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Friday, September 1, 2023

BNM fines i-Serve, affiliates RM50mil for unlicensed trading

 

Bank Negara Malaysia said documents were seized from 22 locations in Kuala Lumpur and Selangor, resulting in authorities freezing 45 bank accounts in seven banks and seizing RM119 million.

PETALING JAYA: Bank Negara Malaysia (BNM) has fined an e-commerce firm and its affiliates a combined total of RM50 million for violating the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla).

In a statement, BNM said it fined i-Serve Online Mall Sdn Bhd and six other companies on Oct 19, 2022, after receiving written consent from the public prosecutor.

BNM said its investigation revealed that between June 2018 and September 2021 the companies had accepted deposits from the public without a licence and engaged in transactions that involved “illegal deposit-taking activities”.

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“This was undertaken through schemes where monies were accepted from the public on terms under which the monies would be repaid in full, which is in breach of the FSA,” BNM said.

The six other entities include i-Serve Technology and Vacations Sdn Bhd, QA Smart Partnership PLT, QA Elite Partnership PLT, QA Premium Partnership PLT, MM2217 PLT, and Valuewise PLT.

The central bank said the fine took into account the severity of the offences committed.

BNM said the RM50 million fine was paid on Nov 16, 2022.

In November 2021, it was reported that BNM and several government agencies raided the premises of i-Serve Online Mall and its related affiliates in an investigation into possible money laundering and related financial offences.

BNM said documents were seized from 22 locations in Kuala Lumpur and Selangor, resulting in authorities freezing 45 bank accounts in seven banks and seizing RM119 million. - FMT

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