High Court acquits Rosmah of 17 charges over RM7m money laundering and tax evasion

KUALA LUMPUR, Dec 19 — The High Court here today discharged and acquitted Datin Seri Rosmah Mansor of 12 charges of money laundering involving RM7 million, as well as five charges of failing to declare her income to the Inland Revenue Board (IRB).

Judge K. Muniandy granted an order of acquittal after allowing Rosmah's application to have all charges against her quashed.

The application was based on the grounds that the charges were defective and failed to disclose the essential elements of the alleged offences.

Rosmah, 73, filed the application to strike out the charges in September 2023.

The hearing commenced on Dec 12 of the same year, following partial proceedings during which two witnesses had testified.

In his judgment, Judge Muniandy stated that the charges against Rosmah failed to specify that she was directly engaged in a transaction involving illegal proceeds, and did not clarify the nature of the transaction or how Rosmah was directly involved.

“The charges do not disclose the key elements of the offence of money laundering, including the transaction involving money laundering, the conduct of the accused, and the monies referred to in the charges. Additionally, the charges do not reveal a transaction as envisaged under Act 613 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

“The unlawful activity that was tied to the charges was also not disclosed but the proceeds of unlawful activity have appeared from nowhere,” he said.

The judge added that, without those elements, the charges merely describe the act of depositing a sum of money into a bank account, which in itself is not an offence by law.

“Some of the charges under the Income Tax Act 1967 overlap as the dates and amount stated correspond but the offences alleged to have been committed by the accused is still money laundering, wherein it has to emanate from a serious or predicate offence, forming unlawful activity, so there are no proceeds of it being laundered,” he said.

Judge Muniandy stated that even if there is undisclosed income to the Inland Revenue Board (IRB), there must be transactions demonstrating the accused’s involvement with the undisclosed income for it to qualify as money laundering.

“Failing to furnish income tax return comes within Section 77 (1) of the Income Tax Act 1967 (ITA). The offence punishable under Section 112 of the ITA is only triggered if all the available avenues under the ITA are exhausted but it was not done in this case.

“This includes that the income tax assessment has to be raised by the Director General of the Income Tax Department, followed by an appeal process available to the taxpayer under sections 99 to 102 of the ITA or Part VI of the ITA,” he said.

He further emphasised that the final determination of the tax payable would be made by the Special Commissioner of Income Tax, and following that determination, the taxpayer would have the option of seeking judicial review.

In concluding his judgment, Judge Muniandy stated that, based on the court’s findings, he granted the accused’s application to have the charges struck out.

“Order in terms of the application is granted and all the 17 charges against the accused are struck out. This court also acquits and discharges the accused of all the 17 charges against her,” he said.

On Oct 4, 2018, Rosmah pleaded not guilty to 12 counts of money laundering, involving RM7,097,750, and five counts for failing to declare her income to the IRB.

The offences were allegedly committed at Affin Bank Berhad, Bangunan Getah Asli branch, Ground Floor, 148 Jalan Ampang here between Dec 4, 2013, and June 8, 2017, and at the IRB, Kompleks Bangunan Kerajaan, Jalan Tuanku Abdul Halim here between May 1, 2014, and May 1, 2018.

The charges of money laundering were framed under Section 4(1) (a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, punishable under Section 4(1) of the same Act, which provides for imprisonment up to 15 years and a fine of not less than five times the sum or value of the illegal proceeds or RM5 million, whichever is higher upon conviction.

The tax evasion charges were brought under Section 77(1) of the Income Tax Act 1967, which required her to submit her income returns for the assessment years 2013 to 2017 to the IRB Director-General on or by April 30 of 2014, 2015, 2016, 2017, and 2018, without reasonable excuse, in contravention of Section 112 of the Act.

Currently, Rosmah is appealing her conviction, 10-year imprisonment sentence, and an RM970 million fine over the corruption case related to the 369 solar hybrid rural schools project. The hearing is scheduled for March 5 next year at the Court of Appeal.

Speaking to the press after the proceedings, deputy public prosecutor (DPP) Ahmad Akram Gharib stated that his team would file an appeal against today’s decision.

Rosmah, when approached by the media, expressed gratitude for the decision in her favour.

“Alhamdulillah, today I have been fully acquitted, and I would like to thank all my lawyers who have worked tirelessly... from the very beginning, they told me that these charges were baseless,” she said, describing the decision as a gift for her birthday on Dec 10.

During today’s proceedings, Ahmad Akram was assisted by DPPs Poh Yih Tinn and Deepa Nair, while Rosmah was represented by lawyers Datuk Firoz Hussein Ahmad Jamaluddin, Amer Hamzah Arshad, Mohamed Reza Abdul Rahim, Ravijan Nambiar, and Joshua Tay. — Bernama