Anti-money laundering is commonly recognized as a
set of procedures, laws or regulations designed to reduce the practice
of generating income through illegal actions. In Malaysia, the
government and law enforcement agencies have stepped up their
capacities and efforts to curb money laundering since 2001. One of
these measures was the enactment of the Anti-Money Laundering
Act (AMLA) in 2001. The implementation costs on anti-money
laundering requirements (AMLR) can be burdensome to those who
are involved in enforcing them. The objective of this paper is to
explore the perceived effectiveness of AMLR from the enforcement
agencies- perspective. This is a preliminary study whose findings
will help to give direction for further AML research in Malaysia. In
addition, the results of this study provide empirical evidences on the
perceived effectiveness of AMLR prior to further investigations on
barriers and improvements of the implementation of the anti-money
laundering regime in Malaysia.
[1] M. Yeandle, M. Mainelli, A. Berendt, and B. Healy, Anti-money
laundering requirements: costs, benefits and perceptions, City Research
Series, no. 6, London: Corporation of London, 2005.
[2] P. Reuter, and E. M. Truman, "Anti-money laundering overkill? it-s time
to ask how well the system is working," The International Economy,
Winter, pp.56-60, 2005.
[3] B. Shanmugam, M. Nair, and R. Suganthi, "Money laundering in
Malaysia," Journal of Money Laundering Control, vol. 8, no. 4, pp. 373-
378, 2003.
[4] A. Biagoli, "Financial crime as a threat to the wealth of nations,"
Journal of Money Laundering Control, vol. 11, no. 1, pp. 88-95, 2008.
[5] D. Masciandaro, and R. Barone, Worldwide anti-money laundering:
estimating costs and benefits, Paolo Baffi Centre on Central Banking
and Financial Regulation, pp. 1-23, 2008.
[6] B. Unger, M. Seigal, J. Ferwerda, and W. Kruijg, The Amounts and
Effects of Money Laundering, Report for the Ministry of Finance, 2006.
[7] J. Ferwerda, "The economics of crime and money laundering: does antimoney
laundering policy reduce crime," Review of Law and Economics,
Special issue: tackling money laundering, vol. 5, no. 2, article 5, 2009.
[8] X. Tang, Y. Y. Shi, and Z. Y. Cao, The effectiveness of China-s antimoney
laundering policies, February 9, Available at SSRN:
http://ssrn.com/abstract=1550532 or http://dx.doi.org/10.2139/ssrn.
1550532, 2010
[9] I. Carrington, and H. Shams, Elements of an Effective AML/CFT
Framework: Legal, regulatory and best institutional practices to prevent
threats to financial stability and integrity, Seminar on Current
Developments in Monetary and Financial Law, Washington, D.C.2006.
[10] B. J. Reddington, Assessing the True Effectiveness of AL/CFT
Controls in Developing Countries, Master-s Thesis, Graduate School of
Art and Sciences of Georgetown University, Washington, 2011.
[11] M. Cuellar, "The tenuous relationship between the fight against money
laundering and the disruption of criminal finance," Journal of Criminal
Law and Criminology, vol. 93, no. 2 & 3, 2003.
[12] H. Geiger and O. Wuensch, "The fight against money laundering: An
economic analysis of a cost-benefit paradoxon," Journal of Money
Laundering Control, vol. 10, no. 1, pp. 91-105, 2007.
[13] PricewaterhouseCooper, Anti-Money Laundering Survey, Summer,
Forensic Services, UK Financial Services Industry, 2007.
[1] M. Yeandle, M. Mainelli, A. Berendt, and B. Healy, Anti-money
laundering requirements: costs, benefits and perceptions, City Research
Series, no. 6, London: Corporation of London, 2005.
[2] P. Reuter, and E. M. Truman, "Anti-money laundering overkill? it-s time
to ask how well the system is working," The International Economy,
Winter, pp.56-60, 2005.
[3] B. Shanmugam, M. Nair, and R. Suganthi, "Money laundering in
Malaysia," Journal of Money Laundering Control, vol. 8, no. 4, pp. 373-
378, 2003.
[4] A. Biagoli, "Financial crime as a threat to the wealth of nations,"
Journal of Money Laundering Control, vol. 11, no. 1, pp. 88-95, 2008.
[5] D. Masciandaro, and R. Barone, Worldwide anti-money laundering:
estimating costs and benefits, Paolo Baffi Centre on Central Banking
and Financial Regulation, pp. 1-23, 2008.
[6] B. Unger, M. Seigal, J. Ferwerda, and W. Kruijg, The Amounts and
Effects of Money Laundering, Report for the Ministry of Finance, 2006.
[7] J. Ferwerda, "The economics of crime and money laundering: does antimoney
laundering policy reduce crime," Review of Law and Economics,
Special issue: tackling money laundering, vol. 5, no. 2, article 5, 2009.
[8] X. Tang, Y. Y. Shi, and Z. Y. Cao, The effectiveness of China-s antimoney
laundering policies, February 9, Available at SSRN:
http://ssrn.com/abstract=1550532 or http://dx.doi.org/10.2139/ssrn.
1550532, 2010
[9] I. Carrington, and H. Shams, Elements of an Effective AML/CFT
Framework: Legal, regulatory and best institutional practices to prevent
threats to financial stability and integrity, Seminar on Current
Developments in Monetary and Financial Law, Washington, D.C.2006.
[10] B. J. Reddington, Assessing the True Effectiveness of AL/CFT
Controls in Developing Countries, Master-s Thesis, Graduate School of
Art and Sciences of Georgetown University, Washington, 2011.
[11] M. Cuellar, "The tenuous relationship between the fight against money
laundering and the disruption of criminal finance," Journal of Criminal
Law and Criminology, vol. 93, no. 2 & 3, 2003.
[12] H. Geiger and O. Wuensch, "The fight against money laundering: An
economic analysis of a cost-benefit paradoxon," Journal of Money
Laundering Control, vol. 10, no. 1, pp. 91-105, 2007.
[13] PricewaterhouseCooper, Anti-Money Laundering Survey, Summer,
Forensic Services, UK Financial Services Industry, 2007.
@article{"International Journal of Business, Human and Social Sciences:63816", author = "C. C. Huang and M. S. Amirrudin and N. A. Ahamad Noruddin and R. Othman", title = "Anti-Money Laundering Requirements – Perceived Effectiveness", abstract = "Anti-money laundering is commonly recognized as a
set of procedures, laws or regulations designed to reduce the practice
of generating income through illegal actions. In Malaysia, the
government and law enforcement agencies have stepped up their
capacities and efforts to curb money laundering since 2001. One of
these measures was the enactment of the Anti-Money Laundering
Act (AMLA) in 2001. The implementation costs on anti-money
laundering requirements (AMLR) can be burdensome to those who
are involved in enforcing them. The objective of this paper is to
explore the perceived effectiveness of AMLR from the enforcement
agencies- perspective. This is a preliminary study whose findings
will help to give direction for further AML research in Malaysia. In
addition, the results of this study provide empirical evidences on the
perceived effectiveness of AMLR prior to further investigations on
barriers and improvements of the implementation of the anti-money
laundering regime in Malaysia.", keywords = "Anti-money laundering, anti-money laundering requirements, perceived effectiveness, enforcement agencies.", volume = "7", number = "6", pages = "1830-4", }