Most of the governments in power will try their best to remain relevant and to prove they got it right in every action they do. And one shouldn’t rack one’s brain’s out in thinking what’s the objective behind it.

Conflict occurs when the action taken is proven to be wrong, or events which in the end reflect the lack of transparency, cover-ups and lies. Some might call it the conspiracy theory.

The story of Valerie Plame Wilson could be among the best examples to show how a government can maintain its grip. Plame, through her memoir titled ‘Fair Game: My Life as a Spy, My Betrayal by the White House’, explains the lies and cover-ups by the US government on Weapons of Mass Destruction (WMD) in Iraq (prior to the war in 2003), and its influence on the CIA.

It’s ironic how the government can twist the real event with lies and cover it up to justify the action in buying the trust from the people. Plame together with her husband (Joseph C Wilson) had a tough time after revealing the facts. That includes being booted out from the CIA, identity as an agent being revealed in the press (which is against the law), humiliation and plots to discredit them as unreliable sources.

It sounds very familiar across the globe (for any whistleblowers). The truth is, you can’t win against the government. And we are talking about them facing the White House.

Back home, we have seen what the government did in managing issues, be it current or past issues. In fact, they use all the resources they have within their power to keep the lid tight and continue with their tone to justify the action.

On the other hand, one shouldn’t compare geopolitics to the financial industry mechanism across the globe. The financial and banking industry is a fully regulated industry with very stringent laws to protect the interest of the masses. The corporate sector through the standard corporate governance, on the other hand, implement the same mechanics using the financial and banking industry as a benchmark.

The US through their mandated laws are very serious in combatting fraud, mismanagement, manipulation and any wrongdoing in corporate affairs. We have seen a lot of scandals in the US specifically and how they prosecuted the likes of Enron, AIG, Tyco, Freddie Mac and Bernie Madoff among others.

Banks fined heavily

The banks like Bank of America, Goldman Sachs, Citigroup, JP Morgan Chase and Wells Fargo have also been fined heavily, totalling of billions of dollars, by the US government following the subprime crisis. The Anti Money-Laundring Act or Anti Money-Laundering and Counter-Terrorism Financing Act is also a powerful measure taken by the US government in combatting the illegal money flows to the system. And this is not about the US alone.

Prior to 9/11, the world was facing a war on drugs (it’s still going on until today) and that could be the biggest threat to the financial and banking industry.

Bank of Credit and Commerce International (BCCI) was a classic example of massive money-laundering and other financial crimes, which in the end made them one of the biggest private banks in the world before it went down in 1991 (after customs and bank regulators in seven countries raided and locked down records of its branch offices). HSBC is the latest party, facing a lawsuit over laundering the Mexican cartel drugs money this year.

The Anti Money-Laundering Act or Anti Money-Laundering and Counter-Terrorism Financing Act came into the picture post-9/11. It’s known to be the most powerful act in the financial industry which can be implemented in any conditions to combat the illegal funding, money flow or any transaction that relates to crime and terrorism act.

We have ours too here in Malaysia, Act 613 - the Anti-Money-Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Seriously, one should understand the overall picture and methodology about the geopolitics, specifically in the Middle East, compared to the corporate governance, practices and laws permitted within the financial and banking industry. It’s absurd to link these two; the connection between the Anti Money-Laundering and Counter-Terrorism Financing Act to ‘foreign intervention and interference’. In fact, it will never be one. None. Never.

SUHAIB AZ is currently the CEO and founder of a Malaysian-based private equity and private investment firm. He is a trader and financial market expert with years of banking experience in the treasury department.