Close ↓
(File pix) Bank Negara Malaysia has warned those involved in illegal financial schemes that they can be charged under any of the various laws.

KUALA LUMPUR: Bank Negara Malaysia has warned those involved in illegal financial schemes that they can be charged under any of the various laws.

Not only are promoters of such schemes will be prosecuted.

"Under existing law, legal action can also be taken against investors participating in illegal schemes for abetment."

They are laws under Bank Negara Malaysia, the Penal Code, the Interest Schemes Act 2016, the Direct Sales and Anti-Pyramid Scheme Act 1993 as well as the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Thanks to a joint enforcement action, any financial fraud and scams will be pursued by the Attorney General Chambers under the National Coordination Committee to Counter Money Laundering.

The central bank warned the public not to participate in schemes that promise unrealistically high returns, interest rates or profits.

"Refer to our Financial Consumer Alert which lists companies that are neither authorised nor approved under the relevant laws and regulations administered by the central bank."

The website also provides information on the common features of illegal financial schemes.

The central bank has also directed financial institutions and money business service providers to heighten their vigilance in detecting the accounts which are used by the perpetrators of financial scams.

They must further enhance their customer due diligence (CDD) policies and processes in identifying suspicious transactions and fund flows between bank accounts so as to prevent from becoming conduits that facilitate such illegal schemes.

Close ↓