COMPLIANCE

Summary (Why It Matters)

Kedah Islamic Asset Management is a licensed Asset Fund Manager regulated by the Securities Commission Malaysia. We are fully committed to maintaining the highest standards of integrity, transparency, and regulatory compliance, particularly in preventing money laundering and terrorist financing—serious financial crimes that undermine trust and stability in the financial system.

We operate within a robust Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) framework that aligns with Malaysian regulations and global best practices. Our policies, systems, and controls are designed to meet the stringent standards expected of regulated financial institutions, including those applied within the banking sector.

Kedah Islamic Asset Management adopts a comprehensive, risk-based approach to identifying, assessing, and managing money laundering and terrorism financing risks. All investors are required to undergo Customer Due Diligence (CDD) as part of our onboarding process, which includes providing relevant identification and supporting documentation. For higher-risk investors—such as those with large transaction volumes or Politically Exposed Persons (PEPs)—Enhanced Due Diligence (EDD) measures are applied.

We continuously monitor investor activities to ensure transactions remain consistent with an investor’s profile, investment objectives, and source of funds. Any unusual or suspicious activity is promptly escalated internally and, where required, reported to the appropriate authorities. Know-Your-Customer (KYC) records are maintained in accordance with regulatory requirements, and all relevant personnel receive regular AML/CFT training to ensure ongoing awareness and compliance.

Our AML/CFT framework is guided by the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA), as well as applicable guidelines and regulatory expectations in Malaysia. These measures enable us to:

• Detect, prevent, and report potential money laundering or terrorism financing activities

• Manage and mitigate financial crime risks

• Maintain strong governance, controls, and oversight

• Safeguard investor assets and protect Kedah Islamic Asset Management’s reputation

Key Control Measures

Customer Acceptance & Due Diligence

Investors are assessed and categorised based on risk factors such as background, business activities, ownership structure, and geographic exposure. Regular reviews are conducted to ensure investor profiles remain current and accurate. We reserve the right to decline or terminate relationships where due diligence requirements are not met.

Investor Screening

All investors are screened against internal watchlists, PEP databases, and relevant sanctions or enforcement lists to identify potential risks.

Transaction Monitoring

Investor transactions are monitored to ensure consistency with declared investment objectives, financial standing, and business profiles.

Cash & Third-Party Payments

Kedah Islamic Asset Management enforces a strict no-cash and no third-party payment policy. All investment inflows and outflows must be made through the investor’s own bank account, ensuring traceability and transparency.

Reporting & Oversight

All employees and representatives are required to escalate unusual activities to our Compliance Officer. Where necessary, Suspicious Transaction Reports (STRs) are submitted to the relevant authorities in a timely manner.

Training & Awareness

Ongoing AML/CFT training is provided to employees and agents, with enhanced focus on front-line personnel, to ensure compliance with evolving regulatory standards.