Bank Negara Declare FOREX Trading Illegal



Bank Negara Malaysia recently warned the public not to participate in illegal investment or training programme on forex or foreign currency trading. All such programmes that offered by individuals or companies both domestic and foreign are included.

Members of the public are usually enticed to attend such investment or training programmes which promises a quick and good returns.

The modus operandi of such programmes includes offering free training, seminars or workshops to lure investors. During the session, investors asked to set-up an online foreign currency trading account with their parent company which they claim having a valid licence to trade foreign currency overseas.

They also normally recruit fresh graduates as marketing executives and encouraging them to get their family and friends to trade foreign currency.

They subsequently ask the investors to deposit money into a bank account to begin trading forex or foreign currency. Later on, investors asked to top up on their initial investment due to margin call in order to avoid losing their capital.

Under the Exchange Control Act 1953 (ECA), it is an offence for a person in Malaysia to buy or sell foreign currency with any person, other than an authorised dealer. It is also an offence for a person to aid another person to buy or sell foreign currency with any person, unless the person 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 Bank Negara Malaysia’s website.


Leave a Comment

  • fx trader 23rd March, 2010, 10:33 pm

    hi.. i think bank negara should liberalise fx trading in malaysia.. explained here. good to read http://dikelantan.com/2010/01/13/mungkinscam-tapi-tak/

    Reply
  • john 7th January, 2011, 1:59 am

    not all are scam. some traders are making money, tons of money from it. its just the matter of choosing the right knowledge & broker to trade. THey (BNM) just want to scare ALL people from making $ from other way other than working for companies.

    Reply
    • Saleh 21st November, 2012, 2:27 pm

      BNM will take action again them if they not register to BNM.is not because scam.

      Reply
  • jenny 30th September, 2011, 7:29 pm

    how to make it legal? need to do like ”bersih”??

    Reply
  • Elloc Robin 19th October, 2011, 7:23 am

    if that company does not register with BNM they are operating illegally by trading / manipulated others money in a forex. Jenny, you may want to try Juta Excel located in KK. Just burn your money for RM10k (min.) and open an account with them. See how they would play you well. Good luck with those scammers!

    Reply