Kuala Lumpur, 09 May 2024 (The Star)

Malaysia only recognises sanctions imposed by the United Nations Security Council and not by any individual country. That was the message conveyed by Home Minister Datuk Seri Saifuddin Nasution Ismail to US Treasury Department undersecretary for terrorism and financial intelligence Brian Nelson and his delegation.

“I had a very good and cordial engagement and discussion with Nelson and his delegation. I managed to convey nicely that when it comes to the issue of sanctions, we only recognise a sanction imposed by the Security Council and not by any individual country,” he told reporters after attending the closing of the Defence Services Asia (DSA) and National Security (NatSec) Asia 2024 heon Thursday (May 9).

Saifuddin said Nelson and his delegation highlighted very specific examples based on their information that they would like Malaysia to look into.

“I responded to some of the issues raised, which involved certain organisations. “I stated that the organisation is being subjected to an ongoing investigation, their assets frozen and they were charged as well,” he said.

Saifuddin said for any action that is against Malaysian law, action has already been taken. “The discussion went very well and they respected our position. “When it comes to countering terrorism and terror financing, we have solid regional cooperation.

“The US delegation took note of that and the precise steps taken by the Malaysian government to curb terrorism and extremism,” he said.

Saifuddin said the visiting delegation also appreciated the fact that Malaysia has 23 solid laws that were effectively enforced.

“I also mentioned to them about the ministry’s five-year strategic plan. They took note of it and they want such an engagement to be continuous,” he said.

He said the government acknowledged concerns raised by the United States on possible money-laundering activities involving groups linked to Malaysia.

US Ambassador to Malaysia Edgard D. Kagan said on Monday (May 6) that the visit by US Treasury Department officials would be in the spirit of partnership to discuss common threats.

Kagan said Nelson and his team would be here to conduct ongoing discussions with key partners on the importance of a unified global response to critical threats.

According to a press release issued by the US Treasury Department, Nelson and US Treasury general counsel Neil MacBride would travel to Singapore and Malaysia to advance its work countering terrorist financing and revenue generation by Iran and its proxies as well as to discuss the implementation of sanctions and export controls against Russia.

In Malaysia, they would discuss US efforts to disrupt terrorist financing, including through fundraising for fraudulent charities and illicit oil sales, while ensuring that US sanctions and other financial measures do not impede the flow of humanitarian aid to Gaza, added the statement.

They will also meet with the financial sector to discuss compliance and enforcement efforts, it read.

According to a Reuters report, a source said that Nelson, the US Treasury’s top sanctions official, will travel to Singapore and Malaysia as Washington seeks to combat funding for Iran and its proxy groups as well as evasion of its sanctions on Russia.

The source, speaking on condition of anonymity, said there had been an uptick in money moving to Iran and its proxies, including Hamas, through the Malaysian financial system.

The visit came as the US Treasury has increased its focus on terrorist financing through South-East Asia, including through fundraising efforts and illicit Iranian oil sales, the source said.

Washington has recently imposed further sanctions targeting Iran, including over Iranian drones used by Russia in the war in Ukraine, as the United States has sought to ratchet up pressure on Tehran after its attack on Israel.

The US Treasury has imposed significant sanctions on Iran and its proxies, such as Hezbollah, Hamas and the Houthis, aimed to sever the financial flows that fuel instability in the Middle East.

Earlier, US Department of Treasury in Media Advisory mentioned that From May 6^th to May 9^th, Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson and Treasury General Counsel Neil MacBride will travel to Singapore and Malaysia to advance Treasury’s work countering terrorist financing and revenue generation by Iran and its proxies as well as to discuss the implementation of sanctions and export controls against Russia. Treasury has imposed significant sanctions on Iran and its terrorist proxies, such as Hizballah, Hamas, and the Houthis, to sever the financial flows that fuel instability in the Middle East. Since the beginning of this year, Treasury has taken several significant actions to combat and disrupt the illicit shipment of Iranian oil to buyers in East Asia, including shipments via ship-to-ship transfers in international waters near Singapore and Malaysia.  Treasury has continued working with the U.S. private sector to prevent diversion of dual-use goods to Russia.

In Malaysia, Under Secretary Nelson and General Counsel MacBride will discuss the United States’ efforts to disrupt terrorist financing, including through fundraising for fraudulent charities and illicit oil sales, while ensuring that U.S. sanctions and other financial measures do not impede the flow of humanitarian aid to Gaza.  They will also meet with the financial sector to discuss compliance and enforcement efforts.

In Singapore, the Treasury officials will continue coordination with this close U.S. partner on sanctions and export controls against Russia for its brutal war of aggression in Ukraine, including through enforcement of the price cap on Russian oil and cutting off Russian transshipment of critical dual use goods. They will also meet with business representatives from both the financial and maritime sectors to discuss compliance and enforcement efforts to reduce Russian revenue earned from oil sales and to protect industry from the risks of Russian and Russia-linked providers who have sacrificed quality and safety in their services.