KUALA LUMPUR – A total of 497 entities have been included in the financial consumer alert list under Bank Negara Malaysia (BNM) as of 2023, said Deputy Finance Minister Lim Hui Ying.
The list identifies unauthorised or unapproved companies and websites in accordance with the laws and regulations administered by the central bank.
In addition to updating the list, the central bank has also taken various measures against companies falsely claiming to have obtained licences and approvals from BNM, including legal action for misuse of the central bank’s name, she said during the question-and-answer session in the Dewan Rakyat today.
Replying to a question from Datuk Seri Sh Mohmed Puzi Sh Ali (Pekan-BN) regarding BNM’s efficiency in detecting and recovering assets or proceeds from investment fraud, Ponzi schemes, and online scams, Lim said these matters were monitored by various agencies, depending on the nature of the offence within their respective jurisdictions.
She has said BNM also works with foreign authorities to analyse fund movements as well as on investigations into fraudulent activities and illicit financial schemes carried out in their countries.
The central bank also collaborates with the Securities Commission (SC), other enforcement agencies, financial institutions and the National Anti-Financial Crime Prevention Centre for more effective enforcement actions against investment fraud syndicates through information sharing and activities to track and detect illicit fund flows.
“Criminals involved in money laundering can be subject to imprisonment, and assets and proceeds obtained through illicit activities can also be confiscated or forfeited under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
“For example, the SC has seized cash totalling RM116 million between 2021 and 2023,” she said, adding that the efficiency and effectiveness in detecting and recovering assets and proceeds from fraudulent activities could be evaluated through efforts taken in terms of prevention and enforcement of legal actions.
She said that until June 2023, all major banks had implemented five important measures, namely transitioning to a more robust verification method other than one-time password delivery, enhancing fraud detection regulations, verification periods and waiting times for initial banking service registration, limiting registration to only one mobile device, and providing a dedicated complaint channel for customers.
At the same time, the SC has also taken various actions to combat financial fraud, including 15 administrative actions by imposing penalties and confiscating profits; adding 315 companies to the investor alert list and issuing five cease-and-desist notices.
The SC also made 97 police reports on matters under the jurisdiction of the Royal Malaysia Police, as well as 128 referrals to local agencies or foreign regulators.
It has also cooperated with the Malaysian Communications and Multimedia Commission to block websites in 146 cases, worked with Meta Malaysia to block Facebook and Instagram in 95 cases, as well as block Telegram accounts in 153 cases. – March 6, 2024