PETALING JAYA: Bank Negara Malaysia has cautioned the public against investment schemes especially in precious metals such as gold.

It warned that they could lose their money if they invest in illegal and fraudulent get-rich-quick schemes, also known as Ponzi schemes.

“The investment money collected is used to pay out as high returns to other investors. Such schemes are illegal and fraudulent,” it said in a statement yesterday.

Bank Negara said this in response to conflicting media reports on the Financial Consumer Alert List uploaded on its website.

The list was provided as a quick reference and guide for the public against various financial services offered by non-licensees.

It shows individuals and companies involved in unregulated activities, and had no licence or permit from relevant regulatory bodies such as the Securities Commission of Malaysia, Domestic Trade, Co-operatives and Consumerism Ministry and Companies Commission of Malaysia.

Bank Negara said the list was not exhaustive and would be updated regularly.

The central bank advised the public to check with the relevant authorities when dealing with companies offering seemingly attractive business opportunities or financial services, with no licence issued by the relevant authorities.

“We also like to advise the public that they are free to undertake outright buying and selling of gold.

“However, they should be cautious of various illegal deposit-taking and investment schemes, especially in precious metals such as gold that entice them with high returns.

“These schemes promise high returns over a short period of time with the option to buy back the gold,” it said.

For details, contact BNMtelelink at 1-300-88-5465, or refer to the Financial Consumer Alert List on www.bnm.gov.my.

Source: The Star Newspaper