Police, Bank Negara operation raids 8 illegal financial service premises in Sarawak, seizes over RM1 mln cash

Ayob addressing a press conference at the Sarawak Contingent headquarters on Nov 29, 2023. Photo credit: Polis Diraja Malaysia official Facebook page

KUCHING, Nov 30: Eight premises operating illegal financial services in Sarawak were raided, resulting in the seizure of RM1.039 million and 1.12 million Indonesian rupiah (IDR) in cash by the police.

Deputy Inspector-General of Police Datuk Seri Ayob Khan Mydin Pitchay said the special operation was jointly conducted by the Royal Malaysia Police (PDRM) and Bank Negara Malaysia (BNM) on Tuesday (Nov 28).

Simultaneous raids were executed at two locations in Sibu, Selangau, and Batu Niah, and one each at Mukah and Berkenu.

“A total of RM1,039,581 and IDR1,116,000 in cash were seized and a total of 17 individuals have been identified for summoning to record their statements,” he said in a statement following a press conference at the Sarawak Contingent headquarters yesterday (Nov 29).

Ayob reported that investigations unveiled that the illegal remittance activities involved destinations in Indonesia, Bangladesh, Myanmar, and the Philippines.

“These operators would camouflage their illicit activities by integrating with legal trading operations, such as telecommunication or retail businesses, especially in areas with a high concentration of foreign workers,” he added.

Underlining the severity of the situation, Ayob mentioned that the illegal financial service operators are being investigated under Section 4(1) of the Money Services Business Act 2011 (APPW).

Additionally, due to potential involvement in money laundering activities, he said the perpetrators may face charges under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

“The police are also examining if they are linked to other serious crimes such as organised crimes including illegal gambling and fraud. This is due to their role as facilitators in aiding other illegal activities through money transfers.

“An analysis is in progress on suspicious cash transactions and financial transactions involving 39 bank accounts totalling up to RM47 million between 2021 and 2023,” he pointed out.

Ayob drew attention to the detrimental impact of such illegal outflows, indicating that they contribute to an estimated 18 per cent or RM275 billion of Malaysia’s gross domestic product in the shadow economy.

Crimes like trade mispricing, illicit fund transfers, and corruption are identified as contributors to this shadow economy.

Ayob emphasised that joint enforcement operations would be intensified nationwide as a stern warning to other illegal and unlicensed financial service operators to cease their operations. — DayakDaily