Banks apply stricter rules on opening new accounts
Published on: Monday, August 12, 2024
By:
FMT, K Parkaran
.jpg "Banks apply stricter rules on opening new accounts")
Those wanting to open a bank account now need to furnish documents detailing their sources of income. (File pic)
PETALING JAYA: Banks are applying more stringent conditions on customers who open new accounts, following the widespread use of "mule" accounts by scammers who have swindled millions of ringgit from Malaysians.
Banking sources told FMT that the banks have been instructed to ensure that new applicants provide documents on their sources of income, or provide letters from their employers.
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Otherwise, the applications will be rejected even if the applicants wanted to deposit a huge sum of money.
Previously all that was required to open a bank account was to produce a MyKad and deposit a minimum sum.
The sources were responding to complaints from those who were unable to open bank accounts when they failed to furnish the required documents.
One source said that the banks would pay special attention to students, housewives and senior citizens who want to set up an account.
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These groups of people were often, knowingly or otherwise, roped in by syndicates as part of their racket. Accounts set up by students, housewives or senior citizens would be the first account used to receive money obtained fraudulently.
“Some are innocent as they are unaware of their personal data being used to open bank accounts, which are then operated by the scammers. There are also some who have been paid to open an account but are unaware these have been used to scam people," he told FMT.
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In the case of students, the source said that banks now require them to not only show proof of acceptance to a college but also produce their student card.
Another source said many students have been blacklisted after they were found to have set up mule accounts that were operated by scammers.
These students would not be allowed to open a bank account until they clear their names, he said.
As a result, he said, some students are facing problems in obtaining study loans from the National Higher Education Fund and other financial institutions.
"Banks can’t do much as many of these are linked to money laundering. So, we have to be really vigilant to ensure accounts are not used for scamming knowingly or unknowingly," the source said.
A total of 34,497 cases of online scams involving losses of RM1.218 billion were reported nationwide in 2023.
Scams using SMS contests, online impersonation, and fake phone calls from law enforcement were among the highest recorded cases, with 10,348 cases involving losses from these totalling RM352.9 million.
In 2021, a total of 29,769 bank accounts were found to have been used as "mule accounts".
Until May 10 in 2022, a total of 1,669 "mule accounts" were recorded.
Of that number, a total of 12,659 people were arrested and charged with various offences for allowing their bank accounts to be used for criminal activities.
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