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People In Profit Investigated By Bank Negara Of MalaysiaPeople In Profit Investigated By Bank Negara Of Malaysia
Tuesday 6 September 2005
The Australian Securities and Investments Commission (ASIC) announced today that the Bank Negara Malaysia (BNM), the central bank of Malaysia, is investigating on how to profit from a wealth creation scheme called PIPS or ‘People in Profit System’.
‘In March this year, we issued a warning about this scheme based on information from the public that it was being actively promoted in Australia’, ASIC’s Executive Director, Consumer Protection, Mr Greg Tanzer said.
‘The scheme appears to operate out of Malaysia, and following enquiries by Malaysian authorities, the BNM raided PIPs premises during the week commencing 15 August 2005, Mr Tanzer said.
‘These events reinforce the message that if you want to invest money, deal only with businesses that hold an Australian financial services licence. That way, you have far more protection if anything goes wrong’, Mr Tanzer said. Also the Australian government will be able to claim it's proper share of your profits through taxes.
‘ASIC is keen to hear from any Australians who have put money into PIPS or who can provide other information. Until we have the evidence to bring before a court, we can only repeat our warning that PIPS just doesn’t pass the smell tests for sound investing’, Mr Tanzer said.
‘Schemes like this are a sure-fire way to lose money, especially for people who join up later on. Frequently the ‘profits’ are simply paid from the money contributed by those who join the scheme later on. Family and friends often get hurt’, Mr Tanzer said. Schemes like this also threaten revenue gathering by the Australian taxation system.
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