Laundering Policy

money laundering

Effective Date: 1 September 2023

1. Money Laundering (ML): A process of converting proceeds of an illegal or unlawful activity or instrumentalities of an offence to give them legitimate appearance. It is a processing of criminal proceeds to disguise their illegal origins.

2. Terrorism Financing (TF): An act of providing financial support, funded from either legitimate or illegitimate source to terrorists or terrorist organisations to enable them to carry out terrorist acts or for their benefits.

3. Customer Due Diligence (CDD) Process:

(a) The CDD process consists of 3 parts:

  • collecting and verifying customer’s information;
  • customer risk profiling; and
  • sanctions screening.

(b) Any company within the MISHU Group (“Company”) will conduct CDD in the following situations:

  • when establishing a business relationship with any customer;
  • when carrying out any transaction related to (i) acting as a formation agent of legal entities, (ii) acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal entities, (iii) providing a registered office, business address, accommodation, correspondence or administrative address for a company, a partnership or any other legal entities/arrangement, (iv) acting as (or arranging for another person to act as) a trustee of an express trust, or (v) acting as (or arranging for another person to act as) a nominee shareholder for another person; or
  • when there is doubt about the veracity or adequacy of previously obtained information.

(c) In the event that the Company is unable to ascertain the identity of the customer, it may take the necessary actions, including terminating the business relationship with the customer or conducting further verification.

(d) Collecting and Verifying Customer’s Information

  • The Company collects and verifies relevant information about the customer to ascertain the customer’s identity.
  • Depending on the category the customer falls into, the Company will require, at the very least, the following information

For individual customers:

  • Full name;
  • NRIC/ passport number;
  • Residential and mailing address;
  • Date of birth;
  • Nationality;
  • Occupation type;
  • Name of employer/ nature of self-employment/ nature of business;
  • Contact number; and
  • Purpose of transaction
  • For individual customers:

For legal persons:

  • Name, legal form & proof of existence;
  • Company/ business registration number;
  • Powers that regulate and bind the customer & the names of relevant persons having senior management position;
  • Business and registered address;
  • Any persons authorised to represent the company/ business; and  
  • Nature of business.

(e) Customer Risk Profiling

  • Based on the customer’s information obtained during the collection and verification stage, the Company will assess the ML/TF risk posed by each customer by taking into consideration various factors.
  • Based on the customer’s risk profile, the Company will take the necessary actions.

(f) Sanctions Screening

  • As part of the Company’s commitment to regulatory compliance, the Company will conduct sanctions screening on individual customers.
  • Based on the results of the sanctions screening process, the Company will take necessary actions – either entering or not entering into a business relationship with the customer or conducting further verification.

4. Know Your Customer (KYC) Procedures

(a) The Company has implemented an electronic Know Your Customer (e-KYC) process as part of the CDD, which is required under the laws and regulations. e-KYC is an automated process through which the Company can perform customer identity verification digitally.

(b) The Company’s Business Development Department (BD Dept) will provide a verification link for the customer to access to the Company’s secured e-KYC platform. The customer has to upload required documents and fill in requested information digitally.

(c) The Company’s compliance executive will review the e-KYC report generated. In certain cases, the compliance executive may request additional documents from the customer or conduct video verification for accuracy.

(d) If there are no issues with the e-KYC report, the Company will proceed with the customer’s request. However, if the customer fails or refuses to complete the e-KYC process and further refuses to provide the requested documents, the Company will not proceed with the customer’s request.

5. Politically Exposed Persons (PEPs)

(a) PEPs are individuals who hold or have held significant public positions within government bodies or international organisations, whether in Malaysia or foreign countries. PEPs’ family members and close associates are also considered PEPs.

(b) The Company will conduct screenings on the customers to identify PEPs or their family members or close associates.

(c) The Company will take the necessary action, depending on the screening result.

(d) All foreign PEPs shall undergo Enhanced Customer Due Diligence (EDD). Domestic PEPs or those entrusted with significant functions by international organisations are subject to either EDD or standard CDD. 

6. High Risk Jurisdictions

(a) High-risk jurisdictions are countries with significant deficiencies in combating money laundering, terrorist financing, and proliferation financing.

(b) The Financial Action Task Force (FATF) requires all jurisdictions to apply EDD measures for all high-risk jurisdictions, or even counter-measures in the most serious cases

7. Enhanced Customer Due Diligence (EDD) Process

(a) The Company will perform EDD on:

  • business relationships and transactions with any person from high-risk jurisdictions;
  • customers who are foreign PEPs; and
  • such other categories of customers, business relationships or transactions.

(b) In conducting EDD, the Company will:

  • obtain additional information about the customer;
  • enquire about the source of wealth or source of funds (in the case of PEPs, both sources must be obtained); and
  • obtain approval from its management. 

8. On-going Customer Due Diligence (ODD) Process

(a) The Company performs ODD during ongoing business relationships to ensure:

  • consistency between the transactions being conducted and the customer’s profile; and
  • up-to-date and relevant documents, data or information collected during the CDD process.

9. Enhanced On-going Customer Due Diligence (EODD) Process

(a) The Company is also required to perform EODD on the ongoing business relationship with customer.  

If you need help, please email our support channel at [email protected]

Powered by MISHU AI

Hello, I am Maya, your AI assistant. I have been trained to answer any questions about our services to make things easier and faster for you. Feel free to ask me anything!

Dont worry, for peace of mind, a human colleague will follow up after our chat to confirm important details and offer further assistance.

Let's get started. How can I help you today?

Scroll to top