Three EPF Members Fined RM3,900 Over Fraudulent Withdrawals
The Employees Provident Fund (EPF) today reports that three members have been sentenced by the courts during the third quarter of 2013 (July – September) for fraudulent housing withdrawals.
The three were convicted under Section 59 of the EPF Act 1991 and fined a total of RM3,900. The first member convicted, who is from Kajang, Selangor, was fined RM2,000 in default of 4 months’ jail, while the other two, both from Kuala Lumpur, were fined RM900 and RM1,000 respectively.
In a statement today, EPF General Manager for Public Relations Nik Affendi Jaafar says, “The three members had falsified documents when withdrawing money from their EPF accounts. The EPF is serious when it comes to fraudulent withdrawals. Members should be aware of the consequences of their actions and that they are the ones who stand to lose the most in later years.”
Nik Affendi cautions members against any attempt to hoodwink the EPF as the Fund is equipped with a system that can detect and identify members who had withdrawn their money in a fraudulent manner.
“Those who managed to return the money within six months from the conviction date will only be allowed to apply for the same withdrawal two years after the amount is returned.”
Under the EPF Act 1991, any member found guilty of fraudulent withdrawal is liable to a maximum imprisonment of three years or RM10,000 fine, or both.
The EPF urges members to be aware of several syndicates offering their services to assist members to withdraw their money illegally.
“These dishonest individuals will usually impose exorbitant fees for their ‘service’ and members should not fall for such ploy. Any member wishing to withdraw their EPF money, provided they meet the withdrawal requirements and eligibility, are advised to do it directly at EPF branches nationwide, which do not charge a single sen for the service,” says Nik Affendi.
The EPF says it will closely monitor members, particularly with past convictions, adding that they may ultimately lose their right to make the same withdrawal forever if they fail to return the illegally withdrawn amount within six months from the sentencing date.
Members are urged to support the EPF in its efforts to combat fraudulent withdrawal and report any fraud cases or attempt to commit such offence by contacting the EPF Anti-Fraud hotline at 03-26162121 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.