BNM warns of fraudsters using fake money lending licences

This article first appeared in The Edge Financial Daily, on December 7, 2017.
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KUALA LUMPUR: Bank Negara Malaysia (BNM) cautioned yesterday 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 into believing 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,” it said in a statement.

The fraudsters promote their activities through their websites, social media, telephone calls, SMSes, emails or other forms of communication, said BNM.

“Bank Negara does not issue money lending licences. The money lending business is governed under the Moneylenders Act 1951 and administered by the ministry of urban wellbeing, housing and local government.”

It urges victims of such financial scams to lodge a police report to facilitate investigations.

“The public are reminded to be vigilant of any person or parties who claim to be licensed by Bank Negara Malaysia. They are advised to refer to the list of institutions licensed or approved under the laws administered by Bank Negara Malaysia before entering into any business or investment transactions,” it added.

The list is available at