Bnm S Rm50mil Fine On I Serve Opens Pandora S Box Says Ex Mp

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Bank Negara Malaysia imposed a hefty fine of RM50 million on i-Serve Online Mall for activities between 2018 and 2021 which breached the Financial Services Act 2013 and anti-money laundering laws.PETALING JAYA: A former MP has sounded the alarm over a RM50 million fine imposed by Bank Negara Malaysia (BNM) on i-Serve Online Mall Sdn Bhd (i-Serve) and its affiliates, saying it has raised serious questions about the oversight of financial services in the country.
DAP’s Charles Santiago said the central bank must now answer a “Pandora’s box of questions” over its action against the e-commerce firm for accepting deposits from the public without a licence and engaging in illegal deposit-taking activities.
According to BNM, the companies’ activities between June 2018 and September 2021, were in breach of the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla).
The former Klang MP called for BNM to show accountability in the matter. He said the central bank needs to disclose when it first detected the problem and how long it took to address it.
Charles Santiago.“Also, how many depositors were there? Who are the people who deposited money with i-Serve? How much money (in deposits) did i-Serve receive over the three-year period?”
He said although i-Serve and its affiliates paid the RM50 million fine on Nov 16, 2022, the matter was far from over.
“The fine is paltry compared to the assets that were seized. What happened to the balance? Have the depositors been refunded?”
Santiago also called on BNM to explain the absence of criminal prosecutions.
“We are talking about a breach of the FSA and Amla. This goes beyond procedural issues,” he said.
Ads by KioskedSantiago also questioned if the authorities had determined whether the monies deposited with i-Serve came from legitimate sources.
“Have all the depositors paid their income tax on the money they deposited in i-Serve? Has the Inland Revenue Board (LHDN) investigated each depositor to determine whether their money is from legitimate sources? Can LHDN confirm if the depositors’ monies came from Malaysia or overseas?”
Santiago said the authorities must now investigate each and every depositor for possible tax evasion.
“I hope Bank Negara can provide answers to some of these important questions. I think it is very important that they also clarify if their probe into i-Serve goes beyond the taking of deposits.”
In November 2021, BNM and several government agencies were reported to have raided the premises of i-Serve and its related affiliates in an investigation into possible money laundering and related financial offences.
BNM said documents were seized from 22 locations in Kuala Lumpur and Selangor, resulting in authorities freezing 45 accounts in seven banks and seizing RM119 million. - FMT

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