|Isle of Man||Italy|
The overarching legislation is the Strategic Trade Act 2010 (the “STA”). It regulates the export, trans-shipment, transit and brokering of certain strategic items as specified in Ministerial Orders issued under the STA: the Strategic Trade (Restricted End-Users and Prohibited End- Users) Order 2010 (as amended in 2011, 2014 and 2016) and the Strategic Trade (Strategic Items) Order 2010 (as amended in 2014 and 2017).
Amendments to the STA will be made under the Strategic Trade (Amendment) Act 2017 which was gazetted on 21 June 2017. These include: a significantly narrower definition of “brokering” and the exclusion of persons providing “ancillary services” from the requirements to obtain broker registration and permits; “end-use” statements no longer being mandatory when applying for a permit or special permit to export, tranship or bring in transit strategic items; and the introduction of new powers to compound offences under the STA.
The latest list of strategic items is published online and is divided into a Munitions List and a Dual-Use List (similar to that of the EU). In addition, the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (the “AMLA”) gives power to the Malaysian Minister of Home Affairs to make orders for the implementation of measures to give effect to resolutions adopted by UNSC and to obtain information on possession or control of terrorist property.
Yes. The Minister of International Trade and Industry can designate individuals, entities, and countries as restricted or prohibited end-users, following their suspected involvement in any restricted activities. These are currently reported under the Strategic Trade (Restricted End- Users and Prohibited End-Users) Order 2010, as amended.
Yes. The Minister of Home Affairs may issue orders in line with his powers under AMLA declaring individuals and entities to be specified entities. Malaysian citizens and body corporates incorporated in Malaysia are prohibited from certain acts relating to specified entities, including knowingly providing or making available property or financial services.
Specified Entities are reported under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Declaration of Specified Entities and Reporting Requirements) Order 2014, as further amended in 2014 and 2016.
Also, where orders made by the Malaysian Minister of Home Affairs to implement measures to give effect to UNSC resolutions make provision to the effect that there are reasonable grounds to believe that an entity designated by the UNSC is engage in terrorist acts, any such order shall be deemed, with effect from the date of the order, to be an order declaring that entity to be a specified entity.
In line with powers conferred by the AMLA, the Malaysian Minister of Home Affairs has made the Anti-Money Laundering And Anti-Terrorism Financing (Security Council Resolutions) (Al-Qaida and Taliban) Order 2011 (as amended in 2013 and 2014) which implements measures decided by UNSC to give effect to the freezing of assets and measures relating to it imposed by the UNSC against Al-Qaida and the Taliban.
Yes. A person wishing to export, tranship or bring in transit strategic items must obtain an export permit (single use, bulk, multiple or special).
A person who carries out an act of brokering of any strategic items must be registered and issued with a broker certificate and where required under related laws, also hold a valid permit for the brokering of such strategic items in accordance with the requirements of the STA. Under recent amendments to the STA, persons who solely carry out ancillary activities as part of brokering transactions will be exempted from brokerage registration and permit requirements.
Violation of the STA is punishable by fines, imprisonment or a death sentence in the most extreme cases. Violation of the AMLA is punishable by fines, imprisonment, freezing, seizure and forfeiture of assets.
Under the amendments to the STA, penalties imposed under the STA will generally be based on a maximum fine basis instead of a minimum fine basis.
The Strategic Trade Secretariat of the Ministry Of International Trade & Industry oversees implementation of the STA
12th Floor, Block 8,
Government Offices Complex,
Jalan Duta, 50622 Kuala Lumpur.
The Atomic Energy Licensing Board, Malaysian Communications and Multimedia Commission, and Pharmaceutical Services Division of the Ministry of Health also issue permits under the STA.
Under the AMLA, the Malaysian Minister of Home Affairs has the power to make orders for the implementation of measures to give effect to resolutions adopted by the UNSC.
The Ministry of Home Affairs
Block D2, Complex D
The Central Bank of Malaysia is the regulator of financial institutions within its purview who are subject to the reporting requirements imposed under the AMLA.
Jalan Dato’ Onn,
P.O. Box 10922, 50929 Kuala Lumpur.
Securities Commission Malaysia is the regulator of entities who are subject to the reporting requirements imposed under the AMLA.
Strategic Communications Department
3 Persiaran Bukit Kiara
50490 Kuala Lumpur
The Labuan Financial Services Authority regulates Labuan entities who are subject to the reporting requirements imposed under the AMLA.
Level 17, Main Office Tower,
Financial Park Complex,
Jalan Merdeka, 87000 Labuan.
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