What section of the Financial Services Act 2013 is relevant?

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The Financial Services Act 2013, Section 137(1), is relevant to the case of illegally receiving deposits.

Section 137(1) of the Financial Services Act 2013 addresses the act of receiving deposits without holding a valid license. This specific provision is pertinent to the charges faced by an individual accused of such an offense. The legal framework established by this act outlines the consequences for entities or individuals found to be in violation.
Receiving Deposits Without a License

The core of the alleged offense revolves around the unauthorised acceptance of funds. In this instance, a director of a travel agency was charged with receiving a significant sum, RM520,000, from a retiree. These transactions allegedly occurred through multiple CIMB checks over a period spanning from June 19, 2015, to January 10, 2017, at offices located in Solaris Mont Kiara. The prosecution contends that these deposits were made without the requisite financial services license.
Penalties for the Offense

Punishment for contravening Section 137(1) is detailed under Section 137(2) of the same Financial Services Act 2013. Conviction under this subsection carries severe penalties. Offenders face the possibility of a maximum jail term of up to 10 years, or a substantial fine not exceeding RM50 million, or a combination of both imprisonment and a financial penalty. This underscores the seriousness with which regulatory bodies view such financial improprieties.
Legal Proceedings and Bail Conditions

The accused individual, Abdul Halim Navaghani, pleaded not guilty to the charges in separate Sessions Courts. The courts subsequently granted bail amounting to RM7,000, secured by one surety for all charges. An additional condition imposed by the court requires the accused to report to the nearest police station once a month. Furthermore, a decision was made by three judges to consolidate the cases for joint hearing before Judge Hasbullah Adam. The case has been set for re-mention on February 5.

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What section of the Financial Services Act 2013 is relevant?

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