Malaysia: New Currency Declaration Rule

Hot on the heels of the illegal transfer of huge amounts of cash out of the country, johnny-come-lately Bank Negara Malaysia is just warming up to the issue.

As usual, they use lofty terms to premise their belated actions.

In line with the global effort to combat money-laundering and terrorism financing, BNM has now issued a new currency declaration requirement at all entry and exit points in the country.

As usch, effective January 1,2010, travellers entering or leaving Malaysia with cash and/or negotiable bearer instruments (traveller’s cheques, bearer cheques) exceeding US$10,000 (RM34,000) must make a declaration in form Customs No. 22.

“The forms will be available at counters located before the Customs checkpoints at all entry and exit points of the country.

“Travellers could be fined up to RM1mil and/or face imprisonment not exceeding a term of one year if they fail to declare or make a false declaration,” it said in a statement here yesterday.

BNM said this was required under section 23 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and was in line with the Special Recommendation IX by the Financial Action Task Force which required countries to have measures in place to detect physical cross-border transportation of cash and negotiable bearer instruments.

“This new requirement is in line with global efforts to combat money-laundering and terrorist financing activities.

“Canada, Britain, Australia, New Zealand, Japan, Philippines and Singapore have adopted the same declaration requirement,” it said.

But why now, when a sitting Chief Minister and other wealthy individuals have absconded with so much money?