This article first appeared in The Edge Financial Daily, on April 19, 2016.

KUALA LUMPUR: Fourteen suspects have been arrested and 24 persons questioned in a Bank Negara Malaysia (BNM) crackdown on illegal money services.

“The joint raiding operation also resulted in seizure of cash and properties valued at more than RM15 million, and the arrest of a money mule who is connected to the illegal money services businesses operation,” the central bank said in a statement yesterday.

BNM said the raids were recently conducted at 18 premises in Johor and Negeri Sembilan, where documents were seized and bank accounts frozen to facilitate investigations.

The raids were conducted together with the National Revenue Recovery Enforcement Team of the Attorney-General’s Chambers, the Royal Malaysian Customs and the Royal Malaysia Police.

“These networks of illegal money services businesses were raided for suspected offences of carrying out money services businesses activities which comprise money changing and remittance activities without a licence under Section 4(1) of the Money Services Business Act 2011 (MSBA),” it added.

The businesses were also raided for engaging in money laundering activities, which is an offence under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

Operators of the illegal money services were also suspected of crossing Malaysian borders with cash worth US$10,000 or more without declaration to the customs, an offence under the AMLA.

Those committing offences under Section 4(1) of the MSBA are liable to a fine of up to RM5 million or jail of up to 10 years or both.

Under Section 4(1) of AMLA, persons convicted can be jailed up to 15 years and fined not less than five times the sum or value of the proceeds of an unlawful act at the time the offence was committed or RM5 million, whichever is higher.