Government proposes to ammend Moneylenders Act to enhance enforcement

KUALA LUMPUR: The Government is proposing to amend the Moneylenders Act 1951 (Amendment) Act 2011 to enhance enforcement and monitoring.
Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar said the proposed amendments would also enable it to monitor activities directly online.
"We do not deny that we are a little bit behind in terms of monitoring those who receive licences (moneylenders). We want to amend this Act so that we can monitor them online to find out how much they have lent, how much interest is charged," he said when winding up debate on the Supplies Bill 2017 at the committee-level for the ministry at Dewan Rakyat today.
He said licensed moneylenders must comply with the condition of not charging more than 18% interest.
"If there are moneylenders giving out loans at above 18% (interest rates), it means they are 'ah long' as they do not follow the conditions set," he said.
Noh said, however, periodic monitoring and spot checks were already being carried out at premises, as well as control in the issuance of licences.
He said the ministry was also working with local authorities, police and the Inland Revenue Board (IRB) to regulate the activities of companies lending money.
"We are in touch with the IRB to examine these companies because they must have at least RM2 million in their account, so we want to know where they get this RM2 million from, for fear they may have obtained it through ill-gotten means," he said. — Bernama