BNM not authorised to return gold money, says deputy minister

Lim said BNM could only release the funds if compelled to do so by a court order. — File pic

KUALA LUMPUR, Dec 3 ― Gold traders must file for a court order if they want to reclaim money from accounts suspected of being used in illegal investment schemes, Deputy Finance Minister Datuk Donald Lim has said.

He was reported telling the Senate that Bank Negara Malaysia has no legal authority to the return to investors’ money from accounts it had frozen, following calls for the central bank to lift the suspension of the assets, including from former prime minister Tun Dr Mahathir Mohamad. 

“Investors can file a third party suit to the court for the return of their money or assets,” the senator was reported by state news agency Bernama as telling the Dewan Negara today.

He added that the central bank could only release assets that had been tied up in suspected criminal activities under the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 with a court order.

Lim was replying to a question from Senator Chew Lee Giok, who asked if investors whose assets have been seized under the alleged illegal trading scheme could recover their monies.

He advised would-be investors to check the background of the companies before pumping any money into any scheme.

Dr Mahathir, an advocate of the gold standard and who has urged for its adoption in global trade following the decline of the US dollar, had last week urged Bank Negara to release assets from giant gold trading firm, Genneva Malaysia.

“I don’t know what is wrong with the Genneva thing, they claim that they aren’t operating this pyramid scheme,” Dr Mahathir told reporters on November 26.

“Investigate first because if you stop the transaction, people’s money will be locked out and they cannot use, they cannot even get the gold ... They deserve fair treatment,” he added then.

Genneva’s bank accounts and other assets have been frozen by BNM since October 1, following suspicion that the company allegedly breached several banking and financial laws such as illegal deposit-taking, money laundering, tax evasion and appointing agents without licence, after several people lodged complaints with the police.

Genneva has some 60,000 customers and a monthly turnover of RM2 billion, according to its traders interviewed by The Malaysian Insider last month, but the company’s website states 50,000 customers and a turnover of RM3 billion.

Bank Negara Governor Tan Sri Zeti Akhtar Aziz has also said the central bank was fast-tracking investigations into the controversial gold trading company so that its customers would not be kept waiting for too long.

Genneva, Pageantry Gold Bhd, Caesar Gold Sdn Bhd, Worldwide Far East Bhd and Bestino Group Bhd are among 25 individuals and companies offering unlicensed activities that were placed on an investor alert list by the central bank last year, double the number from 2010 and the highest on record since 2003.