Renting out bank accounts: A practice that facilitates serious felonies and carries severe legal penalties
The Maldives Police Service has issued an urgent public warning against a rising trend of individuals renting out their bank accounts via social media in exchange for payment. Authorities cautioned that surrendering account control to third parties facilitates serious financial crimes, including money laundering and terrorism financing, which carry severe legal penalties. Emphasizing that account holders are legally responsible for all transactions conducted through their accounts, the police advised the public to remain vigilant and refrain from sharing sensitive banking information with others.
The police have urged the public to remain vigilant against renting out bank accounts and engaging in activities that facilitate money muling. | RaajjeMV
The police have urged the public to remain vigilant against renting out bank accounts and engaging in activities that facilitate money muling.
Police have observed a growing trend of advertisements on various social media platforms, particularly TikTok and Telegram, offering commissions or daily wages in exchange for renting out personal bank accounts or granting control over them.
Police have urged the public to remain vigilant, warning that such activities facilitate serious criminal offenses and can lead to significant legal and financial consequences.
The police have highlighted the potential legal and financial risks associated with account misuse, noting that under the Prevention of Money Laundering and Financing of Terrorism Act, every bank account must be used exclusively for the personal purposes of the registered account holder.
Police have emphasized that all transactions conducted through a bank account must remain under the full authority and control of the account holder. Authorities warned that allowing a third party to use one's account is a criminal act intended to obscure the true identity of the beneficiary, which violates banking regulations under the Prevention of Money Laundering and Financing of Terrorism Act. Furthermore, the police noted that concealing the actual owner of a transaction is a serious offense carrying heavy penalties under these laws.
Furthermore, the police stated that allowing others to use one's personal bank account constitutes participation in money laundering as a "money mule." Authorities emphasized that if an illegal transaction occurs through such an account, the account holder cannot evade responsibility by claiming the transaction was conducted by an unknown party. These are offenses for which strict penalties are prescribed under the Maldives Penal Code.
The police have stated that under the Maldives Banking Act and established banking regulations, sharing confidential information such as usernames, PINs, or OTPs with third parties constitutes a breach of the customer's agreement with the bank and is considered negligence on the part of the customer. Furthermore, they noted that banks will not be held liable for any financial losses incurred as a result of such actions.
Police stated that banks have the authority to freeze accounts if suspicious transactions are detected. Furthermore, if an account holder is identified as a threat to the financial system, they may face restrictions on accessing services from any Maldivian financial institution in the future.
Police have emphasized that account holders are legally responsible for every transaction conducted through their accounts. Authorities further noted that criminals exploit the accounts of ordinary citizens to circulate stolen funds and disguise the illicit origins of the money.
Furthermore, the police emphasized that allowing others to use one's personal bank account constitutes an act of aiding and abetting such criminal offenses. They also stated that information regarding suspicious transactions will continue to be shared with the Financial Intelligence Unit of the Maldives Monetary Authority to facilitate legal action under the relevant laws.
Police have urged the public to refrain from responding to social media advertisements promising easy money and to avoid sharing information that could encourage such scams. Authorities further advised the public to report any suspicious activity by contacting the National Emergency Call Center at 911 or by calling 125.
The police stated that they will continue to take legal action against those involved in such criminal activities, in collaboration with the relevant financial institutions.
