Bank Negara Malaysia is concerned over the increasing number of illegal deposit-taking schemes that have been reported by members of the public. Based on the public complaints and information received, such activities are believed to be rampant in the Klang Valley, and other major towns in Malaysia.

The public are advised not to participate in the illegal deposit-taking activities to avoid losses and become victims of such scams. In addition, they may be deemed as abetting the illegal activities. Only licensed financial institutions are allowed to accept deposits under the Banking and Financial Institutions Act 1989 (Bafia). Licensed financial institutions are the commercial banks, finance companies, merchant banks and discount houses.

Bank Negara Malaysia views seriously such illegal deposit-taking schemes and will not hesitate to take firm action against the illegal activities. In a recent raid against an illegal deposit-taking operator on 28 July in Alor Setar, Bank Negara Malaysia’s investigation officers, in collaboration with the Commercial Crime Unit of Alor Setar Police, had seized relevant files and documents and cash amounting to RM161,000. The alleged operator, who was suspected to have contravened Section 25(1) of the Bafia, was arrested and released on police bail pending the charge in court.

Upon conviction, an illegal deposit-taking operator can be punished with imprisonment not exceeding 10 years or with a fine up to RM10 million, or with both such imprisonment or fine. 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.

Members of the public who have information of such illegal deposit-taking schemes are advised to contact Bank Negara Malaysia at telephone no. 03-2988044 ext. 8166 and 7524 and direct line 03-2910824