Reporting Obligation of Lawyers under the AML/ATF Law in Malaysia

AbstractWithin the money laundering process, lawyers could become the potential vehicle for the launderers to conduct their illegal activities. In dealing with this problem, the Anti-Money Laundering and Terrorism Financing Act 2001 (AML/ATF) imposes a duty on the Malaysian lawyers to report any suspicious transactions to the authority. Employing a content analysis method, this conceptual paper examines such obligation and the impediments to reporting in many jurisdictions, including Malaysia. The lawyers’ reluctance to comply with their duties to report could be attributed to the culture of confidentiality and the fear of erosion of the principle of client-lawyer privilege