LABUAN, Sept 3 — The Labuan Financial Services Authority (Labuan FSA) is ramping up its efforts to combat dubious investment schemes and foreign investment scams, warning the public to remain vigilant as such schemes often lure victims with promises of attractive returns.

Responding to recent media reports, Labuan FSA said a significant forex investment scheme has allegedly defrauded approximately 400 individuals, leading to a collective loss of around RM100 million.

In a statement to Bernama today, the agency said this underscores the urgent need for increased awareness and due diligence among investors.

"Labuan FSA strongly advises investors to thoroughly verify the legitimacy of any investment opportunities, particularly those that seem too good to be true.

"The Labuan FSA recommends that investors regularly visit its website for the latest updates on the Investor Alert List and Notification of Business Restrictions before making financial decisions,” it said.

As the central regulatory, supervisory and enforcement body of the Labuan International Business and Financial Centre (Labuan IBFC), Labuan FSA is dedicated to maintaining its integrity.

"The authority is fully empowered to oversee the international business and financial services industry in Labuan and is committed to taking decisive enforcement action against any breaches of laws and guidelines under its jurisdiction.

"Enforcement actions in the past have varied depending on the nature of the breach, including the imposition of monetary penalties, business restrictions, license revocations, and the removal of unfit or improper officers from Labuan entities,” it said.

The agency added that this stringent approach would continue, with necessary adjustments to align with evolving global regulatory standards.

To bolster public confidence in the Labuan IBFC, Labuan FSA publishes details of enforcement actions on its website.

It has also increased its supervisory efforts, including more frequent on-site inspections, enhanced reporting requirements, and closer collaboration with other regulatory bodies to strengthen the resilience and integrity of Labuan IBFC and safeguard the interests of all stakeholders. — Bernama