However, Center to Combat Corruption and Cronyism (C4) executive director Cynthia Gabriel said many lawyers felt uncomfortable about reporting such suspicious transactions for fear of breaching solicitor-client privilege.
At a panel discussion at the Anti-Corruption Forum 2022, she warned that if money laundering activities were left unchecked, it would contribute to increased corruption in the country.
“That is why we hope that during the G20 summit in Indonesia, there will be discussions on creating standards and mechanisms to protect lawyers in cases where their client is suspected of such (money laundering) activities,” she said.
Kamal Baharin Omar, deputy director general of the National Anti-Financial Crime Centre (NFCC), said lawyers should file a suspicious transactions report (STR) against their client if they notice something dubious.
He added that the NFCC would first engage with the Malaysian Bar Council and trace the money trail before taking action or asking them to break their solicitor-client privilege.
“It is pertinent to engage with those involved and not jump into it because a lot is at stake. It is challenging to find that balance,” he said.
Kamal added that a number of lawyers had filed STRs so far, although he did not give an exact number.
Lawyer Megat Abdul Munir Megat Abdullah Rafaie said there was still fear among members of the legal fraternity although they are covered under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (AMLA) Act 2001.
The Act imposes reporting obligations on reporting institutions as a countermeasure to prevent or mitigate money laundering and terrorism financing.
“One of the biggest challenges is trying to find the balance between filing an STR and breaching attorney-client privilege,” he said.
He said lawyers did file STRs when needed although there was the constant worry that the matter will be challenged in court and backfire.
“The last thing we want is for us or the firm to be liable for filing an STR. We need more protection,” he said.