Suspicious Transaction Report

What Is a Suspicious Transaction Report?

A Suspicious Transaction Report, or STR, is a report that a bank or other reporting institution files with the authorities when it suspects an account or transaction may be linked to unlawful activity. It is a report about a suspicion, not a conclusion.

Under AMLA section 14, the institution must report promptly once it has reason to suspect.

For what makes a transaction suspicious in the first place, see our suspicious transaction entry.

Is an STR a Finding of Guilt?

It is easy to hear “reported to the authorities” and assume the worst. An STR only records that the institution had a suspicion. It is a starting point for a possible look, not a decision that anyone did wrong.

Some STRs lead to no action against the account holder at all. What matters legally is what you actually knew and did, which an STR does not establish.

How Can an STR Lead to a Freeze or Questions?

An STR is confidential, and telling a customer about it is an offence called tipping off, so you will not be told. You may only notice the effect, such as your account being questioned, restricted or frozen. Your account or phone number may also appear on the PDRM Semak Mule portal. ^[f3]

A formal freeze is a separate step. Under AMLA section 50(1), the Public Prosecutor may order a financial institution not to deal with an account suspected of holding proceeds of unlawful activity. ^[f1]

If your account is affected, ask the bank for the reason in writing. You can also complain through BNMLINK on 1-300-88-5465. ^[f2] A lawyer can help you understand the freeze and respond to it.

Sources

1. AMLA 2001, Section 50(1) (https://www.lawnet.com.my/amla-2001)
2. Bank Negara Malaysia, BNMLINK (https://www.bnm.gov.my/)
3. PDRM Semak Mule portal (https://semakmule.rmp.gov.my/)