KUALA LUMPUR (Aug 19): UBB Amanah Bhd has moved to reassure its agencies, agents and independent trust consultants that its clients' interests remain protected and its business operations are unaffected, after the former chief executive officer of its investment banking subsidiary was charged with cheating at the Sessions Court on Wednesday.
The memorandum, sighted by The Edge, came after former UBB Investment Bank Ltd CEO Razlan Raghazli was charged with deceiving a senior executive of UBB Amanah into releasing RM139.89 million to an education company through an alleged misrepresentation of legal advice.
"We wish to assure all parties that the collateral involved in the said charge is duly secured. More importantly, the interests of our clients remain fully safeguarded and protected," the memorandum read. "For the avoidance of doubt, the misconduct of the former UBB Investment Bank CEO does not in any way jeopardise UBB's business operations."
The cash trust company that provides custody and trustee services to the Malaysian public, including to high-net-worth clients, added: "We reaffirm that our operations and financial standing remain strong, stable and unaffected."
UBB Investment Bank is a wholly-owned subsidiary of UBB Amanah and operates as a Labuan investment bank. The relationship dates back to 2021, when UBB Amanah announced that its subsidiary had obtained a conditional investment banking licence from the Labuan Financial Services Authority.
According to the charge sheet on Wednesday, Razlan allegedly committed the offence in September 2025 at UBB Investment Bank's office in Desa Sri Hartamas. Razlan, in his capacity as the bank's CEO, is accused of deceiving Aida Aizura Othman, the managing director and CEO of UBB Amanah, over a payment schedule contained in a letter dated Sept 18, 2025.
The deception allegedly resulted in Aida being dishonestly induced to release RM139,891,776 to ELMU Higher Education Sdn Bhd. ELMU Higher Education is registered as a Malaysian higher-education and training service provider and forms part of the ELMU Education Group.
The charge sheet stated that Aida would not have released the funds had she not been given the information by Razlan. The 43-year-old had served as UBB Investment Bank's CEO from January 2022 until June 2026.
Razlan claimed trial after the charge was read before Sessions Court judge Azura Alwi. He was charged under Section 420 of the Penal Code for cheating and dishonestly inducing the delivery of property. The provision carries imprisonment of between one and 10 years, whipping and a fine upon conviction.