Internet firms and directors fined RM20mil

KUALA LUMPUR: Two Internet companies and their directors were fined a total of RM20mil by the Ampang Sessions Court here for various charges in the issuing of electronic payments unrecognised by Bank Negara Malaysia (BNM), promoting pyramid scheme and involvement in money laundering since 2012.

Judge Suzana Hussin handed down the sentence on MFace International Sdn Bhd (Mface), MBI Marketing Sdn Bhd (MBI), Mface director Kau Fong Seng, 35, and MBI director Teow Wooi Huat, 52, after the two men and representatives from the two companies changed their plea to guilty.

The accused had all initially pleaded not guilty to the charges.

Mface was fined RM7mil for promoting the MFC Club pyramid scheme, which is an offence under Section 27B of the Direct Sales and Anti-Pyramid Scheme Act 1993.

The company was also fined RM2.5mil for issuing payment instrument without approval under Section 24(1) of the Payment System Act 2003.

Both the offences were committed at No. 2, Avenue 1, Ampang Avenue, here between June 3, 2012 and March 17, 2018.

The other company, MBI, and Teow were fined RM2.5mil and RM3mil respectively for issuing payment instrument without approval by Bank Negara at the same place.

As for Kau, he was fined RM5mil for receiving RM8,208,453.32, which were proceeds from unlawful activities through a current account belonging to Mface at the Pandan Indah Maybank branch, Jalan Pandan Indah 4/2, Pandan Indah, here between Jan 6 and Aug 31, 2014.

He was charged under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act. — Bernama

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Courts & Crime , MBI , courts , Internet


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