PUTRAJAYA: Depositing illicit proceeds into business or individual accounts and mixing the amount with revenue from legitimate sources of revenue were among the three modus operandi resorted to by irresponsible quarters involved in money laundering activities to hide their trails from the authorities.
Such tactics to evade arrest by errant quarters were uncovered by the Domestic Trade and Cost of Living Ministry's enforcement when they conducted several operations to eradicate money laundering activities in the country under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
The ministry's enforcement director-general, Datuk Azman Adam, said errant quarters also resorted to adopting a "structuring method."
"Under this method, the offenders would deposit the illicit proceeds to business or individual accounts of others, creating shell companies, procuring assets or making investments, making loan repayment and insurance payments.
"Some errant traders also resort to the 'hawala' instrument, which is a money transferring system that bypasses conventional banking or licensed financial companies," he said in a statement today.
He also outlined the challenges faced by the ministry in combating money laundering activities in the country.
Azman said this included suspected offenders using cash transactions outside the banking system and the involvement of professionals such as accountants and company secretaries to evade detection by the authorities.
"We will continue to strengthen our enforcement according to the laws available and continue to cooperate with other enforcement bodies to eradicate money laundering activities in the country," he said.