GEORGE TOWN: A number of bank accounts holding a total of RM58mil have been frozen following Monday's raids on a store and mall run by MBI Group International.
According to the Domestic Trade, Co-operatives and Consumerism Ministry, the accounts were frozen under the Anti-Money Laundering Act 2001.
On Monday, enforcement officers from various agencies raided the M Square logistics centre in Kuala Lumpur and M Mall, a shopping complex in Penang where shoppers use loyalty reward points in exchange for goods.
The raid, led by officers from the ministry, included the police and personnel from the Companies Commission of Malaysia, CyberSecurity Malaysia and Bank Negara.
A press conference is scheduled for 3pm on Wednesday at the ministry’s enforcement department headquarters in Putrajaya.
MBI International was recently red-flagged by Bank Negara for having a questionable financial scheme.
Members put money into the scheme and get a sum of virtual coins in return. After an incubation period of over a year, they can then convert these coins into points to spend in several services and retail establishments under the MBI umbrella such as M Mall.
The scheme is said to give substantial returns each year and this is believed to be the longest-running financial scheme founded in Penang.