Company fined about RM5mil for money laundering, illegal direct selling activities

PUTRAJAYA, Oct 9 (Bernama): A company selling supplementary health food products has been fined RM5.15mil for money laundering, and promoting and conducting direct sale activities without a valid licence.

According to the Domestic Trade and Consumer Affairs Ministry (KPDNHEP), Sessions Court judge Kamar Jamaludin meted out the punishment after the company pleaded guilty at the Kuala Lumpur Sessions Court on Monday.

A fine of RM150,000 was imposed for an offence under Section 4 of the Direct Sales and Anti-Pyramid Scheme Act 1993 (AJLSAP 1993) for conducting a direct selling business without a valid licence, KPDNHEP said in a statement on Saturday (Oct 9).

The company was charged with committing the offence on Oct 27, 2018 at about 11.30 pm at a premises in Kuala Lumpur.

It was also fined a further RM5mil for offences under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001) for receiving money amounting to RM450,000 from illegal activities.

The company was charged with six counts of receiving money amounting to RM450,000 being proceeds from illegal activities from direct sale businesses without a valid licence, involving three current accounts of the company at three different banks.

The company committed the offences between Sept 17, 2017 and Nov 21, 2018.

The prosecution was conducted by KPDNHEP deputy public prosecutor Syazwani Zawawi for the offence under AJLSAP 1993 and Rohaiza Zainal for the offences under AMLATFPUAA 2001.

In the statement, trade enforcement director Azman Adam said that from 2016 to 2021, the ministry had taken action on several cases involving direct sale and pyramid schemes up to the forfeiture stage worth RM55.99 million and total fines of RM17 million.

"KPDNHEP will always monitor and take firm action against any company conducting direct sale businesses without a valid licence and pyramid scheme activities which flouted the law.

"Consumers are reminded to be more careful and not to be easily duped by direct selling activities conducted without valid licences or with elements of pyramid schemes," he added. - Bernama