KUALA LUMPUR (Nov 29): Nine premises of Koperasi Dinar Dirham Bhd, which is suspected of being involved in illegal deposit-taking activities, were raided in a joint operation led by Bank Negara Malaysia (BNM) yesterday.

Six company directors that were suspected to be the masterminds and agents of the illegal activities were arrested and remanded for two days to assist in investigations, the central bank said in a statement today.

In addition, 114 bank accounts holding RM15.3 million in total across 12 banks had been frozen under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), said Bank Negara.

Also seized were RM1.4 million in local and foreign currencies, 22.5kg of precious metals, eight vehicles valued at over RM1.5 million, and relevant documents from the company's offices.

It is an offence under the Financial Services Act 2013 for any person to accept deposits without a licence, said Bank Negara. Investigations for money laundering will also be undertaken under AMLA. If convicted, a person can be fined no less than five times the sum or value of the proceeds of the unlawful activities at the time the offence was committed, or RM5 million — whichever is higher — and jailed not more than 15 years.

Those who took part in the raid include the police, the National Revenue Recovery Enforcement Team of the Attorney-General's Chamber, Malaysia Co-operatives Societies Commission, and Cyber Security Malaysia. The joint raid was an inter-agency measure to eradicate illegal financial scheme activities in the country, said Bank Negara.

"The authorities are also working in collaboration with Brunei Financial Intelligence Unit in investigating the company's operation in Brunei for similar offence," it said.

The central bank advised the public not to deal or invest with illegal deposit-taking companies and to refer to the list of licensed financial institutions listed on BNM's website for further information.