BNM raids company over illegal deposit-taking activities

bnm-ringgit

KUALA LUMPUR: Bank Negara Malaysia (BNM) today led a joint raid on MGSB Berhad for suspected illegal financial scheme activities under the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

The central bank, in a statement today, said the raids on Sept 15 were carried out on seven premises related to MGSB and its affiliates located in Kajang, Bangi, Shah Alam, Selangor and Kuala Lumpur.

The raids, jointly conducted by the National Revenue Recovery Enforcement Team of the Attorney-General’s Chambers (NRRET), Royal Malaysia Police (RMP) and Companies Commission of Malaysia (SSM), were part of continuous inter-agency measures to eradicate such activities, according to the statement.

“Three company directors suspected to be the mastermind and agents for illegal deposit-taking activities were arrested and remanded.

“The joint raiding operation also resulted in the freezing of 54 bank accounts in 11 banks and seizure of cash comprising ringgit and foreign currencies amounting to more than RM700,000 under the AMLA.

“Under Section 137(1) of the FSA, it is an offence for any person to accept deposits without a licence. Investigations for money laundering will also be undertaken under the AMLA,” it said.

Individuals convicted under Section 137(1) of the FSA shall be liable to imprisonment not exceeding 15 years and a fine of not less than five times the sum or value of the proceeds of an unlawful activity or instrumentalities at the time the offence was committed or RM5 million, whichever is higher.

Members of the public are advised to be wary of unlicensed companies for purpose of investment and should refer to licensed financial institutions listed on BNM’s website (www.bnm.gov.my).