|1.||FAQs on Joint Raids on Companies Suspected of Conducting Illegal Financial Schemes Using Gold|
|Q: Why did the authorities raid such companies?
A: The raids were conducted in the interest of protecting the affected investors from putting more money at risk as well as the public at large.
The companies that are involved are investigated for suspected offences that include illegal financial schemes, money laundering, tax evasion, false description including misrepresentations, appointment of agents without licence and failure to lodge statutory documents.
Q: What is the concern with the business model of such companies?
A: The concern is that such companies are operating schemes believed to be not sustainable. Such companies promised high monthly returns to the investors and a guarantee to buy back the gold. Such schemes are not funded through actual gold trading but from new monies invested into such schemes.
Frequently, the amount of assets and monies held by such companies do not commensurate with the amount collected from the investors.
Q: Why have the authorities only taken action now?
A: Any enforcement action can only be taken when it has been established that there is reason to believe an offence has been committed. This is to avoid hasty or reckless enforcement actions that may affect genuine businesses.
Q: What is the status of the actions by the authorities?
A: The investigations are now ongoing. Regular statements will be issued by the authorities to keep the public informed of the progress of the investigations. Members of the public are advised to only refer to information from official statements issued by the law enforcement agencies for updates on the case.
Q: How long will the investigations take?
A: The length of the investigations would depend on the complexity and magnitude of the case. The complexity increases due to the international dimension of such cases. Cooperation by the affected parties will facilitate the investigation process. The investigations are accorded high priority and all necessary resources are being mobilised by the relevant enforcement agencies to bring the investigations to the earliest conclusion.
Q: Why have the assets been frozen and seized?
A: In cases of suspected illegal financial schemes, the authorities conduct search and seizure operations to secure the evidence and to avoid the companies from destroying or suppressing evidence. This also prevents the assets from being dissipated to the detriment of the investors.
Under section 44 of Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA), the law enforcement agencies are empowered to freeze any assets when it is suspected that an offence of money laundering has been committed.
Q: What is going to happen to the assets and gold that have been seized?
A: Any assets seized during the course of raids are meticulously documented and accounted for and maintained in safe custody. If there are criminal proceedings, such assets will only be dealt with at the direction of the Court.
Q: Can an affected investor claim his/her money or gold from the seized assets?
A: Assets seized during the course of the investigations can only be dealt with at the direction of the Court. Investors may file to the Court a third party claim for the return of his/her money or gold. Information on whether, and how, to file a claim will be provided after court proceedings are concluded.
Q: What is the advice to members of the public who would like to invest?
A: The public is advised to be cautious of investment schemes that promise high returns with seemingly low risk, with an arrangement that guarantees the return of the principal amount invested. Members of the public are also advised to check with the relevant authorities when dealing with companies or individuals offering such seemingly attractive business opportunities or financial services that are not licensed by the authorities.
As a guide, members of the public are encouraged to observe the following when evaluating an investment scheme:
|2.||Frequently Asked Questions Related to Money Services Business|
|I. FAQs related to Re-Licensing
1. Upon enforcement of Money Services Business Act 2011 (MSBA), what is the requirement on the existing licensed money changers (LMCs), remittance service providers (RSPs) and wholesale currency business?
Upon enforcement of the MSBA on 1 December 2011, all existing LMCs, RSPs and wholesale currency business are required to apply for new licence under the Act. Application for re-licensing should be submitted within the stipulated timeframe as follows:
For licensees who fail to submit the application within the stipulated period, their licence or permission shall be automatically revoked.
2. Are licensees allowed to continue with their business after submitting the application for a license under the MSBA?
Licensee who have been licensed under section 7 of the Money Changing Act 1998 to carry money changing business, granted permission by the Controller of Foreign Exchange under section 10 of the Exchange Control Act 1953 to carry on remittance business and granted permission under sections 4, 24 and 25 of Exchange Control Act 1953 to carry on wholesale currency business may continue to operate their respective existing businesses until the Bank makes a decision on the re-licensing application.
3. Can a licensee submit an application to relocate its offices during the re-licensing exercise?
In the re-licensing application, licensee can submit its proposal to expand its business activity including relocation of branch.
4. Can a licensee combine/merge its business with other licensees?
Yes. Licensees who wish to merge their business are required to submit detailed proposal during the re-licensing exercise indicating name of participating licensees, proposed directors and shareholders and other information as required in the re-licensing application form.
II. FAQs related to Money Services Business Agent
5. If a licensee opts to be an agent under the MSBA, can they retain their current company’s name?
An agent can retain its company name subject to the agreement with the principal. Nevertheless, the signage should clearly indicate that it is an agent to a principal licensee approved to conduct such money services business activity.
6. Can an agent do other types of businesses other than MSB activities?
An agent is permitted to carry on remittance and money changing business (depending on the principal’s activity) and other businesses subject to clear segregation of money services business activity from other activities.
7. Is an agent required to comply with the minimum capital requirements under the MSBA?
As an agent, the company is not required to comply with the minimum capital requirements. However, a money service agent shall comply with provisions of the MSBA and any other requirements imposed by the Bank.
|3.||FAQs related to Foreign Exchange Administration|
|4.||Frequently Asked Questions related to Submission Guideline for Operating Payment System or Issuing Designated Payment Instrument (Submission Guideline)|
1. What is Payment System or Designated Payment Instrument (DPI)?
Please refer to Bank Negara Malaysia's payment system micro site (http://www.bnm.gov.my/microsites/payment/index.htm) as well as the Submission Guideline for information on payment system and/or designated payment instrument.
2. Is the RM500 fee compulsory? Will I receive a refund if Bank Negara Malaysia (Bank) rejects my application?
Yes, the fee is compulsory and is not refundable.
3. If I am submitting two applications i.e. to apply for written notification and approval pursuant to section 5 and 25 of the PSA, do I only submit one set of documents/information and pay RM500 processing fee for both applications?
Applicant is required to submit a set of the required documents/information and pay a fee of RM500 for each application submitted to Bank Negara Malaysia.
4. For notification to operate a payment system pursuant to section 5 of the PSA, applicant is required to submit information and documents as specified under section B, subsection f(i), f(iii) and f(v) of the Submission Guideline. What are they?
Example of documents required:
(i) System operating procedures that outlines the processes and workflow of the system, which among others, includes:
(ii) Participation and operations rules that establishes governance framework, which among others, includes:
Note: Sample of agreement will be accepted as supplementary document only
(iii) System documentation that outlines the set up and arrangement to ensure safety, security and operational reliability of the system, which among others, includes:
5. The company applying for the written notification to operate payment system and/or approval to issue DPI is newly established and does not have audited financial statement. Does applicant need to submit alternative document to Bank Negara Malaysia?
Applicant shall submit the following alternative documents:
6. Will Bank Negara Malaysia process my application if I did not submit complete information and documents as required under the Submission Guideline?
The application will only be processed upon receiving the RM500 fee and complete submission of the information and documents.
7. Will Bank Negara Malaysia require additional information/documents, other than the items listed in the Submission Guideline?
Yes, when necessary, Bank Negara Malaysia may request applicant to furnish additional information/documents when processing an application.
|5.||Frequently Asked Questions on Law Harmonisation Comittee|
|6.||Frequently Asked Questions and Answers on Trade Settlement in Renminbi|
Malaysian companies can now have the option to settle their trade transactions with their counterparts in China in Renminbi (RMB) in addition to other currencies such as the US dollar. All current account (goods and services) transactions are eligible for trade settlement in RMB. Since July 2009, China's government has started the use of RMB for settlement of crossborder trade.
Settlement in RMB may reduce the foreign exchange risk for exporter and importers from China and this can result in better pricing of goods and services transactions for Malaysian companies.
For Malaysian companies, they may reduce the foreign exchange risk and benefit from savings from the currency conversion spreads as it is now a direct quote from RMB to Ringgit.
Both are the same. Renminbi is the official currency of the People's Republic ofChina. Renminbi (abbreviated RMB) is the formal term most often used by Chineseofficialdom to refer to the currency. Literally, it means “People's Currency”. Theyuan meanwhile is the actual unit. ISO code for the currency however is CNY(Chinese yuan).
RMB trade settlement in the People's Republic of China has expanded nationwide since August 2011. Since then any importer in China can pay RMB to any company outside ofChina whereas eligible exporters (known as Mainland Designated Enterprises or“MDEs”) can receive RMB from any company in the world. In meeting the market demand and to liberalise and facilitate trade, with effect from March 2012, trade settlement in RMB is no longer limited to MDEs, all qualified importers and exporters are also allowed to participate in RMB trade settlement.
Among others are AmBank, Bank of China, CIMB, Citibank, Hong Leong, HSBC,ICBC, Maybank, OCBC, Public Bank, RHB, Standard Chartered and UOB
For general CNY/MYR exchange rate information, one can refer to Bank NegaraMalaysia's website, commercial banks' websites, Reuters and Bloomberg. Forspecific trade settlement transaction, please contact your bank for the exactexchange rate offered. Please specify to your bank you need CNY/MYR quotationfor ‘trade settlement'. This is important as the quotation for ‘trade settlement' ismore competitive compared to other purposes.
There are varieties of products / services provided by banks including:
Please refer to your bank for details of products and services offered.
Normally banks will impose certain amount of fees / charges on products andservices offered. However, there should not be any difference in terms of feescharged for RMB settlement compared to other foreign currency services offeredby the banks. You are advised to refer to your bank for details of fees and chargesimposed on the respective RMB products and services offered.
It is necessary for a company to provide documentary evidence that proof theremittance/ trade settlement is trade related. The remittance transaction must berelated to actual trade and up to the actual trade amount. In addition, the company'scounterpart in China must be a qualified exporters or an approved MDE.
Malaysian importer can only pay to qualified exporters or MDEs in China.
12. Can a Malaysian company contract a foreign exchange forward on RMB?
Yes. They can put the RMB in deposits and earn interest, or they can keep it to beused for future payables into the Mainland China. Alternatively, the RMB proceeds canbe converted to ringgit or other foreign currencies.
For further enquiries, please contact BNMLINK or BNMTELELINK
Laman Informasi Nasihat dan Khidmat (BNMLINK)
Contact Centre (BNMTELELINK)
|7.||Frequently Asked Questions on Central Credit Reference Information System (CCRIS)|
Obtaining the Credit Report
Information in CCRIS
4. Credit Facility/Financing Applications
Updating of Information
CCRIS is a system that collects credit information on borrowers from financial institutions and supplies the information back to them. This is one of the sources of information used by financial institutions to help them establish a view of the credit histories of potential or current borrowers. It is not a blacklist system as perceived by some people.
CCRIS stands for Central Credit Reference Information System.
One of the functions of Bank Negara Malaysia is to regulate and supervise the financial institutions so that the financial system of the country would be sound and stable. As such, the Bank promotes prudent credit policies and professionalism among the financial institutions, including the adoption of best business practices in credit risk management. One way of doing this is by providing CCRIS to the financial institutions so that they can make faster and better informed lending decisions.
The Credit Bureau is established by Bank Negara Malaysia under the Central Bank of Malaysia Act 2009 to administer CCRIS.
Yes, the Credit Bureau is required to operate within the limits set out under the Central Bank of Malaysia Act 2009.
No. The Credit Bureau is legally empowered to collect such information.
Obtaining the Credit Report
Yes. The Central Bank of Malaysia Act 2009 allows Bank Negara Malaysia to disclose credit information on a person to himself or herself for the purpose of verifying the accuracy of information reported in the credit report.
No. If a person unlawfully accesses a credit report, the person can be subject to severe penalties under the law.
(1) If you are from the Klang Valley, you may obtain the credit report from the Customer Service Centre, Laman Informasi Nasihat dan Khidmat (BNMLINK) of Bank Negara Malaysia (BNM), Head Office at the following address:
(2) If you are from Johor Bahru, Pulau Pinang, Kuala Terengganu, Kuching or Kota Kinabalu, you may also walk in to our Customer Service Centre at the respective branches for the report. Follows are the address of the Bank Negara Malaysia branches:
BNM Pulau Pinang
BNM Johor Bahru
BNM Kuala Terengganu
BNM Kota Kinabalu
BNM branches operates daily from Monday to Friday, 9.00 am - 5.00 pm (close during lunch time from 1.00pm - 2.00pm except on Friday from 12.30pm - 2.30pm) except for public holidays.
You can either post or fax the completed application form and the supporting documents to:
Please note that if you come personally to our LINK and branches to obtain the credit report, you will get the report instantly. However, it may take between 2 to 4 weeks to process your request for credit report via mail/fax as the report will be sent to the nearest financial institutions to your home address for your collection.
You can obtain your credit report once in every three months.
No. We are not allowed to disclose CCRIS information over the phone since verification cannot be done.
No. You can only obtain your credit report from Bank Negara Malaysia.
No. The credit report can only be furnished to the person concerned.
No. A credit report can only be furnished to the person concerned.
No. The credit report can only be furnished to the person concerned
No. The credit report can only be furnished to the person concerned.
18. My friend's father had recently passed away. Can my friend obtain the credit report of his father?
The request must be accompanied with a Credit Report Request Form supported with a copy of the following documents:
* Please take note that the authorization letter and certified true copies must be dated within 14 working days before the submission date of the credit report request form.
Currently, the credit report is free of charge from Bank Negara Malaysia.
Information in CCRIS
The Credit Bureau obtains the information from the participating financial institutions. This includes all licensed commercial banks, Islamic banks, investment banks, development banks, some of insurance companies, payment instrument issuers and rehabilitation institutions.
The financial institutions report essential identification data on their borrowers (e.g. name, identification number and date of birth) and provide the relevant data on the loans given to such borrowers (e.g. type of credit facilities, conduct of account and credit limit).
The financial institutions are required to report all types of credit facilities extended to their borrowers, including credit cards, overdrafts, trade facilities, housing loans, etc.
Credit report only shows the outstanding or active accounts and credit applications for the last 12 months.
Yes. Credit card information is reported in CCRIS.
Financial institutions are not required to and should not report any information on current accounts in CCRIS. However, if you have an overdraft facility operating in conjunction with the current account, information on the overdraft facility will be reported in CCRIS.
Any temporary shortfall in the current account (e.g. due to service charge imposed by the financial institution) will be treated as a temporary overdraft. The information will be reported to CCRIS until you have settled the shortfall. Once you have settled the outstanding amount, the record will no longer appear in you credit report.
If you have settled the amount in arrears, your regularized account will be shown in the current month of your settlement. Nevertheless, the information on number of installment in arrears for last 12 months will be displayed in the credit report.
Loans reported under Special attention Account are loans that are non performing loans that the financial institution has placed under special monitoring in view of recovering the loan or in the midst of collection. If you wish to know further details of the account, please contact the financial institution for further clarification.
Credit Facility/Financing Applications
This is not necessarily the case. Different financial institutions have different lending policies depending on their risk appetites. The information provided by the Credit Bureau is only a part of the entire lending decision process in each individual financial institution and could be viewed differently by them.
Bank Negara Malaysia does not provide any credit rating or opinion on the creditworthiness of any credit applicant.
No. Bank Negara Malaysia is not and would not be involved in any of the financial institution's lending decisions. The credit reports only provide factual information as reported to the Credit Bureau. Bank Negara Malaysia does not provide any opinion about the creditworthiness of a person. Financial institutions make their own decisions, using all the information they have available to them, including credit reports furnished by the Credit Bureau, information provided by the customer himself in credit application documents and other supporting documents.
The adverse credit record could be due to an outstanding debt which you have with the financial institution which you either did not repay or did not repay on time. You should discuss the matter with the financial institution concerned and work out a repayment scheme with the financial institution. Once your account has been regularized, your credit record will reflect the improved position.
No. Bank Negara Malaysia does not blacklist anyone as it does not express any opinion about the information in the credit report. Information on rejected credit applications is not provided in credit reports in order to ensure that a financial institution will not be prejudiced by the decision of another financial institution.
In processing loan application, the financial institution will perform a credit assessment on the borrower. This may involve background checks from various sources, among others, are the information supplied by credit reference agencies such as CTOS Sdn Bhd (CTOS), Financial Information Services Sdn Bhd (FIS), RAM Credit Information Sdn Bhd (RAM). The information provided by the credit reference agencies will help financial institutions in their evaluation process. The financial institutions need to use all available data to help them make good decisions and be prudent in their loans and advances.
Updating of Information
The record will be updated by the reporting financial institution in the next reporting date, i.e. not later than 15th of the following month.
Bank Negara Malaysia only collects credit information from the financial institutions and not in the position to update any records. The reporting financial institution is responsible to update the record. If you notice that the loan account has not been updated, kindly refer the matter to the said financial institution.
Once you are no longer an owner / partner of your business, you have to update your ownership status with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia). If in the agreement of transferred ownership or agreement made with the other partners upon pulling out from the business states that you are no longer liable for the loan, you should approach the financial institutions where the business has borrowings to update the record in order to release yourself from the liabilities. If you have stood guarantee for the loan and no agreement has been made to transfer the liabilities, you will remain liable for the loan.
38. I am a foreigner working in Malaysia and I am applying for a credit card with one of the bank. However, I was told that there is another person who shares the ID which is similar to my passport number. Hence they are not able to proceed with my application for the credit card as it may involve fraudulent activities. How can I get this resolved?
39. I have obtained my credit report and I have loan item that I want to be removed from the credit report because I am disputing the loan with the financial institution. I do not agree on the conduct of account reported as my non-payment is due to disagreement of the interest charges on my loan. How can I remove it?
The loan item cannot be removed from your credit report as it is still outstanding loan with the financial institution. However, pending the outcome of the dispute we can provide you the option of tagging your report as special name. This would mean that when your loan application is being processed by the financial institution, they have to request for your credit report from Bank Negara Malaysia. When your credit report is provided to the financial institution concern, we will attach your remarks and chronology of events pertaining to the disputed case. Please be cautioned that with the additional information provided, the decision to approve or reject your loan still lies at the discretion of the financial institution that is processing your loan.
CTOS Sdn Bhd (CTOS) is a private credit reference agency and not related to Bank Negara Malaysia. You may contact CTOS at 03-27708833 for further information.
No. You have to liaise with Insolvency Department at 03-88851000 on your status of bankruptcy.
Bank Negara Malaysia does not have blacklist system. A guarantee is a legal contract that binds you to pay the debt of the borrower if the borrower fails to do so. The extent of the liability of a guarantor will be as specified in the guarantee document and you will be held liable for the liabilities in accordance with the terms of the guarantee document. You are advised to seek clarification or explanation from the concerned financial institution to resolve the issue.
43. I have recently withdrawn from a partnership business. How can I avoid my name being used to apply for new loan application or as a guarantor for the business after I am no longer one of the partners?
You may seek the assistance of Agensi Kaunseling dan Pengurusan Kredit (AKPK) at 1-800-88-2575. AKPK is an agency set up by Bank Negara Malaysia to provide financial management, credit counseling, financial education and debt restructuring services for individuals.
Please visit credit bureau website at http://creditbureau.bnm.gov.my/ or contact BNMTELELINK at 1-300-88-5465.
|8.||Frequently Asked Questions on Commemorative Coins|
A commemorative coin is a legal tender coin issued by the Bank to commemorate a specific and significant occasion, outstanding person or place or to mark the anniversary of an historic event.
Our standard Terms and Conditions are:
There is no limit set for each purchase - subject to availability.
Currently, we only accept cash as the mode of payment.
The Commemorative Coins are available for purchase from our counter located at:
Tel : +603 2698 8044 / 9044 (ext: 7417 / 7390)
Yes. Commemorative Coins are minted in limited quantities. Thus, if a particular series is out of stock, it is no longer available for sale from our counter.
The purchase of a Commemorative Coin is made only after the buyer has agreed with the quality of the coins and all sales are final. The Bank does not offer any refund for all Commemorative Coins purchases. However, the Bank will pay the face value of any Commemorative Coins that are surrendered back to us.
Commemorative Coins surrendered back to Bank Negara Malaysia in good conditions are only paid on the face value of the coins and not the purchase price.
All complaints must be submitted directly to:
Tel : +603 2698 8044 / 9044 (ext: 7417 /7390)
|9.||Financial Fraud Schemes|
Members of the public are advised to be careful and not fall prey to these schemes. Be careful if these operators approach you with the following proposals:
|10.||Frequently Asked Questions of Bon Simpanan Merdeka 2009 (BSM)|
|11.||Frequently Asked Questions on RM1 coin|
|12.||Frequently Asked Questions on "Get-Rich-Quick" Scheme|
Illegal foreign currency scam
Foreign currency dealings with a person, other than an authorized dealer, who has not obtained the permission of the Controller of Foreign Exchange under the ECA, often:
If you have any information pertaining to illegal deposit taking activities or illegal foreign currency dealings or are a victim of such activities or scams you can send details of such information or complaint together with the documents to Bank Negara Malaysia as follows:
We can also be contacted at the following telephone numbers:
Tel.: 03-2698 5708 / 2698 5724 / 2698 5776 / 2698 5785 / 2698 4163 / 2691 0824 / 2692 6482 / 2694 2143
|13.||FAQs For Cheque Truncation and Conversion System (CTCS)|
Bank Negara Malaysia