Abstract：Nearly 400 investors have urged the Labuan FSA to take stricter measures against a company accused of running an illegal forex trading scheme, which has reportedly caused losses exceeding RM104 million.
Nearly 400 investors have urged the Labuan Financial Services Authority (Labuan FSA) to take stricter measures against a company accused of running an illegal forex trading scheme, which has reportedly caused losses exceeding RM104 million. The case has been described by victims as one of the most serious investment scams in the region.
A delegation of more than 50 victims gathered at the Labuan FSA office in the capital, requesting that the regulatory body go beyond the 2023 liquidation of the company and pursue criminal investigations. They emphasised the need for legal accountability to prevent similar forex scams from affecting the public in the future.
One of the victims, identified as Tan, 33, revealed that he had been invited to invest in the company by a friend in 2016. While he initially received consistent returns, these payments ceased in 2023. Tan expressed concern over how the company had secured a licence, allowing it to mislead investors into committing substantial sums.
Another investor, Datuk Danny Goh, 57, reported losses of RM10 million after participating in the scheme since 2018. He expressed frustration that despite multiple police reports filed nationwide since September of the previous year, no legal action had been taken to hold the company accountable. Goh emphasised that strict measures were necessary both as a deterrent and to raise public awareness about the risks of unauthorised forex trading and investment scams.
The Malaysian International Humanitarian Organisation (MHO), representing victims, confirmed that complaints had been received not only from Malaysia but also from investors in Indonesia, Singapore, and Brunei. The organisation highlighted that forex trading can only be legally conducted by companies licensed by Bank Negara Malaysia (BNM). The Labuan-based company, however, allegedly misused its money brokerage licence to convince investors that its scheme was regulated by Labuan FSA, making it one of the most prominent forex scams in recent years.
Datuk Hishamuddin Hashim, secretary-general of MHO, noted that while Labuan FSA had acted to dissolve the company, the organisation is urging authorities to pursue criminal procedures. This includes measures under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) to ensure that those responsible are held accountable.
The case underscores the ongoing risks investors face in the forex trading market and highlights the importance of verifying regulatory credentials before committing funds. Platforms such as WikiFX provide a valuable service in this regard. As a global broker regulatory query platform, WikiFX allows investors to check the licensing status of Forex brokers worldwide, offering transparency and helping prevent exposure to forex scams. By consulting such tools, investors can make informed decisions and reduce the risk of falling victim to illegal investment scams.
