EPF warns members against using withdrawal agents

PETALING JAYA: The Employees Provident Fund (EPF) today cautioned its members against abetting with syndicates or agents who offer assistance to purportedly help them withdraw their EPF savings in return for a fee.
EPF head of corporate affairs Nik Affendi Jaafar said: "EPF views fraudulent withdrawals as a serious offence and will not hesitate to take stern action against members withdrawing their retirement savings via fraudulent means."
Members, particularly those who are in need of cash, are reminded to be vigilant over advertisements on several websites or agents who distribute business cards and flyers offering services to assist members to withdraw their EPF savings.
"EPF does not appoint or endorse any third party to facilitate members' application for withdrawals," said Nik Affendi, adding that members who wish to make withdrawals from their account can deal directly with EPF, which offers withdrawal services free of charge.
Fraudulent withdrawals, which involve the submission of falsified documents by members to facilitate the approval of withdrawals from their own EPF accounts, is an offence under the EPF Act 1991. Under the Act, members found guilty of a fraudulent withdrawal are liable to a maximum jail sentence of three years or a fine of RM10,000, or both.
From July until September this year, eight EPF members were charged in court for making fraudulent EPF housing withdrawals and fined a total of RM15,850. The convicted members face a jail term of up to 10 months if they fail to pay the fine.
The same period also saw a total of six court summonses being filed against members for fraudulent withdrawals.
"EPF has a comprehensive system in place to detect any fraudulent withdrawals or attempts to make fraudulent withdrawals even after the savings have been successfully withdrawn," Nik Affendi added.
Once convicted, members who return the amount withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned.
Those who fail to return the amount or return the amount after six months from the conviction date will lose their right to make that particular withdrawal.
EPF reaffirms its commitment to combat fraudulent withdrawals as it will deplete members' retirement savings and goes against the core of EPF's objectives.
Members who encounter any instances of fraud or attempts to commit fraud relating to EPF withdrawals are urged to report it to the EPF anti-fraud hotline at 03-26162121.