BNM leads joint raid on company over illegal deposit-taking activities

KUALA LUMPUR: Bank Negara Malaysia (BNM) led a joint raid on Koperasi Dinar Dirham Bhd which was suspected of having committed an offence under the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

The central bank, in a statement yesterday, said the joint raid on Nov 28 were carried out on nine premises related to Koperasi Dinar and its affiliates located in Kuala Lumpur and Selangor, where relevant documents were seized to assist in investigations.

The raids, jointly conducted by the National Revenue Recovery Enforcement Team of the AttorneyGeneral’s Chamber (NRRET), Royal Malaysian Police (RMP), Malaysia CoOperative Societies Commission (SKM) and Cyber Security Malaysia (CSM) is one of the continuous inter-agencies measures to eradicate illegal financial scheme activities.

“Six company directors, suspected to act as mastermind and agents for the illegal deposit-taking activities, were arrested and remanded for two days to assist with investigations,” said Bank Negara.

It added the joint raiding operation also resulted in the seizure of eight vehicles valued more than RM1.5 million and freezing of 114 bank accounts in 12 banks amounting to RM15.3 million under the AMLA, it added.

“A sum of ringgit and foreign currencies totalling RM1.4 million, as well as 22.5 kg precious metals, were also seized,” said the central bank.

The authorities are also working in collaboration with the Brunei Financial Intelligence Unit in investigating the company’s operations in Brunei for a similar offence, said Bank Negara.

Under section 137(1) of the FSA, it is an offence for any person to accept deposits without a licence. Investigations for money laundering offence will also be undertaken under the AMLA.

Individuals convicted can be fined not less than five times the sum or value of the proceeds of unlawful activities at the time the offence was committed or RM5 million, whichever is higher, and imprisonment not exceeding 15 years.

Members of the public are advised not to deal with illegal deposit-taking company for purpose of investment and should refer to licenced financial institutions which are listed on BNM’s website (www.bnm.gov.my) for further information. - Bernama