On 22.12.2016 I emailed all Lions Club of Kota Kinabalu Host (LCKKHost) members and asked as to
how many bank accounts were operated by LCKKHost.
None of the members responded to my email.
Now, it has been confirmed that LCKKHost operated 5 bank
accounts and a fixed deposit account.
Most members are aware of only 2 bank
accounts.
ROS is given the balances of only 2 bank accounts. As such
the requirement of the Societies Act to report any money received from outside
the country cannot have been fulfilled.
When I wrote and asked Bank Negara as to how it is possible
for my former club to have accounts in the name of Lions Club of Kota Kinabalu
Host in alliance Bank and Lions Club of Kota Kinabalu in Hong Leong Bank I was
referred to Alliance Bank.
Alliance Bank replied that this is confidential information. Dead-end!
Recently I wrote to LCIF asking them about grants given to Lions
Club of Kota Kinabalu Host (LCKKHost).
LCIF replied that it has no record of
grants given to LCKKHost .
I wrote and asked them to reconfirm......... no response. Dead- end!
LCKKHost has always said that it received grants from LCIF.
The Lion member from Japan does not respond to my Facebook
post saying he is not good in speaking English. Dead-end!
The Korean Lion who arranged monies for Talantang project
has not responded to several of my emails to him. Dead-end!
Yesterday, I wrote to a few Local leaders and have asked if any of them can confirm that there is no money laundering in the 3 accounts that have not been audited. Let us see if anyone will respond.
The above and more got me thinking and I checked on money
laundering and here is what I found on the internet.
Under the Malaysian anti money-laundering law, money laundering is deemed, among other things, as ‘an act of a person who engages directly or indirectly in a transaction that involves proceeds of an unlawful activity.’Money-laundering is an activity in which money derived from a criminal activity is made to look as if it is derived from a legitimate business activity, thereby distinguishing the money from its criminal origin.
A money-laundering operation commonly involves 3 steps:
- Placing money from illegal activity into a legitimate financial institution;
- Layering, or concealing the source of the money through complex or multiple transactions; and
- Returning the money back into the financial world so it appears legitimate.
In short, money-laundering, by its definition,
necessarily includes an unlawful activity. Movement of money derived from a
legitimate source, and untainted by any criminal elements, is NOT
money-laundering.
Due to the regulatory regime in Malaysia, a
legitimate transaction may still trigger an investigation. However, an
investigation is not a conviction, and you will not be convicted if you are
able to justify the transaction. Hence, if you find yourself involved in a
transaction that may trigger the reporting requirement, ensure that you have
enough documentation to show that it is legitimate.
I am tempted to….
1 comment:
Here is a relevant part of the minutes of meeting of LCKKHost in October 2016:
“1. REPORTS FROM ACTIVITY AND COMMITTEE CHAIRPERSONS
6.1). 50th ANNIVERSARY PROJECT (LIONS RURAL DORMITORY FOR TALANTANG GOVERNMENT PRIMARY SCHOOL)
a). President informed the meeting that construction work is progressing well with the concreting of the ground floor completed.
b). PP Nenita Tan reported that PDG Eugene Lee informed her that LCIF had approved the funding for this project.”
I wrote a number of emails to PDG Eugene Lee from Korea.PDG Eugene Lee has not responded even to one of my several emails to him.
LCIF wrote the following in the email to me:
Lion Luqman,
I’m not certain I can be of much assistance with this situation as there is no reference to an LCIF grant being issued to this club.
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