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.