Retired judge calls for clear guidelines on money laundering compounds

Retired judge Yaacob Sam has urged the public prosecutor to establish clear guidelines for issuing compounds to individuals accused of money laundering. According to Yaacob, the compound offer must prioritize public interest, ensuring transparency and accountability to prevent perceptions of discrimination or favoritism. He emphasized that such a commitment was crucial in maintaining public confidence in the criminal justice system.

In recent news, controversial businessman Nicky Liow had his 26 money laundering charges dismissed in 2023 after paying a RM10 million compound. Liow received a discharge not equivalent to an acquittal, and the Attorney-General's Chambers (AGC) granted the compound after accepting representations from his lawyers under Section 92 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla).

Another prominent case involved Bersatu member Adam Radlan Adam Muhammad, who was acquitted of 12 corruption and money laundering charges in 2023 following his payment of a RM4.1 million compound. Under Section 92 of the Amla, the AGC agreed to the compound following the acceptance of representations from Muhammad's legal team.

Yaacob, a former deputy head of the AGC's prosecution division, explained that a compound is a legally permissible alternative to prosecuting a person for a money laundering offense. He highlighted that obtaining the public prosecutor's consent is essential for any authority or relevant enforcement agency to compound an offence. Yaacob also noted that settling a case through a compound can save the court considerable time and resources, as it avoids the lengthy trial process.

According to lawyer Fahmi Abdul Moin, public confusion arises from the differing treatment of suspects who receive compounds versus those who face full court proceedings without charges being withdrawn. However, Fahmi acknowledged that Article 145(3) of the Federal Constitution grants the Attorney-General broad and exclusive discretion to institute, conduct, or discontinue proceedings for any offence.

Under Section 4 of the Amla, a money laundering conviction can result in up to 15 years in prison and a fine equal to five times the illicit proceeds or RM5 million, whichever is greater. Section 92(1) allows for the compounding of offences, with the compounded sum not exceeding 50% of the maximum fine for the specific offence.