Welcome Speech by Mr. Nik Mohamed Din Bin Nik Musa, at the AML/CFT Engagement Session with Labuan Sectors 2021

09th December 2021

Welcoming Remarks By

Mr Nik Mohamed Din Bin Nik Musa
Director-General, Labuan FSA

Assalamualaikum w.b.t and a very good morning.
YBhg. Datuk Howard Choo, Chairman of the Labuan Investment Banks Group
Encik Nor Rashidi Mohammad, Chairman of the Association of Labuan Banks
Mr. Gerard Roy Suresh Sharma, Chairman of the Labuan International Insurance Association

Esteemed speakers 
Ladies and gentlemen

It is my pleasure to welcome you virtually today to this morning’s AML/CFT Engagement Session for 2021. This is part of Labuan FSA’s commitment to continuously communicate with and raise awareness of the market on pertinent AML/CFT information. Through this session, I would like to emphasise on the
important role played by Labuan entities in supporting the regulators and law enforcement agencies to mitigate any potential money laundering and terrorism
financing (ML/TF) risks or vulnerabilities associated with Labuan IBFC.

2. I would like to thank the four industry associations for coordinating the participation from your members. My appreciation also goes to the invited speakers, Associate Professor Dr. Baharom Abdul Hamid of INCEIF and Pn. Zarifa Izan Zainol Abidin of BNM for making the time to participate in this session. 

3. I am pleased to note that today we have close to 600 participants (as normally this of the year many would be taking year-end holiday) and I understand even across different jurisdictions to represent their respective institutions. This is a true testament of how diverse and internationally-linked Labuan IBFC market is. However, with such international spread, the industry together with Labuan FSA would always need to be vigilant on emerging ML/FT risks exposure and the needed mitigants.

4. For today’s session, we will be sharing with you:

  1. A “report card” of the Labuan sectors arising from the National Risk Assessment (NRA) and the Labuan IBFC Risk Assessment (LRA) projects. I hope I        won’t steal the thunder by sharing that Labuan IBFC did rather well in the outcome of both exercises. Well done to all! However, we cannot sit on our laurels as the true test will only come in 2024 when Malaysia including Labuan undergoes the Asia/Pacific Group on Money Laundering’s Mutual Evaluation Exercise. Therefore, leading to the assessment, we would need to work together to ensure that the AML/CFT regulations are continuously complied with and remain effective for Labuan;
  2. we will also touch on the recent regulatory developments on AML/CFT front, specifically on the Guidelines on Beneficial Ownership for Labuan Legal Persons and Legal Arrangements issued on 17 November 2021; and
  3. in the final session, our supervisors will take participants through on the measures in countering the risks of proliferation financing.
5. Before I end, I take this opportunity to put a gentle reminder the market – it is imperative for you to continue to strengthen and improve your AML/CFT internal
controls and compliance program. Labuan IBFC cannot afford to be or perceived to be the “weakest link” within the country in terms of AML/CFT compliance. During this engagement session, we will highlight the gaps that the market needs to address from the perspective of technical capability, competency and control measures. Here, I would like to remind that AML/CFT non-compliances are viewed very seriously and as such, strong enforcement actions have been taken and will continue to be imposed on offenders.

6. On that note, I hope this session will be a beneficial and productive session for the market. I am sure by the end of the session, you will gain better understanding on the current AML/CFT regulatory position, including risks and vulnerabilities of Labuan IBFC. With that, I wish you a successful and productive engagement session ahead.
Thank you.

Mr Nik Mohamed Din Bin Nik Musa
Director-General, Labuan FSA
Copyright © Labuan FSA 
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