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Mayu Global Takes Precautionary Steps Amid Money Laundering Investigation

mayu global money laundering investigation probe tan kim hee

Mayu Global Group Bhd has taken significant corporate actions in light of an ongoing police investigation into potential money laundering activities. As part of these measures, the company announced the redesignation of Tan Kim Hee, effective May 2, 2025. Tan will transition from his role as executive director to a non-executive director. This decision comes amid mounting scrutiny related to Malaysia’s stringent anti-money laundering laws and reflects the company’s commitment to maintaining corporate governance and transparency during the investigation process.

In response to the ongoing investigation, Mayu Global has decided to shift Tan Kim Hee’s role to a non-executive director position. The redesignation, effective May 2, 2025, was reached by mutual consent, following recommendations from the company’s nomination and remuneration committee. The board formalized the change during a meeting held on April 23, 2025, with Tan abstaining from the discussions and the subsequent vote.

According to a filing with the Malaysian bourse, the decision to redesignate Tan is a precautionary measure aimed at preserving the integrity of the investigation process. It is intended to eliminate any potential conflict of interest and to ensure that the company adheres to best practices in corporate governance during this sensitive period.

With this change, Tan will no longer participate in the day-to-day management of the company or its subsidiaries, particularly concerning monetary transactions. The leadership of the company’s operations will continue under the direction of other executive directors: Goh Chin Heng, Tan Qian Hui, and Chow Choon Hoong, who will be supported by the senior management team.

The Money Laundering Investigation and Bank Account Freezing

This redesignation follows a series of significant events within the company, particularly related to an investigation under Malaysia’s Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA). The Anti-Money Laundering Act is a critical regulatory framework in Malaysia designed to curb illicit financial activities, particularly those linked to criminal enterprises such as organized crime and terrorism financing. In the context of Mayu Global, the investigation centers around allegations of illicit financial transactions and the potential movement of unlawfully gained assets through the company’s financial systems.

The investigation was triggered by reports of suspicious activities tied to Mayu Global’s subsidiaries, raising concerns about the company’s potential involvement in money laundering schemes. On April 10, 2025, Mayu Global disclosed that its banking accounts, as well as those of its subsidiaries, were frozen as part of the investigation. The freezing order, which amounts to a total of RM10.67 million, is set to remain in place for 90 days.

This freezing of assets, a common tool in anti-money laundering investigations, is part of Malaysia’s commitment to ensuring that companies involved in suspected illicit financial activities cannot access their funds until the investigation concludes. This tactic is particularly significant in money laundering cases, as it prevents the further movement or concealment of illicit funds while authorities gather evidence.

The freezing of Mayu Global’s accounts is tied to concerns about the movement of funds linked to potentially illegal activities. Investigators believe that funds passing through Mayu Global’s financial channels may be connected to larger money laundering networks. Malaysia’s AMLA enables authorities to temporarily seize assets linked to such activities while they conduct thorough investigations. The investigation into Mayu Global is part of broader efforts by the government to crack down on money laundering and terrorist financing activities, which have increasingly become global concerns.

Tan Kim Hee’s Detainment and Legal Actions

One of the most concerning aspects of the ongoing investigation is the detention of Tan Kim Hee. On April 2, 2025, Tan was detained by Malaysia’s Bukit Aman police for questioning in relation to the ongoing money laundering probe. Tan was released on April 7 without charges, though his detainment has brought greater public and regulatory attention to the investigation. The detention has sparked interest due to Tan’s position within the company and his substantial stake in Mayu Global, holding an 11.095% share of the company.

The public interest in the case has also been amplified by Tan’s family connections to Tedy Teow Wooi Huat, the founder of MBI Group, a controversial conglomerate with ties to allegations of financial mismanagement and illicit activities. While no formal charges have been made against Tan, his connections raise further suspicions, as authorities often look at the broader network of relationships when investigating money laundering operations. These familial ties suggest there could be deeper financial entanglements between the two entities, potentially creating the conditions for illicit financial flows across both businesses.

Tan’s role as a shareholder and former executive director has also placed Mayu Global under scrutiny. If the investigation reveals any direct connection between Tan and illicit financial movements, it could expose the company to significant legal and financial risks. Authorities are examining whether any part of Mayu Global’s financial structure was exploited to launder money or facilitate unlawful activities. These complex webs of financial transactions are often difficult to trace, making thorough investigations into company operations crucial for uncovering the full scope of any wrongdoing.

Strengthened Internal Controls and Audits

In response to the heightened scrutiny, Mayu Global has taken several internal steps to reinforce its compliance measures and safeguard the company against further risks. The company has instituted enhanced internal controls, particularly focusing on payments, procurement processes, and banking transactions. These measures are designed to prevent any suspicious activities from going unnoticed and to ensure that all company transactions comply with the regulatory requirements set out in Malaysia’s AMLATFPUAA.

In addition to its tightened financial controls, Mayu Global has initiated a third-party audit aimed at reviewing the financial records of one of its subsidiaries, Sunrise Manner Sdn Bhd. This subsidiary, which is 80%-owned by Mayu Global, has been under close examination due to concerns about the legitimacy of its financial transactions and cash flows. The audit, which is being conducted by Baker Tilly Monteiro Heng PLT, will focus specifically on the source of funds used in the company’s operations and will assess whether any illicit financial activity is linked to Sunrise Manner’s operations.

This third-party audit is an essential component of Mayu Global’s strategy to rebuild trust with regulators and shareholders. By allowing an independent firm to conduct the review, Mayu Global hopes to demonstrate its commitment to transparency and accountability. The results of the audit may prove pivotal in determining whether the company was unknowingly involved in the money laundering operations or whether any of its executives had a direct role in facilitating such activities.

Furthermore, the company has indicated its intention to adopt a formal Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) policy. This policy will enhance the group’s compliance across all subsidiaries, ensuring that they operate in line with international anti-money laundering standards. The policy is expected to include provisions for monitoring and reporting suspicious activities, as well as training for employees to identify red flags associated with money laundering and terrorism financing.

Conclusion

Mayu Global’s response to the ongoing money laundering investigation demonstrates a strong commitment to corporate governance, compliance, and transparency. The redesignation of Tan Kim Hee is a prudent precautionary step, designed to prevent any potential conflicts of interest and ensure that the investigation process remains unaffected. By taking proactive legal and operational measures, the company aims to safeguard its operations and ensure that it continues to comply with Malaysia’s anti-money laundering regulations. The full cooperation with the authorities and the tightening of internal controls underscore Mayu Global’s dedication to mitigating risks and maintaining a strong compliance culture. However, the investigation’s outcome will be crucial in determining the extent of Mayu Global’s involvement in these illicit activities and whether the company can recover its reputation in the eyes of regulators and investors.