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Joint enforcement action against illegal financial schemes

Ref No : 05/17/02 04 May 2017 Embargo : For immediate release    

Bank Negara Malaysia views illegal financial schemes very seriously and will not hesitate to enforce the law against the perpetrators and promoters of such schemes.
The wrongdoers will face the full brunt of the law, including laws administered by Bank Negara Malaysia, the Penal Code, the Interest Schemes Act 2016, the Direct Sales and Anti-Pyramid Scheme Act 1993 as well as the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. Under the law, action can also be taken against investors who knowingly promote and participate in the illegal schemes.
To this end, a joint enforcement action on any financial fraud and scams will be pursued by an inter-agency initiative led by the Attorney General Chambers under the National Coordination Committee to Counter Money Laundering.
Bank Negara Malaysia would like to caution members of the public not to participate in schemes that promise unrealistically high returns, interest rates or profits. Members of the public should ensure that they do not fall prey to these schemes by referring to Bank Negara Malaysia’s Financial Consumer Alert which lists companies that are neither authorised nor approved under the relevant laws and regulations administered by the Central Bank. It also provides information on the common features of illegal financial schemes.   
Financial institutions (FIs) and money services business providers have been directed to heighten their vigilance in detecting the accounts which are used by the perpetrators of financial scams and to further enhance their customer due diligence (CDD) policies and processes in identifying suspicious transactions and fund flows between bank accounts so as to prevent FIs from becoming conduits that facilitate such illegal schemes. 

Bank Negara Malaysia
04 May 2017

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