KUALA LUMPUR: The mushrooming operations of illegal money senders must be crippled before they put the country in a most vulnerable state.
Commercial Crime deputy director Datuk Hamza Taib, who expressed his concerns over the growing illegal sector, said the urgency in reining in the problem ought to be in tandem with the authorities’ seriousness in arresting the mounting threat by terrorist groups, including those based in the region.
This, he said, was because while deals done through legal channels would trigger alarm bells if there were suspicious transactions and ultimately allow the authorities to react accordingly, there was no mechanism to monitor the movement of monies by unlicensed money senders.
Hamza said the federal police were ready to assist Bank Negara Malaysia (BNM) in smoking out illegal money senders operating in many corners of the country.
“This system, a clear branch of Hawala, has been known to be the channel for many illicit activities, including funding for terror activities. This issue must be handled with the strongest will and addressed once and for all.
“We are ready to assist the central bank in reining in these illegal operations, many of which are being run by foreigners.”
Hamza said it was crucial for the central bank to work closely with other agencies, including the Immigration Department, as the demand for such services was driven by the millions of illegal foreigners in the country who were hesitant to use legal money transfer services.
Counter-terrorism expert Andrin Raj echoed Hamza’s concerns, saying that the Hawala system was an ideal method for terrorism threats to grow in the country.
The Southeast Asian regional director of the International Association for Counter-terrorism and Security Professionals Centre for Security Studies, said it was a known fact that the Islamic State (IS), whose members and supporters include Malaysians, used the system in borderless transactions.
“The IS uses the Hawala system to transfer money among its affiliates without actually ‘moving’ it,” he said, adding that the illicit sector had to be systematically crippled.
Malaysian Association Of Money Services Business acting chief executive officer Lee Guat Keow said aside from the obvious threats that the illegal operators pose, its members and their agents had had their businesses affected.
“These illegal operators are also tarnishing the name of licensed remittance service providers.
“We know many choose to use the services of these illegal operators to avoid
detection by the
authorities.
“For legal service providers, they have to carry out due diligence and comply with many requirements, including observing the Personal Data Protection Act,” she said, adding that members of the association hoped that the authorities would rein in their illegal counterparts.