MCMC: Telcos fined RM700,000 for fake prepaid SIM registrations

The Malaysian Communications and Multimedia Commission has issue a total of 15 compounds valued at RM700,000 on 1st October 2020 to mobile providers for failing to perform identity verification for new prepaid SIM card registrations in 2019. The offenders include Celcom, Maxis, Tone Plus, Tune Talk, U Mobile, and YTL Communications.

According to the MCMC, the compounds were issued as it violates Section 127 of the Communications and Multimedia Act (CMA) 1998. Under Section 242 of the Act, offenders are liable to a fine not exceeding RM100,000, imprisonment for not more than 2 years or both.

The highest offender is U Mobile and they were slapped with 5 compounds amounting to RM250,000. Celcom and Tune Talk were both given 3 compounds amounting to RM150,000 each, while Maxis was issued with 2 compounds amounting to RM100,000. Both YTL Communications and Tone Plus have 1 compound each amounting to RM40,000 and RM10,000 respectively.

MCMC warned telcos to ensure all prepaid SIM registrations adhere to the guidelines provided by the commission. It added that all SIM registrations must be performed using an automated platform that’s both secured and encrypted. All providers are also required to make sure that individuals do not own more than 5 SIM cards under their name. The commission added that it won’t compromise on the matter and will take strict action against those that fail to comply to the guidelines.

The mandatory requirement for ID verification for new prepaid SIMs is aimed at curbing misused of prepaid services. It is also used to address concerns of terrorism and crime. For Malaysian residents, a MyKad or MyPR card will be required during prepaid registration while foreigners can use their passports or work permit identification cards. An original identification must be used and photocopies are not allowed.

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You can learn more about MCMC’s prepaid guidelines here.

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Alexander Wong