Hamzah: Ministry never issues licence for forex, investment schemes

Hamzah-Zainuddin_forex123

PUTRAJAYA: Domestic Trade, Cooperatives and Consumerism Minister Hamzah Zainuddin says his ministry has never issued foreign exchange (forex) business licences to any company or individual.

He said many people believed that the ministry had the authority to issue licences for forex investment schemes and always blamed the ministry when they failed to get back the money invested.

All businesses such as “money game”, get rich quick and forex investment schemes under the guise of direct selling business and multi-level marketing (MLM) are not allowed in the country under the Direct Sales and Anti-Pyramid Scheme Act (AJLSAP) 1993.

He advised the public not to participate in illegal investment schemes offered by individuals or companies which supposedly give 20% profits immediately.

“As long as there are no complaints about illegal investments, the ministry cannot do anything. Therefore, before investing the money, call the ministry to verify the authenticity of the investment and for a final approval at 1800-886-800 or contact Bank Negara Malaysia,” he told reporters at his office here yesterday.

“The ministry takes a serious view of companies or individuals engaged in pyramid schemes which mislead consumers in accordance with Section 27B (1) AJLSAP 1993. Since 2012, 98 cases have been dealt with by the ministry seizing up to RM5.8 million and issuing compounds of RM960,500,” he said.

Recently an illegal foreign currency trading company stole the spotlight for alleged illegal deposit-taking amounting to tens of millions of ringgit last year from thousands of investors who were lured by its offer of high returns of up to 80%.

Some lost their life savings while others borrowed money to get rich quick.