Last updated : 3/15/19 10:55 AM     

One Member Convicted In Q2 2013 For Fraudulent Withdrawal

Continuous efforts by the Employees Provident Fund (EPF) to curb fraudulent withdrawals have led to the conviction of only one member during the second quarter of 2013 (Q2 2013).


The member involved in fraudulent housing withdrawal was convicted by the court under Section 59, EPF Act 1991 and meted a fine of RM1,000 or a jail term up to 14 days should the member fail to pay the fine on time.


In a statement issued today, EPF General Manager for Public Relations Encik Nik Affendi Jaafar said, “Fraudulent withdrawals have very much reduced as a result of stern actions taken by the EPF against members who made unlawful withdrawals from their own EPF savings. This can also be attributed to better awareness among members on the importance of EPF savings for their retirement.


“Any attempt by members to deceitfully withdraw their savings therefore goes against the core reason of saving with the EPF; they will only be at the losing end.”


A total of nine new court summons have also been filed for fraudulent withdrawals during the same period.


Fraudulent withdrawals involve the submission of falsified documents by members to facilitate the approval of withdrawal from their EPF accounts. 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. 


“To safeguard our members’ retirement savings, we keep a close watch on any instances of fraud by members. Furthermore, we have a comprehensive system in place that enables us to detect members who have made fraudulent withdrawals even after the savings have been successfully withdrawn,” he added.  


Once convicted, members who return the amount withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned.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 only return the amount after six months from the conviction date will not be allowed to make that particular withdrawal anymore.


Nik Affendi reminded those eligible to make withdrawals to submit their applications directly to the EPF office without going through third parties who may dupe members with so-called assistance to help them withdraw their EPF savings fraudulently.


“The process of making an EPF withdrawal is straightforward as long as members fulfil all the terms and conditions. Moreover, we do not charge any fee for our services.”


EPF members are urged to lend their support in EPF's combat against fraud. Anyone wishing to report any instances of fraud or attempts at fraud may do so by calling the EPF Anti-Fraud Hotline at 03-2616 2121 during operational 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.