Malaysian authorities said on June 12 that they had cracked down on illegal Internet-based investment schemes, blocking several websites and raiding the offices of one firm on suspicion of money laundering.
Police and financial investigators on June 11 conducted joint raids of several offices of AB Fund, an unlicensed firm that runs investment websites, Malaysia's central Bank Negara said.
Authorities confiscated documents, cash and computer equipment, the bank said without elaborating. "Bank Negara is investigating AB Fund for suspected illegal deposit taking and money laundering activities," it said in a statement.
"Members of the public are advised not to fall prey to unscrupulous parties who promise investors ... seemingly high-return investments."
The Securities Commission said it had blocked six sites, including the two run by AB Fund, and would continue to track other such sites promoting illegal investment activities.
"This exercise to block access to illegal investment websites will be done in stages and is an ongoing process," the SC said in a statement. Thos found guilty of illegal deposit taking face jail sentences of up to 10 years or a fine of 10 million ringgit (2.90 million dollars), or both.
A person convicted of money laundering faces a five million ringgit fine or jail for up to five years, or both, it said. The Securities Commission said it had received nearly 700 inquires on Internet investment schemes this month alone, and that some members of the public said they had lost large sums of money through them.
It advised investors taking part in illegal schemes to withdraw their investments and terminate their accounts. Malaysian police last month conducted major raids in and around Kuala Lumpur and arrested more than 30 foreigners for operating Internet and other scams that snared victims across the Asia-Pacific.
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