EPF Warns Members From Getting Involved In Fraudulent Withdrawals
The Employees Provident Fund (EPF) today warns its members and other individuals from getting involved with fraudulent withdrawals involving EPF savings.
In the fourth quarter of 2012 (Q4 2012), five EPF members have been charged in courts under Section 59, EPF Act 1991 for making unlawful EPF housing withdrawals and fined a total of RM16,000 by the courts. All of the convicted members face jail term of up to three months should they fail to pay the fine.
In a statement issued today, EPF General Manager for Public Relations Encik Nik Affendi Jaafar said, “It is our priority at the EPF to ensure that our members’ savings, which are intended for retirement purposes, continue to be safeguarded. Hence, we would not hesitate to take stern legal action against any individual involved in any instance of fraud, as provided under the EPF Act 1991.
From January to December 2012, a total of 29 court summons have been filed against EPF members involved in fraudulent EPF withdrawals. During the same period, 24 members have been found guilty by the courts for fraudulent withdrawals under housing and incapacitation while 19 cases are currently still pending court action.
Under the said Act, 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. Members are reminded that fraudulent withdrawal means involvement of submission of false documents by a member to facilitate the approval of withdrawal from his or her own account.
Once convicted, members who return the amount withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned.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.
Nik Affendi explained that the EPF has a comprehensive system in place to enable it to detect any fraudulent withdrawal or unscrupulous fraudulent attempt even after the savings have been successfully withdrawn.
“Members are advised to be cautious of syndicates who offer so-called assistance to members to help them withdraw their EPF savings fraudulently in return for an exorbitant fee. Eligible members who wish to withdraw their EPF savings should deal directly with the EPF which does not charge for its services,” Nik Affendi stated.
Should members encounter any instance of fraud or attempt at fraud related to the EPF, they are urged to report it to the EPF by calling 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.