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An external view of Labuan & Malaysia in the
Global AML context
Sam Gibbins
Director, International Compliance Association
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Introduction
Born in UK, living in Singapore for nearly 4 years
Studied at King’s College, University of London
Background in recruitment and sales/marketing
Spent 3 years working in the City (London)
before moving to Asia)
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Introduction
International Compliance Association – global body dedicated to the
professionalisation of compliance, AML and financial crime
prevention professionals
Offices in UK, Dubai, and Singapore. Regional operations in Russia
and Hong Kong
Localised training courses for AML offered in Malaysia. Compliance
coming soon…
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Increasing Money Laundering Sophistication
Increasing global sophistication of money laundering
More difficulty in preventing money laundering?
Higher level of global scrutiny of jurisdictions and their money
laundering effectiveness; how effective are fines as deterrents?
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Monday 19 November 2012
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Left Foot Political
Blog, November 9 2012
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Human Nature?
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Increased Competition
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Is Labuan a serious alternative?
Singapore, Hong Kong, Australia
Is Labuan seen as a ‘layering’ option?
FATF Members; perceived to have higher level of sophistication
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Is Labuan a serious alternative?
Helping to become a more recognised player in the international
scene
Moving ahead of middle ground players, for example those in
Central/South America
Striving towards the ‘Premier Centre status; is this achieved yet?
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Business Times
(Malaysia),
13 July 2009
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Importance of Shariah finance
Huge potential growth area into the future
‘This is further evident in the increase of Islamic private funds in the Labuan IBFC
from USD 1.4 billion in 2007 to USD 2.8 billion in 2008; while in the same
period, the Islamic reinsurance business – re-takaful – saw gross contributions increase by 48% to USD 162 million’ (Labuan IBFC)
‘There are currently six Islamic Banks and nine Islamic windows which
collectively reported an 87% increase in banking assets from 2009 to 2011’
(Labuan IFC)
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Do People understand AML in relation to Shariah
Finance?
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Shariah Finance Watch Blog,
25 September 2012
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Impact of linkage with Malaysia?
Inherent risk of being linked with Malaysia and all ‘bad’ news
How do people view the ability of financial services firms in Labuan
to verify procedures, documentation and information?
What is the risk of loss of doing business in Labuan?
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Sanctions
How much of a threat does this pose here in Labuan?
Increasing evidence of sanctions breaches
Very negative impact in many different business
scenarios…
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Reuters,
12 September 2012
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Bruno Manser Fund,
4 June 2012
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Sanctions and the PR Machine
People depositing their funds in Labuan do so because
they do not want to be attracting publicity
Higher international awareness of Labuan is a double
edged sword
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Labuan's position on the borders of Asia and
Australasia provides ready access to and from the
World's fastest developing economies and also to the
greatest population densities on the planet
Mondaq.com, 21 July 2011
Callum Beaton
Conclusions
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Conclusions
Labuan must continue to build on it’s strengths:
Location
Shariah finance
Lack of global exposure
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Conclusions
Labuan is on the rise along with the rest of SE Asia
MUST avoid the same fate of other jurisdictions with
relation to the money laundering trap, and stay our of
the headlines
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Any questions?
Thank You!