Bank Negara Malaysia (BNM), in a joint operation with the police today conducted a raid on an office premise of a company at Pusat Perniagaan Putra, Jalan Kelang Lama, Kulim, Kedah on suspicion of accepting illegal deposits. The raid was conducted based on public complaints received. The residence of one of the directors of the company was also raided during the operation.

During the raid, relevant documents, office equipment and a substantial amount of cash were seized. Particulars of customers who were present during the raid were also taken.

BNM will commence investigation on the suspected illegal deposit-taking operators 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 with both. In the case of a continuing offence, the illegal operator shall be liable to be punished with a daily fine not exceeding RM100,000 for every day during which 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. In addition, under Section 112 of the BAFIA it represents abetting such illegal activities.