KUALA LUMPUR (Aug 7): The Attorney General’s Chambers (AGC) said businessman Nicky Liow paid a RM10 million as compound for money laundering offences.

Liow, born Liow Soon Hee, was not released without legal action, the AGC said in a statement on Friday in response to demand by 30 civil society organisations for explanation for his discharge and acquittal. A compound is a penalty paid to avoid further prosecution in court and serves as a settlement.

The compound was agreed upon after carefully considered representations submitted by Liow’s lawyers for all 26 charges under Section 92 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, the key legislation also known as AMLA.

Malaysia has been under fire locally as well as by the global financial crime watchdog for its reliance on administrative remedies, such as compounds and tax recovery, instead of criminal prosecution in its fight against money laundering.

Such dependence risks undermining deterrence and accountability, the multilateral Financial Action Task Force warned in 2025, pointing out that the relatively low number of prosecutions and convictions “are not fully in line with Malaysia’s risk profile” when it comes to money laundering. ‘

Liow was originally charged on April 12, 2022, at the Shah Alam Sessions Court with 26 counts of money laundering under Section 4 of AMLA.

If convicted, each count of the charge carries a prison term of up to 15 years, fine of at least RM5 million, or both.

While the case had been set for trial between July and September 2023, Liow’s legal representatives, Messrs Rajpal, Firah & Vishnu, submitted representation letters to the AGC in December 2022 and April 2023, requesting for the compound.

“Based on the available evidence and the considerations of the prosecution, this Department agreed to offer a compound” totaling RM10 million, the AGC stated. He paid up on May 29, 2023.

In addition to the compound, the settlement included the forfeiture of a RM647,366.00 bond and the forfeiture of seized assets. The AGC withdrew the prosecution, and on June 15, 2023, the Shah Alam Sessions Court discharged and acquitted Liow from all the charges.

The decision was made in accordance with the powers and discretion of the Attorney General under the Federal Constitution and relevant laws, the AGC said, noting that the decision was based on the provisions of the law and the overall evidence obtained from investigations.

“This was done while taking into account the integrity of the prosecution process and the need to ensure transparency in the criminal justice system,” AGC added.