Problem Statement

Non-traditional security like social and economic security should be major concern nowadays

because unlike traditional security, military security for example, the non-traditional security

permeates into the society untraceably and could be a rapid process. It is very dangerous

because the threats cannot be seen. Some might says globalization is one of the sources of

this problem because globalization makes the world more interconnected in the social,

economic, and political aspects and therefore denotes a significant shift in the scale of social

organization, in every sphere from the economic to the security, transcending the world’s

major regions and continents. With globalization, technological advancement, and greater

mobility of people and resources across national borders, transnational crime has become

increasingly pervasive, diversified, and organized. Money is a major role player in this

globalization issue. Money also is a drive force for human beings to survive, and of course

could make desperate people to do anything they can to either survive or get rich. That is how

crimes born. Money laundering is one of the most related derivatives of crimes involving

money and it is said money laundering activities are being the most difficult crimes to cater

and to control. Even if having a good constructed law by good legislature, come together with

serious enforcement of the law, soft crimes like money laundering still difficult to trace.

Dangerous invincible threats of the social and economic security plus difficult to trace crime

like money laundering absolutely turns the relationship between the two into national

problem as social and economy are major component in defining stability and harmony of a

nation.

Research Question

The main research questions:

i. What is the effects of globalization to the crime especially those involving money like

money laundering?

ii. How much legislative structure and law enforcement effect the mentality of society to

make them aware, avoid, and fight against illegal activities like money laundering?

iii. What is the impacts of weak legislative structure and rapid growing of money laundering-

related transnational crime organization to the social and economic security?

Research Objective

The objective of this study:

i. To identify the impacts of money laundering activities especially those involved in

transnational organization to the social and economic security.

ii. To investigate the effects of legislative structure to money laundering impacts on social

and economic security

HYPOTHESIS

Economical improvement has become a force for the government and private sector to get involved in international trade and widen its international relations more towards globalization. Openness of trade, economic stability, and modern facilities make Malaysia a good business place. However, the condition and this complete package for trading has become a medium for criminals especially from the international crime organizations to start their illegal activities which that involving money laundering and illicit trade. This becomes clearer when criminals start to manipulate the use of money. Malaysia is good at ensuring its traditional security (such as military, terrorism threats) but questioned in handling its non-traditional security like money laundering. Non-traditional security is very important as it involves economical and social security in which both can attack the public psychologically and mentally. Straight to the point, the organizational structure, functions, and activities supposedly to be examined to ensure it brings no threats to the social and economic security.

The law and its enforcement against money laundering not very much highlighted and its membership in international organization that fights against monetary crimes like APG (Asia/Pacific Group on Money Laundering) and Anti-Money Laundering and Anti-Terrorist Finance Act 2001 (Act 613) Regulations And Order (update 15th April 2010) is passive. As the law and its legislature is actually a shield in ensuring security, thus legislative structure needs further enhancement to keep social and economic security maintained at reasonable level or improved towards the best it can achieved.

1. THEORETICAL AND FRAMEWORK

Legislative- passive law enforcement in fight against money laundering both internally and externally

- legislature failed to increase social awareness about the danger of money laundering

Transnational organisation- hiding behind the ‘international’ and ‘business’ - hard to detect any illegal activities like money laundering as it can `jumps` from one country to another - involved both local and foreign player

Dependent Variables

Social Security

1. illegal activities can involve all level of ages including youngsters and youth

2. money laundering can penetrates into society silently and widely

3.monopoly of one particular ethnic can make the others not satisfy and racism happen

4. desperate people willing to do anything, including money laundering

Economic Security

1. Possible effects: - financial crisis - inflation rates increase - stability of prices in the market

2.Any threats to the economic security will then threaten social security

3. Development process of a country will stunted

Independent Variables