The Trends and Challenges of Money Mule Investigation by Malaysian Enforcement Agency

Abstract

This article discusses the roles played by the enforcement agency, the current money mule situation, and the challenges faced by enforcement agency investigation officers in money mule investigations. An interview with informant from one of the Malaysian Enforcement Department, was conducted to gather his insights. An enforcement officer launches a money mule investigation based on the victim’s police report or Suspicious Transaction Report (STR). Investigation into money mule cases received by law enforcement agency is guided by Penal Code 424 and AMLATFPUAA 2001, which clearly expound the offence implicated in the money mule syndicate. The output from the interview is analysed under content analysis, whereupon the large amount of extracted information is summarised and arranged into important themes that address the research objective. The major challenges faced in criminal investigation include lack of cooperation from telco, delayed response from banks when requested to provide crucial information, wrong public perceptions on enforcement agency’s aggressiveness to fight money mule, lengthy investigation procedure, limited resources and lackadaisical attitude towards money mule threat. The challenges undermine the fight to eradicate the money mule phenomenon, one of the most critical financial crime threats in Malaysia. A slew of changes that enforcement agency is keen to see are proposed, including a more proactive telco regulator, a shorter processing period by banks in responding to production orders from enforcement agencies, and a steeper involvement by the media to build public awareness.