BNM raids illegal money services businesses, RM15 million seized

Bank Negara Malaysia (BNM), together with the National Revenue Recovery Enforcement Team of the Attorney-General’s Chambers, Royal Malaysian Customs Department (RMCD) and the Royal Malaysian Police, recently conducted a joint raiding operation on networks of illegal money services businesses (MSB).

Eighteen premises located in Johor and Negeri Sembilan were raided, in which relevant documents were seized and their bank accounts were frozen to facilitate investigation.

In a statement today, BNM said to-date, 14 suspects had been arrested and remanded while 24 individuals had been questioned.

The joint raiding operation also resulted in the seizure of cash and properties valued at more than RM15 million and the arrest of a money mule who is connected to the illegal MSB operation.

These networks of illegal MSB were raided for suspected offences of carrying out MSB activities (which comprise money changing and remittance activities) without a licence under S4(1) of the Money Services Business Act 2011 (MSBA).

They were also suspected of engaging in money laundering activities, which is an offence under section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

The illegal MSB operators were also suspected of crossing Malaysian borders with cash exceeding or equivalent to US$10,000 without declaration to the RMCD.

Those committing offences under section 4(1) of the MSBA shall be liable to a fine not exceeding RM5 million or imprisonment not exceeding 10 years, or both.

For an offence under section 4(1) of AMLA, persons convicted shall be liable to imprisonment nor exceeding 15 years and a fine of not less than five times the sum or value of the proceeds of an unlawful activity or instrumentalities at the time the offence was committed or RM5 million, whichever is the higher.

An offence under section 28B of the AMLA shall be liable to a fine not exceeding RM3 million or imprisonment not exceeding five years, or both.

"Members of the public are advised not to deal with illegal MSB for exchanging or remitting monies.

"They will not be protected against any financial loss in the event of a dispute," said the central bank.

Members of the public should conduct their transactions with licensed MSB which are listed on BNM's website at www.bnm.gov.my.

The public is also reminded that leaving or entering Malaysia with cash or bearer negotiable instruments or both exceeding an amount equivalent to US$10,000 is required to declare to the RMCD.