As a member of several international standards-setting bodies, in particular the Asia/Pacific Group on Money Laundering (APG) and Financial Action Task Force (FATF), Labuan FSA is committed to combat any money laundering and terrorism financing activities in the Labuan International Business and Financial Centre (Labuan IBFC).
In relation to the recent news report that illegal proceeds obtained through fraudulent investment schemes are being kept in the financial centre to be used, among others, to support the political funds for certain parties in the country as well as being channelled to finance activities of militant groups, the Labuan FSA will not hesitate to take action against the relevant individuals or Labuan entities if they have breached the laws and regulations of the Labuan IBFC including relating to money laundering. Labuan FSA would like to affirm that the strict regulatory and supervisory regime, including the prohibition of cash transactions in the centre; the application of the Anti-Money Laundering and Anti-Terrorism Financing and Proceeds of Unlawful Activities Act and anti-money laundering rules and procedures on the financial institutions in Labuan are implemented and has preserved the integrity and reputation of the centre and ensuring that only genuine business activities are conducted in Labuan IBFC.
In addition, as part of the National Coordination Committee (NCC) to counter money laundering, Labuan FSA will continue to engage and/or cooperate with other regulatory bodies through various networks involving supervision, enforcement and sharing of information in investigating any activities relating to money laundering at the national and Labuan IBFC levels.
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