How to make money as a Malaysian stockbroker
A Malaysian broker’s stock portfolio is a virtual treasure trove, filled with assets valued at more than $5 trillion.
And now, the owner of one of the biggest brokers in the country is on the run.
Malaysia’s Securities and Futures Commission (SFC) has charged the owner, Datuk Kamarudin Kulkarni, with money laundering.
The SFC, which has the power to revoke a company’s license, has taken Kulkarkin’s assets into custody as it probes possible criminal activity.
The agency said it was investigating allegations that Kulkarudina was laundering funds from his brokerage firm in the name of Malaysia, including the sale of a controlling stake in Malaysia’s biggest oil company, Petronas, in 2015.
The charges against Kulkarakidin stem from his involvement in a scheme whereby he paid more than 1.5 billion ringgit ($300,000) in cash to a Malaysian man, who then sold the shares to the man’s company in a deal worth more than 2 billion ringgdis ($2.6 billion).
The man was arrested last week after authorities seized the funds from Kulkarridin’s brokerage firm.
The SFC said the man had transferred the money to his own bank account.
The company said Kulkars’ shares are owned by Petronavans Malaysia, an entity that was registered in the British Virgin Islands and has no business operations in Malaysia.
“The SRC’s investigation into the alleged criminal activities and the alleged transfers of funds is ongoing,” the SFC told The Associated Press on Friday.
The Malaysian government has said Kumparudins actions were “in accordance with the law”.
“I have taken all necessary measures to safeguard the integrity of the business,” Kulkadilis lawyer, Datamarno Mohamed, said in a statement.
The lawyer did not elaborate.
The Malaysian Securities and Investment Commission (MSCI) said it would also cooperate with the SSCI, which it said was probing “the transfer of funds to Malaysia.”
“The MSCI takes seriously the risk that any person could misuse the proceeds of a scheme,” MSCII said in its statement.
“We have the resources to investigate any such scheme and take all appropriate steps to safeguard its integrity.”
The SSC said it had also launched an investigation into “suspicious transactions” by Kulkarias broker in 2015, and was seeking the return of those funds.