Malaysia

Global sanctions guide

Luxembourg
Malta
  1. Does Malaysia have a sanctions regime in place?

Yes.

  1. Does Malaysia implement UN sanctions?

Yes.

  1. Does Malaysia implement an autonomous sanctions regime?

Yes.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

T: (+60) 03 6200 0585
E: admin.sts@miti.gov.my
www.miti.gov.my

The Atomic Energy Licensing Board, Malaysian Communications and Multimedia Commission, and Pharmaceutical Services Division of the Ministry of Health also issue permits under the STA.

Under the AMLA, the Malaysian Minister of Home Affairs has the power to make orders for the implementation of measures to give effect to resolutions adopted by the UNSC.

The Ministry of Home Affairs,
Block D1 & D2, Complex D,
Administrative Center,
Federal Territory, 62546 Putrajaya.
T: (+60) 03 8886 8000 /3000
E: webmaster@moha.gov.my
www.moha.gov.my/index.php/en/

The Central Bank of Malaysia is the regulator of financial institutions within its purview who are subject to the reporting requirements imposed under the AMLA.

Jalan Dato’ Onn,
P.O. Box 10922, 50929 Kuala Lumpur.

T: (+60) 03 2698 8044 / 2698 9044 / 9179 2888
E: bnmtelelink@bnm.gov.my
www.bnm.gov.my/

Securities Commission Malaysia is the regulator of entities who are subject to the reporting requirements imposed under the AMLA.

Corporate Affairs Department,
3, Persiaran Bukit Kiara,
Bukit Kiara, 50490 Kuala Lumpur.

Te: (+60) 03 6204 8777
E: cau@seccom.com.my
www.sc.com.my/

The Labuan Financial Services Authority regulates Labuan entities who are subject to the reporting requirements imposed under the AMLA.

Level 17, Main Office Tower,
Financial Park Complex,
Jalan Merdeka, 87000 Labuan.

T: (+60) 87 591200
E: communication@labuanfsa.gov.my
www.labuanibfc.com/home.html

  • Post Categories
  • Asia

Contributor law firm

Yong Pui Wei, Mah-Kamariyah & Philip Koh, 3A07, Block B, Phileo Damansara II 15 Jalan 16/11, Off Jalan Damansara 46350 Petaling Jaya, Selangor, Malaysia

T: (+60) 3 7956 8686
F: (+60) 3 7956 2209
Yong.PuiWei@mkp.com.my
http://www.mkp.com.my/