esta Negotiators (“RENs”)?

The applicable AML/CFT Policy Document at the time of writing is the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Designated Non-Financial Businesses and Professions (DNFBPs) & Non-Bank Financial Institutions (NBFIs), which was issued by the Bank Negara Malaysia in English and Malay.

What does the Customer Due Diligence (“CDD”) process entail?

Under the BNM Policy Document and the Guidance document (which can be found here) (“Guideline”), CDD is a process which involves identifying and verifying the identity of customers as well as understanding the purpose and nature of business relationship.

When does CDD have to be conducted?

Under the FAQ on Implementation Guidance provided by BNM (found here), CDD is carried out at the following stages:

• on-boarding stages - for new customers;
• throughout business relationship after customers have been on-boarded - for existing customers; and
• at the point of transaction - occasionally, and for transactions exceeding certain threshold imposed or when there is suspicion of money laundering or terrorism financing.

Is there a minimum list of information which I will have to provide to REAs and RENs for purposes of CDD?

For individuals, the minimum list of identification information is as follows:

• Full name;
• National Registration Identity Card (NRIC), number or passport number or reference number of any other official documents of the customer or beneficial owner;
• Residential or mailing address;
• Date of birth;
• Nationality;
• Occupation;
• Name of employer or nature of self-employment or
• Nature of business;
• Contact number; and
• Purpose of transaction.

I am only assisting another person/company to conduct the transaction. Whose information should I be providing?

Under the Guideline, we are required to verify the identity of our customers although there is no restriction on the form of evidence to be taken to verify the customer's identity. To this end, we seek all our customers' cooperation in providing to our negotiators a copy of your identification document (marked 'for IQI CDD use only').

What happens if I refuse to provide the CDD information?

We acknowledge that it may be daunting to be disclosing personal or corporate information, but please understand that the information collected is pursuant to the minimum requirements as set out by BNM. However, we urge the general public to understand that in the event the refusal to provide CDD information is not based on any reasonable concern, such refusal to cooperate may be regarded by the authorities as a 'red flag'.

I am worried that the copies of my NRIC may be misused.

As a general precaution, we would advise all our customers to strikethrough the corners of the copies of NRIC and mark as 'for IQI CDD use only'. When doing so, please ensure that the NRIC number and name is clear and readable.

I am worried that the copies of my documents may be misused.

As a general precaution, we would advise all our customers to strikethrough the corners of all documents containing personal or corporate information and mark as 'for IQI CDD use only'. When doing so, please ensure that the important information in the documents is still clear and readable.

How will my personal data be protected?

We are committed to handling all data collected for Customer Due Diligence (CDD) purposes in compliance with applicable data protection laws.

Can I refuse to disclose my information by citing the Personal Data Protection Act 2010 (PDPA)?

The short answer is no.

According to Section 20 of the AMLA (“Secrecy Obligations Overidden”), the requirements under Part IV of the AMLA take precedence over any other laws or regulations that might restrict the disclosure of information. This includes the PDPA.