On 30 July 2024, a joint enforcement action was taken against XFOX Market Sdn. Bhd. and several other entities for suspicion of committing various offences, including that under Section 137(1) of the Financial Services Act 2013 (FSA), Sections 112 and 113 of the Income Tax Act 1967, Section 27B Direct Sales and Anti-Pyramid Scheme Act 1993 and Section 4(1) of Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). The entity had previously been listed on Bank Negara Malaysia’s Financial Consumer Alert list on 14 June 2023.

This operation is part of an ongoing inter-agency effort to combat financial crimes in Malaysia. The joint enforcement was undertaken by Bank Negara Malaysia (BNM), the Ministry of Domestic Trade and Cost of Living (KPDN), and the Inland Revenue Board (IRB), with the assistance of CyberSecurity Malaysia (CSM) and the Royal Malaysia Police (RMP), and coordinated by the National Anti-Financial Crime Centre (NFCC).

A total of 12 premises within the Klang Valley were raided. All relevant documents and items needed to assist the joint investigation were seized, along with assets comprising gold, cash amounting to more than RM4.85 million including some foreign currencies^[1], cryptocurrency as well as luxury vehicles and items. In addition, 92 bank accounts amounting to RM25.4 million and a safe deposit box were frozen.

Under BNM’s purview, a conviction under Section 137(1) FSA for accepting deposits without a licence carries with it imprisonment for a term not exceeding 10 years, a fine not exceeding RM50 million, or both. A conviction under Section 4(1) AMLA carries with it imprisonment for up to 15 years together with a fine at least five times the value of the proceeds of unlawful activity or RM5 million, whichever is higher.

Members of the public are urged to remain vigilant and ensure they only place deposits or invest with entities which are licensed or registered with the relevant authorities. Engaging with unlicensed or unregistered entities may result in being complicit in illegal activities. For further information on illegal financial schemes and enforcement actions taken by BNM, please visit BNM’s Enforcement Actions.

The public is also advised to exercise caution when considering investment opportunities offering high returns. If you are aware of or have been approached with such investment opportunities via social media, email, or telephone, do not hesitate to report the matter to:

BNMLINK Contact Centre
1-300-88-5465
eLINK (bnm.gov.my)

KPDN, Saluran Pertanyaan & Aduan
1-800-886-800
eaduan.kpdn.gov.my

Securities Commission Malaysia
+603 6204 8999
[email protected]

[1] https://www.bnm.gov.my/exchange-rates