Page 49 - SC SCAR 2023 ENGLISH Flipbook
P. 49

                                  PART 2 REGULATORY PERFORMANCE AND OUTCOMES
  Example of Investment Scam Disguised as Job Opportunities
The perpetrator will generally scout for victims through social messaging platforms namely WhatsApp and Telegram. The victim will be paid a token to perform simple tasks such as writing reviews and ‘liking’ social media pages. Having garnered the victim’s trust, the perpetrator will convince the victim to invest in a non- existent cryptocurrency or share scheme that promises high returns. Monies will be requested to be transferred into a mule bank account, which eventually will be dissipated.
Example of Investment Scam through Dating Apps
The perpetrator will normally befriend the victim through social media or dating sites. After luring the victim into a romantic relationship, the perpetrator will convince the victim to invest in a non-existent cryptocurrency or share scheme with guaranteed high returns. The victim will be asked to deposit the monies into a mule bank account. Eventually, the victim will realise that the relationship is a scam and monies investment have been misappropriated.
 Unlicensed Activities
Unlicensed activities are regulated activities carried out by persons in Malaysia without the requisite licence or registration. Section 58(1) of the CMSA requires a person to hold a CMSL or be a registered person to carry on a business in any regulated activity or hold himself out as carrying on such business.
There are eight types of regulated activities, and they are contained in Schedule 2 of the CMSA which includes dealing in securities, dealing in derivatives, fund management, investment advice, etc.
Section 58(4) CMSA further provides that any person who carries on the business of regulated activity without a license or registration commits an offense and be liable to a fine not exceeding 10 million ringgit or to imprisonment for a term not exceeding 10 years or to both.
Separately, those who engage in operating a P2P financing platform, ECF, DAX or Initial Exchange Offering (IEO), must be registered as a recognised market operator with the SC under section 34 of the CMSA.
The SC regularly receives complaints and enquiries on operators of such unlicensed activities who may not necessarily be carrying out a scam. While some of the unlicensed activities are carried out locally by Malaysians with local presence, there are also foreign entities carrying on unlicensed activities in Malaysia. These foreign entities may be properly licensed or regulated by foreign regulators. However, they would still be breaching Malaysian laws if they carry out their activities in Malaysia, solicit Malaysian clients or have a local presence in Malaysia without the requisite license or registration from the SC.

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