Does Malaysia implement an autonomous sanctions regime?
What is the nature of the sanctions regime in Malaysia?
The overarching legislation is the Strategic Trade Act 2010 (the “STA”). The STA regulates the export, trans-shipment, transit and brokering of certain strategic items as specified in Ministerial Orders issued under the STA, being: the Strategic Trade (Restricted End-Users and Prohibited End-Users) Order 2010 (as amended in 2011 and 2014) and the Strategic Trade (Strategic Items) Order 2010 (as amended in 2014). The latest list of strategic items is published online and is divided into a Munitions List and a Dual-Use List (similar to that of the EU).
In addition, the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (the “AMLA”) gives power to the Malaysian Minister of Home Affairs to make orders for the implementation of measures to give effect to resolutions adopted by UN Security Council and to obtain information on possession or control of terrorist property.
Does Malaysia maintain a list of sanctioned individuals and entities?
Yes. The Minister of International Trade and Industry can designate individuals, entities, and countries as restricted or prohibited end-users, following their suspected involvement in any restricted activities. These are currently reported under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds Of Unlawful Activities (Declaration of Specified Entities and Reporting Requirements) Order 2014, as amended.
Are there any other lists related to sanctions?
Pursuant to powers conferred by the AMLA, the Malaysian Minister of Home Affairs has made the Anti-Money Laundering And Anti-Terrorism Financing (Security Council Resolutions) (Al-Qaeda and Taliban) Order 2011 (as amended in 2013 and 2014) which implements measures decided by UN Security Council to freeze assets relating to Al-Qaeda and the Taliban.
Does Malaysia have a licensing or authorisation system in place?
Yes. A person wishing to perform any activity related to export, trans-shipment, transit and brokering of strategic items must obtain an export permit (single use, bulk, multiple or special) or broker certificate based on the latest Ministerial Order issued under the STA.
What are the consequences for a breach of sanctions in Malaysia?
Violation of the STA is punishable by fines, imprisonment or a death sentence in the most extreme cases. Violation of the AMLA is punishable by fines, imprisonment, and freezing and seizure of assets.
Who are the relevant regulators in Malaysia and what are their contact details?
The Strategic Trade Secretariat of the Ministry Of International Trade & Industry oversees implementation of the STA
12th Floor, Block 8,
Government Offices Complex,
Jalan Duta, 50622 Kuala Lumpur.
Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.