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Malaysian Bank Accounts Scrutinized For Terrorist Links
Report by IOL Correspondent, Kazi Mahmood
KUALA LUMPUR, March 5 (IslamOnline) - Malaysia has taken special steps in the fight against terrorism instructing local banks to scrutinize accounts for terrorist links, sources in Kuala Lumpur confirmed on Tuesday.
On Sunday, Foreign Minister Syed Hamid Albar said Malaysia would start checking local banks accounts belonging to individuals and companies for a possible link with terror suspects.
He added the action was in line with global efforts to combat terrorism.
"We fully agree with the steps taken and would comply with them to eliminate all possible sources of terrorism funding in the country," he said while attending the Commonwealth Heads of Government Meeting (CHOGM).
Last year, Malaysia’s Bank Negara (the National Bank) checked on money transfers in and out of the country, obviously trying to trace the source of the transfers.
Officials from the Bank confirmed that they were scrutinizing for possible terror links but Prime Minister Mahathir Mohamad who is also the Finance Minister of Malaysia, said there were no terror accounts in the country.
He also said it was irrelevant to suggest that Malaysia was the financial hub through which terror funds were channeled round the globe.
The U.S. suggested that it was possible that Malaysia was the center where terror suspects were using banks and other means to channel money to their peers around the world and finance their terrorist activities.
Albar said the current checks that are being done was in accordance with the Report of the Commonwealth Committee on Terrorism adopted by the heads of government on last Saturday.
Malaysia firmly believes terrorism-linked money does not exist in the country. The country has a very efficient banking system that would allow detection of suspicious transactions easily.
For example, foreigners living or working in Malaysia are not allowed to transfer more than RM10, 000 or USD1350.00 per month. The Bank Negara immediately scrutinizes any transaction that surpasses this amount.
The corresponding banks in Malaysia are sent reminders that transactions that are more than the permitted limit must be investigated.
A report has to be submitted to the National Bank after investigations done, an official of a local bank told IslamOnline on Tuesday.
Foreigners are also not allowed to open accounts in local banks without a work permit. This policy has been in force for the past five years or so, the official said.
He added that it would be almost impossible for a foreigner to open an account now in Malaysia unless he has a work permit renewable every year.
The country has also severely curbed on foreigners working in Malaysia, which making it even more difficult for terror suspects to open accounts and even work in Malaysia, the official of the Bank Of Commerce added.
The local banks, he said, are now being asked to look closely on accounts that show signs for suspicion. Transactions between companies might also be scrutinized but this does not mean the banks are going to violate the secrecy of the clients, the source told IslamOnline.
Malaysia’s Deputy Prime Minister Abdullah Ahmad Badawi, in articulating Malaysia's stand on the issue, had urged the Commonwealth to look beyond the attacks and Osama bin Laden's al-Qaeda network when dealing with global terrorism.
He said the world had terrorists fighting for ethnic and ideological causes besides religious militants of different faiths.
Albar added that accounts traced to those linked to terror networks were from a list handed over to Malaysia by the UN Security Council.
"Most of the names are of companies but there are a few individuals," he said, declining to give details.
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