Circular No 348/2023

Dated 30 Nov 2023

To Members of the Malaysian Bar

Bank Negara Malaysia’s AML/CFT Examinations

on the Legal Sector and Legal Professional Privilege

We refer to Circular No 184/2023 dated 6 July 2023 entitled “Bank Negara Malaysia’s
AML/CFT On-Site Examinations on the Legal Sector and Legal Professional Privilege”.

It has been brought to our attention that Bank Negara Malaysia (“BNM”) is currently
performing examinations of law firms for compliance with the Anti-Money Laundering,
Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (“AMLA”).
Members have reported that BNM is actively soliciting the submission of scanned or copied
documents and information in advance of their scheduled examinations. The requested
documents encompass vital materials such as the Financial Statement for the year 2022
(specifically, the statement of account for office account(s)), identification documents (ie
National Registration Identity Card (“NRIC”), passport), and transactional documents (eg
sale and purchase agreements, financing agreements, contract agreements, joint venture
agreements, etc).

The Bar Council firmly asserts that BNM is NOT entitled to request for copies of privileged
documents.

It is imperative for Members to be aware that BNM’s examination — conducted in

accordance with Part IV of AMLA — focuses exclusively on the compliance of lawyers and
law firms as reporting institutions (“RIs”) without delving into privileged documents and
information, as the objective of an examination is to merely check on compliance, and NOT
an assessment of clients.

We reiterate to Members the critical importance of upholding legal professional privilege

(“LPP”). In the event that information or documents protected by LPP are sought during any
enquiry or examination under AMLA, Members are obligated to REFUSE disclosure unless
their clients provide explicit written consent.

For any further clarification or assistance, please do not hesitate to contact Malathi Mohan,
Executive Officer, via telephone at 03-2050 2150 or by email at amla@malaysianbar.org.my.

Thank you.

Mohamad Ezri Abdul Wahab

Chairperson
Committee on AMLA