Implementation evaluation: a future direction in money laundering investigation

Published date07 May 2019
Pages318-326
Date07 May 2019
DOIhttps://doi.org/10.1108/JMLC-03-2018-0024
AuthorSalwa Zolkaflil,Normah Omar,Sharifah Nazatul Faiza Syed Mustapha Nazri
Implementation evaluation:
a future direction in money
laundering investigation
Salwa Zolkaflil and Normah Omar
Accounting Research Institute, University Technology MARA (UiTM) Malaysia,
Bandar Puncak Alam, Malaysia, and
Sharifah Nazatul Faiza Syed Mustapha Nazri
Faculty of Accountancy, University Technology MARA (UiTM) Malaysia,
Bandar Puncak Alam, Malaysia
Abstract
Purpose Malaysia has implementeda comprehensive AML/CFT framework, yet its effectiveness remains
questionable due to low number of prosecutions on money laundering cases. Therefore, this study aims to
understand the reasons for low number of prosecutions, by addressing the challenges faced by the law
enforcement agencies in conducting money laundering investigation. This study then identies future
improvementactions to enhance their effectiveness in combating moneylaundering in future.
Design/methodology/approach This study distributedsurveys to the law enforcement agencies that
are responsible for conducting money laundering investigation in Malaysia. In total, 65 surveys were
distributed;however, only 61 were returned to the researchers. Out of the 61 surveys returned,only 39 can be
analyseddue to incompleteanswers given by respective respondents.
Findings The results show that the investigating ofcers are facing difculties in gathering sufcient
information to support their charges. Besides information gathering, they are also facing difculties due to short
investigation timeframe regulated in the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of
Unlawful Activities Act (AMLATFPUAA) 2001. This study concludes that, although the law enforcement agencies
have the power to investigate money laundering and terrorism nancing under the act, Malaysia is lacking in
having a good investigative support system to assist the law enforcement agencies during theinvestigation process.
Practical implications The results of this study are helpful to the regulators and law enforcement
agencies in determining the aws of the current money launderinginvestigation practices. This study also
providessuggestions for future improvement action.
Originality/value Lack of study focuses on money laundering investigation conducted by the law
enforcement agencies, especially in the Malaysian setting, makes the study valuable to the money
laundering research.
Keywords Investigativesupport system, Law enforcementagencies, Money launderinginvestigation
Paper type Conceptual paper
1. Introduction
Money laundering is a global concern which has been discussed from year 1988 in the
United Nations Convention and its issue remains unsolved. Every year, around 2 to 5
per cent of the global GDP, which is estimated around US$1-2tn, is at loss due to global
The authors would like to express their gratitude to the Malaysian Ministry of Education for the
grant FRGS 5/3 (118/2015), University Teknologi MARA, Faculty of Accountancy and Accounting
Research Institute for funding and facilitating this research.
JMLC
22,2
318
Journalof Money Laundering
Control
Vol.22 No. 2, 2019
pp. 318-326
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-03-2018-0024
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm

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