LABUAN – Financial institutions in Malaysia should take a preemptive move and be the first level of defence against the notorious money game in the country, says Bank Negara Malaysia Governor Datuk Seri Muhammad Ibrahim.
He said banks in the country should enhance their know-your-customers principle as a preemptive move to tackle the issue.
“If a particular account shows suspicious transaction, they should close the account as the first level of defence.
“On the second level of defence, the banks could inform the central bank and we will carry out the investigation via our financial intelligence and enforcement department,” he said.
Muhammad was speaking at a press conference after presenting the Labuan Financial Services Authority (Labuan FSA) Annual Report 2016 here today.
However, he urged the public not to over rely on the authorities to curb the issue, instead, they should be aware that any financial schemes that promised higher annual return of more than five to six per cent would be “too good to be true”.
“The public should be mindful of that and be responsible for themselves,” he added.
Meanwhile, Muhammad also agreed that legal action should be taken against Penang-based money game firm, JJPTR, if there were sufficient evidence that proved it had breached the law.
JJPTR was among the 288 companies that were on the central bank’s Financial Consumer Alert list released on Feb 24, 2017.