Seven Members Fined For Making Fraudulent Withdrawals
KUALA LUMPUR, 12 August 2015: The Employees Provident Fund (EPF) today announced that seven members were convicted and fined a total of RM10,000 by the courts during the second quarter of 2015 (April – June 2015) for fraudulent withdrawal related cases.
The seven were charged and convicted under Section 59 of the EPF Act 1991 and the fines imposed on the offenders ranged between RM500 and RM3,000. Under the Act, members face a jail term not exceeding three (3) years or fine not more than RM10,000, or both. They will also be ordered to repay the entire amount illegally withdrawn.
In a statement, EPF Deputy Chief Executive Officer (Operations) Dato’ Mohd Naim Daruwish said, “Fraudulent withdrawal is a serious offence and members convicted face a heavy penalty, and they will no longer be eligible to withdraw their EPF money for the particular scheme.”
During the same quarter, a total of 18 new cases were filed against members for fraudulent withdrawals. Out of the seven offenders, six were convicted for offence involving fraudulent Housing Withdrawals and one for Incapacitation Withdrawal.
The EPF reminds members, especially those who are desperate for cash, against going to agents or syndicates to make any EPF withdrawals. These agents or syndicates, who charge a hefty fee for their services, will usually promote their services via websites and through the distribution of business cards and flyers.
“We urge members to deal directly with the EPF should they wish to make any withdrawal. It is much faster and convenient, and we do not charge any fee for making withdrawals,” said Dato’ Mohd Naim, adding that the EPF does not appoint any agents or middlemen to help members withdraw money from their EPF savings.
He further added that while the EPF allowed members to make pre-retirement withdrawals, they were advised to withdraw their EPF savings only if necessary as the objective of EPF savings was for members’ retirement.
The EPF has a comprehensive system that allows it to identify and detect actual fraudulent withdrawal cases; even after the money had already been withdrawn, and attempts to make fraudulent withdrawals, and stern action will be taken against the offenders.
Members who encounter any instances of fraud or attempt to commit fraud relating to EPF withdrawals are urged to report it to 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 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.