GREATER cooperation with Bank Negara Malaysia and other local banks will help curb financial-related crimes including terrorism funding and money laundering, said the Royal Malaysian Police.

Head of counter terrorism division under Bukit Aman’s Special Branch Datuk Ayob Khan Mydin Pitchay (picture) said successful convictions against financial criminals are often done via clear-cut money trails.

“One of the reasons we have been successful in prosecuting financial terrorists is because there was sufficient evidence. The money trail is there. Once that is established, you cannot run and hide. That is why the conviction rate is high,” Ayob Khan told reporters at the 11th International Conference on Financial Crime and Terrorism Financing 2019 in Kuala Lumpur yesterday.

According to Ayob Khan, since 2016, the police have opened 22 investigation papers on financing terrorism, where 19 have been charged in court and convicted. The other three remain in trial.

Citing an example on an arrest related to a member of terrorist group Daesh in Malaysia, Ayob Khan said upon the arrest of the first suspect, the central bank will automatically provide intel to the police including the suspect’s family members and household income.

He said most cases on financial terrorism involve money transfers done in small amounts but frequently.

“There was a suggestion made earlier where if the transaction is, say, RM28,000 — which is below the threshold level — but is done by the same individual at different bank branches, the bank should report to the police,” he said.

“That is why we need intelligence. The bank has to inform the police and from there, we will follow up on the report. Although the amount is small, but if it is done frequently, it can fall under suspicious transaction,” he added.

Ayob Khan explained that terrorism funding is often done through third parties. “In the case of Daesh, they often use Western Union, hawala and banking systems to send monies to their families. Their families will then gather and forward them to individuals who will later channel it to the Daesh here,” he said.

“I cannot stress enough the importance of a strong partnership between the police, the central bank, the private sector and local banks in addressing terrorism financing. Most of the success cases are due to exchange of information with banks where the police will then do a follow-up investigation and identify suspects linked to acts of terrorism,” Ayob Khan said.