Last updated : 3/18/19 12:41 PM     

Courts Fined Six EPF Members RM13,000 For Making Fraudulent Withdrawals

The Employees Provident Fund (EPF) today announced that six members have been convicted and fined a total of RM13,000 by the courts during the period between April and June 2012 (Q2 2012) for their involvement in fraudulent withdrawals.

 

Out of the six offenders, five were charged for the offence involving EPF housing withdrawals while one was for EPF incapacitation withdrawal. Fines imposed by the courts to each offender ranged between RM500 and RM3,000 and failure to pay the fines would result in possible jail time of up to eight months.

 

In a statement issued today, EPF General Manager for Public Relations Nik Affendi Jaafar said, “As EPF savings are intended for retirement, members are warned not to misuse the savings for other purposes which do not fulfill objective of the EPF as stipulated under the EPF Act 1991.”

 

"We have a comprehensive system in place that is able to detect those who have made fraudulent withdrawals even after the savings have been successfully withdrawn. Those who have been found guilty will not be spared from legal actions," he added.

 

Fraudulent withdrawal involves the submission of false documents by a member to facilitate the approval of withdrawal from his or her own account. 

 

Under Section 59 of the EPF Act 1991, members who have been found guilty of 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Once convicted, members who return the amount withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned.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.

 

Members are also reminded to be cautious of offers by dishonest third parties or syndicates to help members withdraw fraudulently from their EPF account in return for a fee. EPF members who are eligible to make withdrawal from their EPF account are advised to deal directly with the EPF which offers service at no cost. 

 

Should members encounter any instances of fraud or attempts at fraud, they are urged to call the EPF Anti-Fraud Hotline at 03-2616 2121 during working hours from Monday to Friday.

 

About the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance.  It will always be guided by prudence in its investment decisions. As a customer-focused organisation, the EPF delivers efficient and reliable services for the convenience of its members and registered employers.  The EPF continues to play a catalytic role in the nation’s economic growth, consistent with its position as a leading savings institution in Malaysia.