On 22 August 2019, MGSB Berhad and four of its directors pleaded guilty at the Kajang Sessions Court to charges under section 137(1) of the Financial Services Act 2013 (‘FSA’) and section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (‘AMLA’) for accepting money from depositors without a valid licence under section 10 of the FSA and involvement in money laundering activities.
 
The Session Court’s Judge handed down the following sentences:
 
Charges under section 137(1) FSA
 
The company was fined RM5 million, while two of its directors, Hisyamuddin Che Ali and Ahmad Zalimi Mohd Ali, were each sentenced to imprisonment of two years and fined RM1 million (in default six months imprisonment), and another director, Halimatun Saadiah Che Omar, was sentenced to imprisonment of one year and fined RM1 million (in default six months imprisonment).
 
An offence under section 137(1) of the FSA is punishable with a term of imprisonment not exceeding 10 years, or a fine not exceeding RM50 million, or both, under section 137(2) of the FSA.
 
Charges under section 4(1) AMLA
 
The company was fined a total of RM288 million, while three of its directors, Ahmad Zalimi Mohd Ali, Halimatun Saadiah Che Omar and Nur Ain Aliana Mat Azmi, were each sentenced to two years imprisonment for each of the three offences for which they were charged and fined to a total of RM288 million (in default one year imprisonment). A fourth director, Hisyamuddin Che Ali, was sentenced to two years imprisonment for each of the five charges made against him and fined to a total of RM298 million (in default one year imprisonment).
 
An offence under section 4(1) of AMLA is punishable with a term of imprisonment not exceeding 15 years and a fine of not less than five times the sum or value of the proceeds of the unlawful activity or instrumentality of the offence at the time the offence was committed or RM5 million, whichever is the higher.
 
The Sessions Court ordered the sentences under FSA and AMLA are to be served consecutively.
 
To read the press release issued by Bank Negara on this case, please click here.