The total number of financial crimes in Malaysia continues to rise, with scam activities involving e-commerce, telecommunications, love scams and phony investments having augmented by 1.6% to 19.8% earlier this year, according to news reports.
While it is easy to identify some financial crimes such as money laundering and misappropriation of funds, other crimes may be lesser known and even unexpected to some.
Here are eight financial offences you may not be aware of and what the fines are.
#1 Pretending To Be A Fortune Teller To Cheat – Fine Of No More Than RM250/Jail Not Exceeding Six Months
Individuals who have an intention of cheating others through the way of disguising as a fortune teller or using other types of craft are breaching the law.
If a person was found pretending to be a fortune teller with the intention of scamming others, he or she can be charged. Under Section 28(b) of the Minor Offences Act 1955, it is a crime if a person pretends or professes to tell fortunes, or uses any subtle craft, means, or device, by palmistry or otherwise to deceive and impose upon any person.
He or she shall be deemed to be a rogue and vagabond and shall be liable to a fine not exceeding RM250 or to imprisonment for a term not exceeding six months or both.
#2 Lending Out Your Bank Account – Fine Of RM1,000/Jail Not Exceeding One Year
Source: Malaysian Anti-Corruption Commission
Agreeing to lend out your bank account to others in exchange for money can get you into trouble. Criminals make lucrative offers to individuals who in return share their bank accounts with them or help fraudsters transact funds that were illegally obtained, whether knowingly or unknowingly. Sometimes, fraudsters also would make attractive job offers to individuals that request them to furnish information or even their ATM card during the application process.
Once a person agrees to lend out their ATM card and pin number to the fraudsters, the account will be used for illegal transfers and receiving of funds or even for scam activities, known as mule account.
Mule account holders can be charged under Section 424 of the Penal Code for fraudulently concealing monies, which can lead to an unspecified amount of fine or imprisonment up to five years. They can also be charged under Section 29(1) of the Minor Offences Act 1955, which carries a sentence of imprisonment for a term not exceeding one year or a fine not exceeding RM1,000 or both.
#3 Soliciting Donations In Public Places – Fine Not Exceeding RM5,000/ Jail Not Exceeding Two Years
It’s commonplace to see some organisations or individuals asking for donations in the streets or restaurants in Malaysia. While that may not be necessarily illegal, charity organisations need to apply for a permit from the Royal Malaysia Police (RMP) to be able to ask for donations in public places and places of doing business.
It doesn’t matter if the person is able to show the website or other documents proving his or her representation of a charity home.
Otherwise, they will be liable to a fine not exceeding RM5,000 or imprisonment of not more than two years or both under the House To House And Street Collection Act 1947.
#4 Keeping Money Or Things You Found – Fine Amount Not Specified/ Jail Not More Than Five Years
Source: Malaysian Anti-Corruption Commission
There may be times when we catch a windfall of finding some cash on the streets. But is it actually legal to pick them up?
Well, this depends on the circumstance of you finding the money. If you found it lying on the street floor, with no indication that it belongs to anyone, you can keep the money.
However, if you found an envelope with a bank note and other details allowing you to know whose it belongs to, you must return it.
Otherwise, you can run into legal trouble and be charged under Section 403 of the Penal Code, which carries a sentence of not be less than six months and not more than five years and with whipping and shall also be liable to fine.
#5 Child Begging On The Streets – Fine Not Exceeding RM20,000/ Jail Not Exceeding Five Years
Source: International Labour Organisation
Under the Child Act 2001, a person who allows a child to be on the streets for the purpose of begging even in the pretense of performing or engaged in selling activities can be charged and be liable for a fine of not exceeding RM20,000 or to imprisonment for a term not exceeding five years or both.
#6 Keeping Rare Old Coins – Fine Not Exceeding RM50,000/ Jail Not Exceeding Five Years
Source: George Town World Heritage Incorporated
We’ve all been there – finding the odd foreign coin or even a coin that are unknown to us tucked away in our wallets or even on the streets.
But if you’ve found a piece of coin that seems to be of historical value, you will need to submit it to the government for examination.
However, if you try to keep the coin, you will be liable to a fine not exceeding RM50,000 or to imprisonment for a term not exceeding five years or to both.
#7 Giving Financial Advice Without Licence – Fine Not Exceeding RM10 Million/ Jail Not Exceeding Ten Years
Source: Securities Commission Malaysia
There are many platforms where one can access information about finance and investment, including social media platforms or websites.
However, providing financial advice is a regulated activity. For example, influencers need to have a valid licence to share financial insights or recommendations that promote certain capital market products to followers with expectation of commissions or other rewards.
Otherwise, they may risk being penalised with a fine not exceeding RM10 million or imprisonment not exceeding ten years or both.
#8 Illegally Taking Deposit – Fine Not Exceeding RM50 Million/ Jail Not Exceeding Ten Years
Source: Bank Negara Malaysia
Anyone without a valid licence from the Financial Services Act is not permitted to take deposit from others with the promise of a return.
Generally, individuals are not allowed to take a deposit unless you have the relevant licence. This is unless the deposit is for a sales process like buying a home or putting down a security deposit for renting a home.
Otherwise, they may be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding RM50 million or to both.
Read Also: How Singapore-Registered Car Owners Can Check And Pay Traffic Fines In Malaysia?
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