Shut-down Malaysia gold scheme raked in up to US$3 bil.: official
November 1, 2012, 11:36 am TWN
KUALA LUMPUR -- A gold-trading business shut down this month by Malaysian authorities for suspected illegalities may have raised as much as US$3 billion from its clients, a government official said Wednesday.
Authorities raided trading firm Genneva Malaysia on Oct. 1 on suspicion of taking deposits illegally, money-laundering and tax evasion, and later expanded the crackdown to three other firms.
The raids have sparked anger from thousands of clients of such firms, who have petitioned authorities to let operations continue and have threatened to hold anti-government demonstrations over the issue.
But authorities have defended the crackdown, and Deputy Finance Minister Awang Adek Husin told lawmakers on Wednesday that Genneva Malaysia alone had taken in some 10 billion ringgit (US$3 billion) from customers.