SHOW ME THE MONEY! UNEXPLAINED WEALTH AND CIVIL FORFEITURE IN MALAYSIA

Nurazlina Abdul Raof; Aiman @ Nariman Mohd Sulaiman

doi:10.31436/iiumlj.v31i2.825

Authors

Nurazlina Abdul Raof Law Lecturer at Faculty of Law, Universiti Teknologi MARA Shah Alam & a Postgraduate Student at Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia (IIUM)
Aiman @ Nariman Mohd Sulaiman Professor at the Civil Law Department, Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia

DOI:

https://doi.org/10.31436/iiumlj.v31i2.825

Keywords:

Corruption, Asset Recovery, Civil Recovery Order, Unexplained Wealth Order, Civil Forfeiture

Abstract

Unlike criminal forfeiture, civil forfeiture allows corrupt assets recovery without the necessity of proving the corruption act. In Malaysia, a combination of criminal and civil mechanisms for recovering corrupt assets is available. Civil forfeiture removes capital for future corrupt activity, deprives a person of enrichment due to the corruption, escalates the cost of perpetrating corruption and improves the probability of detection and imprisonment. Still, there are critiques against this technique globally. Using the doctrinal approach, this study analyses the application and sufficiency of Section 41 of the Malaysian Anti-Corruption Commission Act 2009 and Section 56 of the Anti-Money Laundering, Anti-Terrorism Financing And Proceeds of Unlawful Activities Act 2001 in recovering corrupt assets in Malaysia. The legal framework, its benefits and drawbacks are investigated. The study takes a comparative approach by looking at the practice in the United Kingdom for benchmarking and lessons to be learned. The study discovers constraints in the present civil forfeiture laws, which prevented the law enforcers from successfully meeting the burden of proof. Hence, reform suggestions for its enhancement are made via the unexplained wealth order (UWO) route. The UWO can potentially accelerate the process of recovering corrupt assets as it allows a court order requiring a person to provide details of the origin of specific assets. The assets could be recovered through the subsequent civil forfeiture proceedings. The study outcome may assist the government, policymakers and stakeholders in understanding the UWO concept in addressing corruption offences in Malaysia.

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Author Biography

Aiman @ Nariman Mohd Sulaiman, Professor at the Civil Law Department, Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia

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