Ccid Recommends Tightening Business Registrations, Enhanced Kyc Verification

KUALA LUMPUR, July 25 (Bernama) -- The Bukit Aman Commercial Crime Investigation Department (CCID) has recommended stricter business registration procedures with enhanced Know Your Customer (KYC) verification for companies, especially concerning their board of directors, administrators, and company secretaries.

Director Datuk Seri Ramli Mohamed Yoosuf stated that this recommendation follows the identification of mule accounts as a key factor in scams and frauds occurring nationwide, leading to billions of ringgit in losses.

“To date, there has been no specific legislation to enforce actions against the use of mule accounts, allowing them to persist in fraudulent activities.

“Therefore, the recently approved Penal Code (Amendment) Bill 2024 and Criminal Procedure Code (Amendment) Bill 2024 are seen as a much-needed development to empower investigations,” he said during the CCID’s weekly press conference today.

"The Royal Malaysia Police (PDRM) believes that once enacted, these laws will become an effective mechanism in addressing the use of mule accounts, thereby reducing the incidence of fraud," he said.

Ramli elaborated that the amendments add several new provisions, including Sections 424A, 424B, 424C, and 424D of the Penal Code, pertaining to offences related to mule accounts, including possessing, controlling, handing over, and using ATM cards, credit cards, e-wallets, and other payment instruments.

"Additionally, the amendments to the Criminal Procedure Code will include the introduction of Section 116D, which will authorise police officers of at least the rank of sergeant to seize or block transactions related to financial dealings," he added.

Meanwhile, Ramli also advised the public to be wary of investment offers on social media that seem ‘too good to be true’, saying that many schemes on Telegram are fraudulent, resulting in victims suffering significant losses. 

In a Facebook post yesterday, Communications Minister Fahmi Fadzil emphasised that online crime is a grave concern, and the trend indicates that traditional crimes have begun to migrate to cyberspace, including social media.

Fahmi said he had received briefings on the issue from National Security Council director-general Datuk Raja Nurshirwan Zainal Abidin, the Bukit Aman Criminal Investigation Department director Datuk Seri Mohd Shuhaily Mohd Zain, and a CCID deputy director. 

He had also previously noted the need to consider new legislation addressing online crime to keep pace with rapid technological advancements.

-- BERNAMA