Iranian-Linked Accounts Closure by Malaysian Banks - Justified?
Reuters had reported on 30 Oct 2019 that CIMB and RHB had initiated mass closure of Iranian-linked accounts maintained at their banks which had ignited a furore. In another report by The Star , carrying news from The Straits Times on the same day, had highlighted the same action had also impacted several other nationalities, namely Algerians, Iraqis, Nigerians, Syrians, Ukrainians and Yemenis. While no reasons were given, Reuters had pointed that this action could be linked to a notification from Bank Negara on the statement from Financial Action Task Force (FATF). July this year, FATF had reminded their members to enhance their due diligence process on Iranians. Straits Times had reached the same conclusion, except they had included US State Sponsors of Terrorism list . FATF (some of us call them as Fat F) is the global watchdog on anti-money laundering. In fact, nearly every iteration of anti-money laundering laws in every country is a deri...