GOVERNING LAWS ON MLM IN MALAYSIA.

ACT SECTION PENALTY

Body corporate- Fine not exceeding 1 million ringgit. ( for second offence onwards:
DIRECT SALES AND Section 4: Direct sales Fine not exceeding 2 million ringgit)
ANTI-PYRAMID business to be carried Individual: Fine not exceeding 250 thousand ringgit or to imprisonment for a term
SCHEME ACT 1993 not exceeding 5 year or both. (for second offence onward: Fine not exceeding 500
(ACT 500) on only under licence.
thousand ringgit or imprisonment for not exceeding 10 years or both)

Section 27B: Unlawful Body corporate – Fine not less than 1 million ringgit and not more than 10 million
to promote or conduct ringgit (for second offence onward: Fine not less than 10 million ringgit and not
pyramid scheme more than 50 million ringgit)
Individual- Fine not less than 500 thousand ringgit and not more than 5 million
PENAL CODE (ACT 574) ringgit or to imprisonment for a term not exceeding 5 year or both (for second
offence onwards: Fine not less than 1 million ringgit and not more than 10 million
ringgit or imprisonment for not less than 1 year or both)
Section 420: Cheating

MLM
Imprisonment for a term which shall not be less than 1 year and not more than 10
years and whipping, and shall also be liable to fine.
TRADE DESCRIPTIONS
ACT 2011 (ACT 2011)
Section 5: Prohibition
of false trade
description.
Body corporate – Fine not exceeding 250 thousand ringgit (for second offence
onwards : Fine not exceeding 500 thousand ringgit)
Individual - Fine not exceeding 100 thousand ringgit or to imprisonment for a term
Section 137: not exceeding 3 years or both (for second offence onwards: Fine not exceeding 250
FINANCIAL SERVICES thousand ringgit or imprisonment for not exceeding 5 years or both)
ACT 2013 Restriction on
accepting deposit.

Imprisonment for a term not exceeding 10 years or to a fine not exceeding 50 million
ringgit or to both.
Section 4(1): Nature of
INTEREST SCHEMES
ACT 2016 (ACT 2016) schemes.