KUALA LUMPUR, Aug 1 — Malaysia’s central bank led a joint enforcement action on 12 premises in the Klang Valley earlier this week and confiscated assets valued at over RM30 million.

The operation, conducted in collaboration with the Ministry of Domestic Trade and Cost of Living, the Inland Revenue Board, CyberSecurity Malaysia, and the police targeted local investment firm XFOX Market Sdn Bhd and several other entities suspected of engaging in financial crimes.

“ The entity had previously been listed on Bank Negara Malaysia’s Financial Consumer Alert list on 14 June 2023.

“This operation is part of an ongoing inter-agency effort to combat financial crimes in Malaysia,” Bank Negara Malaysia (BNM) said in a statement on its website last night.

It said the seizures comprised gold, cash amounting to more than RM4.85 million including some foreign currencies, cryptocurrency as well as luxury vehicles and various documents related to the ongoing investigation.

Authorities also froze 92 bank accounts containing RM25.4 million and a safe deposit box as part of the crackdown.

BNM said it took action prompted by suspicions of violations under multiple laws, including the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

Under the FSA, a conviction for accepting deposits without a licence could lead to a maximum prison sentence of 10 years and fines up to RM50 million.

Similarly, penalties under the AMLA can result in imprisonment for up to 15 years and fines at least five times the amount involved in unlawful activities.

BNM urged the public to be vigilant and to only engage with licensed or registered entities to avoid becoming involved in illegal activities.

It also called for caution regarding investment opportunities promising high returns, especially those encountered through social media, email, or phone solicitations.

Further information on illegal financial schemes and enforcement actions is available on BNM’s Enforcement Actions webpage.
 

https://www.malaymail.com/news/malaysia/2024/08/01/bank-negara-seizes-over-rm30m-worth-in-cash-gold-cryptocurrency-and-luxury-vehicles-from-klang-valley-investment-firm/145636