In response to complaints received from the public, investigating officers of Bank Negara Malaysia (BNM) have today conducted a raid on an office premise of a company at Johor Bharu City Square, Jalan Wong Ah Fook, Johor Bharu, on suspicion of accepting illegal deposits. The residences of the directors of the company were also raided during the operation, which was jointly carried out with the police.

During the raid, relevant documents, office equipment and cash were seized. Statements were recorded from the directors of the company and relevant persons to assist in the investigations.

BNM will commence investigations on the suspected illegal deposit-taking operator for contravening Section 25(1) of the Banking and Financial Institutions Act 1989 (BAFIA).

Upon conviction, an illegal deposit-taking operator can be punished with imprisonment of up to 10 years or with a fine up to RM10 million, or both. In the case of a continuing offence, the operator shall be liable to be punished with a daily fine not exceeding RM100,000 for each day the offence continues.

Under BAFIA, only licensed financial institutions are allowed to accept deposits. Licensed financial institutions are the commercial banks, finance companies, merchant banks and discount houses.

The public is again advised not to participate in any illegal deposit-taking activities to avoid becoming victims of such schemes. BNM wishes to remind the public that they can be punished with imprisonment of up to 10 years or with a fine up to RM10 million, or both, upon conviction for abetting such illegal activities, an offence under Section 112 of the BAFIA .

Members of the public may contact BNM at 03-2932330 for any inquiries.