EPF Tightens Up Security Measures Against Fraudulent Withdrawals
The Employees Provident Fund (EPF) has tightened up security measures in processing withdrawal applications following the discovery of several cases of fraudulent withdrawals and attempted fraudulent withdrawals in the Klang Valley, Penang, Perak and Sarawak.
"We have implemented additional security measures to ensure that each application is genuine. These internal controls may result in slight delays in the withdrawal process, and we appeal to members to be patient as these measures are meant to protect their savings," said Encik Nik Affendi Jaafar, EPF's Senior Public Relations Manager.
"Members can assist the EPF by ensuring that they submit complete supporting documents with their application to avoid delays," he added.
In August this year, the EPF lodged a police report relating to 312 cases of fraudulent education withdrawals involving members and two private institutions of higher learning in the Klang Valley. The private institutions involved were found to have provided the EPF with false information, claiming that the members were enrolled for courses with the institutions.
In Penang, a police report was made in October in connection with 19 cases of attempted fraudulent withdrawals and another six cases of fraudulent withdrawals while Perak and Sarawak had one case each of fraudulent withdrawal.
"The EPF takes a serious view of such withdrawals and will not hesitate to take action under Section 59 of the EPF Act 1991. Offenders are liable to a fine or jail term or both," added Encik Nik Affendi.
In the case in Sarawak, the offender was jailed for seven days and fined RM2,000 by the Kuching magistrate court in June this year for withdrawing his EPF savings using false particulars and forged supporting documents for the purported purpose of buying a house.
Internal investigations by the state teams found that in several cases of fraudulent withdrawals, a big percentage of the money withdrawn was paid as fees or commisions to third parties.
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.