Three directors arrested in joint raid on MGSB

KUALA LUMPUR:Three company directors were arrested and remanded for masterminding and acting as agents for illegal deposit-taking activities in an inter-agency bust on MGSB Bhd.
Bank Negara Malaysia (BNM) said in a statement yesterday that the joint raid conducted by National Revenue Recovery Enforcement Team of the Attorney-General's Chamber (NRRET), Royal Malaysian Police (RMP) and Companies Commission of Malaysia (SSM) on Sept 15 was carried out on seven premises related to MGSB located in Kajang, Bangi, Shah Alam and Kuala Lumpur (Jalan Tun Razak) and its affiliates – company secretary and legal firm.
Authorities seized relevant documents and and cash amounting to RM700,000 in ringgit and foreign currencies, in the joint raid conducted on the grounds of suspected offences under the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
"The joint raiding operation also resulted in the freezing of 54 bank accounts in 11 banks and seizure of cash comprising ringgit and foreign currencies amounting to more than RM700,000 under the AMLA," the central bank said.
"The joint raid was one of the continuous inter-agencies measures to eradicate illegal financial scheme activities," it added.
Under Section 137(1) of the FSA, it is an offence for any person to accept deposits without a licence while investigations for money laundering will also be undertaken under the AMLA.
Upon conviction, a person is liable to a fine of not less than five times the sum or value of the proceeds of an unlawful activities or instrumentalities or RM5 million, whichever is higher, and imprisonment not exceeding 15 years.
BNM reminded members of public to be wary of unlicensed companies for purpose of investment and to refer to licensed financial institutions listed on the central bank's website.