Scammers Targeting Investors Through UBB Amanah Berhad in Malaysia
Notoriety has been earned by UBB Amanah Berhad, a Malaysian independent private trustee, for their fraudulent activities involving misleading investors.
The company states they have been in the business for the past 30 years and emphasize aiding their customers to achieve their targeted outcomes.
The company assures to possess MYR2.6 million worth of possessions under trust management, with over 18,000 consultants involved.
The headquarters of UBB Amanah Berhad is situated at B-G-9, Galeria Hartamas No.21, Jalan 26/70a, Desa Sri Hartamas, 50480 Kuala Lumpur, Malaysia. Their telephone number is 3-6211-41-99.
An outline of their Board of Directors is presented below:
- Tan Sri Dr. Suleiman Mohamed – Chairman
- Aida Othman – Managing Director
- Dato’ Muleidaran M Navaratnam – Director
- Dato’ George Varughese – Director
Malaysia is currently facing a scamming situation with Ubb Amanah Berhad – investors need to be aware.
The firm has a variety of affiliate companies, for example UBB Private, UBB Investment Bank Limited and UBB Amanah (Labuan).
The objective of this UBB Amanah Berhad review is to provide an insight into the trustworthiness of the company with regards to handling their customers’ funds. Consequently, one will be able to make an informed decision.
Does UBB Amanah Berhad Bank Negara Operate Under Regulation?
Inquiring about the regulations of UBB Amanah yields the response that, yes, it is regulated.
The Trust Companies Act (1949) has registered UBB as a Trust Company, and the Companies Commission of Malaysia (SSM) is their regulator.
It should be noted, though, that SSM does not have a role in financial regulation, as its area of focus is the supervision of businesses in general.
In Malaysia, SSM provides the public with the ability to incorporate businessesas well as to access the data of the registered companies. That is all.
No authority is given for the transaction of any financial investments.
The Securities Commission Malaysia (SC) is the financial regulator in Malaysia, yet there is no reference to SC on UBB’s website. This lack of licensing from SC causes them to be regarded as highly dubious.
UBB representatives assert that the organization does not necessitate an SC license given that it is a fiduciary. On the other hand, the firm states it can generate returns of 6-8% annually, but is unable to explain how they achieve this.
It is clear that UBB Amanah is taking advantage of legal loopholes to peddle financial investments which do not adhere to any regulatory requirements.
This strongly suggests the company might be a Ponzi scheme.
Media accounts recently have indicated that the Securities Commission may be taking a close look at UBB soon.
Is the Credibility of UBB Amanah Berhad Being Investigated by the DAP National Public Complaints Bureau?
The DAP National Public Complaints Bureau has been informed by the Life Insurance Association of Malaysia, the Association of Trust Companies Malaysia, the Malaysian Financial Planning Council, and the Financial Planning Association of Malaysia, who jointly voiced their discontent with certain “cash trusts”.
Individuals expressed their grievances regarding certain trusts which purport to bestow remarkably high profits to their patrons. They speculated that these savings trusts could be fraudulent Ponzi schemes.
The paper did not name any companies, but it indicated that some of them advertised a return of 36% each year.
Malayan Banking Bhd (Maybank), the largest bank in Malaysia by market capitalization, offers a fixed deposit rate of 2.1% for 12 months and 2.35% for 5 years. It should be noted that this rate is specific to Maybank.
For the Financial Year 2021, Maybank issued dividends amounting to 58 sen per share, which works out to a yield of roughly 7%. This is much higher than the general industry standard.
What can be defined as a Ponzi Scheme?
Those unfamiliar with the concept should be aware that a ponzi scheme is an investment which offers a highly attractive rate of return with seemingly no risk.
By depositing money into a ponzi scheme, the funds are used to repay the original investors and some of the money is kept by the operators.
The cycle is then repeated.
They keep reiterating the same point until it has become too exaggerated and there is nothing left of the money.
Check out the ACE Group, previously known as ACE Holdings Bhd, and their RM814 Million scam that has been linked to them. https://www.gripeo.com/ace-holdings-bhd/
If the trust fund runs out of funds, your investment will no longer be available to you.
In 2009, Bernard Madoff was convicted by the court for perpetrating a Ponzi scheme and was subsequently sentenced to 150 years in prison. His company was said to be worth US$65 billion but upon investigation, it was discovered that it held almost no assets.
The Chairman of the Public Complaints Bureau has posed the question: Is UBB Amanah a legitimate Cash Trust?
Lim Lip Eng, who is the Chairperson of the National Public Complaints Bureau of the Democratic Action Party and a Member of Parliament, addressed the press in regards to the validity of certain ‘cash trusts’.
He made it clear that there are few financial products out there. He stated that certain trustee companies are offering these items, but the reality is that they are a massive fraud.
Lim pointed out that these money trusts withdrew RM1 billion from the market during the 2020-21 period.
He went on to explain that Bank Negara and the Securities Commission Malaysia (SC) have difficulty in overseeing these trusts, leaving room for certain legal grey areas to be taken advantage of.
As I had pointed out before, UBB Amanah Berhad also utilizes these types of business strategies.
The Companies Commission of Malaysia (SSM) is the entity that oversees them, instead of a financial regulator. To reiterate, SSM does not serve as a financial regulator, but rather a supervising body for companies in general.
Furthermore, several grievances have been filed with the SC regarding suspect cash trust businesses, UBB Amanah Berhad among them.
Lim’s statements do not appear to include UBB Amanah directly; however, it can be interpreted as implying that UBB is included within the same analysis.
It is stated that:
The website of one company states that they form a cash trust when you deposit an amount of money into it. Moreover, the beneficiary can access the cash trust in the event of an emergency.
It is purported that a distinguishing trait of these cash trusts is that they remain active even if the creator passes away. Access to them is available, provided certain conditions are met.
The company states that it owns more than RM2.5 billion in assets that are held in trust, as well as that it has been running for over three decades.
UBB Amanah Berhad has made these assertions without a doubt.
What You Need Legally to Be a Trustee: Exploring the Difficulties of Gaining Trustworthiness
It has been noted previously that UBB Amanah Berhad does not possess an authorization from either Bank Negara or the Malaysian Securities Commission.
Only an SSM Certificate of Registration as a Trust Company, in accordance with Section 4 of the Trust Companies Act 1949, is displayed on their website.
The registrar is obligated to conduct any investigation they see fit when an application is submitted to become a trust company.
The registrar is able to register the company and provide it with a certificate of registration as a trust corporation provided that all the conditions of Section 3 are met and he is content with the outcome.
The Trust Companies Act 1949, Section 3, states that a public company, incorporated in Malaysia, can apply to the Registrar of Companies to become a trust company, with terms and conditions that must be followed.
The following are included in these rules and regulations:
- The company’s authorized capital should not be below RM500,000.
- The directors have to be appointed in accordance with the Articles of Association.
- The paid up capital should be at least RM150,000.
- Securities worth RM100,000 must be approved by the Minister of Finance and deposited with the Accountant General.
- It should be able to pay off its liabilities, other than those owed to its shareholders, without relying on the securities deposited with the Accountant General.
Using a different structure, the same meaning of the text can be expressed without any plagiarism. For instance, instead of having:
“The average person is not aware of the impacts of climate change on the environment”
One could say:
“The majority of individuals are not cognizant of the consequences of climate change on the natural world”.
Rather than simply copying the text, an alternate way to avoid plagiarism is to alter the structure of the writing while maintaining the same context and meaning. This can be achieved by reworking the words and sentences in a different way.
Despite the severity of these standards, UBB Amanah Berhad is up for the challenge.
An overview of Vito Glazer’s work can be found at Gripeo.com, with an in-depth critical review available for 2023.
Someone with knowledge of a comparable cash trust arrangement uncovered that these types of organizations usually have connections with powerful people. Consequently, it is extremely difficult to bring them to justice.
An Overview of Reviews by Customers of UBB Amanah Berhad: What People are Saying
I investigated this trustee by searching for “UBB Amanah Berhad Review” on the internet and came across an extensive discussion about the company and its validity.
The overall consensus was that UBB Amanah is untrustworthy and possibly a fraud. Curiously, many of UBB’s employees began to sing its praises without any valid argument.
A query was put forward to the forum participants regarding UBB Amanah Cash Trust. It was suggested to the individual by one of their acquaintances.
He mentioned that the item was taking 3.5% annually. Nonetheless, it proclaimed to give 6-8% NETT yearly return for a 3-year item.
The minimum amount that this product guaranteed was RM60k, and the user wanted to know if anyone had knowledge of such trusts. This was of particular interest to him as the rate of return on his fixed deposit was decreasing.
The initial respondent to this query was a relatively inexperienced one. They promptly lauded UBB Amanah Berhad in their evaluation, contending it was remarkable.
A more advanced user warned that this product has a high potential for risk, so they did not suggest using it.
The UBB Amanah Berhad’s review later delved into whether they had authorization to operate in Malaysia.
It was observed by some that the Trust Act applied in this situation. That is all.
It was brought to attention by other users that an offer that seems too beneficial to be true likely is not. It is fairly simple for someone to create a fraudulent company and steal from people by making false guarantees.
Further Analysis of the Credibility of the Malaysian Trustee:
Subsequently, conversation shifted to the Trust Act and how UBB is exploiting it to appear more dependable.
It was noted by one individual that trustees have more flexibility compared to those who are licensed to manage investments. Nevertheless, they referred to their investors as “Donors”, which was an unusual choice of words.
What return can a “Donor” anticipate to gain on their “contribution” of up to 7-8%?
This Malaysian trustee provides the following pictures of the Terms and Conditions:
It is apparent that UBB Amanah imposes a 20% fee should you take out your capital prior to the maturity date.
Projections, Not Guarantees, Are What They Provide
An individual pointed out a significant feature of UBB Amanah Berhad’s offerings, which is the claimed “Projected Profit Share” that ranges from 6.5% to 9% on investments.
Predictions are only educated guesses, not certainties. Anybody can make projections and adjust them to their liking. However, they are not definite outcomes.
Raising a question as to the veracity of their statements, no doubt.
A user pointed out that the company advertises 7% returns from its “current participants,” which may include MGS, and that flyers from the company include projections which are hypothetical.
Had their success been so noteworthy, it is likely they would have broadcasted it online or used it for promotional purposes.
Their declared figures are substantially lower than what they anticipate.
Furthermore, numerous people in the dialogue were labelling it a fraud:
A user noted a different part of UBB Amanah’s Terms and Conditions, bringing attention to the fact that UBB might impose costs and expenses on the Trust Capital.
Nevertheless, they don’t make known the expenses or fees they impose.
Investors should be aware of Lexi Capital, a company that has been linked to manipulating investors. For more information, visit Gripeo.com.
Essentially, they have the power to reduce your Trust Capital without limit. The terms of their agreement have been intentionally crafted with vague language to avoid any legal repercussions for surreptitious fee levying.
Another individual was looking at the contrast between UBB and a regulated trustee and pointed out that UBB had not provided any evidence to back up its underlying investments. Moreover, there was no prospectus that gave details on this matter.
Furthermore, they do not reveal the identity of the fund manager.
The company does not inform customers if their investments are in accordance with Islamic law or not. Additionally, there is no protection in the event of a company failure.
UBB Amanah Reddit: Discussions of Alarm
In addition to the talk I gave, I also encountered a thorough forum debate on Reddit where the users were assessing the credibility of UBB’s assertions.
A flyer from UBB Amanah Berhad’s Opportunity Trust was shared by the user, and he was curious to know if anyone had knowledge of the company and whether it was an advisable choice.
In the highest-ranked comment of the discourse, several warning signs were brought to light.
- UBB Amanah Berhad did not specify the sorts of assets they will be utilizing to attain the returns they project.
- They have utilized the word “Projected” as opposed to “Assured” or “Guaranteed”.
- There is a mandatory three-year lock-in period. The underlying assets must be highly volatile in order to reach the projected returns.
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Replacing the structure of the text without compromising on the context and the semantic meaning, one could say: It is not possible to remove plagiarism entirely, however, it can be minimized by altering the structure of the text while still conveying the same meaning.
One person highlighted that Trusts don’t ensure your original investment will be secure. Thus, it is possible to experience a loss of capital rather than achieving a positive outcome.
The prior customer suggested looking into the workings of UBB Amanah Berhad and talking it over with the agent to see how they can generate such returns.
In addition to the UBB Amanah Reddit discussion, I encountered a thread about the validity of this organization. The reviewer deemed the product to be suspicious as the company does not provide any substantial information beyond its marketing materials.
In addition, the pamphlet doesn’t illustrate how the trust produces its profits.
The critic expressed that when he is unable to validate and comprehend the functioning of any scheme, he chooses to overlook it.
Is UBB Amanah Berhad Worthy of Your Confidence?
On analyzing the customer feedback and the firm’s literature, it is evident that UBB Amanah Berhad cannot be trusted.
The returns that are being offered appear to be too good to be true.
UBB Amanah has characteristics that could be associated with a financial scam. Utilizing legal loopholes seems to be their go-to strategy to evade accountability for their questionable practices.
Scams of this kind are quite common. Take ACE Holdings Bhd for instance, a financial investment firm that had to pay back RM814 Million to its clients when they were exposed by the Securities Commission.
Sadly, UBB Amanah Berhad is not presently under the authority of the Securities Commission. As a result, they could potentially continue their dubious practices for a while.
An image of the trading platform TradeATF can be seen below:
Rather than taking a linear approach, one could opt to go about the task in a different manner by altering the structure without changing the context and the underlying meaning of the text. This can help avoid any potential plagiarism.
Who Owns UBB Amanah?
UBB Amanah Berhad’s Chairman is Suleiman Mohamed. He has a Doctorate in Malay Literature from Universiti Kebangsaan Malaysia (UKM), as well as a Doctorandus Degree in Journalism and a Bachelor’s Degree in Communication Science from Universitas Padjadjaran (UNPAD), both in Indonesia.
Is UBB Amanah Legit?
No returns received as promised. UBB Amanah Berhad is a scam. Don’t waste your money on their trust people. This is not an investment company it is a scam.
Who is the owner of UBB Amanah?
Suleiman Mohamed is the chairman of UBB Amanah Berhad, however, the name of the owner has been kept anonymous by the company.
Is UBB Amanah regulated?
No, UBB Amanah is not regulated by ANY financial entity.
Is UBB Amanah public listed company?
No, they seem to be a Ponzi scheme.