Last updated : 3/15/19 12:28 PM     

Courts Convict 12 EPF Members For Fraudulent Withdrawals

Efforts by the Employees Provident Fund (EPF) to keep fraudulent activities in check have led to the conviction of 12 members during the period between January and March 2011 (Q1 2011) for making or attempts at making fraudulent withdrawals.

 

All 12 members were convicted and fined a total of RM15,100 by the courts for the said offence involving EPF withdrawals for housing, incapacitation and health. Out of the 12 members, one was also sentenced to three months’ jail while eight face possible jail term of up to four months should they fail to pay the fines.

 

In a statement issued today, EPF General Manager for Public Relations Nik Affendi Jaafar said, “Fraudulent withdrawals which involve the submission of falsified documents by members to facilitate the approval of withdrawal from their own account is a serious offence where guilty members face a penalty of fine and imprisonment.

 

“Members are therefore warned from ever getting mixed up in fraudulent withdrawals as the EPF processes are carefully designed to enable it to detect members who have made fraudulent withdrawals even after the savings have been successfully withdrawn. In due course, those involved will have to face the legal consequences.”

 

The 12 convicted members were charged under Section 59 of the EPF Act 1991. Under the Act, members who have been found guilty of fraudulent withdrawal, or attempted fraudulent withdrawal, are liable to a maximum jail sentence of three years or a RM10,000 fine, or both.

 

Once convicted, members who return the amount withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned. Those who fail to return the amount or return the amount after six months from the conviction date will forever lose their right to make that particular withdrawal.

 

“We advise our members who wish to apply for EPF withdrawals to head straight to an EPF branch and refer to any of our friendly officers for assistance. The process of making EPF withdrawals is straightforward as long as all conditions, such as the submission of relevant genuine documents, are met,” said Nik Affendi.

 

In this respect, members are strictly warned from seeking the help of third parties or syndicates who may dupe members into believing that they can help to withdraw members’ funds. Members with information on this or anything involving fraud are urged to come forward by calling the EPF Anti-Fraud Hotline at 03-2616 2121 during working hours from Monday to Friday.

 

“As members are well aware, the objective of saving with the EPF is to accumulate sufficient funds to finance members’ needs during retirement. By resorting to illegal means to withdraw their EPF savings prematurely, they will only be at the losing end,” stressed Nik Affendi.

 

About the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.