Bank Relationship Manager Jailed Seven Years and Fined RM40 Million Over RM1.58 Million Fraud

KUALA LUMPUR, AUGUST 2026 — A relationship manager at an international bank has been sentenced to seven years in prison, 16 strokes of the cane and a total fine of RM40 million after admitting to fraud and money laundering offences involving more than RM1.5 million.

The Kuching Sessions Court imposed the sentence on Kho Yung Kang, 39, after he pleaded guilty to 16 fraud charges and eight money laundering charges.

The offences involved eight elderly customers aged between 60 and 75, who were deceived through what authorities described as a non-existent bond investment scheme.

According to the case, approximately RM1.58 million was involved in the offences committed between September 2022 and February 2024 at the bank where Kho was employed.

As a relationship manager, Kho was responsible for assisting customers with various financial services, including investments in unit trusts and bonds, fixed deposits as well as domestic and international money transfers.

The court heard that Kho used his position to offer customers what he claimed was a new investment product promising higher returns.

Customers were persuaded to approve the transactions by providing their signatures and biometric verification.

However, instead of investing the money as represented to them, the funds were transferred from customers’ bank accounts to third-party accounts without their knowledge or consent.

The transfers were carried out using several methods, including DuitNow, interbank transfers and cashier’s orders.

The funds were subsequently used for Kho’s personal purposes rather than for the investments promised to the customers.

Kho was charged under Section 420 of the Penal Code for cheating and under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, commonly known as AMLA.

Sessions Court Judge Iris Awen Jon imposed prison terms ranging from three to four years and one stroke of the cane for each fraud charge.

For each of the eight money laundering charges, Kho was sentenced to three years in prison and fined RM5 million, with an additional four months’ imprisonment for each charge if he fails to pay the fine.

The combined fines amount to RM40 million.

The court ordered the prison sentences to run concurrently from May 23, 2025, the date Kho was arrested. As a result, the effective custodial sentence amounts to seven years.

The case highlights how access to customer accounts and the trust placed in financial professionals can be exploited to facilitate financial crimes.

Kho’s position allowed him to interact directly with customers seeking advice and assistance with legitimate banking and investment transactions.

By presenting the investment as part of his professional dealings with customers, he was able to obtain the authorisations required to move funds before redirecting the money elsewhere.

The victims were senior citizens, making the case particularly significant because older customers can be especially vulnerable when dealing with complex financial products or individuals they believe are acting on behalf of established institutions.

The prosecution was conducted by Deputy Public Prosecutors Chuah Kai Sheng and Maryam Jamielah Ab Manaff.

Kho was not represented by a lawyer during the proceedings.

The conviction brings the case to a significant conclusion after offences spanning more than a year and involving multiple elderly customers.

With a seven-year prison sentence, 16 strokes of the cane and RM40 million in fines, the punishment reflects the seriousness of both the fraudulent transactions and the subsequent laundering of money obtained through those offences.

The case also serves as a reminder for customers to independently verify investment products, particularly when promised unusually attractive returns, and to carefully monitor transactions involving their bank accounts.