Malaysia: Securities Commission uses AMLA in securities fraud

The Securities Commission has demonstrated one of the strenghts of Malaysia's Anti Money Laundering and Anti Terrorist Financing Act 2001 (AMLA) by deciding to bring charges against

Phazaluddin bin Abu, the operator of a website called danafutures.com.

The Securities Commission says that as much as GBP10 million may have been scammed from investors sucked in by the site. Although it considered prosecution under AMLA, the SC concluded that the penalties under the Securities Industry Act (SIA) were actually stronger than under AMLA, and that the offences under the SIA are easier - and therefore cheaper and quicker - to prove.

Indeed, under SIA, the penalty is a maximum 10 years jail per count, whilst under AMLA it is a maximum five years. The fines are the same.

The case has been listed for hearing on 3 November this year.

The SC says that the danafutures action was sparked off by the investigation into Cambridge Capital Trading which came about when the Dubai Financial Services Commission asked for assistance in a case it was looking into.