KUALA LUMPUR: Any individual is free to open an offshore bank account but in Malaysia, strict legislations are in place to prevent abuse of the financial system.
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz(pix) said that the opening of a bank account in Malaysia comes under Bank Negara Malaysia through the Financial Services Act and Islamic Financial Services Act.
On the other hand, the opening of offshore accounts is under the purview of the Labuan Financial Services Authority.
Zafrul said proper due diligence is required for opening an offshore account.
“This comes under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act and subsidiary legislations.”
He said these legislations ensure that individuals and companies do not exploit the financial system.
Zafrul was responding to a question from Lim Guan Eng (DAP-Bagan). Lim had raised questions arising from revelations in the just-leaked Pandora Papers that hundreds of political leaders,
government officials, military leaders and even royalty in 91 countries have millions stashed away in offshore accounts in tax havens such as Panama, the Cayman Islands, Dubai, Switzerland and Monaco.
Zafrul is among several Malaysians, including political leaders such as Umno president Datuk Seri Ahmad Zahid Hamidi, who have allegedly stashed away large sums of money in offshore accounts.
Also named were Deputy Finance Minister and member of Parliament Yamani Hafez Musa (Bersatu-Sipitang), whose father is sole director of Great Ocean Consultants in the British Virgin Islands, as well as Larry Low Hock Ping and Goh Gaik Ewe, parents of fugitive financier Jho Low.
The 2.94 terabytes of financial records were anonymously given to the International Consortium of Investigative Journalists recently.
Lim wanted to know if there were plans to retrieve the money from Malaysia that is being held overseas, now that the country is in need of more funds for its many financial aid programmes.
On Monday, Zafrul clarified that he is no longer a director of Capital Investment Bank (Labuan) Ltd, a boutique bank incorporated in the offshore jurisdiction of Labuan, as alleged in a report by a news portal.
He said he ceased to be a director of the offshore company when he left the Kenanga Group in June 2010.
Zafrul said he had referred the matter to his legal team for further action and advice as the news portal had proceeded to publish the article despite his aide having explained the matter.
Ahmad Zahid also denied any attempt to evade taxes.
