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Four Directors of MGSB Berhad Pleaded Guilty to Illegal Deposit Taking and Money Laundering Charges

Release Date: 23 Aug 2019

MGSB Berhad and its four directors were charged under section 137(1) of the Financial Services Act 2013 (FSA) and section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), pleaded guilty to the charges for accepting money from depositors without a valid license under section 10 of the FSA and involvement in money laundering activities at the Kajang Session Court on 22 August 2019.

The Session Court’s Judge meted the following sentences:

A. Charges under section 137(1) FSA:

MGSB Berhad was fined RM5 million, while the directors Hisyamuddin Che Ali and Ahmad Zalimi Mohd Ali were each sentenced to imprisonment of 2 years and fined RM1 million (in default 6 months imprisonment) while Halimatun Saadiah Che Omar was sentenced to imprisonment of 1 year and fined RM1 million (in default 6 months imprisonment).

B. Charges under section 4(1) AMLA:

MGSB Berhad was fined a total of RM 288 million, while the directors Ahmad Zalimi Mohd Ali, Halimatun Saadiah Che Omar and Nur Ain Aliana Mat Azmi were each sentenced to 2 years imprisonment for each of 3 charges and fined to a total of RM288 million (in default 1 year imprisonment). Hisyamuddin Che Ali was sentenced to 2 years imprisonment for each of 5 charges and fined to a total of RM298 million (in default 1 year imprisonment).

The sentences under FSA and AMLA are to be served consecutively.

Members of the public are reminded not to place any monies or deposits with unlicensed institutions or be involved in any form of get-rich-quick schemes to avoid losing their hard-earned money. A list of institutions licensed under the laws administered by Bank Negara Malaysia to accept deposits is available on its website at www.bnm.gov.my.

Members of the public can also access information relating to illegal financial schemes and enforcement actions taken by Bank Negara Malaysia at the Financial Fraud Alert Site (http://fraudalert.bnm.gov.my).
 

For further enquiries, members of the public may contact Bank Negara Malaysia at the following:

Laman Informasi Nasihat dan Khidmat (BNMLINK)
(Walk-in Customer Service Centre)
Ground Floor, D Block,
Jalan Dato' Onn
50480 Kuala Lumpur

Telephone: 1-300-88-5465 (BNMTELELINK)
E-mail: bnmtelelink@bnm.gov.my

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