World · Malaysia Bureau
Immigration raids Chow Kit, dismantles suspected illegal money transfer ring
Malaysian immigration authorities have detained eight individuals following raids on shopfronts in Kuala Lumpur's Chow Kit area, uncovering an alleged underground money transfer network targeting migrant workers. The operation exposed the use of traditional hawala-style systems to move funds outside formal banking channels.
LSN Malaysia ·
Immigration enforcement teams conducted coordinated operations in the Chow Kit commercial district, a hub for migrant worker services, resulting in the detention of eight suspects on suspicion of operating an illegal money transfer syndicate. Authorities alleged the network utilised the 'Hundi' system—a centuries-old informal value transfer method—to process remittances, primarily serving Bangladeshi migrant workers in Malaysia. The operation was announced from Putrajaya on Monday. Investigators uncovered evidence suggesting the syndicate facilitated substantial cross-border fund movements without proper regulatory oversight or licensing. The suspects remain in custody pending further investigations. Officials have not disclosed the volume of transactions processed or the total value of funds involved in the alleged operation. The raids represent authorities' ongoing efforts to combat unregulated money transfer schemes, which operate outside Malaysia's formal financial monitoring systems and may facilitate various illicit activities. Immigration and financial intelligence agencies continue to investigate the network's operational structure and potential international connections.