BSN repays RM13.52 million in Kuching investment scam claims

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BSN repays investment scam claims

Highlights

Bank Simpanan Nasional has repaid RM13.52 million, or 88.6% of the RM15.27 million in investment scam claims at its Kuching branch.
More than 70 victims lost over RM11 million after a former BSN employee transferred funds to unauthorized accounts between 2024 and 2025.
The Ministry of Finance said the remaining claims are being reviewed to verify the source of funds and prevent duplicate payments, keeping pressure on BSN's internal controls.

This article was translated from the original. Read the original version by our correspondent here.

Refund details and claim reviews

As reported by The Edge Malaysia, the Ministry of Finance said Bank Simpanan Nasional, a statutory body under its supervision, had paid RM13.52 million to victims of a fake investment scheme operated by a former employee at its Kuching branch.

In a written parliamentary reply on Thursday, the ministry said the amount represented 88.6% of the RM15.27 million in reported claims. The remaining cases are being verified and reviewed to ensure payments are made to eligible victims.

The ministry was responding to a question from Chong Chieng Jen, former deputy minister of Domestic Trade and Consumer Affairs and Member of Parliament for Stampin, who questioned why the government had allowed BSN to withhold refunds over concerns he described as unfounded about suspicious sources of funds.

The MOF said most claims had been settled, while the remaining cases were being reviewed to verify the source of funds, payment amounts and legitimate recipients, and to prevent duplicate payments or claims unsupported by evidence.

Impact on customers and BSN's risk management

The fraud came to light after victims discovered that their savings had been transferred to unauthorized accounts between 2024 and 2025. More than 70 victims reported losses exceeding RM11 million following misconduct by a former BSN employee.

The development keeps the focus on the bank's internal controls and claims verification process, particularly on ensuring compensation reaches the right recipients. BSN said it remains committed to settling all outstanding claims.

In our earlier article on the impact of the 1MDB scandal on corporate governance, we discussed how failures in controls, audits and checks and balances sharpened questions about who should be held accountable. We also highlighted the emphasis on board accountability, stronger whistleblower protections and a more proactive role for internal auditors in detecting risks early—issues that are relevant when fraud cases and compensation claims such as the one involving BSN test the effectiveness of internal controls.

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