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New Straits Times
14-06-2025
- Business
- New Straits Times
Op Sky: MHO calls for wider probe into RM8.47mil civil servant investment scam
KUALA Lumpur: The Malaysian International Humanitarian Organisation (MHO) has called for a cross-agency investigation into a financial investment syndicate that allegedly deceived civil servants through a scheme known as "Refresh and Reload". The case is being investigated as part of the Malaysian Anti-Corruption Commission's (MACC) Op Sky, launched earlier this year, which involves a syndicate accused of corruption and money laundering. This syndicate was reportedly run by a financial consultancy company in collaboration with several bank officers. MHO secretary-general Datuk Hishamuddin Hashim said the organisation is representing 24 complainants, comprising doctors, teachers and administrators, who collectively suffered losses amounting to RM8.47 million. He said the scheme promised debt settlement services, including clearing borrowers' CCRIS (Central Credit Reference Information System) records, and offered the possibility of applying for loans from four financial institutions simultaneously. "The scheme was operated by two private companies together with a registered association that introduced themselves as financial consultants and former bank officers during closed-door briefings for selected civil servants. "They came with complete documentation and spoke under the name of a financial management organisation. "The desperate victims believed this was a legitimate solution to their mounting debts," he said at a press conference today. Hishamuddin said the victims were guided to simultaneously apply for loans from four banks and added to WhatsApp groups managed by scheme agents who trained them on how to communicate with bank representatives. "Once the loans were approved, the victims were instructed to transfer the funds to the syndicate's account under the pretext of settling existing debts, paying company fees and reinvesting the money to generate monthly loan repayments. "However, after payments were made, the company failed to deliver on its promises, leaving victims burdened with increased financial obligations and legal action from the banks," he said. He said some victims were forced to repay as much as RM12,000 monthly despite earning around RM6,000, while others have received bankruptcy notices. "They were systematically deceived. "Hidden deductions of up to 40 per cent were made without prior explanation, and some were even charged an additional RM10,000 for a so-called vehicle ownership scheme," he said. Hishamuddin said the MACC had previously investigated the matter under Section 23 of the MACC Act, but MHO believes this is insufficient. The MACC had earlier revealed the syndicate's modus operandi, involving simultaneous applications for multiple high-value personal loans backed by fraudulent representations made by financial consultants. Emerging during the Covid-19 pandemic, the syndicate reportedly targeted debt-laden civil servants desperate for financial relief, luring them with promises of credit recovery and short-term investment opportunities. The MACC reported that loans amounting to RM700 million were approved for participants of the scheme, with over RM22 million frozen across 98 companies and individual accounts. As a result, many civil servants are said to be experiencing severe financial stress, some blacklisted by financial institutions and others having received bankruptcy notices. Hishamuddin said the case contains multiple criminal elements and investigations should be expanded to include Sections 420, 403 and 405 of the Penal Code, covering fraud, criminal breach of trust and misappropriation. "Collecting investment funds without an approved prospectus from the Securities Commission violates the Capital Markets and Services Act and the Financial Services Act for unlicensed deposit-taking. "In addition, the fixed-payment vehicle ownership scheme offered to participants was not registered with the Registrar of Interest Schemes as required under Section 3(2) of the Interest Schemes Act."
Malaysian Reserve
28-05-2025
- Business
- Malaysian Reserve
BNM imposes over RM4.9m in fines on HSBC, Maybank Islamic, and Bank Pembangunan for regulatory breaches
BANK Negara Malaysia (BNM) has slapped hefty penalties exceeding RM4.9 million on three major financial institutions for breaches involving customer due diligence, sanctions screening, and credit reporting. HSBC Bank Malaysia Bhd (HBMY) and HSBC Amanah Malaysia Berhad (HBMS) were fined a combined RM3.26 million for repeated failures to comply with anti-money laundering (AML), counter-terrorism financing, and sanctions screening requirements. BNM's on-site reviews found that HSBC did not properly verify beneficial owners of customers and repeatedly failed to conduct timely sanctions screening during customer onboarding, despite earlier remedial efforts. These lapses, it said, put the financial system at risk of abuse for terrorism and proliferation financing. 'The remedial measures implemented by HSBC were insufficient, resulting in similar breaches which recurred in 2024,' said BNM. HSBC has since upgraded its systems to block account openings until sanctions screening is completed. Maybank Islamic Bhd was fined RM1.2 million for submitting inaccurate and late data to the Central Credit Reference Information System (CCRIS), affecting credit records of borrowers. Accurate CCRIS reporting is crucial to ensure fair credit assessments and prevent wrongful loan denials. BNM noted the issue 'affected the accuracy of credit reports in the CCRIS system.' Maybank Islamic has implemented measures to prevent recurrence. Bank Pembangunan Malaysia Bhd received penalties totalling RM493,500 for shortcomings in customer due diligence and sanctions screening, including failure to identify beneficial owners properly and delays in screening customers against updated sanctions lists. BNM said these lapses were caused by staff's inadequate understanding and internal control gaps. BPMB has taken steps to strengthen its compliance and employee training. These enforcement actions reflect BNM's commitment to ensuring the integrity and resilience of Malaysia's financial sector. 'The enforcement actions taken are in line with our approach and are aimed at promoting sound risk management practices in the financial sector,' said BNM. BNM urged all financial institutions to prioritise accurate credit reporting, rigorous customer due diligence, and effective sanctions screening to protect the financial system from abuse and maintain public trust. — TMR
Malay Mail
24-04-2025
- Business
- Malay Mail
Blacklisted at nine: Penang student barred from opening bank account over ‘tipping offensive', PTPTN loan in jeopardy
GEORGE TOWN, April 24 — An 18-year-old student who tried to open his first personal savings account was shocked when he was told that he was blacklisted from opening a bank account due to a blacklist he was placed on when he was nine years old. Terry Choo Teck Lee went to Hong Leong Bank in Bayan Baru in early March to open a personal savings account so that he could apply for a Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan to finance his studies. However, a bank officer in the bank told him that he could not open any account in the bank because he was blacklisted in the system under 'Tipping Offensive' since 2016. 'I was only nine years old at that time, I couldn't even open a savings account at that time without parental approval so I don't understand how I could be blacklisted at that time,' he said during a press conference called by Penang Gerakan Complaints Bureau Chief Andrew Ooi recently. Choo then went to Bank Negara to check his Central Credit Reference Information System (CCRIS) report and his report was clear without any blacklists. So, he went to Maybank at Queensbay Mall on March 12 to try to open a personal savings account there but the bank informed him that he is blacklisted and had rejected him. He lodged a police report in the Bayan Baru police station on March 13 to refer his case to Bank Negara yet again. Choo was then advised to check with the court and his CTOS score. 'I checked with the courts and my CTOS were all clear, I was not on any blacklist,' he said. Even after bringing his issue to light through a press conference two days ago, Choo was still unable to open a savings account. 'He went to another bank, CIMB, to try to open an account and still, he was rejected,' Ooi said. He said Maybank had called Choo immediately after the news of his predicament was published and informed him that they will investigate his case. Ooi said it does not make sense that Choo was placed on a blacklist from when he was only nine years old. 'How could a nine-year-old boy be blacklisted for tipping offensive?' he asked. He said both of Choo's parents have personal savings accounts in two different banks but it was a mystery why their son was blacklisted and not allowed to open a savings account. He said without a savings account, Choo will not be able to apply for PTPTN and this could impact his studies as he is planning to continue his studies in law at a local college. 'I hope Bank Negara will look into this and clear the blacklist so that he will be able to open a savings account,' he said.
