The Labuan Financial Services Authority warned that it would not hesitate to take decisive enforcement actions against individuals or entities found to be engaged in unlawful activities, outlining several measures, including 'administrative penalties, restriction of business, revocation of licence, and striking off from registry'.
KUALA LUMPUR (Jan 17): The Labuan Financial Services Authority (Labuan FSA) has reaffirmed its commitment to upholding the integrity of the Labuan International Business and Financial Centre (Labuan IBFC) following media reports of an alleged investment scam involving a licensed entity under its purview.
According to the reports, the illegal foreign exchange investment scheme allegedly orchestrated by a Labuan-licensed entity affected over 400 victims, causing them to lose more than RM100 million. The victims have called on Labuan FSA to take immediate action, expressing concerns over regulatory oversight within the financial hub.
"Labuan FSA wishes to emphasise our zero tolerance for any breaches of the law. Entities licensed under our regulatory purview must uphold the highest standards of professional conduct and strictly comply with all enforced rules and regulations," the regulator said in a statement on Friday.
"We continuously ensure its players and service providers to always remain in compliance with the laws and guidelines," it added.
Labuan FSA warned that it would not hesitate to take decisive enforcement actions against individuals or entities found to be engaged in unlawful activities, outlining several measures, including “administrative penalties, restriction of business, revocation of licence, and striking off from registry.”
"Labuan FSA is also collaborating with other law enforcement agencies on criminal prosecution," it added.
The regulator called on the public to exercise caution when considering financial investments. “It is essential to verify the credentials of financial service providers to ensure they are properly licensed and authorised by the respective Authorities including Labuan FSA.”