Bank Negara raids company fronting as bank

MONDAY, MAY 7 KUALA LUMPUR- Release of Bank Negara's foreign reserves as at 30 April 2018 at 1500 (0700 GMT) KUALA LUMPUR- HSS Engineers Bhd post-Annual General Meeting (AGM) press conference, Pinnacle 1, Level M1, Connexion Conference & Event Centre @ The Vertical, No 8, Jalan Kerinchi, Bangsar South City, Kuala Lumpur at 1215 (0415 GMT)

KUALA LUMPUR: Bank Negara Malaysia raided Axios Group Sdn Bhd in Cheras on Thursday for suspected to be using the word “bank” in their office premise signage and websites without  approval.

Bank Negara said Axios was suspected to have committed the offence under section 139(1)(a) of the Financial Services Act 2013 (FSA) without its written approval.

During the raid, relevant documents and computers were seized to assist in the investigation.

Under section 139(1) of the FSA, it is an offence for any person to use the word “bank” without written approval unless such person is licensed under this Act to carry on banking business or investment banking business.

If convicted, the person can be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding RM25mil or to both.

Bank Negara advised the public to be wary of unlicensed companies that use the word “bank” without its written approval.

It urged the public to refer to licensed financial institutions listed on Bank Negara Malaysia’s website.