KUALA LUMPUR: Bank Negara Malaysia has been urged to draw rules for gold investment schemes as scammers take advantage of record prices for the commodity.
In making the call, federal police Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf said many gold investment schemes involved fraud.
"Many companies have started promoting gold investment schemes because of the high prices."
He said if gold prices continue to rise, more investors will sell their gold for profits. These investors would be affected If the companies could not deliver on the promised returns.
"Based on our records, most of these gold investment schemes end in fraud and huge losses for the investors."
He urged Bank Negara Malaysia to require all companies involved in gold investment schemes to register with the central bank.
Ramli said there was a need for a more robust mechanism to monitor and regulate investment schemes, especially those involving gold to avoid more people from being scammed.
"Gold investment schemes have become increasingly popular due to economic and financial uncertainties around the world."