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Enforcement Action Against Illegal Money Services Business Operators in Kedah and Perlis

Release Date: 08 Mar 2019

On 7 March 2019, Bank Negara Malaysia (BNM) charged four individuals at the Alor Setar and Kangar Sessions Courts for conducting money changing activities without a license under section 7(1) of Money Services Business Act 2011 (MSBA), which is an offence under section 4(1) of MSBA.

Two of the accused pleaded guilty to the charges and were sentenced as follows:

Alor Setar Sessions Court

  1. Lee Boon Kian (NRIC: 600422-02-5187): Fine of RM60,000 (in default 12 month imprisonment) for an offence under section 4(1) of MSBA. In addition, he was also fined RM30,000 (in default 6 month imprisonment) for use of the words ‘money service business’ without approval, an offence under section 23(1) of the MSBA.
  2. Lee Ai Choo (NRIC: 681231-02-5480): Fine of RM60,000 (in default 12 month imprisonment).

At the same Court, another accused, Kok Eng Huat (NRIC: 561227-02-5545) claimed trial and the Court set bail at RM30,000 with one surety. The next mention date is fixed on 28 March 2019.

Kangar Sessions Court

  1. The accused, Chin Foh Lean (NRIC: 501227-02-5284) claimed trial and the Court set bail at RM50,000 with one surety. The next mention date is fixed on 9 April 2019.

Foreign currencies found in the premises were also seized for further investigation under Section 4(1) of Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

The premises run by the individuals above in Bukit Kayu Hitam, Kedah and Padang Besar, Perlis were raided on 3 March 2019 in collaboration with the Royal Malaysia Police. The raiding exercise is part of the continuous enforcement actions undertaken by BNM to protect members of the public against potential financial losses when dealing with unlicensed entities. As such, members of the public are advised not to deal or conduct any money changing or remittance transactions with illegal money services business operators and their agents.

Any person who conducts transactions with an illegal money services business operator does so at his own risk, and appropriate legal action can be taken against him by the relevant authorities. Members of the public are advised to refer to the list of licensed money services business operators on BNM's website (www.bnm.gov.my).

© Bank Negara Malaysia, 2019. All rights reserved.