AMLATFPUAA compound not a 'pardon' for corruption, lawyer clarifies

SHAH ALAM – Lawyer Haniff Khatri Abdulla has clarified that paying a compound under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) 2001 does not mean corruption offences are pardoned.

Instead, he described, it is a valid legal mechanism that allows prosecutors to drop charges.

Haniff clarified that compounds are a right specifically provided under Section 92 of AMLATFPUAA and are not part of ordinary criminal law.

“When the law provides the option to pay a compound, it must be taken into account. If the accused agrees to pay the agreed sum, then the prosecutor can drop the case,” he told Sinar.

He compared the process to a traffic summons, stating that "once we pay the compound, the prosecution can no longer bring the case to court.”

“The public must understand that when the law offers the choice to either take a case to full trial or settle it through a compound and withdraw the charges, it should not immediately be assumed there is a double standard.

"This happens because the charges fall under AMLATFPUAA. Once a compound is accepted, then it is proper for the court to discharge the accused, as they cannot be charged again,” he added.

Haniff emphasised that paying a compound does not amount to a conviction, does not create a criminal record and is not an admission of guilt.

He further pointed out that prosecutors usually consider compounds after reviewing the strength of a case.

“To prove corruption charges is not easy. If witnesses change their testimony or the case is weak, the prosecution may consider a middle path, which is to accept an AMLATFPUAA compound,” he said.

However, he stated that it remains the responsibility of the prosecution to explain why corruption charges are also dropped, even if there is no compound for the corruption offence.

“That is why it is considered the discretion of the Attorney General’s Chambers, which must be clarified,” he said.

Haniff stressed that compounds under AMLATFPUAA are lawful mechanisms and must not be seen as a way to legitimise corruption.