Woman accused of money laundering through many small deposits

 

Banks are required to report deposits or withdrawals of more than RM50,000 per day by a customer.

KUALA LUMPUR: A business woman in her 50s will be charged at the Kuala Lumpur courts tomorrow for being involved in “smurfing”, a money laundering technique using multiple small transactions to avoid detection.

It is believed to be the first such case to be brought to the courts, according to a source with the Malaysian Anti-Corruption Commission.

“From January to May 2018, the suspect is believed to have instructed an individual to deposit money into her business account in the amount not exceeding RM50,000 several times on the same day to avoid being detected as a suspicious transaction,” said the source.

A total of over RM230,000 was deposited into the account through several transactions.

Banks are obliged to report to Bank Negara Malaysia of any deposits or withdrawals of more than RM50,000 per day by customers.

The source said the bank involved in this case did not lodge a report because multiple transactions within the same day are allowed.

The source said smurfing is an offence under anti-money laundering legislation. - FMT