Money laundering and corruption

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Bank Negara Malaysia announced that effective 1 January 2019, banks must report any cash transaction exceeding RM25,000, a 50% reduction from the original RM50,000. This move is to tighten the loopholes for money laundering and corruption.

Many times we have read in the news of huge sums of money (in millions and hundreds of millions of Ringgit) found hidden in some Government officials’ homes. Why would someone keep so much cash in the house which doesn’t earn any income and is at risk of being stolen through burglary? It is to avoid detection because there is no trail compared to cheques and bank transfers. The giver hands over bagfuls of money to the corrupt official and nobody is the wiser, unless the official foolishly spends indiscriminately, displaying ostentatious wealth.

Illegal activities such as gambling, drugs and prostitution are also cash-based. Doubt you give a cheque to the pimp, right?

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