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Joint Raiding Operation on Illegal Money Services Business Networks

Ref No : 03/17/13 30 Mar 2017 Embargo : For immediate release    

A joint raiding operation was recently conducted by Bank Negara Malaysia (BNM) together with the National Revenue Recovery Enforcement Team of the Attorney-General's Chambers (NRRET), Royal Malaysia Police (RMP) and Immigration Department on networks of illegal money services business operators.

Fourteen premises, including three premises operated by licensed money services business operators, located in Kuala Lumpur and Selangor were raided. To facilitate the investigation, relevant documents were seized and bank accounts were frozen. During the raid, 12 suspects including eight foreign nationals were arrested and remanded and 23 individuals were questioned. The joint raiding operation also resulted in the seizure of cash (both ringgit and foreign currencies), gold wafers and luxury vehicles valued at more than RM18 million.

These premises were raided for suspected offences under the Money Services Business Act 2011 (MSBA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFA). Any person who carries out money services business activities, such as money changing and remittances, without a license commits an offence under section 4(1) of the MSBA and shall be liable to a fine not exceeding RM5 million or imprisonment not exceeding 10 years or both.

Any person who engages in money laundering activities commits an offence under section 4(1) of AMLATFA and 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 not to conduct any money changing or remittance transactions with illegal money services business operators. Any person who conducts transactions with an illegal money services business operator does so at their own risk, and appropriate legal action can also be taken against them by the relevant authorities. Members of the public should conduct their transactions only with licensed money services business operators which are listed on BNM's website (www.bnm.gov.my).

Bank Negara Malaysia
30 Mar 2017

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