KUALA LUMPUR: Bank Negara Malaysia has cautioned the public not to take part in any illegal investment or training programme on foreign currency trading offered by individuals or companies both domestic and foreign.

The central bank said on Monday, Jan 4 the public were usually enticed to attend such investment or training programmes with promises of quick and good returns.

The modus operandi of such programmes included:

* Offering free training, seminars or workshops to lure investors, prior to inviting investors to set-up an online foreign currency trading account with a principal company (purported to have valid licence to trade foreign currency overseas);

* Providing convenient access to the principal company's website and trading facilities to facilitate online foreign currency trading by investors;

* Recruitment of fresh graduates as marketing executives and encouraging them to get their family and friends to trade foreign currency; and

* Requiring investors to deposit an amount of money into a bank account to begin trading foreign currency, and subsequently, requesting for a top up on their initial investment (margin call) to avoid losing their capital.

Bank Negara said under the Exchange Control Act 1953, it is an offence for a person in Malaysia to buy or sell foreign currency or do any act which involves, is in association with, or is preparatory to, buying or selling of foreign currency with any person, other than an authorised dealer.  

It is also an offence for a person to aid or abet another person to buy or sell foreign currency with any person, unless the person is an authorised dealer.

The list of authorised dealers and financial institutions permitted by the Controller of Foreign Exchange to buy or sell foreign currency can be obtained from Bank Negara's website (http://www.bnm.gov.my/fxadmin).