Retired judge calls for clear guidelines on money laundering compounds

A retired judge has called for the public prosecutor to establish clear guidelines on the factors to be considered before offering compounds to individuals under investigation for money laundering, according to a recent statement. Former Court of Appeal judge Yaacob Sam argued that public interest should be the guiding principle in such decisions, emphasizing the importance of transparency and accountability.

He stressed that the criminal justice system's credibility hinges on these factors, preventing perceptions of discrimination or favoritism that may arise.

Lawyer Fahmi Abdul Moin echoed this sentiment, expressing public perplexity over why some suspects receive compounds while others' cases are withdrawn after paying them. Fahmi highlighted that the attorney-general has extensive discretion under Article 145(3) of the Federal Constitution, as well as under Section 4 of the Anti-Money Laundering Act (AMLA), which allows for the compounding of offences. However, Section 92(1) of AMLA stipulates that the compounded sum should not surpass 50% of the maximum fine for the offense.

Fahmi noted that the "five times" rule in Section 4 of AMLA serves as the upper limit to maintain consistency with punishment for corruption offenses under Section 24(b) of the Malaysian Anti-Corruption Commission Act. He also pointed out that the attorney-general's discretion in this matter is ultimately exercised through his consent, obtained by any relevant enforcement agency.