KUALA LUMPUR: The Companies Commission of Malaysia (SSM) investigated 19 companies suspected of operating illegal investment schemes during the first half of this year.
The investigations are centred on fraudulent activities, including deceiving the public into investing money, offering shares, or soliciting deposits.
According to SSM, most of the 19 companies under investigation between January and June were involved in fraudulent investment schemes.
"However, further details regarding the companies and the specific actions to be taken cannot be disclosed at this time to preserve the integrity and confidentiality of the investigation," the commission said.
SSM said that it periodically opens investigations into illegal investment schemes based on public complaints, reports from victims, media coverage, and information from other enforcement agencies.
These agencies include the police, Bank Negara Malaysia, the Malaysian Anti-Corruption Commission (MACC), the Securities Commission Malaysia (SC), and the Enforcement Division of the Ministry of Domestic Trade and Cost of Living (KPDN).
From 2017 to June, SSM investigated 197 companies suspected of involvement in illegal investment schemes.
The highest number of cases occurred in 2021, with 32 investigations during the Covid-19 pandemic, followed by 31 cases in 2022.
In previous years, SSM investigated 24 cases in 2017, 17 in 2018, 24 in 2019, 20 in 2020, and 30 in 2023.
"All illegal investment cases are investigated under the Companies Act 2016 and the Interest Schemes Act 2016. Investigations are conducted under Section 594 of the Companies Act for offences related to fraudulent investments."
"SSM also has the authority under Section 549 of the same Act to remove companies from the registry if they are found to be involved in unlawful activities.
"Additionally, investigations are carried out under Section 43, which prohibits private companies from offering shares, debentures, or inviting deposits."
"Under the Interest Schemes Act 2016, only management companies are authorised to issue or offer interests to the public," the commission added.
SSM reaffirmed its commitment to enforcing compliance with the laws it administers, conducting thorough investigations into illegal investment schemes based on complaints and reports received.
For schemes related to interest offerings, SSM has the authority under Section 72 of the Interest Schemes Act 2016 to terminate unregistered schemes.
"SSM works closely with other enforcement agencies to ensure comprehensive investigations from various legal perspectives.
"The commission is also involved in joint investigations through special operations led by the National Financial Crime Prevention Centre (NFCC)."
"Upon completion of the investigations, findings will be forwarded to the Deputy Public Prosecutor (DPP) for recommendations on potential prosecution or other appropriate actions, should the evidence be sufficient," the commission stated.