Knowledge Sharing : Proliferation Financing & Strategic Trade Act 2010.
Proliferation financing in simple words refers to the provision of funds or financial services that are used to support the manufacture, acquisition, possession, development, export, transfer, or use of weapons of mass destruction (WMDs) and their means of delivery, including nuclear, chemical, or biological weapons, in violation of national laws or international obligations.
The objective of proliferation financing is to circumvent international sanctions, export controls, and other regulatory measures put in place to prevent the spread of WMD. It involves illicit financial networks, front companies, and deceptive practices to hide the true nature of the transactions and evade detection.
Proliferation financing can take various forms, including:
1) Procurement:
Financial activities related to the acquisition or attempted acquisition of WMD-related goods and technologies, such as materials for nuclear enrichment, missile components, or chemical precursors.
2) Logistics and transportation:
Financing the movement of WMD-related items, including arranging shipping, insurance, and related financial services to facilitate their transport.
3)Money laundering:
Concealing the origins of funds used for proliferation purposes through complex transactions and illicit networks to make the money appear legitimate.
4)Trade-based activities:
Manipulating trade transactions, misrepresenting goods, or using fraudulent documentation to disguise the movement of WMD-related items or illicit funds.
5) Front companies and intermediaries: Establishing legitimate-looking businesses or individuals to act as intermediaries or cover for the proliferation activities, providing a façade of legitimate trade or investment.
To counter proliferation financing, countries and international organizations have implemented various measures, including sanctions, export controls, and enhanced financial regulations to detect and disrupt these illicit activities.
What is the Strategic Trade Act 2010?
Strategic Trade Act is an Act to provide for control over the export, transshipment, transit and brokering of strategic items, including arms and related material, and other activities that will or may facilitate the design, development and production of weapons of mass destruction and their delivery systems and to provide for other matters connected therewith, consistent with Malaysia’s national security and international obligations.
Why we should have the Act?
In 2004, the United Nations Security Council passed a Resolution which requested member countries to establish an export control system for the purpose of non-proliferation of weapons of mass destruction. As a member country, we are requested to control exports of strategic products which may be used for terrorism activities.
Why should I be concerned with export control compliance?
A person or entity that violates the Act can be subject to a fine, imprisonment and / or death sentence as provided in the STA 2010.
Non -Compliance, with STA 2010 is also predicate offence under AMLA 2001.
What are the strategic items?
Strategic items refer to goods and technology that are controlled under the STA. A definitive and comprehensive List of controlled strategic items will be prescribed in the Ministerial Order and published in the Government Gazette. The List will be reflective of the items currently required to be controlled under the global export control regimes as well as the United Nations Security Council Resolution 1540.
The items are categorized as follows:
1)nuclear materials, facilities and equipment;
2)special materials and related equipment;
3)electronics;
4)computers;
5)telecommunications and information security;
6)sensors and lasers;
7)navigation and avionics;
8)marine;
9)aerospace and propulsion; and
10)military items.
Sir Nazri
Kuala Lumpur
#awareness #education #knowledge #knowledgesharing #FollowTheMoney #compliance #dakwah #dakwahislam #lawyer #WMD #proliferation
