Business

Friday August 3, 2012

Warning on misuse of Bank Negara letters


KUALA LUMPUR: Acknowledgement letters issued by Bank Negara to scheduled institutions have allegedly been misused to solicit investments from the public in financial schemes involving gold and other precious metals.

In a statement, the public had been advised to exercise due caution when dealing with companies or individuals that use such acknowledgement letters purportedly issued by Bank Negara.

It had received enquiries regarding companies which represented themselves as scheduled institutions with the central bank.

Under the Banking and Financial Institutions Act 1989, a company that conducts either leasing, factoring, development finance or building credit activities only obtains a written acknowledgement from the central bank.

“Such an acknowledgement letter does not amount to a business licence or approval by Bank Negara. A register of scheduled institutions which have obtained an acknowledgement from the central bank, is maintained for statistical purposes only.”

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