Malaysian police have frozen assets worth more than RM299.619 million belonging to a foreign national as part of an investigation into money from illegal online gambling entering the country through offshore banks, the state news agency Bernama reported on Aug 131.
Datuk Muhammed Hasbullah Ali, head of the Bukit Aman Anti-Money Laundering (AMLA) Crime Investigation Unit, said the suspect, a man in his 30s, is believed to have received commission of RM14.05 billion from illegal online gambling bets placed by more than 10,000 bettors1. Police believe part of profits of RM371 million were transferred to Malaysia1.
The frozen assets break down as follows1:
| Asset | Amount |
|---|---|
| Central Depository System (CDS) account, 108,625 stock units | More than RM281 million |
| Escrow account | More than RM18.5 million |
| Two local bank accounts | RM58,048.86 |
| Total | More than RM299.619 million |
The suspect is accused of trying to confuse authorities by using the nationality of a country other than his original citizenship, and has never entered Malaysia, according to the account1. The case is being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorist Financing and Proceeds of Unlawful Activities Act (Amlatfpuaa) 20011.
"Police also reminded all offshore banks to increase the due diligence process or know your customer action on any party that wants to open an offshore account."
He said the action was important to prevent offshore banks from being used as tools for money laundering1. The report did not name the suspect, state his original nationality, or say whether anyone has been arrested or charged. No court date or further procedural step was reported1.
What it means for players
The case concerns money flowing into Malaysia through offshore accounts, not bets placed inside the country, and no player is named in the report1. For people who gamble online in Malaysia, the practical point is that police are tracing funds at the banking layer: a CDS account, an escrow account and two local bank accounts were frozen in a single action1. Accounts connected to gambling money can be frozen while an investigation runs, which is the subject of our guide to banks, e-wallets and frozen accounts.
The report gives no figure for how much of the RM14.05 billion in alleged commission came from bettors in Malaysia, and does not say whether any of the more than 10,000 bettors face investigation1. It also does not say whether the offshore banks named in the police warning are in any particular jurisdiction1. Players who use offshore sites should note that the enforcement described here targets the operator side and the accounts holding the proceeds, and that the report contains no information about action against individual bettors1. Background on how such cases have unfolded across the region is in our guide to crackdowns on offshore online gambling hubs, and on the risks attached to letting accounts be used for gambling money in renting out bank accounts or e-wallets.
What happens next
The investigation continues under Section 4(1) of Amlatfpuaa 20011. Police said offshore banks should strengthen due diligence and know-your-customer checks on anyone opening an offshore account1. No arrest, charge, court date or further asset freeze has been reported1.
