Page 56 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

thematic review on Suspicious transactions reports

BAckGRound SuPERVISoRy ouTcoME

The suspicious transactions reports (STR) submitted by Issue an industry communiqué to all intermediaries
licensed intermediaries to the Financial Intelligence and on SC’s observations and expectations in relation
Enforcement Department (FIED) of BNM are important to STRs.
sources of financial intelligence to measure the
effectiveness of the Anti-Money Laundering and Counter
Financing of Terrorism (AML/CFT) framework.

A thematic review was conducted to assess and evaluate
the quality of STR submissions as well as internal practices
put in place by intermediaries to identify, analyse and
document suspicious transactions. Observations and
expectations arising from the thematic review were shared
during a compliance workshop held in July 2018.

oBSERVATIonS
• STRs are generally lodged with BNM FIED within an acceptable timeframe.

• Majority of the licensed intermediaries have adequate detection, escalation and reporting mechanism on unusual
or suspicious transactions.

• Intermediaries have proper record-keeping measures to ensure sensitive information and documents relating to
suspicious transactions are kept in a secured environment.
• Most of the STRs lodged were initiated from the law enforcement agencies’ investigation orders or adverse reports
posted via BNM’s Financial Intelligence System (FINS).

• Some of the STR submissions provided adequate description of the nature and circumstance of suspicion with
analysis to support the suspicious transactions.

• There is a need for intermediaries to review the efficiency and effectiveness of their suspicious transaction
reporting process and the timeliness as well as the quality of their STRs.

46 | PART 2 »» SHAPING MARKET CONDUCT

NEW_36-59.indd 46 2/21/19 9:27 AM