Your Personal Banking Referrence

Introduction

The objective of this article is to create greater awareness of the dangers of being involved in illegal activities specifically on remitting funds overseas through illegal remittance agents and trading in foreign currencies.

Remitting Funds Overseas Through Illegal Remittance Agents

If you want to send money overseas, either on your behalf or on behalf of someone else, do not use an illegal remittance agent. Your money may not reach its destination. Use an authorised remittance agent instead for safety. A remittance of funds overseas is a payment made to a person in another country. This includes sending money to children studying overseas, foreign workers sending money to families back in their home country or payments made for the import of goods and services.

The remittance of funds overseas can only be conducted through dealers and companies authorised by Bank Negara Malaysia.

These include :

• commercial banks
• Bank Islam Malaysia Berhad
• Bank Muamalat Malaysia Berhad
• Bank Simpanan Nasional

Only the above authorised to remit money overseas on behalf of members of the public,importers,exporters or investors. As these dealers deal only with licensed agents in the receiving country they can ensure that the money are remitted to the rightful beneficiaries.

Illegal Remittance

Illegal remittance is sending money overseas through companies that are not authorised by Bank Negara malaysia to conduct such business. There are no money-back guarantees if you deal with illegal remittance agents. The usual characteristics of Illegal remittance agents are :

• they normally operate on a small scale
• the claim that they are able to provide remittance services efficiently without the need for any documents or identification.
• they rarely use documents to validate and verify the transaction

If you suspect that someine is involved in providing illegal remittance services, you can lodge report with Bank Negara Malaysia at the following address :

Foreign Exchange
Administration department
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur

Telephone : 03-2698 8044 Fax : 03-2691 3266

Bank Negara malaysia continuosly monitors feedback and reports from members of the public on illegal remittance activities in Malaysia. The investigation unit in Bank Negara malaysia regularly conducts raids on agents suspected of providing illegal remittance services. Money seized during raids are confiscated while the operators are punished according to law.

Trading In Foreign Currencies

If you have money to invest, invest wisely so that your money is safe. Do not be cheated,pursuaded or forced in to investing your hard earned money in High and Quick return investments such as in foreign currency trading scams. You will loose all your money.

Foreign currency notes and coins are nomally required if you want to travel overseas. Importers and exporters require foreign currency for making payment for their imports and other trade transactions. These foreign currency need can only be met by licensed money changers and authorised dealears. The authorised dealers are

• commercial banks
• Bank islam malaysia berhad
• bank muamalat malaysia berhad

In Malaysia all foreign currency dealings must be made with or through an authorised dealer. A person who is not authorised dealer is not allowed to offer services or trade in foreign currency. Foreign currency trading refers to activities involving the investment of money in foreign currency with the objective of getting high returns from movements in exchange rates. Hence, if you have been approached to invest your money in foreign currency, it is most definitely a foreign currency trading scam.

Many unsuspecting Malaysians have been cheated by foreign currency trading scams and as a result have lost millions of ringgit. Such scams are conducted by companies which operate illegally. The illegal operators normally target job seekers and investors who seek quick and high returns for their investments.

Do not invlved in assisting illegal operators and cheating innocent people. Check with Bank Negara malaysia before accepting emplyment in such places.

These illegal operators normally :

• place attractive advertisements to lure others to listen to their convincing but bogus marketing plan
• have their headquarters overseas
• have impressive offices and IT facilities
• conduct training to prospective employees on the principles of foreign exchange trading and hands-on exercises on foreign currency dealing using dummy or fake transaction under an environment controlled by the operator. normally all such dummy transaction will result in profits.
• hire employees based on commission and they are not given a proper employment letter or contract stipulating the employment terms and conditions.

Before employees can start dealing, they are required to look for potential investors and collect deposits from them. Otherwise they risk login their jobs. In many of the cases referred to Bank Negara malaysia. employees who are not able to get clients will resort to borrowing their parents or family members to invest.

Warning Signs For Investors

Illegal operator of foreign currency trading scams will try to impress potential investors with the marketing strategy of the company which promises quick and high returns and by potraying a professional reputable image with smart looking employees, a high tech office layout and advanced IT facilities. In some cases investors are even allowed to operate their account via internet with tools of the trade like news screen showing movements in exchange rates to give the impression that a professional legitimate business is being conducted. These facilities are merely cosmetic and do not reflect an actual foreign currency trading office.

Investors can either trade using their trading accounts with the company or through dealer appointed by the company. Investors are also required to sign a business contract which normally entered between the investors and the company. In most instances, the operators will inform the investors that they will have to send such contracts to its company’s headquarters based overseas for signing. However such contracts are usually left unsgned. As such, in the event the investors are not happy with the transaction, no action can be taken against the company as there is no binding contract between them.