Govt ineffective in curbing scams, says PH MP

 

Stampin MP Chong Chieng Jen said only when the banks are held responsible would they be more scrupulous in vetting who opens an account with them and for what purpose. (Bernama pic)

KUALA LUMPUR: Initiatives taken by the government to combat financial scams have been ineffective, says government backbencher Chong Chieng Jen (PH-Stampin).

He said the establishment of the National Scam Response Centre in October 2022 had been pointless because in 2023 the number of cases in Sarawak alone had risen by 24%, compared to the previous year.

He added that depositors in Sarawak lost RM117 million to fraud last year – 77% more than the RM66 million reported in 2022.

As such, he called on the government to amend the Financial Services Act 2013 to include a requirement for the banks, with mule accounts used by fraudsters, to be held responsible for the losses incurred by its depositors.

“The bank must be held accountable because it allowed these mule accounts to be opened and enabled fraud to be committed using these accounts.

“The Financial Services Act 2013 should be amended to require the banks to compensate victims,” Chong said when debating the royal address in the Dewan Rakyat.

He said only when the banks are held responsible would they be more scrupulous in vetting who opens an account with them and for what purpose.

He said the amendment would encourage banks to spend more on tightening their security to prevent financial fraud.

Earlier today, the Association of Banks in Malaysia announced that Malaysian financial institutions had successfully prevented suspicious and fraudulent transactions worth RM383 million throughout 2023. - FMT