KUALA LUMPUR: The government, through the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM), will continue to monitor family offices — wealth management firms handling substantial individual assets — operating in the country to ensure they are not involved in illegal activities.
Finance Minister II Datuk Seri Amir Hamzah Azizan said that the ministry was aware of concerns surrounding this issue and will enforce existing regulations to address them.
"This scheme is under the supervision of the SC and BNM, particularly concerning the Prevention of Terrorism Financing and Money Laundering Act (AMLA), with capital transfers regulated under established rules," he said.
"The SC and BNM will monitor these activities closely to ensure there are no issues arising," he said in response to Salamiah Mohd Nor (PN-Temerloh), who inquired whether the government is conducting a risk assessment regarding the offering of "family offices" in the country, which is feared to be misused for terrorism financing or money laundering.
He said the scheme was aimed at boosting and doubling the country's economy by attracting foreign investment.
"This initiative is designed to enhance and grow the country's economy. The funds brought in by these offices will be channelled into domestic investments," he aded.
In September, the SC introduced specific requirements for the newly launched family office incentives at the Forest City Special Financial Zone (SFZ) in Johor.
The scheme will offer a 10-year tax benefit, with the possibility of a 10-year extension, subject to certain conditions.
Forest City will be the first location in Malaysia to offer a zero-per cent tax incentive for family offices.