BNM Update on Gold Companies

Things looks bleak for Genneva investors and also other "gold" companies.

Ref No : 10/12/08

Embargo : For immediate release

Update on joint raids conducted by enforcement agencies on companies suspected of conducting illegal investment schemes using gold

The Attorney General’s Chambers, the Royal Malaysia Police and Bank Negara Malaysia, would like to provide the following update on the recent raids against companies suspected of operating illegal investment schemes using gold.

These raids were conducted in the interest of protecting the investors as well as the public at large from falling victim to illegal schemes.

Based on surveillance and examination conducted on these companies, it has been discovered that these companies are operating schemes that are believed to be not sustainable to provide the promised high monthly returns, nor would they be able to provide the buy back guarantee of gold. Such schemes are not sustainable because the returns promised are not funded through gold trading, but from the monies invested into such schemes. The investigations have also revealed that the amount of assets and monies held by these companies do not commensurate with the amount collected from their investors. (Kris, does this mean that these gold companies does not have sufficient money to return to investors if they liquidate? This is alarming indeed!!)

Prior to the joint raids, it has been noticed that these companies have delayed in returning gold or money to the investors within the stipulated time as promised. Such signs are early warning indications prior to the collapse of such schemes that would result in significant losses to investors.

For more information, members of the public may contact the following:

BNMTELELINK (Customer Contact Centre)

Tel: 1-300-88-5465

Fax: (03)2174 1515

The Attorney General’s Chambers of Malaysia

The Royal Malaysia Police

Bank Negara Malaysia

10 October 2012