RM24.2 mil fraud: BNM requests prompt refunds to all affected account holders

KUALA LUMPUR: Bank Negara Malaysia (BNM) has requested prompt refunds for all affected account holders following fraudulent withdrawals of fixed deposits amounting to RM24.2 million.

The central bank stated that it takes seriously the recent reports of large-scale unauthorised cash withdrawals resulting from the collusion of financial institution employees with external parties.

"The integrity of individuals working in financial institutions is paramount," BNM said today in response to Bernama's queries about the recent unauthorised withdrawals.

To date, police have detained 14 individuals, including four bank employees, to assist in the investigation of the fraudulent withdrawals of RM24.2 million from several fixed deposit accounts.

The police received four reports from account holders and bank staff in early June in Petaling Jaya, Selangor, after the victims noticed suspicious cash withdrawals from their fixed deposit accounts in Kota Kinabalu, Sabah.

BNM emphasised that all financial institutions must implement strong controls to safeguard and protect customers' funds and the integrity of the financial system.

"This includes, for instance, the requirement for financial institutions to enforce a strong code of ethics.

"Financial institutions must also conduct thorough checks and screening of potential employees before hiring them," BNM said.

The central bank added that individuals with records of fraud and dishonesty are banned from working in any licensed financial institution.

It also reminded financial institutions involved in such investigations to fully cooperate with relevant law enforcement authorities and to take strong remedial or disciplinary actions based on the findings of internal investigations.

"BNM advises consumers to immediately report any unauthorised or suspicious transactions to their banks or the National Scam Response Centre (NSRC) at 997 upon discovery, as well as to the police," it added.


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