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AMLA

VIVAHOMES’ ANTI MONEY LAUNDERING / COUNTERING FINANCING OF TERRORISM, COUNTERING

PROLIFERATION FINANCING(ML/TF/PF) AND TARGETED FINANCIAL SANCTION

POLICY & PROCEDURE

 

Latest Version Date             : 30/9/2025 Previous
Version Date                         : 21/9/2020

 

This Policy is issued to all employees, real estate agents and real estate negotiators(collectively referred as “Agents”) of Vivahomes Realty Sdn Bhd pursuant to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) and Anti-Money Laundering, Counter Financing of Terrorism, Countering Proliferation Financing and Targeted Financial Sanctions for Designated Non-Financial Businesses and Professions (DNFBPs) & Non-Bank Financial Institutions (NBFIs) (AML/CFT and TFS for DNFBPs and NBFIs Policy Document)

 

1.     Background

Vivahomes Realty Sdn Bhd is a registered estate agency under the Valuers, Appraisers and Estate Agents Act 1981, providing real estate agency services in Malaysia which fall under the scope of reporting institution to prevent and combat Money Laundering/Terrorism Financing/Proliferation Financing (“ML/TF/PF”) pursuant to the AML/CFT and TFS for DNFBPs and NBFIs Policy Document which takes effect on 01 January 2020

2.     Applicability

 All Agents of Vivahomes Realty Sdn Bhd shall fully comply with this policy at all times.

3.     Non-Compliance

 Enforcement actions to be taken by BNM or any enforcing authority against The Company or Agents for any non-compliance as per below

Section in AMLA Non Compliance Maximum     Penalty     for Each Offence
13 Record keeping requirement  

Fine up to RM1 Million
14 Obligation to report suspicious transactions to BNM
16 Obligation to conduct customer due diligence i.e KYC
17 Requirement to retain documents for at least 6 years Fine up to RM 3 Million or jail up to 5 years or both

 

Agents shall assume full responsibility for any fine/penalty imposed to the Agents personally or to the Company due to non-compliance on the above as a result of negligence or violation caused by the Agents.

4.     Customer Due Diligence(CDD)

4.1 All Agents are required to conduct CDD on customers and persons conducting the property transaction (which include Tenant, Purchaser, Landlord & Vendor ), regardless of the amount of the amount of transaction

4.2 When conducting CDD, Agents are required to:

a) identify the customer and verify that customer’s identity using reliable, independent source documents, data or information;
b) verify that any person acting on behalf of the customer is so authorised, and identify and verify the identity of that person;
c) identify the beneficial owner and take reasonable measures to verify the identity of the beneficial owner, using the relevant information or data obtained from a reliable source
d) understand, and where relevant, obtain information on, the purpose and intended nature of the business relationship.

4.3  Standard CDD Measures

Individual Customer and Beneficial Owner

4.3.1 In conducting CDD, Agents are required to identify an individual customer and beneficial owner, by obtaining at least the following information:

    • full name;
    • National Registration Identity Card (NRIC) number or passport number or reference number of any other official documents of the customer or beneficial owner;
    • residential and mailing address;
    • date of birth;
    • nationality;
    • occupation type;
    • name of employer or nature of self-employment or nature of business;
    • contact number (home, office or mobile); and
    • purpose of transaction.

4.3.2 Agents is COMPULSORY to verify the identity of the customer and beneficial owner and request a copy of NRIC or Passport. Legal Persons

4.3.3 Agents are required to identify the customer and verify its identity through the following information:

(a) name, legal form and proof of existence, such as Certificate of Incorporation/ Constitution/Partnership Agreement (certified true copies/duly notarised copies, may be accepted) or any other reliable references to verify the identity of the customer;
(b) the powers that regulate and bind the customer such as directors’ resolution, as well as the names of relevant persons having a Senior Management position; and
(c) the address of the registered office and, if different, a principal place of

4.3.4 COMPULSORY to request a copy of SSM/Form 9, Section 14, Section 58 and Section 78

4.3.5 Agents are exempted from obtaining a copy of the Certificate of Incorporation or Constitution and from verifying the identity of directors and shareholders of the legal person which fall under below:

    • public listed companies or corporations listed in Bursa Malaysia
    • foreign public listed companies:
      • listed in recognised exchanges; and
      • not listed in higher risk countries;
    • foreign financial institutions that are not from higher risk countries;
    • an authorised person under the FSA and the Islamic Financial Services Act 2013 (i.e. any person that has been granted a licence or approval);
    • persons licensed or registered under the Capital Markets and Services Act 2007;
    • licensed entities under the Labuan Financial Services and Securities Act 2010 and the Labuan Islamic Financial Services and Securities Act 2010;
    • prescribed institutions under the Development Financial Institutions Act 2002; or
    • licensed entities under the Money Services Businesses Act

4.3.6 Notwithstanding the above, Agents are required to identify and maintain information relating to the identity of the directors and shareholders of legal persons referred to in paragraph

4.3.5 (a) to (h) through a public register, other reliable sources or based on information provided by the customer.

4.4   Delay Verification

4.4.1 If verification is not possible at the point of establishing relationship, Agents may complete the verification not exceeding ten working days from the point of establishing relationship.

 

5.       Targeted Financial Sanctions (TFS) on Terrorism Financing, Proliferation Financing, and Other UN Sanctions Regimes

5.1 The Agents shall screen all customers, beneficial owners, and related parties against the UN Security Council (UNSC) Consolidated List, as well as any domestic targeted financial sanctions list issued by Malaysian authorities (e.g., Bank Negara Malaysia, Ministry of Home Affairs).

5.2 Where a positive match is found, the Agents shall:

    • Immediately freeze the customer’s account/relationship or reject the
    • File a Suspicious Transaction Report (STR) through CO with the Financial Intelligence and Enforcement Department (FIED), Bank Negara Malaysia, without alerting the
    • Refrain from establishing or continuing a business relationship with sanctioned individuals or entities.

5.3 The Agents shall conduct ongoing screening to ensure existing customers are not subsequently designated under UNSC or domestic lists.

5.4 Staff must be trained to recognize red flags relating to terrorism financing, proliferation financing, and other sanctions evasion typologies.

6.     Customer Risk Profiling (CRP)

6.1 The Agents shall follow and apply a risk-based approach by assigning each customer a risk rating (e.g., Low, Medium, High) based on the following factors:

    • Customer type (Foreign or Domestic PEP, nationality, new or repeating customers, occupation risk level, adverse remark on background earch).
    • Geography/jurisdiction risk, including high-risk or sanctioned
    • Products and services risk, g., property type, transaction value, cross border
    • Transaction and Delivery channel risk, g., face-to-face vs non face-to-face onboarding, mode of payment
    • Behavioral and transactional patterns inconsistent with

6.2 The outcome of the CRP will be assigned with scoring and shall determine the level of due diligence required:

    • Low Risk (0-4) – standard CDD
    • Medium Risk (5-7) – standard CDD
    • High Risk (8 and above)– subject to Enhanced Due Diligence (see Clause 7).

6.3 The Agents shall review the own customer risk ratings periodically, or earlier if there are material changes in the customer’s profile or transaction behavior.

7.    Enhanced Due Diligence(EDD)

7.1 Agents are required to perform EDD if the customer/transaction is assessed as higher An EDD shall include following

(a) obtaining additional information on the customer and beneficial owner (e.g. volume of assets and other information from commercial or public databases);

(b) enquiring on the source of wealth or source of In the case of Politically Exposed Person (PEPs), both sources must be obtained; and

(c) obtaining approval from the Senior Management of the the Company before establishing (or continuing, for existing customer) such business relationship with the customer. In the case of PEPs, Senior Management refers to Senior Management at the head office.

8.   On-going Due Diligence(ODD)

8.1 Agents shall conduct ODD on the customers, which include taking into consideration the economic background and purpose of the property transaction which:

    • appears unusual;
    • is inconsistent with the expected type of activity and business model when compared to the volume of transaction;
    • does not have any apparent economic purpose; or
    • casts doubt on the legality of such transactions, especially with regard to complex and large transactions or involving higher risk customers.

9. CDD and Tipping-Off

In cases where the Agents form a suspicion of ML/TF/PF and reasonably believe that performing the CDD process would tip-off the customer, the Agents are permitted not to pursue the CDD process, document the basis of not completing the CDD and immediately file a suspicious transaction report to the Company.

10.  Politically Expose Person (PEPs)

10.1 All Agents are required to take reasonable measure to determine whether a customer or beneficial owner is a domestic or foreign PEP by using any of the following sources

    • in-house or commercial database
    • risk-information or guidance shared by the competent authority, supervisory or regulatory authorities;
    • public or open source information: or
    • customer’s self-declaration,

10.2 The requirement on EDD as specified under paragraph 7 and ODD as set out under paragraph 8 must be conducted in respect of domestics and foreign PEPs.

11.   Escalation of Suspicious Transaction

11.1 Agents are required to promptly escalate a suspicious transaction to the designated Director of Branch (“DOB’) and thereafter DOB to channel the suspicious transaction report directly to the Compliance Officer(“CO”) of the Company whenever the agents suspects or has reasonable grounds to suspect that the transaction, regardless of the amount

(a)appears unusual

(b)has no clear economic purpose

(c)appear illegal

(d)involves proceeds from an unlawful activity

(e)indicates that the customer is involved in ML/TF/PF

11.2 The suspicious transaction must be submitted to DOB or CO with the relevant information that gave rise to doubt in the suspicious transaction, which includes but not limited to the nature surrounding the transaction and business background of the person conducting the transaction within two working days from the date of identifying such transaction.

11.3 Agents are encouraged to refer to below internal criteria (“red flags”) to detect suspicious transactions

Categories Red Flags
1. Red Flags involving Customers who are Individuals 1. Customer refuses to provide information required, attempts to minimise the level of information provided
or provides information that is misleading or difficult to verify

2.  Client who avoids personal contact without logical explanation

3.  Financial activities and transactions of the customer are inconsistent with the customer profile

4.  Unexplained inconsistencies arising from the process of identifying or verifying the customer

5.  Customer insists on the use of an intermediary (either professional or informal) without logical justification

6.  Customer who has previously been convicted for any serious crime

7.  Customer who is under investigation or has known connections with criminals

8.  Customer uses multiple bank accounts (from domestic or foreign jurisdiction) to complete a transaction without logical explanation

9.  Customer provides falsified records or counterfeit documentation

10.  Customer conducts large or frequent transactions using foreign currency without any economic rationale

11.  Customer is unusually concerned and/or makes inquiries about the AML/CFT requirements and internal compliance policies, procedures or controls
2. Red Flags involving Customers who are Legal Persons or Legal Arrangements  

1.  Legal person which demonstrated a long period of inactivity following incorporation, followed by a sudden and unexplained increase in activities

2.  Legal person which is registered under a name that indicates that the company performs activities or services that it does not provide without good reason

3.  Legal person or legal arrangement which is registered under a name that appears to mimic the name of other companies, particularly high-profile multinational corporations without good reason

4.  Legal person or legal arrangement which is registered at an address that does not match the profile of the company without good reason

5.  Legal person or legal arrangement which is registered at an address that is also listed for numerous other companies or legal arrangements, indicating the use of a mailbox service without good reason

6.  Where the director or controlling shareholder(s) cannot be located or contacted

7.  Where the director or controlling shareholder(s) do not appear to have an active role in the company without logical explanation

8.  Where the director, controlling shareholder(s) and/or beneficial owner(s) are listed against the accounts of
other legal persons or arrangements, indicating the use of professional nominees

9.  Legal arrangement or trust which declared an unusually large number of beneficiaries or controlling interests

10.  Legal person, legal arrangement or trust which authorised numerous signatories without logical explanation or business justification

11.  Legal person or legal arrangement which is incorporated/formed in a jurisdiction that is considered to pose high ML/TF risk

12.  Legal person which conducts financial activities and transactions inconsistent with its corporate profile

13.  Legal person which involves multiple shareholders who each hold an ownership interest just below the identification of beneficial ownership threshold

14.  Legal person which has indication of being used as a shell company e.g. use of informal nominees, no real business activities undertaken, does not have physical presence

15.  Media or other reliable sources suggest that the customer may be linked to criminal activity
3. Red Flags involving Transactions 1.  Transactions conducted are questionable, or generate doubts that cannot be sufficiently explained by the client

2.  Transaction involves the use of multiple large cash payments without logical explanation

3.  Customer regularly conducts transactions with international companies without sufficient corporate or trade justification

4.  Frequent and cumulatively large transactions without any apparent or visible economic or lawful purpose

5.  Payments received for products/services from a third party who is not the owner of the funds, without any apparent reasons

6.  Transactions that require the use of complex and opaque legal entities or legal arrangements without logical explanation

7.  Transactions or instructions involve unnecessary complexity or which do not constitute the most logical, convenient and secure way to do business

8.  High volume of transactions within short period of time without economic purpose or commercial justification

9.  Unnecessary routing of funds or payments from/to/through third party account without logical explanation

10.  Transactions conducted via multiple payments from the same or different accounts/mode of payment which
are broken down into smaller amounts without logical explanation

11. Transactions which are conducted hastily or without due consideration a person would normally give to such transactions
4. Red Flags involving Geographical Location 1.  Large numbers of incoming or outgoing fund transfers take place for no logical business or other economic purpose, to or from locations of ML/TF concern

2.  Legal persons or legal arrangements are incorporated/formed in a jurisdiction that has ML/TF concern

3.  Customer has unexplained geographic distance from the reporting institutions
5. Red Flags involving Delivery Channel 1. Use of a third party to avoid personal contact without logical explanation
6. Real Estate Sector Specific Red Flags  

1.  Purchaser titles the property in the name of a nominee

2.  Customer substitutes the purchasing party’s name at

the last minute without reasonable explanation

3.  Purchaser resells the property within a short period of time without a reasonable explanation

4.  Purchase of multiple properties within a short period of time and it is inconsistent with the profile of the purchaser

5.  Payment for purchase of property does not come from customer’s country of origin without logical explanation

6.  Purchase made without viewing the property without logical explanation

7.  Seller or property owner sells the property for significantly less than the purchase price without logical explanation

8.  There is a significant and unexplained geographic distance between the buyer and the location of the property

9.  Purchase of property without end financing

10.  Purchases which are not consistent with customers’

profiles

11.  Deposits for property are paid in a significant amount of cash
12.  Purchases by legal persons/legal arrangements which obscure the true beneficial owner of the customer

13.  Payments or deposits are paid by third parties without logical explanation

14.  Payments or deposits are paid by multiple parties

 

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