BEWARE OF ILLEGAL FOREIGN CURRENCY TRADING SCHEMES, SAYS CENTRAL BANK

KUALA LUMPUR, Jan 4 (Bernama) -- Malaysia's Central Bank has advised the
public to not participate in any illegal investment or training programme on
foreign currency trading offered by individuals or companies.

In a statement here Monday, the central bank said members of the public are
usually enticed to attend such investment or training programmes with promises
of quick and good returns.

It said the modus operandi of such programmes has been to offer free
training, seminars or workshops to lure investors, prior to inviting them to
set-up an online foreign currency trading account with a principal company.

The company has purportedly a valid licence to trade in foreign currency
overseas.

It also includes providing convenient access to the principal company's
website and facilitate online foreign currency trading by investors as well as
the recruitment of fresh graduates as marketing executives.

The graduates are also encouraged to get their family and friends to trade
in foreign currency.

Such programmes also require investors to deposit an amount of money into
a bank account to begin the trading in foreign currency and subsequently,
requesting for a top up on their initial investment (margin call) to avoid
losing the capital.

Under the Exchange Control Act 1953 (ECA), it is an offence for a person in
Malaysia to buy or sell foreign currency or engage in any act which involves, is
in association with, or is preparatory to, the buying or selling of foreign
currency with any person, other than an authorised dealer.

It is also an offence for a person to aid or abet another to buy or
sell foreign currency with anyone, unless the individual is an authorised
dealer.

The list of authorised dealers and financial institutions permitted by the
Controller of Foreign Exchange to buy or sell foreign currency can be obtained
from the Central Bank's website (http://www.bnm.gov.my/fxadmin).

For further enquiries, members of the public can contact Bank Negara
Malaysia at 1-300-88-5465 or e-mail (bnmtelelink@bnm.gov.my).
-- BERNAMA