Bank Negara Malaysia (BNM) has uploaded onto its website and all its social media platforms, an image of a fake money lending certification bearing its logo, warning consumers to beware of “Money Lending Licence Purportedly issued by Bank Negara Malaysia”.
The central bank of Malaysia also updated its Financial Consumer Alert (FCA) list on its website, adding four new company names to the existing 405 company names on this list. http://www.bnm.gov.my/index.php…
What’s frightening is that the fake certificate looks quite authentic with the signature of BNM assistant governor, a certification serial number at the top right corner and details of the company being certified – all of which may be quite difficult for a lay person seeking financial assistance to authenticate.
The high quality of the fake document is probably never second guessed once a potential victim walks into a swanky office the businesses may have been set up in – all designed to throw people off their intentions to commit fraud.
In a press statement posted on its website on Wednesday, 6 Dec, BNM cautioned the public against “fraudsters aiming to deceive the public to believe that they are licensed money lenders and to lure the public to make initial payments for various purposes related to the loan such as administrative expenses, stamp duty and legal fees” adding that it does not issue money lending licences.
The statement informed the public that the money lending business was governed under the Moneylenders Act 1951 and administered by the Ministry of Urban Wellbeing, Housing and Local Government.
On the updated FCA list, BNM explained that the list though not exhaustive, featured companies and websites which were neither authorised nor approved under the relevant laws and regulations administered by BNM.
This is very frightening for consumer and workers because BNM is now confirming that it has no control over regulating these companies and we are wondering why these companies have not been banned and the perpetrators punished in an effort to protect the consumers.
A closer look at this list, shows companies bearing company registration numbers and quite a number of them are private limited companies bearing the Sdn Bhd abbreviation after the company name.
We are also concerned with the effectiveness of the Companies Commission of Malaysia?
Why is the approval of money lending businesses vested with Ministry of Urban Wellbeing, Housing and Local Government?
BNM should aggressively use technology to protect the consumers instead of aggressively demanding banks to move to full digitalization of the banking service that would reduce job opportunities in the banking industry.
Consumers are urged to be vigilant.