SSM to team up with police, BNM to fight illegal investment schemes

KUALA LUMPUR: The Companies Commission of Malaysia (SSM) is ready to work with the police and Bank Negara Malaysia (BNM) to crack down on illegal investment schemes. 

The SSM, in a statement, said it would take appropriate action under its jurisdiction to ensure that business entities do not violate their position to carry out such fraudulent activity. 

It was commenting on a report that 56 businesses have been identified by BNM while 47 CEOs are being hunted by the police for offering illegal investment schemes. 

The companies were said to have been involved in investment in commodities, foreign exchange and gold, causing huge losses to subscribers or investors. 

The SSM said only two the businesses were regulated under the SSM, while the rest were not registered or did not exist under the legislation. 

“The SSM has also conducted a preliminary review of the business entities uploaded on the BNM’s website early this year. 

“The inspection and enforcement on the need to comply with the Companies Act 1965 such as submission of profit and loss accounts and the lodgement of annual statements are being taken,” it said. 

Subject to conclusive evidence and proofs, the SSM said actions such as revoking, winding up or blacklisting the entities involved, including penalising their directors, would be taken. 

This is to ensure they will not be able to corporatise or register a new business entity that violates the law, it added. 

The SSM together with the police recently raided a company offering an unlicensed bond investment scheme, promising abnormal returns on investments to the public. 

The public are advised not to fall prey to investment schemes promising unreasonable rates of return on investments or profit -- much higher than that of licensed financial institutions. 

The SSM advises the public to verify such offers with the SSM, Domestic Trade, Cooperatives and Consumerism Ministry, BNM, Securities Commission Malaysia, police, Cooperative Commission of Malaysia, and Malaysian Communications and Multimedia Commission. - Bernama