KUALA LUMPUR: Police have busted an online gambling syndicate that exploited a loophole by using a payment gateway as a medium for gamblers to initiate their bets.
Police Anti-Money Laundering Criminal Investigation Division head Datuk Mohammed Hasbullah Ali said the syndicate, the first of its kind, had been operating for a year and had successfully conducted transactions amounting to RM576 million annually as turnover.
Hasbullah said the company, which began operating around mid-2022 under an entity named Cita Layar Sdn Bhd had developed a payment gateway platform called MYPAY88, used as a medium for gamblers to make payments to initiate a bet.
He claimed that the syndicate used a weakness in the internet payment system to facilitate online gambling activity.
Following this, the police through the Anti-Money Laundering Criminal Investigation Division, Inspector-General of Police Secretariat , the Bukit Aman Criminal Investigation Department, D7 division have arrested 10 individuals including a businessman with the title "Datuk Seri", believed to be members of the syndicate.
"A total of 10 local individuals, including a local man holding the title of Datuk Seri, nine other men and a woman aged between 27 and 49, have been detained in several raids in the Klang Valley on Jan 28 to 31 on suspicion of involvement in the syndicate.
"They have all been remanded at the Dang Wangi district police headquarters for three to 11 days to assist in investigations conducted under Section 4(1)(c) and 4(1)(g) of the Open Gaming Houses Act 1953 and Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001."
He said the raids also led to the police seizing nine mobile phones, three computer equipment, four sets of documents, two wristwatches, 10 vehicles and cash amounting to RM325,000.
"The police also froze 42 bank accounts totalling RM18,290,623.00 believed to be proceeds from online gambling activities," he said at a press conference.
"We have also identified and are looking for two to three other syndicate members who are at large."
Hasbullah added that the police would also continue to work with Bank Negara Malaysia to ensure such loopholes were closed and urged the public to assist the police by acting as their eyes and ears in providing information on online gambling activities and other related crimes.
"The police will not compromise and will always take decisive action against online gambling syndicates in bringing them to justice," he said.
