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Malaysia central bank states Forex is illegal

  • #41
  • Jan 9, 2010 1:04pm Jan 9, 2010 1:04pm
Hi guys,

I did even spoke to BNM via phone few days back, and they said its still illegal, but i didnt mention that i did wire transfer the funds from Maybank and trading using USD currency not RM and trading instruments not currency itself. Maybe i shall call them again next and check with them again.

But and again, im afraid that they wont understand what I'm saying, and still says its illegal, lol...

Worst to worst, just keep trading as usually, withdraw the funds like regular, and migrate once got enough cash.

I think they are more serious to those that runs seminars and company's that part of white label brokers not individual/private traders like us.

Anyone tried talking to them via phone or got an reply via email?

Good Luck there and Happy Trading
"Hands that help are holier than lips that pray" Shirdi Sai Baba
  • #42
  • Jan 9, 2010 1:15pm Jan 9, 2010 1:15pm
edit : nvm i get it after reading imrans post on page 2
  • #43
  • Edited 7:38pm Jan 9, 2010 5:30pm | Edited 7:38pm
Quoting EdgarNg
edit : nvm i get it after reading imrans post on page 2
When the dust settled, everyone should be more enlightened on this after all.

We got so many options given by those Acts,
but how ignorant of the EA 1953 and MCA1998 and ECM9 can some of us be....what a day!

Have a great weekend all.
  • #44
  • Jan 9, 2010 8:03pm Jan 9, 2010 8:03pm
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Quoting Satni
When the dust settled, everyone should be more enlightened on this after all.

We got so many options given by those Acts,
but how ignorant of the EA 1953 and MCA1998 and ECM9 can some of us be....what a day!

Have a great weekend all.
Guys, don’t kid yourself. Forex trading is NOT allowed in Malaysia whether you trade your own account or not. Go to the BNM website and look at the FAQ which they came up recently. http://www.bnm.gov.my/microsites/fxa...aqs.htm#04_q01

• Who can I buy and sell foreign currency with in Malaysia?
You can buy or sell foreign currency only with authorised dealers and those entities permitted by Bank Negara Malaysia as stipulated under section 4 of the Exchange Control Act 1953.
Authorised dealers are licensed commercial banks and licensed Islamic banks. Please refer to website at http://www.bnm.gov.my under "Foreign Exchange Administration" for further details.
^back to top

• Is trading of foreign currency through the internet allowed?
No. Residents are not allowed to trade currency through internet.
Residents are only allowed to buy or sell currencies in Malaysia with authorised dealers and those entities permitted by Bank Negara. Please refer to website at http://www.bnm.gov.my under "Foreign Exchange Administration" for further details.

What they are saying is that no one is permitted to trade forex except for the authorized dealers. And who are the authorised dealers? http://www.bnm.gov.my/index.php?ch=17&pg=697&ac=606
There are 52 of them listed and they are all banks.

Dont kid yourselves, if you still think what you are doing is legal, this is like playing Russian Roulette with a loaded gun. The penalty if you are caught will be like this. What are the risks involved if one participates in such an illegal scheme?

Participation in such an illegal scheme is an offence under the Exchange Control Act 1953 and on conviction , is liable to a fine not exceeding RM1 million or to imprisonment for a term not exceeding five years or to both

By "Illegal scheme" BNM is NOT just talking about those scammers or those who are doing illegal activities. Take note that BNM considers anyone who trades forex over the internet as illegal (in Malaysia) except for the 52 banks listed earlier. If you want to know more, go to their site and read the FAQ and you will know clearly the stand of BNM related to individual forex trading. Dont kid yourselves and don’t get caught with your pants down. When you are charged in court you cannot say you are ignorant of the law because ignorance of law is not a defense.
I have seen the enemy, and it is me.
  • #45
  • Edited 9:31pm Jan 9, 2010 8:11pm | Edited 9:31pm
Quoting Jey
Guys, don’t kid yourself. Forex trading is NOT allowed in Malaysia whether you trade your own account or not. Go to the BNM website and look at the FAQ which they came up recently. http://www.bnm.gov.my/microsites/fxa...aqs.htm#04_q01

• Who can I buy and sell foreign currency with in Malaysia?
You can buy or sell foreign currency only with authorised dealers and those entities permitted by Bank Negara Malaysia as stipulated under section 4 of the Exchange Control Act 1953.
Authorised dealers are licensed commercial banks...
Please read my earlier posts and hope we can compare the meaning.tq

Get a Good Lawyer.. it wont costs you bomb. lol!

p/s How big is your biggest lost compared to hiring a Good Lawyer? You guys talk alot but cant even hire a Lawyer? lol

p/s It will help to solve your misunderstanding, I hope you understand legal matters Thru your top lawyers.
Legal matters is not UP TO YOU to simply2 interprete. Youall need a lawyer to discuss this matter.
In absence of a lawyer, please do NOT make a MOCKERY of the LAW and Banking Acts which HAS Already been gazetted.
  • #46
  • Edited 9:17pm Jan 9, 2010 8:27pm | Edited 9:17pm
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Quoting Satni
Please read my earlier posts and hope we can compare the meaning.tq

p/s It will help to solve your misunderstanding, I you understand legal matters Thru your top lawyers.
Legal matters is not UP TO YOU to simply2 interprete. Youall need a lawyer to discuss this matter.
In absence of a lawyer, please do make a MOCKERY of the LAW and Banking Acts which HAS Already been gazetted.
Then find a good lawyer and go fight BNM...

We are not talking about interpreting law here. We are just talking about understanding what BNM is saying in plain English what is legal and what is illegal. You dont need a lawyer to understand plain English.
But reading your last sentence makes me think you could be an exception to the rule...
I have seen the enemy, and it is me.
  • #47
  • Jan 9, 2010 8:28pm Jan 9, 2010 8:28pm
Quoting Jey
Guys, don’t kid yourself. Forex trading is NOT allowed in Malaysia whether you trade your own account or not. Go to the BNM website and look at the FAQ which they came up recently. http://www.bnm.gov.my/microsites/fxa...aqs.htm#04_q01

• Who can I buy and sell foreign currency with in Malaysia?
You can buy or sell foreign currency only with authorised dealers and those entities permitted by Bank Negara Malaysia as stipulated under section 4 of the Exchange Control Act 1953.
Authorised dealers are licensed commercial banks and licensed...
I tend to agree with ur view strongly. Of coz' the final say will rest with the Court, after hearing lawyers from the 'can' side and the 'cannot' side. But until then, it is wise to be on the safer side.

So the need for PPMM is more so now than ever. The gov't should be convinced to legalise trading.
  • #48
  • Jan 9, 2010 8:33pm Jan 9, 2010 8:33pm
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Anyway, this is a general info I am giving for everyone, not just you. If you feel what I am telling you is wrong, then go ahead with what you believe. I am not forcing anyone to believe me. I have spent many hours arguing over the phone with BNM and this is what they told me over the phone. I went to their website and this is what I found there. Still dont believe? Still need a lawyer? Then go find a lawyer and ask his opinion.

As for me and the rest of the people who believe that it is better to be safe than sorry, then this warning applies. For those who couldn't care less, good luck to you.
I have seen the enemy, and it is me.
  • #49
  • Jan 9, 2010 9:52pm Jan 9, 2010 9:52pm
Quoting Jey
Anyway, this is a general info I am giving for everyone, not just you. If you feel what I am telling you is wrong, then go ahead with what you believe. I am not forcing anyone to believe me. I have spent many hours arguing over the phone with BNM and this is what they told me over the phone. I went to their website and this is what I found there. Still dont believe? Still need a lawyer? Then go find a lawyer and ask his opinion.

As for me and the rest of the people who believe that it is better to be safe than sorry, then this warning applies....
Its not a matter we believe or not believe, of what you are saying.Its not you.

You must also understanding about the process of legal proceedings.

You see before a Case is put up to court, BNM officers have to make
investigations(which I believe, they are making their rounds now).
This investigation is necessary to justify whether is CASE can be make
against offenders. And this is the Onus of the matter which requires
interviews/interogations with all parties involved.

If they are satisfied, they have a case, then they proceed to court.

At the Court of Law, the Judge will do the readings and overview the preceedings in the court,
(its not just plain english....its gonna be Phd in Law language.). Both BNM legal Officers and your Good lawyers will
put up their best arguments .If the Judge is doubtful of the Case in the Preceeding, then
the Judge will "buang case sahaja". So in this case, the BNM officers job is at stake for bringing
a halfpass six Case to Court.

So its a long way before this happens, If it ever its gonna happens.

We all are anxious about this, its the anxious of the UNKnown psychology
mostly, which is still human nature.

Just trade quitely, dont let the fingers do the jitters, you'll make profit
in no time..haha Have a great weekend.

This will be my last post for this thread.

Peace to all!
  • #50
  • Jan 9, 2010 10:02pm Jan 9, 2010 10:02pm
Quoting hartnet
I tend to agree with ur view strongly. Of coz' the final say will rest with the Court, after hearing lawyers from the 'can' side and the 'cannot' side. But until then, it is wise to be on the safer side.

So the need for PPMM is more so now than ever. The gov't should be convinced to legalise trading.
Yup, PPMM is a good idea.

Good luck all

p/s sorry my last post for this thread.
  • #51
  • Jan 9, 2010 10:31pm Jan 9, 2010 10:31pm
Well, first of all...i don't think we breach any ECM/BNM regulations

1. We TT our $ from our local bank legally and within the BNM limit

2. We DID NOT BUY/SELL any foreign currency when we trade through our brokers BECAUSE we are not buying/selling foreign currency at all ...what we are doing is more like spread betting or whatever u call it....there is no physical currency involved.

Imagine some brokers allowed GOLD trading or even OIL trading. You buy 1 lot...but do u actually consider yourself a GOLD/OIL trader??? U don't physically own the GOLD BAR/BARREL OF OIL no matter 100 yrs you hold on to your position BECAUSE u are merely buying a 'number' on the screen...which is more like betting whether price go up (u go long) or bet price go down (u go short)

3. And pls guys, dont email/call BNM....i foresee if they r bombarded with so many questions they will really BAN us all from trading forex or watever we call them.

Cheers!
  • #52
  • Jan 10, 2010 12:33am Jan 10, 2010 12:33am
Whatever it is... my interpretation is the same as imran

http://www.forexfactory.com/showpost...ostcount=21947

And worst case senerio will be what Satni says... if I were to be caught. Prosecute blah blah and blah... By that time... my money is save offshore. And my family is taken care off... They can't touch my money only me...

I don't know about u guys lah...

But I think I will leave it as that and not waste time trying to complicate this to myself further... I am going to continue with forex... till as and when something happens...

*fingers crossed and knock on wood* of course i hope nothing happens to me lah....
  • #53
  • Jan 10, 2010 12:53am Jan 10, 2010 12:53am
is it an option to migrate and trade ? only citizen of malaysia is under BNM jurisdiction is it not?
  • #54
  • Jan 10, 2010 1:02am Jan 10, 2010 1:02am
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
It doesnt matter what each of you think or what your own interpretation is. Like wanting to do PhD in Law before interpreting what BNM says...

What matters is what BNM says because as the Central bank of Malaysia all forex comes under its control and any rules broken will have to face the risk. And the risk is not a laughing matter. If you have RM1 million and alot of free time (can be jailed up to 5 years) then no need to worry.

Otherwise, its better to be safe than sorry.
Anyways, there is no point in running around like a headless chicken. Get together and start taking action. Lobby hard for the government to change its stand. Nothing else will do. Having own individual opinions and thinking its safe, it will take a long time, they wont catch me...bla, bla, bla... is wasting time.

Take positive steps and do something about it. Dont avoid the problem and think everything will be OK like the ostrich that puts its head inside the ground when in danger. It wont be and it wont go away.
I have seen the enemy, and it is me.
  • #55
  • Jan 10, 2010 1:04am Jan 10, 2010 1:04am
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Quoting EdgarNg
is it an option to migrate and trade ? only citizen of malaysia is under BNM jurisdiction is it not?
Edgar, this is the only country that is not allowing forex trading. you can trade and even manage for someone else in S'pore, Thailand, Indonesia, etc... Malaysia Boleh maa....
I have seen the enemy, and it is me.
  • #56
  • Jan 10, 2010 1:16am Jan 10, 2010 1:16am
well they stated that "residents"

so to be a resident in malaysia u need to stay 182 days right??


i guess the best is to become a non resident here and go to other country and get a PR there for those who wish to make forex their full time career, is that right?
  • #57
  • Jan 10, 2010 1:31am Jan 10, 2010 1:31am
But seriously this doesnt make sense, i thought what imran said make sense.

because what you DO after you convert RM LEGALLY afterwards is NONE OF THEIR BUSINESS. MAKES MOST SENSE.



what about remitting back the money, if we withdraw 500k lets say
isnt it good for the Ringgit? u think they will investigate u or fine you?


EDIT: cant we just use overseas bank to deal with our forex brokers and trade if this is the case? this dont fall under BNM jurisdiction . .. but we are still considered RESIDENT in malaysia, but we didnt touch malaysia bank at all. so whats the case here
  • #58
  • Jan 10, 2010 2:07am Jan 10, 2010 2:07am
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Resident means anyone who resides in this land. Whether you are a citizen, gwai-lor, visitor, tourists, etc... even alien from outer space, as long as you are in the land called 1Malaysia, you cannot trade over the internet, only banks.

No need to wait for them to investigate or fine you. Why want to play with fire?
Dont waste time trying to make sense. If this is their rule, there is nothing you can do about it. Too bad. And dont try to do the "curi-curi" way hoping they wont find out and take action. What will you do if you are the first to be caught. Wont happen? How sure are you? That is a gambling attitude, dont take a gamble. It doesnt work in trading and it doesnt work in life.
I have seen the enemy, and it is me.
  • #59
  • Jan 10, 2010 2:20am Jan 10, 2010 2:20am
Quoting Jey
Resident means anyone who resides in this land. Whether you are a citizen, gwai-lor, visitor, tourists, etc... even alien from outer space, as long as you are in the land called 1Malaysia, you cannot trade over the internet, only banks.

No need to wait for them to investigate or fine you. Why want to play with fire?
Dont waste time trying to make sense. If this is their rule, there is nothing you can do about it. Too bad. And dont try to do the "curi-curi" way hoping they wont find out and take action. What will you do if you are the first to...

I take it you're quitting currency trading then Jey?
Thank You
  • #60
  • Jan 10, 2010 2:32am Jan 10, 2010 2:32am
this is old news.
and remember, kalau dah illegal, why would the authorities allowed world forex expo inviting foreign brokers at kl june 2009?
read and understand the rules bnm had stated. Jangan cepat melatah, bikin malu Malaysians saja.

Plus, if you're not trading someone else's money or involved in the schemes as mentioned you have nothing to worry about.

Trade safe everyone
Thank You
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