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Investigating officers of Bank Negara Malaysia (BNM), based on public complaints received, have today conducted a raid on an office premise of a company at Padang Tembak, Pengkalan Chepa, Kelantan, on suspicion of accepting illegal deposits.
During the raid, which was done in collaboration with the Commercial Crime Division of the Kota Bharu Police headquarters, relevant documents, office equipment and cash amounting to about RM80,000 were seized. Statements were recorded from the staff of the company and particulars of customers who were present during the raid were also taken.
A search was subsequently conducted at the residence of the alleged illegal deposit-taking operators located nearby, and relevant documents were seized.
BNM will commence investigations on the suspected illegal deposit-taking operators for contravening an offence under Section 25(1) of the Banking and Financial Institutions Act 1989 (BAFIA). One of the operators was arrested and subsequently released on police bail.
Upon conviction, an illegal deposit-taking operator can be punished with imprisonment not exceeding 10 years or with a fine up to RM10 million, or with both such imprisonment or fine. In the case of a continuing offence, the illegal operator shall be liable to be punished with a daily fine not exceeding RM100,000 for every day during which the offence continues.
Under BAFIA, only licensed financial institutions are allowed to accept deposits. Licensed financial institutions are the commercial banks, finance companies, merchant banks and discount houses.
The public is again advised not to participate in any illegal deposit-taking activities to avoid losses and become victims of such schemes. In addition, they may be deemed as abetting the illegal activities.
