Take measures to stop money games, says Bank Negara

LABUAN: Financial institutions in Malaysia have to take preemptive measures and be the first level of defence against the notorious money game in the country, says Bank Negara Malaysia Governor Datuk Seri Muhammad Ibrahim.

He said banks in the country should enhance their know-your-customers principle as a move to tackle the issue.

“If a particular account shows suspicious transaction, they should close the account as the first level of defence. The banks also can inform the central bank and we will carry out investigations via our financial intelligence and enforcement department,” he said.

Muhammad was speaking at a press conference after presenting the Labuan Financial Services Authority (Labuan FSA) Annual Report 2016 here yesterday.

However, he urged the public not to rely too much on the authorities to curb the issue. Instead, they should be aware that any financial schemes that promised annual returns of higher than five to six per cent would be “too good to be true”.

Meanwhile, Muhammad also agreed that legal action should be taken against Penang-based money game firm, JJPTR, if there was sufficient evidence that proved it had breached the law.