To Members of the Malaysian Bar

Risk-Based Approach (“RBA”) Guidance for Legal Professionals 

The Financial Action Task Force (“FATF”) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction.  The FATF Recommendations are recognised as the global anti-money laundering (“AML”) and counter-terrorist financing (“CFT”) standard.

For more information about FATF, visit http://www.fatf-gafi.org/.

FATF has issued Guidance for a risk-based approach (“RBA”) for legal professionals.

RBA is central to the effective implementation of the FATF Recommendations.  It means that competent authorities, supervisors, and legal professionals should identify, assess, and understand the money laundering and terrorist financing (“ML/TF”) risks to which legal professionals are exposed, and implement appropriate mitigation measures.  This approach enables allocation of resources where the risks are higher.

The FATF RBA Guidance aims to support the implementation of the RBA, taking into account national ML/TF risk assessments and AML/CFT legal and regulatory frameworks.  It includes a general presentation of the RBA and provides specific guidance for legal professionals and for their supervisors.

Bank Negara Malaysia (“BNM”), the competent authority under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (“AMLA”), has sought the Bar Council’s assistance to disseminate the FATF RBA Guidance to Members of the Bar.

Click here (see page 2 onwards) to view the FATF RBA Guidance. 

Should you have any enquiries, please contact BNM by telephone at 1-300-88-5465 or by email at fied@bnm.gov.my.

Thank you.

A G Kalidas
Secretary
Malaysian Bar