Effects of money laundering:

1.

Market distortions
- advancement of legal sectors are hampered as products are
supplied at a price lower than their production cost result of
money laundering
- Harder for legal activities to stay alive in the competition
- Overall productivity decreases producers turning productive
enterprises into sterile ones
- Money demand of a country falls
- International exchange rate and cash flow will be volatile

2. Disintegration of Financial Sector

- Destabilize financial markets
- Financial institutions lose their reputation
- Stakeholders lose their trust and goodwill in these institutions
- Extreme money laundering may cause money related breakdown
and bank failures

3. Government revenue decreases

- Tax revenue lowered
4. Sosioeconomic Costs
- Criminal activities are increasing
- New criminals are being financed
- Transfer economic power from the hands of government and
citizens to launderers
- Lead to more crimes

MEASURES For the Prevention of Money Laundering In Malaysia:

1. AMLA ( Anti-Money Laundering Act 2001)
- Implemented by bank Negara
- In 2007, the act was amended to become Anti-Money Laundering
and Anti-Terrorism Financing Act 2001
- In 2014, it was titled Anti-Money Laundering, Anti-Terrorism
Financing and Proceeds of Unlawful Activities Act 2001
- to deal with the proceeds of an unlawful activity and
instrumentalities of an offence in addition to property involved in or
derived from money laundering and terrorism financing offences
and terrorist property.
- apply to any serious offence, foreign serious offence or unlawful
activity whether committed before or after the commencement
date.
- apply to any property, whether it is situated in or outside Malaysia.
- Nothing in this Act shall impose any duty or confer any power on
any court in or in connection with any proceedings under this Act
against a person for a serious offence in respect of which he has
been convicted by a court before the commencement date.

commits a money laundering offence and shall on conviction be

liable to imprisonment for a term not exceeding fifteen years and
shall also be liable to a fine of not less than five times the sum or
value of the proceeds of an unlawful activity or instrumentalities of
an offence at the time the offence was committed or five million
ringgit, whichever is the higher.

2. Financial Action Task Force (FATF)

- an inter-governmental body that sets standards and encourages effective
implementation of legal, regulatory and operational measures for overcoming
money laundering, terrorist financing and other related crimes to the integrity
of the international financial system.