This is the latest update by Bank Negara Malaysia(BNM) on joint raids conducted by enforcement agencies on companies suspected of conducting illegal investment schemes using gold.
There are in total of four companies suspected of conducting illegal investment schemes using gold; Genneva Malaysia Sdn Bhd, Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd.
The BNM has clearly stated that legal action shall be taken to those companies who offer fraudulent and deceptive financial or interest schemes that promise high monthly returns which are funded from future investors and NOT FROM gold trading activities or any other legitimate business activities.
Please tell me what other legitimate business activities that can provide over 24% per annum by doing nothing!
That why a lot(most) of people start withdrawal all their saving from Fixed Deposit, Tabung Haji, Amanah Saham Berhad(ASB), EPF, etc in order to get higher return from Genneva Malaysia Sdn Bhd.
On top of that, they will inform or influence(encourage) their families and friends to do the same as they are motivated by sales commission and “high return”.
Let us wait the outcome of the investigation by BNM.
I come across this interest comment by LIONG KAM CHONG…Read it and leave your comment below:
Just what kind of gold investment is this?
I REFER to “Schemes unsustainable” (The Star, Oct 11).
It was earlier reported that at RM218 per gram, a customer paid RM218,000 for 10 wafers of 100 grams of 999.9 gold.
Assuming “hibah” (goodwill/return) is at 2% per month for a six-month contract, the customer would earn a total of RM26,160 at the end of the contract period.
Now, a check at Star Biz on the same day reveals that “The price of gold as at 5pm (Oct 10) stood at RM168.55 per gram.”
A simple mathematics calculation will show that the customer is actually paying almost RM50 more for each gram of gold he/she purchases, give or take a difference of a few sen due to the different transaction days.
This means the customer has paid a total of RM50,000 more upfront for the 100 gold wafers bought.
So, doesn’t the hibah actually come from the RM50,000 paid upfront?
It looks like the scheme is “sustained” by the customers themselves. As long as the customers continue to put in and take out their own money, the “harvest” will continue to be “guaranteed”.
But, what kind of “investment” or even “trading” is this?
LIONG KAM CHONG
Press Statements by Bank Negara Malaysia | Central Bank of Malaysia:
Update on joint raids conducted by enforcement agencies on companies suspected of conducting illegal investment schemes using gold
Following the joint raids on companies suspected of operating illegal investment schemes using gold by The Royal Malaysian Police, the Ministry of Domestic Trade, Cooperative and Consumerism, the Companies Commission of Malaysia and Bank Negara Malaysia, the following is an update of the latest developments.
The relevant agencies are now recording statements from the affected parties that include the directors and senior management of the companies, agents and the investors. Cooperation by the affected investors will facilitate this process. An extensive and detailed analysis is now being made on the assets and liabilities of the companies. Orders have also been issued to the directors and key personnel of the companies concerned to declare their assets in Malaysia and overseas, including those of their spouses and proxies.
These investigations have been accorded priority and all the necessary resources are being mobilised by the relevant enforcement agencies to expedite this process. This is to bring this investigation to the earliest conclusion.
Actions will be taken on those companies that offer fraudulent and deceptive financial or interest schemes that promise high monthly returns which are funded from future investors and not from gold trading activities or any other legitimate business activities.
For more information, members of the public may contact the following:
BNMTELELINK (Customer Contact Centre)
Fax: (03)2174 1515
Joint statement by:
The Royal Malaysia Police
Ministry of Domestic Trade, Cooperative and Consumerism
Companies Commission of Malaysia
Bank Negara Malaysia
Bank Negara Malaysia
18 October 2012