FAQs related to Buying or Selling of Foreign Currency by BNM

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donunicorn

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Salam,

1. Who can I buy and sell foreign currency with in Malaysia?

You can buy or sell foreign currency only with authorised dealers and those entities permitted by Bank Negara Malaysia as stipulated under section 4 of the Exchange Control Act 1953.Authorised dealers are licensed commercial banks and licensed Islamic banks. Please refer to website at http://www.bnm.gov.my under "Foreign Exchange Administration" for further details.

2. Is trading of foreign currency through the internet allowed?

No. Residents are not allowed to trade currency through internet.Residents are only allowed to buy or sell currencies in Malaysia with authorised dealers and those entities permitted by Bank Negara. Please refer to website at http://www.bnm.gov.my under "Foreign Exchange Administration" for further details.

3. I work for an advertising company. We received a number of orders to design, print and distribute posters on behalf of a client, a company promoting training on foreign currency trading. Is such activity legal in Malaysia ?

Under section 4A of the Exchange Control Act 1953 (the ECA), it is an offence for any person, other than an authorised dealer to:

- issue or publish or facilitate the issuance or publication by any person of an advertisement containing an invitation or an offer to buy or sell foreign currency or information which is intended or might reasonably be presumed to be intended to lead directly or indirectly to the buying or selling of foreign currency; or

- aid or abet another person to do the above.

"Advertisement" means the disseminating or conveying of information, invitation or solicitation by any means or in any form, including by means of:

- print media
- posters, notices or signboards
- circulars, brochures, pamphlets or books
- letters addressed to individuals or bodies
- electronic media
You are advised to take the appropriate measures and action to ensure all advertisements issued through your company comply with the ECA

4. My cousin has enticed me to invest in one of the schemes offered by his company, purportedly involving the buying and selling of foreign currency for investment purposes. Can a company offer such a scheme?

No. As stipulated under the Sections 4 and 4A of the Exchange Control Act 1953, it is an offence for any person other than authorised dealers to be involved in:

- buying or selling of foreign currency with any person
- conducting of any form of training, seminar, workshops which involve, or are preparatory to, buying or selling foreign currency
- issuing, publishing or facilitating the issuance or publication of an advertisement intended to lead to the buying, borrowing, selling or lending of any foreign currency

5. I have heard about a scheme which offers foreign currency trading. Is this allowed? How does such a scheme operate?

Such foreign currency trading schemes are illegal and prohibited under section 4 of the Exchange Control Act 1953

The modus operandi of such illegal schemes/scams are typically as follows:

- Offer free training, seminars or workshops to lure investors, prior to inviting investors to set-up an online foreign currency trading account with a principal company (purported to have valid licence to trade foreign currency overseas)

- Provide convenient access to the principal company's website and trading facilities to facilitate online foreign currency trading by investors

- Recruit fresh graduates as marketing executives and encouraging them to get their family and friends to trade foreign currency

- Require investors to deposit an amount of money into a bank account to begin trading foreign currency, and subsequently, requesting for a top up on their initial investment ("margin call") to avoid losing their capital

6. What are the risks involved if one participates in such an illegal scheme?

Participation in such an illegal scheme is an offence under the Exchange Control Act 1953 and on conviction , is liable to a fine not exceeding RM1 million or to imprisonment for a term not exceeding five years or to both

In addition, in most cases, the victims of these schemes would have lost all their money.

It would be a lengthy and costly process for a participant to engage lawyers to bring a civil suit against the perpetrators.

Those who had acted as middle men or agents would run the risk of themselves or their family members being threatened or face physical harm when the scheme fails.

7. What should I do if I am a victim of these schemes?

You are advised to lodge a report at the nearest police station as well as to report to Bank Negara Malaysia as follows:

Bank Negara Malaysia
BNMTELELINK (Customer Service Call Centre)
Tel: 1-300-88-5465
Fax: 03-21741515
Email: [email protected]

BNMLINK (Customer Service Walk-In-Centre)
Block D, Bank Negara Malaysia ,
Jalan Dato' Onn, 50480, Kuala Lumpur
(Business hours: Monday-Friday, 9.00 am - 5.00 pm)

8. Where can I obtain further information on illegal foreign currency trading?

Information on the illegal foreign currency trading is available in the banking information website at http://www.bankinginfo.com

9. What is the penalty imposed by Bank Negara Malaysia on offenders of illegal foreign currency trading?

Pursuant to the Exchange Control Act 1953, any person involved in illegal foreign currency trading shall, on conviction, be liable to a fine not exceeding RM1 million or to imprisonment for a term not exceeding five years or to both.

10. Any guide to the general public on how to detect an illegal foreign currency trading operator?

Members of the public are advised to be careful and not fall prey to operators of these illegal schemes.

The guides on how to detect illegal operators and warning signs for investors can be obtained from the website, http://www.bankinginfo.com under "Help & Advice/Helpful Guides/Financial Scams"

In general, the illegal operators normally:

- Place attractive advertisements to lure others to listen to their convincing but bogus marketing plan

- Have their headquarters overseas

- Have impressive offices and IT facilities

- Conduct training to prospective employees on the principles of foreign exchange trading and hands-on exercises on foreign currency dealing using dummy or fake transactions under an environment controlled by the operator. Normally, all such dummy transactions will result in profits

- Hire employees based on commission and they are not given a proper employment letter or contract stipulating the employment terms and conditions.

Before employees can start dealing, they are required to look for potential investors and collect deposits from them. Otherwise, they risk losing their jobs.

They will try to impress potential investors:-

- With the marketing strategy of the company which promises quick and high returns

- By portraying a professional and reputable image with smart-looking employees, a high-tech office layout and advanced IT facilities. In some cases, investors are even allowed to operate their account via internet

- With tools of the trade e.g. a news screen showing movements in exchange rates to give the impression that a professional and legitimate business is being conducted. These facilities are merely cosmetic and do not reflect an actual foreign currency trading office.

Investors can either trade using their trading accounts with the company or through dealers appointed by the company. Investors are also required to sign a business contract which is normally entered between the investors and the company. In most instances, the operators will inform the investors that they will have to send such contracts to its company's headquarters based overseas for signing. However, such contracts are usually left unsigned. As such, in the event the investors are not happy with the transaction, no action can be taken against the company as there is no binding contract between them.

11. Where can I find the list of institutions permitted to conduct foreign currency business and remittances services in Malaysia?

The list of institutions which are permitted to conduct foreign currency business and remittance services in Malaysia is available from Bank Negara Malaysia's website at http://www.bnm.gov.my under "Foreign Exchange Administration".
 
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faizal_bulat

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7. What should I do if I am a victim of these schemes?

You are advised to lodge a report at the nearest police station as well as to report to Bank Negara Malaysia as follows:

Bank Negara Malaysia
BNMTELELINK (Customer Service Call Centre)
Tel: 1-300-88-5465
Fax: 03-21741515
Email: [email protected]

BNMLINK (Customer Service Walk-In-Centre)
Block D, Bank Negara Malaysia ,
Jalan Dato' Onn, 50480, Kuala Lumpur
(Business hours: Monday-Friday, 9.00 am - 5.00 pm)

kalu broker yg jd victim lak mcmana? hehehe
 

cry2nite

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7. What should I do if I am a victim of these schemes?

You are advised to lodge a report at the nearest police station as well as to report to Bank Negara Malaysia as follows:

Bank Negara Malaysia
BNMTELELINK (Customer Service Call Centre)
Tel: 1-300-88-5465
Fax: 03-21741515
Email: [email protected]

BNMLINK (Customer Service Walk-In-Centre)
Block D, Bank Negara Malaysia ,
Jalan Dato' Onn, 50480, Kuala Lumpur
(Business hours: Monday-Friday, 9.00 am - 5.00 pm)

kalu broker yg jd victim lak mcmana? hehehe
broker jadi victim diorg apa kisah..yg penting diorg je yg nk masyuk..klau xde masyuk utk diorg,tu pasal diorg nk kacau
 

waja90

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alang2 kasi haram sekali la bank2 dan pengurup wang buat operasi bru ngam. dan juga haramkan pelancong asing masuk negara..
hahahaha..
jd, xde lngsung forex. export dan import pun haramkan.
biar kita mcm katak dalam tempurung kelapa tua atas pokok.
 
Last edited:

anuarinvestor

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22 March 2007

BANK Negara has announced further liberalisation to foreign exchange administration rules to take effect from April 1 in line with the country's strategic objectives and supported by progress achieved from previous liberalisation.

To provide greater flexibility to licensed onshore banks to undertake foreign currency business:

# Abolish net open position limit of licensed onshore banks previously capped at 20% of banks' capital base.

# Abolish limit on licensed onshore banks for foreign currency accounts maintained by residents.

# Allow investment banks in Malaysia to undertake foreign currency business subject to a comprehensive supervisory review on the capacity and capability of the investment banks.

To widen investor base for ringgit assets and financial products:

# Allow non-resident stockbroking companies and custodian banks to obtain ringgit overdraft facility from licensed banks by removing the previous overdraft limit of RM200mil and expanding the facility utilisation to include ringgit instruments settled through the Real Time Electronic Transfer of Funds and Securities System and Bursa Malaysia.

# Abolish the limit of the number of residential or commercial property loans obtained by non-residents.

# Allow licensed onshore banks to appoint their banking groups' overseas branches to settle any ringgit assets of their non-resident clients.

# Allow non-resident corporations to utilise proceeds from initial public offerings on the main board of Bursa Malaysia, abroad.

# Remove the restriction on Labuan offshore banks to transact in ringgit financial products for non-resident clients.

To reduce the cost of doing business, enhance business efficiency and promote Malaysia as a centre of origination:

# Increase the limit of foreign currency borrowing that can be obtained by resident corporations from licensed onshore banks and non-residents and through onshore foreign currency bonds issuance to a total of RM100mil.

# Allow residents to hedge foreign currency loan repayment up to the full amount.

# Increase the limit for resident individuals with domestic ringgit borrowing to invest in foreign currency assets up to RM1mil per calendar year.

# Increase the limit for resident corporations with domestic ringgit borrowing to invest in foreign currency assets up to RM50mil per calendar year.

# Allow resident corporations to utilise proceeds arising from listing of shares through IPO on the main board of Bursa Malaysia for offshore investments.

# Increase the limit for resident institutional investors to invest in foreign currency assets – unit trust companies: up to 50% of net asset value (NAV) attributable to residents; fund management companies: up to 50% of funds of resident clients with domestic credit facilities and insurance; and takaful operators: up to 50% of NAV of investment-linked funds marketed.

# Allow resident corporations to lend in foreign currency, the proceeds from listing of shares on foreign stock exchanges to other resident companies in the same group.

# Abolish restrictions on payments in foreign currency between residents for settlement of foreign currency financial products offered onshore.

# Allow resident individuals to open and maintain joint foreign currency accounts for any purpose.


Boleh tukar2 ikut suka.....ya
 

fising

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alang2 kasi haram sekali la bank2 dan pengurup wang buat operasi bru ngam. dan juga haramkan pelancong asing masuk negara..
hahahaha..
jd, xde lngsung forex. export dan import pun haramkan.
biar kita mcm katak dalam tempurung kelapa tua atas pokok.
Kerajaan suruh kita invest kt Sport TOTO.. atau pun nak generate untung.. pegi Casino kat Genting ..:)) .. semua tu berlesen..
 

atlantis

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22 March 2007

BANK Negara has announced further liberalisation to foreign exchange administration rules to take effect from April 1 in line with the country's strategic objectives and supported by progress achieved from previous liberalisation.

To provide greater flexibility to licensed onshore banks to undertake foreign currency business:

# Abolish net open position limit of licensed onshore banks previously capped at 20% of banks' capital base.

# Abolish limit on licensed onshore banks for foreign currency accounts maintained by residents.

# Allow investment banks in Malaysia to undertake foreign currency business subject to a comprehensive supervisory review on the capacity and capability of the investment banks.

To widen investor base for ringgit assets and financial products:

# Allow non-resident stockbroking companies and custodian banks to obtain ringgit overdraft facility from licensed banks by removing the previous overdraft limit of RM200mil and expanding the facility utilisation to include ringgit instruments settled through the Real Time Electronic Transfer of Funds and Securities System and Bursa Malaysia.

# Abolish the limit of the number of residential or commercial property loans obtained by non-residents.

# Allow licensed onshore banks to appoint their banking groups' overseas branches to settle any ringgit assets of their non-resident clients.

# Allow non-resident corporations to utilise proceeds from initial public offerings on the main board of Bursa Malaysia, abroad.

# Remove the restriction on Labuan offshore banks to transact in ringgit financial products for non-resident clients.

To reduce the cost of doing business, enhance business efficiency and promote Malaysia as a centre of origination:

# Increase the limit of foreign currency borrowing that can be obtained by resident corporations from licensed onshore banks and non-residents and through onshore foreign currency bonds issuance to a total of RM100mil.

# Allow residents to hedge foreign currency loan repayment up to the full amount.

# Increase the limit for resident individuals with domestic ringgit borrowing to invest in foreign currency assets up to RM1mil per calendar year.

# Increase the limit for resident corporations with domestic ringgit borrowing to invest in foreign currency assets up to RM50mil per calendar year.

# Allow resident corporations to utilise proceeds arising from listing of shares through IPO on the main board of Bursa Malaysia for offshore investments.

# Increase the limit for resident institutional investors to invest in foreign currency assets – unit trust companies: up to 50% of net asset value (NAV) attributable to residents; fund management companies: up to 50% of funds of resident clients with domestic credit facilities and insurance; and takaful operators: up to 50% of NAV of investment-linked funds marketed.

# Allow resident corporations to lend in foreign currency, the proceeds from listing of shares on foreign stock exchanges to other resident companies in the same group.

# Abolish restrictions on payments in foreign currency between residents for settlement of foreign currency financial products offered onshore.

# Allow resident individuals to open and maintain joint foreign currency accounts for any purpose.


Boleh tukar2 ikut suka.....ya
kalau takleh tukar mati la bang..
 

azam575

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salam,

erm..... depa jer nak KAYA dengan KAUT harta RAKYAT melalui TENDER KERAJAAN huhuhuhuhu....
 

donunicorn

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Salam,

Punyalah panjang aku taip boleh hilang mcm tue aje.Buat penat aku taip.

Secara ringkasnya aku nk ckp apa BNM buat tue bersebab.Bkn main suka2 aje.Diorang lebih arif dlm bidang yg korang join nie.Korang just small trader aje.Apa yg korang nmpk xsama sgn apa yg BNM nmpk.Aku rasa sdkt sbyk ada kaitan jugak dgn kemelesetan ekonomi tahun 1997.George soros SPECULATE CURRENCY.Korang tgk apa yg dia buat.Apa maksud speculate.Apa kesan pada small trader mcm korang.Ape kesan pada ekonomi.

Jgn main suka2 aje hentam xtentu pasal.BNM tue punya track record yg ckp cemerlang bkn dlm malaysia aje malah kebanyakan negara pun minta nasihat dr BNM.Korang patut bangga ada bank yg gah mcm BNM.
 
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