Focusing on Swift, Effective, and Targeted Enforcement

To balance market integrity with proportionality as well as ensure effective and credible deterrence, the enforcement
strategy pursued in 2021 was focused on achieving swift, effective and targeted outcomes.



Ten criminal charges were filed against six individuals and one PLC for unlicensed activities and furnishing false information in financial reporting. Additionally, one criminal forfeiture application was filed against an individual and a private limited company in connection to money laundering offences. Three convictions were secured against three individuals for cases involving insider trading, furnishing misleading information in financial reporting, and failure to appear before an Investigating Officer of the SC in connection with an investigation under the Anti-Money Laundering, Anti-Terrorism and Proceeds of Unlawful Activities Act 2021 (AMLATFPUAA).

6 individuals and 1 entity charged

10 criminal charges filed

1 individual and 1 entity involved in criminal forfeiture applications

1 criminal forfeiture application

3 convictions obtained

3 custodial sentences

RM7,575,000 total fine imposed


The SC filed six civil actions in 2021, against 10 individuals. Four consent judgments were also recorded between the SC and eight individuals.

6 civil actions filed

10 individuals

No. of judgments obtained after full trial: 1 case involving 6 individuals

No. of consent judgments recorded: 4 cases involving 8 individuals

Amount disgorged/restitution order by court: RM16,042,991.41

Amount of civil penalties imposed: RM2.5 million

The SC exercising civil powers to recover investors’ losses for fraud

On 30 March 2021, the Kuala Lumpur High Court ordered RBTR Asset Management Bhd (RBTR) and five other defendants namely Locke Guarantee Trust Ltd (LGT) New Zealand, Locke Capital Investments Ltd (LCI) British Virgin Island, Isaac Paul Ratnam, Joseph Lee Chee Hock, and Nicholas Chan Weng Sung (the Defendants) to pay RM13.352 million in restitution for their role in the Euro Deposit Investment (EDI) scheme.


9 cases of regulatory settlements entered

10 individuals involved

RM4,962,565.81 amount disgorged


RM2,741,864.85 amount restituted

721 investors restituted

RM1,601,388.79 amount earmarked for further restitution

501 investors earmarked for further restitution

No. of individuals restrained from trading on Bursa Malaysia

3 directors of PLCs

1 licensed person

1 private individual

No. of individuals barred as Director

5 directors of PLCs

1 licensed person

1 private individual

A total of 136 administrative sanctions were imposed for various breaches of securities laws and the SC’s Guidelines.


Administrative sanctions imposed


Restitution amounting to RM3,000




Directives issued


Penalties imposed amounting to RM2,865,500


Refusal to accept/ consider  submissions to the SC


Public statements issued

Operating as an RMO without authorisation from the SC

On 26 July 2021, the SC reprimanded and issued a directive against Binance Holdings Ltd, Binance Digital Ltd, Binance UAB, Binance Asia Services Pte Ltd, and Zhao Changpeng (Zhao), Chief Executive Officer and Director of Binance Holdings Ltd for operating a DAX without registering as RMO with the SC.


Apart from the formal enforcement tools, the SC also relies on its non-statutory enforcement tools when conducting monitoring, gatekeeping, and supervisory functions. To this end, Infringement Notices are issued for breaches of securities laws or the SC’s Guidelines that do not warrant a criminal, civil, or administrative action. A total of 133 Infringement Notices were issued in 2021, as detailed below:

41 supervisory letters involving infringement issued

22 warning letters issued

42 non-compliance letters issued

28 cease and desist letters issued

Order to cease and desist from operating a Decentralized Exchange

Following information received from the public, the SC issued a cease and desist order to RimauSwap ( for operating a decentralized exchange (DEX) without authorisation. RimauSwap was also placed on the SC’s Investor Alert List. The SC has not authorised any DEX operators in Malaysia. Investors were warned that those who trade with unlicensed or unregistered entities or individuals are not protected under the Malaysian securities laws, and are exposed to risks, such as fraud and money laundering.

The SC’s investigation on AmBank Group involvement in 1MDB related matters

The SC had completed its investigation on AMMB Holdings Bhd (AmBank Group) for engaging in acts to defraud the Government of Malaysia (GOM) and 1MDB as well as non-compliance with the SC’s relevant laws and guidelines. The breaches relate to:

  • RM5.0 billion, Government Guaranteed Islamic Medium Term Notes (IMTN) Programme, due in 2039, issued by the Terengganu Investment Authority (now known as 1MDB) in May 2009; and
  • RM2.4 billion Sukuk Murabahah Programme, due between 2021 and 2024, issued by Bandar Malaysia Sdn Bhd in February 2014 and December 2014.

On 26 February 2021, AmBank Group agreed to pay RM2.83 billion to GOM for a global settlement on all outstanding claims and actions in relation to AmBank Group’s involvement in 1MDB related matters.

Continuous Initiatives To Enhance Enforcement Efforts
Collaboration with other law enforcement agencies and cross-border investigations

Recognising that securities offences have no borders and may involve multiple jurisdictions, the SC’s enforcement efforts were further enhanced via successful collaboration with other law enforcement agencies and/or regulators within and outside Malaysia.

The SC was involved in joint operations co-ordinated by the National Anti-Financial Crime Centre along with BNM, Royal Malaysia Police (PDRM), Malaysian Anti-Corruption Commission (MACC), Companies Commission of Malaysia (CCM) and Cyber Security Malaysia.

For international co-operation, the IOSCO’s Multilateral Memorandum of Understanding (IOSCO MMoU) is the main mechanism used for information sharing and evidence gathering on cross-border misconduct. In 2021, the SC liaised with 15 foreign supervisory authorities pursuant to the IOSCO MMoU, to seek assistance from its counterpart.

Fast Track Enforcement

To expedite the outcome of some of the SC’s enforcement actions, dedicated internal Task Forces were formed. In 2021, four separate dedicated Task Forces were set up to deliver swifter enforcement outcomes.

The SC also enhanced its internal processes by implementing a Fast Track Enforcement Process that facilitates an expeditious review and investigation on identified cases.

Enhanced capabilities through greater digitisation of investigation and enforcement process

The SC established its in-house Digital Forensics (DF) team in September 2020 as part of its initiative to increase efficiency. In 2021, there was a substantial increase of more than 500% for DF related requests (as shown in the table below), with a marked improvement of turnaround time from the previous three to six months to an average of three to six weeks in responding to the requests made.


Total Number of Requests





} >500% increase

*all DF requests prior to September 2020 were handled by an external party.

The DF team continued to improve its scope and capabilities, keeping abreast with developments in the digital forensics space through established collaborations with the local and international digital forensics community.

Leveraging technology during pandemic times

The SC formulated an efficient, safe, and secure infrastructure to ensure its investigation officers (IOs) are able to continue discharging their responsibilities
in a conducive manner while adhering to the health and safety SOPs, which include protocols for virtual statement recording from witnesses.

Collaborations for capacity building in the digital asset space

Collaboration and exchange of knowledge, skills, and expertise among law enforcement authorities both inside and outside Malaysia are critical in driving the success of the SC’s investigations. In this respect, the SC had the opportunity to obtain valuable insights from experts from the US on digital asset investigation through its collaboration with the US Embassy in Kuala Lumpur. Similar efforts would continue with other international counterparts on a regular basis to discuss enforcement and supervisory issues, as well as enhancing information sharing protocols.

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