PETALING JAYA: MFace International Sdn Bhd and its parent MBI International Sdn Bhd, the proponents of the well-known digital currency Mcoin based in Penang, is now on the Financial Consumer Alert List by Bank Negara Malaysia (BNM) due to “unlicensed activities undertaken”. This latest addition to the alert list follows a money game tsunami that led to the collapse of several schemes, including JJPTR, Richway, WMS, CYL, Gaming 339, in the last two years. MBI was founded by Tedy Teow in July 2009. SunBiz had on Sept 19, 2016 reported on Mcoin, citing its allure to many investors in the country, particularly those from Penang, due to the attractiveness of its returns. At that point, MFace and and MBI were not on BNM’s watch list. Mcoin has been in circulation in the past four to five years, with the setting up of its “flagship store” M Mall in Penang and the development of the Asian Cultural Village in Dannok, Thailand. What makes Mcoin, which is issued through MFace, particularly appealing is that its value keeps increasing and the creation of more units at a “splitting point”. The sustainability of its business model is also underpinned by the everlasting amount of Mcoins that one can have, as only 55% from the sale of the coins will be realised in the form of cash. Of the balance, 30% is allocated for coin buyback, 5% for Mpoint and the balance for company service charges. Mcoin investors can use their points to redeem goods at M Mall. Despite its existence for some years now however, the two companies were only included in Bank Negara’s alert list yesterday, bringing the number of companies under close monitoring by the central bank to 302. When contacted, a Bank Negara spokesman declined to comment on MBI and MFace, except to say that the media will be alerted if there are further developments. Some investors that SunBiz spoke to last year said they had earned handsome profits from the scheme through networking, particularly the early batch of investors. However, for those not actively involved in networking, it took more time to get significant returns. Attempts to contact the two companies for comment were not successful. MFace’s filing with the the Companies Commission of Malaysia shows that it is principally involved in providing social localised network solution and advertisement services. It has not updated its financial statements since 2013. In 2013 the company reported a narrowed net loss of RM510,632 in 2013 against RM916,158 in 2012. Its parent company MBI, meanwhile, incurred a widened net loss of RM2.51 million in 2011 compared with RM8,900 in 2010. MBI is listed as being engaged in operating convenience stores, as well as dealing in body lotions, shampoo products, mattresses and general trading. Its businesses are spread across Asia, including China, Hong Kong, Taiwan, Thailand, Indonesia, Singapore and the Philippines. Interestingly, a check on MBI website shows that Tan Sri Musa Hassan is no longer listed as the consultant for the group. A “Master” Geoffrey Pak is now the group corporate development adviser. MFace has four directors, namely Wong Wen Torng, Kau Fong Seng, Teow Ee Meng and Chiok Kian Chau, who was only appointed on Dec 27, 2016.