KUALA LUMPUR (May 24): Bank Negara Malaysia (BNM) has warned the public to be wary of unlicensed companies that use the word "bank" without prior written approval from the central bank.

In a statement today, BNM said it conducted a raid on Axios Group Sdn Bhd in Cheras, as it was suspected to have committed an offence under section 139(1)(a) of the Financial Services Act 2013 (FSA) in that it used the word "bank" in its office premises signage and websites without written approval by the central bank.

"Under section 139(1) of the FSA, it is an offence for any person to use the word 'bank' without written approval unless such person is licensed under this Act to carry on banking business or investment banking business, where if convicted the person can be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding RM25 million or to both," BNM said.

It advised the public to refer to licensed financial institutions listed on its website www.bnm.gov.my.