PETALING JAYA: While local loan shark syndicates are a thorn in the flesh of the authorities, the menace is at risk of escalating further now that foreigners are cashing in on illicit moneylending.

Targeting their fellow countrymen and imposing high interest rates, foreign loan sharks are said to be using the same ruthless tactics of intimidation and coercion on vulnerable debtors.

Bukit Aman Commercial Crime Investigation Department director Commissioner Datuk Seri Ramli Mohamed Yoosuf said the police were closely monitoring such rackets and will take stern action.

Meanwhile, criminologist Datuk Dr P. Sundramoorthy of Universiti Sains Malaysia called for harsher sentences such as the deportation of foreign offenders involved in illegal moneylending, in addition to action under the Moneylenders Act 1951.

He pointed out that under the Act, offenders could face up to two years in prison or a fine of up to RM20,000 or both.

He was referring to the case of six Bangladeshis who were fined RM2,500 each after they pleaded guilty to illegal moneylending two weeks ago.

“The leniency in this case might inadvertently signal that such offences are not being met with a strong deterrent, particularly when the perpetrators are foreign nationals.

“This potentially contributes to an environment where illegal moneylending syndicates run by foreigners continue to thrive with little fear of significant punishment.

“Nevertheless, the court’s decision should be respected as it takes into account the evidence produced and gives consideration to the many circumstances of a case before penalties are meted out appropriately,” Sundramoorthy said.

Malaysian International Humanitarian Organisation secretary-general Datuk Hishamuddin Hashim said the authorities should take serious steps to clamp down on foreigners who blatantly disregard the law and misuse their work permits.

He said apart from provisions in the Moneylenders Act, the Attorney General’s Chambers should consider using other laws, such as the abuse or misuse of work or social visas under Regulation 39(b) of the Immigration Regulations 1963.

“They should face the full wrath of the law to ensure this trend of foreigners offering moneylending services does not become widespread. Let us not wait until it goes out of control,” said Hishamuddin.

He said the police, Immigration Department and Housing and Local Government Ministry should work closely to eradicate loan shark activities involving foreigners.

MCA Public Services and Complaints Department head Datuk Seri Michael Chong said preventive laws such as the Security Offences (Special Measures) Act (Sosma) or Prevention of Crime Act (Poca) should be invoked.

“Loan sharks are becoming more violent and devious. Their runners are prepared to burn down houses and cars for a mere RM400 wage. It is also not an easy task to track them down.

“We need to address this with more seriousness and using preventive laws would be a better deterrent than a small fine or a short jail sentence.

“It is rare to see foreigners involved in illegal moneylending, but before it mushrooms nationwide and causes serious issues to the foreign workforce, it is best to promptly take action,” he said.

The Star had reported that the six Bangladeshis, who worked as carpenters at a furniture factory and were moonlighting as loan sharks, were arrested in Muar.

They gave out loans of between RM100 and RM2,000, charging an interest rate of about 4% a month, mainly to other Bangladeshi workers.

Police learnt that the suspects retained the ATM cards of debtors and made withdrawals to recover their dues.

About RM176,000 in cash, mobile phones and 187 ATM cards were seized.

https://www.thestar.com.my/news/nation/2024/11/26/foreigners-now-into-illegal-moneylending-business