What is illegal deposit taking?
It is the act of receiving, taking or accepting deposits (e.g. money, precious metal) that promises a return or the money’s worth without a valid license under the Financial Services Act (FSA) 2013.
Under Section 137(1) of the FSA, it is an offence for any person to accept deposits without a licence.
There are some exceptions:
- Payment of deposit under contract of sale (E.g.: car booking fees)
- Security deposit (E.g. house rental deposit)
- Payment to government, statutory bodies, approved e-money issuers
What to look out for?
1. Misuse of Bank Negara Malaysia’s name and logo. 
To earn legitimacy, some scammers may furnish letters or certificates claiming that they have been licensed or approved by Bank Negara Malaysia.
2. No proper documentation.
The financial sector is a regulated industry, with laws, rules and guidelines to protect financial consumers. Be wary of firms that seem “less than professional” (e.g. no receipts, no proper documentation).
3. Returns that are too good to be true.
Be wary of terms like “guaranteed returns” or returns that are higher than usual without much risks. Usually, it’s a scam.
How to protect yourself?
1. Check the Bank Negara Malaysia’s website.
All licensed institutions are displayed on our website, including for those operating in the money services business (e.g. money exchange). If you can’t find their business on our website, it means it isn’t licensed. Do not transact with them!
2. Refer to our Financial Consumer Alert list.
Do some checks before parting with your money.
3. Make an informed decision.
Many of these scammers will create a false sense of urgency to pressure you into parting with your money. This is a red flag. Don’t rush. Do your due diligence, so that you can make an informed decision.
