Originally Syndicated on June 9, 2024 @ 12:12 pm
UBB Amanah is a Malaysian independent private trustee that has a bad reputation for misleading investors. The company asserts to have three decades of industry experience and is focused on assisting clients in achieving their goals.
The company also states that it has MYR2.6 million in assets held in trust with more than 18,000 consultants. B-G-9, Galeria Hartamas No.21, Jalan 26/70a, Desa Sri Hartamas, 50480 Kuala Lumpur, Malaysia is where UBB Amanah‘s office can be found. Similarly to that, they can be reached at 3-6211-41-99.
Who owns UBB Amanah?
An overview of their Board of Directors is provided below:
-Tan Sri Dr. Suleiman Mohamed (Chairman)
-Aida Othman (Managing Director)
-Dato’ Muleidaran M Navaratnam (Director)
-Dato’ George Varughese (Director)
UBB Private, UBB Investment Bank Ltd, and UBB Amanah are just a few of the company’s subsidiaries (Labuan).
The UBB Amanah evaluation that follows, however, is limited to the principal corporation. You can determine whether or not you can trust them with your hard-earned money by reading this.
UBB Amanah Berhad Review: Are they regulated?
Is UBB Amanah regulated? comes up in searches. You can see the solution:
According to the Trust Companies Act, UBB Amanah is a registered trust company (1949). The Malaysian Corporations Commission is also their regulator (SSM).
It is important to remember that SSM is not a financial regulator. It only regulates businesses in general. SSM Malaysia is a company that assists in the incorporation of businesses and makes public information about registered companies available. I’m done now. The selling or purchase of any financial investments is not governed by them.
The Securities Commission Malaysia (SC) is Malaysia’s financial watchdog, although UBB Amanah‘s website makes no mention of SC. They lack an SC license, which raises serious red flags about their business practices.
Many UBB Amanah agents assert that because the business is a trustee, it does not require an SC license. The company does not, however, explain how it can offer returns of 6-8% every year despite claiming to do so.
Undoubtedly, UBB Amanah is marketing uncontrolled financial ventures by abusing the legal system. This suggests that the company may be in a ponzi scheme.
Yet, according to recent media sources, UBB Amanah could soon be under the Securities Commission’s scrutiny:
Is UBB Amanah’s background being investigated by the DAP National Public Complaints Bureau?
According to a recent media report, the DAP National Public Complaints Bureau received complaints about certain “cash trusts” from The Life Insurance Association of Malaysia, the Association of Trust Companies Malaysia, and the Malaysian Financial Planning Council with the Financial Planning Association of Malaysia.
They complained about certain trusts that provide their clients with incredibly high profits. These cash trusts might be Ponzi schemes, they believed.
The research claimed that some of these businesses claim to offer returns as high as 36% annually, however, it made no explicit reference to any names.
On the other side, Malayan Banking Bhd (Maybank) offers fixed deposit rates of 2.1% for 12 months and 2.35% for 5 years. Keep in mind that Maybank has the highest market value of any bank in Malaysia. Maybank paid out 58 sen in dividends per share in FY2021, for a yield of almost 7%. By industry standards, this is a very high figure.
What exactly is a Ponzi scheme?
For those who are unaware, a ponzi scheme is an investment where an extremely high rate of returns is promised at what appears to be zero risk. When you invest money in a ponzi scheme, the operators use some of it to pay returns to previous investors and retain the rest for themselves. The procedure is then repeated.
They keep doing it until things get out of control and there is no more money. You forfeit your deposit if there is no money left in the trust business.
Bernard Madoff is a recent example of a Ponzi scheme. He was found guilty of fraud in 2009, and the court sentenced him to 150 years in jail. His company should have had assets of US$65 billion, but it had very little.
Head of the Public Complaints Bureau on Cash Trusts: Is UBB Amanah Trustworthy?
Lim Lip Eng, a member of parliament and the chairman of the DAP’s national public complaints bureau, spoke to the media concerning the authenticity of some “cash trusts.” He emphasized how few of the financial products on the market are being used. These items are being offered by certain trustee businesses, and they are a huge hoax. Lim emphasized that in 2020–21, these cash trusts removed RM1 billion from the market.
Additionally, he noted that neither Bank Negara nor the Securities Commission Malaysia (SC) is competent to control these trusts. However, there are a few legal gaps that these trustees are taking advantage of.
UBB Amanah Berhad uses similar business strategies, as I have said.
They are subject to the Companies Commission of Malaysia’s regulation rather than that of banking regulators (SSM). As I already stated, SSM regulates businesses generally rather than the financial sector.
Also, the SC has received numerous complaints about dubious cash trust businesses like UBB Amanah. The article that relayed Lim’s opinions makes no specific mention of UBB Amanah. But implies that UBB Amanah is subject to the same level of examination.
These include:
According to the website of one such business, when you put money into a trust, a cash trust is created. Also, the recipient has access to the cash trust for unexpected expenses. They assert that the fact that these cash trusts are not locked at the death of the creator makes them special. Per the terms and circumstances, it is still available.
Additionally, the business asserts to have assets held in trusts worth over RM2.5 billion. It also states that it has been in business for more than 30 years. These are unquestionably all assertions made by UBB Amanah.
Why You Can’t Trust Them Easily: The Legal Qualifications to Become a Trustee
Both the Securities Commission of Malaysia nor Bank Negara do not have a license for UBB Amanah (SC). Only an SSM Certificate of Registration as a Trust Company, according to Section 4 of the Trust Companies Act 1949, is displayed on their website. When he gets a request to register as a trusted company, a registrar is required by this act to conduct any inquiries he considers appropriate.
Additionally, the registrar may register the company and issue it a certificate designating it as a registered trust company if he is satisfied and the firm satisfies the conditions under Section 3.
According to the terms and conditions of Section 3 of the Trust Companies Act 1949, any public company with a Malaysian incorporation may now apply to the Registrar of Companies to become a trusted company.
These terms and conditions include:
-Authorized capital of the company should not be less than RM500,00.
-The company should appoint the directors according to its Articles of Association.
-Minimum RM150,000 of bona fide authorized paid-up capital.
-Deposited securities with the approval of the Minister of Finance to the value of RM100,000 with the Accountant General.
-Finally, it should be able to meet its obligations, apart from the liabilities to its shareholders, without taking into account the securities it deposited with the Accountant General.
Although these specifications may appear onerous, UBB Amanah is the type of company for which they are nothing. Such businesses typically have strong connections, according to a source involved in a related cash trust activity. Thus, it gets harder and harder to remove them.
Conclusion
A lot of UBB Amanah‘s statements are absurd. But it exhibits every warning sign of an investment fraud. Never do they explain how they can produce their “projected returns.” Moreover, they only provide “projections” rather than the “promised” returns. Avoid working with such a dubious company.
UBB Amanah is a bad business. The returns it offers seem to be too fantastic to be true. All the indicators point to UBB Amanah being a financial con. To get away with its dirty practices, the corporation is abusing the judicial system. These frauds are fairly common.
Unfortunately, SC currently lacks jurisdiction over UBB Amanah. They might therefore be able to continue their unscrupulous tactics for a long time.
