KUALA LUMPUR – Existing laws in the country allow for anyone to open up offshore accounts but not without strings attached, said Finance Minister Tengku Zafrul Tengku Abdul Aziz.
He told Dewan Rakyat that account holders have to abide by the fair business practice of customer due diligence, as required under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Speaking in Parliament, Tengku Zafrul said the financial sector in Malaysia is regulated by a number of legislations.
Financial activities within the country are within the purview of Bank Negara through the Financial Services Act 2013 and Islamic Financial Services Act 2013, while offshore activities are regulated by the Labuan Financial Services Authority.
“Under these laws, the Finance Ministry would like to explain, any individual can open accounts with any licensed banks, including offshore.
“Having said that, these customers must abide by fair business practices.”
Tengku Zafrul was responding to a question from Lim Guan Eng (Bagan-PH) on revelations made in the Pandora Papers exposé, which alleges that a number of high-profile Malaysians have deposited their money overseas.
Lim also wanted to know of the government’s efforts to repatriate the money.
Tengku Zafrul said the exposé was based on confidential information leaked from 14 offshore service providers providing professional services to individuals, as well as shell companies, trust companies, foundations and other entities to set up accounts in countries with weak financial legislations.
The minister said Malaysia is not classified as one of such countries.
Malaysiakini yesterday reported that a number of high-profile Malaysians, including Tengku Zafrul and Umno president Datuk Seri Ahmad Zahid Hamidi, have been implicated in the Pandora Papers.
On Tengku Zafrul, the article alleged that he was named as director of Capital Investment Bank (Labuan) Limited, a boutique bank incorporated in the offshore jurisdiction of Labuan, but recent checks indicate he may no longer be in the position.
In a statement yesterday, the minister said that he had already relinquished his executive and directorship roles at the Kenanga Group – the parent company of Capital Investment Bank – in June 2010.
He said he has also sought legal advice from his lawyers pertaining to the media report. – The Vibes, October 5, 2021
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