Cops say illegal flow of money ‘nothing new’

KUALA LUMPUR, Dec 16 — The police said today reports that Malaysia lost RM150 billion in illicit outflows in 2009 was “not something new” and it has been freezing assets of organised crime and drug rings to tackle the problem.
Washington-based watchdog Global Financial Integrity (GFI) reported yesterday that Malaysia’s outflow of illegal money topped RM1 trillion in the decade up to 2009.
But Inspector General of Police Tan Sri Ismail Omar (picture) said “money laundering is not something new and police have been regularly acting against organised crime members and drug syndicates.”
“In many drug cases, the suspect’s background and financial standing is investigated thoroughly and police have forfeited property to seize the ill-gotten gains,” the police chief told reporters today.
GFI said yesterday Malaysia lost RM150 billion in illicit outflows in 2009, the fourth highest in the developing world.
In March, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said the Money Business Services Act would be tabled this year to enable the central bank to address the outflow of funds from the country.
The law came into force on December 1.
The new law supports the development of a more dynamic, competitive and professional money services business industry, while strengthening safeguards against money laundering, terrorist financing and illegal activities, according to Bank Negara.
The Finance Ministry had said early this year that Bank Negara was investigating the matter.
But the central bank has yet to make any statement on the progress of its investigations despite GFI offering its assistance.