8-5-2024 (KUALA LUMPUR) Malaysia finds itself at the center of a delicate diplomatic discourse as the nation prepares to engage with the United States over reports of an alleged surge in funds funneled to Iran and its proxies, including the militant group Hamas, through the Malaysian financial system. Datuk Seri Saifuddin Nasution Ismail, the Home Minister, has revealed that he will be meeting with Brian Nelson, the U.S. Treasury’s undersecretary for terrorism and financial intelligence, on Thursday (May 9) to address the matters raised by the American delegation.
“I will give my explanation and the official position of the Malaysian government on the matters that are raised,” Saifuddin Nasution Ismail assured reporters on the sidelines of the Defence Services Asia (DSA) and National Security (NatSec) Asia 2024 exhibition on Wednesday (May 8).
The impending visit by U.S. Treasury officials comes amidst heightened scrutiny over Malaysia’s financial transactions, with U.S. Ambassador to Malaysia Edgard D. Kagan emphasizing that the discussions will be held in a spirit of partnership, aimed at addressing common threats.
“Nelson and his team will be here to conduct ongoing discussions with key partners on the importance of a unified global response to critical threats,” Kagan stated on Monday (May 6), underscoring the gravity of the situation and the need for international cooperation.
According to a press release issued by the U.S. Treasury Department, Nelson and U.S. Treasury general counsel Neil MacBride will embark on a tour of Singapore and Malaysia to advance their efforts in countering terrorist financing and revenue generation by Iran and its proxies, as well as to discuss the implementation of sanctions and export controls against Russia.
Specifically in Malaysia, the U.S. officials are expected to delve into Washington’s efforts to disrupt terrorist financing, including through fraudulent charitable organizations and illicit oil sales, while ensuring that U.S. sanctions and other financial measures do not impede the flow of humanitarian aid to Gaza, the statement added.
Furthermore, Nelson and his team are slated to meet with the Malaysian financial sector to discuss compliance and enforcement efforts, highlighting the multi-faceted approach adopted by the U.S. in tackling the intricate web of terror financing.
Intelligence sources, speaking on condition of anonymity, have revealed that Nelson, the U.S. Treasury’s top sanctions official, will travel to Singapore and Malaysia as Washington seeks to combat funding for Iran and its proxy groups, as well as evasion of its sanctions on Russia. The source noted an uptick in money moving to Iran and its proxies, including Hamas, through the Malaysian financial system, prompting the U.S. Treasury to increase its focus on terrorist financing through Southeast Asia, including through fundraising efforts and illicit Iranian oil sales.
The visit comes at a critical juncture, as the U.S. Treasury has recently imposed further sanctions targeting Iran, including over Iranian drones used by Russia in the war in Ukraine, as the United States has sought to ratchet up pressure on Tehran after its attack on Israel.
