Wednesday, December 7, 2011

Gold Trade Scam

A good friend of mine recently shared his story about gold trade, which is currently quite active in Sabah. I myself always sceptical when comes to any kind of investment; personally, thorough research should be carried out as to avoid ourselves from being scammed. Just imagine that all your hardwork, eg. RM50K disappeared just like that when you realise that you have been cheated. Anyway, he asked me to check with BNM, and this was the recent reply from them. From the provided info, I can't straightaway conclude that this is a scam; nevertheless, the following guidelines from BNM may help us to evaluate whether such business concept under the scam category. I strongly advise people out there to do thorough research as to comprehend the nature of the business. Read below. 
We note that you have raised issues with regard to the gold investment of 'this company'. We would like to inform you that buying and selling gold or silver is not under the purview of Bank Negara Malaysia (the Bank), thus the Bank does not issue any license to any company who wish to conduct such activities.

However, if the gold/silver trading - investment scheme clearly offers investment opportunity by collecting deposits from the public and investors are promised investment returns/profits within a certain period of time, whereby the original investment will be refunded or in other words if a company appeared to be involving in illegal deposit taking by using gold/silver to camouflage its activities, it maybe contravene section 25(1) Banking And Financial Institutions Act 1989 (BAFIA).

We have investigated numerous instances involving companies having illegal deposit-taking and trading in gold as their underlying products that might contravene Section 25(1), BAFIA such as 'company' Sdn Bhd, Bestino Group Berhad, Gold Label Sdn Bhd.

For your information, we also monitor these activities very closely and we will not hesitate to conduct investigations should a company appears to be involved in illegal deposit-taking using gold to camouflage its activities.  

With regard to the statement made by the 'company': 
"The company has fulfilled all requirements and has been given approval by Central Bank as Scheduled Institution under Section 21(1) of the Banking and Financial Institution Act 1989. We are also a company being classified under First Schedule of Anti-Money Laundering and Anti-Terrorism Financing Act 2001 as a "Reporting Institution".

For your information, a scheduled institution has to notify the Bank for its operation under Section 21(1) BAFIA. However, we do not regulate its activities. In this instance, 'company' has submitted its application for change of name as previous notification was made under the name of other company which was acquired by 'company'. The activities described in the application are to conduct the leasing and factoring businesses. 'company' does not require the Bank's approval to conduct the gold bar trading as gold trading is not under the Bank's purview as mentioned above. 

Thus, again we would like to take the opportunity to inform members of public that gold trading is not under Bank Negara Malaysia's jurisdiction. Members of public are to be reminded to be more cautious and scrutinize the risk associated with the gold investment before joining any investment scheme which promise higher returns in short-term period.

Investors are advised to check the background of the company and legality of its activities with the relevant authorities to ensure compliance of laws. For example, investors could check with authorities such as Companies Commission of Malaysia (CCM) with regard to the registration and company business activity registered with CCM. Investors may also like to check the company's financial track record including its sustainability to pay return on investments. Investors may obtain such information from CCM and/or from the company itself through below documents:
i)  Audited Annual Reports
ii) Memorandum of Association
iii)Article of Association
iv)Form 49 - List of Directors

As a gold Investor, he/she is advised to check pertinent issues regarding the company gold operations such as:
i) The source of the gold - where does the company obtain its stocks?
ii) Body that certified the gold purity
iii) Verify the certification by contacting the party who issued the certificate
iv) Verify with goldsmith on the gold purity
v) Why does the company sell the gold at premium?
vi) Is there any return promised to the investors?
vii) How does the company generate profit from its operation?

Investor may report to Ministry of Domestic Trade, Co-operative and Consumerism (KPDNKK) if investor has evidence regarding the poor quality of the gold bought by them as it is under the ministry's jurisdiction for any dispute on products quality. 
We hope the above have clarified the matter raised.

Thank you.

For more information on financial fraud alert, please visit 

For more information on banking, insurance & takaful, please visit 


Ibrahim Ismail said...

What about PublicGold?

ps. Eric you uploaded the school magz yet? Wanna get inspired by your masterpiece.
Pss. We haven't got posted.. how fishy is that?

Eric Constantine said...

ibrahim: publicgold, u mean under public bank or different entity? oh yes, going to upload the new school magazine. give me a min. simple2 saja bah. about your posting, that's quite scary, no posting yet. perhaps, next year.

Anonymous said...

Eric, are sure you understand concept in Genneva biz?

This company not investment company but trading company & share their profit with the customer.

Please don't copy and paste information if you not understand about the biz.

Anonymous said...

Ya..please dont copy & paste information about Genneva biz if you totally dont know about it..

It is totally a trading company which is the product is Gold. You buy GOLD, you will have S&P Agreement, The Reward & The GOLD..

Of course, whatever biz in Malaysia especially some kind of investment will be investigate by BNM. it is either they do the biz operation comply with the rule or not.

As for Genneva, BNM is still investigate but do you hear any potential that it will be winded up?? the answer is NO..because of what?? they are registered under AMLA & BAFIA right now which is totally comply with BNM rule & regulation.

Sorry to share so many info here, but i am not only buying gold with Genneva, I get the reward as promised for 1 year already. & I am now become the Consultant. I am already in it & i believe it.

For more info can contact me via this email


Eric Constantine said...

Whether I have understood or not, there are so many things they have to do as to prove the nature of their business. Those given questions by BNM can serve as our future guidelines.When comes to money matter, they are 'people' who are willing to go extra mile in persuading people that the business is for real, whether you like it or not, people have to be wary with any kinds of investment. My blog may serve as the platform in warning the other investors to do more research before putting all their eggs in one basket. Moreover, so-calleh business with adherence to syariah law, unfortunately, not approval given yet. Even if it is given, other questions may follow thereafter.

Ab Rahman said...

Every body have their right to be worried and skeptical. Truely that we must be very careful to decide before we spend our hard earn money. For those who wants to clarify whether Genneva Malaysia Sdn Bhd is compliance to BNM rules and regulation why not you SMS your inquiry to 15888 type BNM TANYA [Your Inquiry]. Don't put your own judgement before you get the answer from BNM. I was skeptical too like anyone of you but I have done my inquiry and I got the answer and I do believe the GMSB is doing a legal business and real. Now I am enjoying the benefit of GMSB also upgraded my self as consultant. Please be reminded that Genneva Malaysia is not the same with Genneva Malaysia Sdn Bhd. So, when you make an inquiry you must state the full name of the company. For those of you stay in Kuching Sarawak you can contact me if you want me to share with you more about GMSB. Thank you. Email me at

Anonymous said...

Why does genneva gold sell its gold at prices marked up 20% higher than the market price?

Eric Constantine said...

i wish to answer that, but can't help it. i'm not from Genneva, if it is sold higher than the actual market, it's quite obvious right..

Anonymous said...

Hey..just a thought..last week the price of genneva gold bullion is rm 205 per gram and price for pohkong is rm200 per gram..which one would u buy even with no guarented buy back?fyi genneva is giving 2% per month for 3 month and gold bar n certificate and snp agreement.pohkong give resit n gold only..

Anonymous said...

The reason why genneva gold is higher is because they do it so that the purchaser can enjoy the monthly 3% dividend/cheque. Which mean we are getting our own money back!

Bartholomew Tu said...

Some points to ponder. Inflation and corruption are 2 parasites which already puts us in HOT SOUP in case you are not aware. So why bother so much on the higher price? Do we complain when we eat the same food at a higher price in shopping malls compared to hometown?

I was also a sceptic, turned customer, now Consultant. There is always risk in any venture, even marriage. The way I see it in Financial Planning, risk is always associated with ourselves. So before we ask how financially good is the company, or anything about the company, ask ourselves, do we understand Asset Allocation? What is Long Term, Mid Term and Short Term Funds?

So long we get the asset (capital-in gold), I am not worried if the company buy back or not. Hibah of 2% is a bonus. But true enough, practically I have been receiving it for a year now.

Get to understand the company personally, and you will see why they are able to share back the profit.

Bartholomew Tu

Anonymous said...

I suggest to Raja Oberon to immediately withdraw the title of this blog eg GOLD TRADE SCAM : GENNEVA MALAYSIA SDN BHD. This is because you are making this like a fact that it is a scam when in fact there is no proof that it is thus making you liable to be sued for defamation by Genneve Malaysia Sdn Bhd. Just a friendly advise from a Lawyer

Anonymous said...

HI all. This is just a misunderstanding. Saya dah lama trade gold dan terbukti ia bukan scam. boleh layari web ni kalo xcaya: sume bukti ada dinyatakan di situ.

Eric Constantine said...

no worry, if yours are valid and reliable, keep trading, as long as you generate profit.

Eric Constantine said...

first of all, which before I edited and remove the aforementioned company, I never claim that the 'company' is a scam, I did mention that I couldn't conclude, except with the thoughtful advice given by BNM. So please read carefully before you bash someone with threatening remark. By the way, please check the latest news of what is happening in KK, when a group of people have been conned with similar activity, I guess I don't have to mention the name of the company if you knew what's going on here, and check the news came out in Daily Express.

Anonymous said...

I have 2 friends who have invested at GM for more than 3 years. They have already gotten back their capital and the gold they are holding are virtually FREE now. They are now enjoying more than RM10K hibah per month which is non taxable plus FREE gold in hand. I am in with 1kg gold and have received my hibah twice.

Anonymous said...

My friend did a few sellbacks this year. All his customers received their money in full. The company honour their words.

Anonymous said...

Hello anonymous.You said you are a lawyer.if it is true I think I know who you are -from Taipan right?

You also tried to sell me the gold from Genneva right?

You seem to be the spokes person for Genneva..are you benefiting from all these?

Allow me to give you a friendly advice: Thousands of people -including very rich intellectuals, film stars and politicians and even bankers believed in Bernie Madoff and now what happened?

Sure, people like you may reap initial profits but I smell a rat because it sounds like a ponzi scheme when people are promised extremely high returns and using professionals to convince others to participate. The first few years look good - same with Bernie Madoff's ponzi scam that lasted more than 10 years. After that what? Everything collapsed!

Eric Constantine said...

Ponzi scam may take years to collapse, once they have gained enough profits, they would just say sayonara to all the investors. To make the matter worse, those investors who have invested a large sum of money due to convincing return in the beginning; eventually, they lose everything. I have learned my lesson not to trust any more ponzi scheme, be wary of their deception, masked with their professional background.

Anonymous said...

Scam or no scam,with Genneva,we got physical gold in our hand...

Anonymous said...

you will see, Genneva will blowup,when no investor.!!!!!

Anonymous said...

People used to say that 5 years ago.

Wing said...

My friend is selling physical gold on his website, Buy Gold In Malaysia

You may want to take a look!

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