What financial crimes led to RM20 million in fines for two Malaysian companies?

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Two Malaysian Companies and Directors Fined RM20 Million for Financial Crimes

Two internet companies, MFace International Sdn Bhd (Mface) and MBI Marketing Sdn Bhd (MBI), along with their directors, were collectively fined RM20 million by the Ampang Sessions Court for a series of financial offences. These included promoting an illegal pyramid scheme, issuing unrecognised electronic payment instruments, and involvement in money laundering activities. The offences spanned from June 3, 2012, to March 17, 2018, with specific money laundering activities occurring between January 6 and August 31, 2014.
MFace Penalised for Pyramid Scheme Promotion and Unauthorised Payment Instruments

MFace International Sdn Bhd received a RM7 million fine for promoting the MFC Club pyramid scheme, an action that contravenes Section 27B of the Direct Sales and Anti-Pyramid Scheme Act 1993. Additionally, the company was fined RM2.5 million for issuing a payment instrument without the necessary approval from Bank Negara Malaysia, an offence under Section 24(1) of the Payment System Act 2003. These violations were committed at premises located at No 2, Avenue 1, Ampang Avenue, Kuala Lumpur.
MBI and Director Fined for Issuing Unapproved Payment Instruments

MBI Marketing Sdn Bhd and its director, Teow Wooi Huat, were also found guilty of issuing payment instruments without authorisation from Bank Negara Malaysia. MBI was fined RM2.5 million, while Teow Wooi Huat received a RM3 million penalty for this offence, which occurred at the same Ampang Avenue address. The charges were brought under the Payment System Act 2003, highlighting regulatory breaches concerning financial transaction instruments.
Mface Director Fined for Receiving Proceeds of Unlawful Activities

Mface director Kau Fong Seng was ordered to pay a substantial RM5 million fine for receiving RM8,208,453.32 in funds. These funds were identified as proceeds derived from unlawful activities and were channelled through a current account belonging to Mface. This money laundering offence took place at the Pandan Indah Maybank branch between January 6 and August 31, 2014, and was prosecuted under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.

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What financial crimes led to RM20 million in fines for two Malaysian companies?

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