Major coup: DCP Muhammad Hasbullah showing a chart of how the syndicate operated during a press conference at Menara KPJ, Kuala Lumpur. — AZLINA ABDULLAH/The Star
KUALA LUMPUR: A syndicate which offered online payment gateway (Financial Process Exchange or FPX) facilities for illegal gambling transactions of more than RM500mil has been busted with the arrest of 10 people, including a Datuk Seri.
Among those detained were technicians, programmers and administrative personnel, aged between 27 and 49.
IGP secretariat’s Anti-Money Laundering division head Deputy Comm Datuk Muhammad Hasbullah Ali said initial investigations revealed that the syndicate had operated under the guise of an entity named Cita Layar Sdn Bhd.
“They then developed an online payment gateway called MyPay88, which was used by gamblers to make payments before placing their bets.
“We believe they have handled transactions of up to RM576mil,” he said, adding that the syndicate had been in operation since mid-2022.
The Datuk Seri, believed to be the mastermind, is a businessman, he said.
“We are investigating the suspect further, and hunting for others in the syndicate as well,” he added.
DCP Muhammad Hasbullah also said investigations showed that about 40 illegal gambling rackets had used the services of this particular syndicate.
“Gamblers used the service to make payments and receive their winnings.
“The syndicate earned a 2% commission for every transaction made via its payment gateway.
“We believe they exploited a loophole in the online payment system to cater to illegal gambling syndicates,” he added.
The suspects, said DCP Muhammad Hasbullah, were detained in the Klang Valley in an operation conducted from Jan 28 to 31.
They have been remanded for between three and 11 days, he added.
The police also seized nine mobile phones, three computer accessories, four sets of documents, 10 luxury vehicles and RM325,000 cash from them.
“A total of 42 bank accounts with RM18.2mil were also frozen,” he told a press conference at the division headquarters here yesterday.
The police are working closely with Bank Negara Malaysia to identity and bring down syndicates that offer online payments for illegal gambling syndicates, DCP Muhammad Hasbullah said.
“We will also cooperate with Bank Negara to tighten the SOP (standard operating procedure) on those providing online payments,” he said.
