Report: Five Malaysian banks under MACC watch for illegal outflows of up to RM200m daily, two UK nationals to be charged

KUALA LUMPUR, March 16 — The Malaysian Anti-Corruption Commission (MACC) is investigating officials from five major local banks said to be in cahoots with two citizens from the United Kingdom who are suspected of masterminding an international fraud network here that has seen sums of up to RM200 million a day illegally transferred abroad.

The two foreigners are expected to be charged in court today, Utusan Malaysia and Sinar Harian reported today, citing confirmation from Deputy Commissioner Datuk Mohammad Zamri Zainul Abidin, director anti-money laundering division in the Malaysian Anti-Corruption Commission (MACC).

“We will continue investigations even though two individuals including the syndicate mastermind are charged tomorrow,” Utusan Malaysia reported him as telling it yesterday.

According to Utusan, the two suspects are to be charged in Shah Alam, Selangor, but Sinar Harian reported that they will be charged in Kuala Lumpur.

Malay Mail was unable to independently verify where the charging would take place at the time of writing.

Both Malay newspapers cited anonymous sources close to the investigation that insiders from the five local banks had helped the two UK nationals create “transit” accounts for the syndicate to transfer large sums of money abroad.

“Each of these officers is believed to receive about RM1,000 for each bank account that was successfully opened without following the procedure.

“These accounts are transit as the syndicate will transfer the money into a 'real' account. More slyly, the transit account will be wiped out within three months.

“In addition to these five banks, seven ‘dummy’ companies used by the syndicate are also on the MACC's radar. All these banks and companies are in the vicinity of Kuala Lumpur and Penang,” Sinar Harian quoted one source as saying.

“We believe this company is a dummy by being registered under the Companies Commission of Malaysia created for the money transfer process,” the same MACC source was quoted by Sinar Harian as saying.

Between five and 20 bank officials were reported to be involved in this scam.

The sources reported by the two newspapers said other professionals suspected of conspiring with the syndicate were lawyers, auditors, company secretaries, accountants and company directors.

According to the two news reports, the syndicate has been around since 2019 and is also active in Singapore, Indonesia, Thailand, the Philippines, Hong Kong and the UK.

The syndicate’s modus operandi is to find victims through social media and phone calls.

Syndicate members will contact the victim after they click on the link to register in the investment company as well as enter personal details.

“The initial investigation believes the syndicate was able to make a transaction of around RM1 million per day and RM200 million within three months,” Sinar Harian reported the MACC source as saying.

According to Sinar Harian, the MACC made 24 raids around Kuala Lumpur and Penang on February 22 and nabbed 10 syndicate members who included nationals from Australia, the UK, South Africa and the Philippines.

The newspaper reported that a 41-year-old foreigner was arrested on February 28 in connection with the investment fraud case.

According to Sinar Harian, the individual is suspected to have created a fake website to lure victims to park their money in a non-existent investment.

The newspaper reported more MACC raids on March 3 on several bank premises, money changers and companies suspected of acting as middlemen for the syndicate.