Bank Negara warns of fraudsters using fake money lending licences

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KUALA LUMPUR (Dec 6): Bank Negara Malaysia (BNM) warned today that there are persons or companies conducting illegal money lending activities using fake money lending licences, purportedly issued by the central bank.

"These fraudsters aim to deceive the public to believe that they are licensed money lenders and to lure the public to make initial payments for various purposes related to the loan, such as administrative expenses, stamp duty and legal fees," BNM said in a statement. 

BNM clarified it does not issue money lending licences and explained that in fact, the money lending business is governed under the Moneylenders Act 1951 and administered by the Ministry of Urban Wellbeing, Housing and Local Government. 

Hence, members of the public were reminded to be vigilant of any person or parties who claim to be licensed by BNM.

"They (the public) are advised to refer to the list of institutions that are licensed or approved under the laws administered by Bank Negara Malaysia, before entering into any business or investment transactions," the central bank added. 

To facilitate further investigations on the new modus operandi, BNM urged all victims of the financial scam to lodge a report with the Royal Malaysian Police.