KUALA LUMPUR (Feb 23): Islamic finance expert Tan Sri Dr Mohd Daud Bakar pleaded not guilty on Monday in the Sessions Court to a charge of conspiring with AUF MBZ Consortium PLT and two others to trade in securities without a Capital Markets Services License (CMSL).

Daud’s, 62, case was before Sessions Court judge Norma Ismail. 

He is facing a charge under Section 58(1) of the Capital Markets and Services Act 2007 (CMSA), which makes it illegal in Malaysia for anyone to carry out regulated activities — like dealing in securities, derivatives, or fund management — or claim to do so, without holding a CMSL or being a registered person.

Daud is accused of working with the AUF MBZ and two other people to trade in securities between June 14 and Aug 9, 2021. However, AUF MBZ did not have the required CMSL and was not registered to trade in securities.

AUF MBZ acted improperly by working with Energy Eco Bhd in this case. Daud was representing Energy Eco, which is illegal under the CMSA. The charge sheet does not state the amount of securities traded.

If he is found guilty, he will be subject to a fine of not more than RM10 million or imprisoned for a period not more than 10 years, or both.  A case management was set for April 10. 

After he claimed trial to the one charge, Norma then set RM50,000 bail amount, and required him to surrender his passport to the court and check in with the Securities Commission Malaysia (SC) once a month.

Daud was a former chairman of the Shariah Advisory Council for both Bank Negara Malaysia (BNM) and also for the SC.

He also served as the former president of the International Islamic University Malaysia. Daud is also the founder and executive chairman of Amanie Group, a leading Islamic finance consultancy. He is widely recognised for his contributions to the global Islamic finance industry, notably receiving the Royal Award for Islamic Finance in 2022.

He is the owner of the Malaysian football club Kedah Darul Aman FC.

Meanwhile, the two other men charged with Daud were businessmen Datuk Mahadi Badrul Zaman and Iqbal Mohamad for committing securities dealings without a CMSL between June 14, 2021, and Aug 9, 2023. Both men also claimed trial before the same judge. They were also ordered to surrender his passport to the court and check in with the SC once a month.

Mahadi, who is the central figure in this whole case, also claimed trial for a separate charge before Judge Azrul Darus, where he was alleged to have committed securities dealings with a CMSL between Sept 3, 2021, and Feb 15, 2024.

Mahadi is the founder and president of AUF MBZ. Mahadi was ordered to pay a total of RM100,000 bail. Iqbal's bail was set at RM50,000.

Today’s prosecution was led by SC’s prosecutors Mageswary Karroppiah, Danial Imran Nasaruddin, Shoba Venu Gobal and Quek Yiing Huay.

Zamri Idrus appeared for Mahadi while Haziq Razali appeared for Daud and Lia Syazwan for Iqbal.

Their case mentions have been fixed for April 10.