THE public should be mindful of illegal financial schemes instead of encouraging their existence by taking part in such schemes, Bank Negara said.

Bank Negara governor Muhammad Ibrahim said there were investors who actively looked for unregulated investment schemes with unrealistic promises of returns.

“(If) the public stops participating in the illegal schemes, they will eventually close down,” he said today at a press conference in Kuala Lumpur.

He said those who participated in illegal financial schemes were driven by greed and misplaced confidence.

“There are also investors who knowingly take risks with the illegal investment without proper and legitimate documents,” he said, adding that investors could face action for abetment and dealing with illegal proceeds.

Bank Negara’s warning comes following controversies surrounding JJ Poor to Rich (JJPTR) and other money game operators. Authorities, including the police and Bank Negara, had raided eight JJPTR premises in Penang, and seized documents, computers and other items.

JJPTR founder Johnson Lee has been remanded for three days since May 16, to facilitate investigations into a cheating case involving more than 30,000 Malaysians.

JJPTR is being investigated under Section 420 of the Penal Code for cheating after several police reports were lodged against the company in recent weeks.

Muhammad reiterated that the Attorney-General’s Chambers would lead an inter-agency committee for joint enforcement against illegal financial schemes.

“Based on the current joint enforcement initiatives, the relevant enforcement agencies will also assess the legal framework and the need to have a more unified approach at national level to combat such schemes,” he said.

He said financial institutions have been cooperative in the past months, with 238 accounts closed.

“There is no benefit at all if you participate in this type of ventures. At the end of the day, you will lose your money,” he said. – May 19, 2017.