U Mobile, Celcom, Maxis and others got fined by MCMC for fake prepaid SIM card registration, totaling up to RM700,000

The Malaysian Communications and Multimedia Commission (MCMC) has issued 15 compounds totalling RM700,000 on Oct 1 to telcos for the offence of registering prepaid SIM cards without verifying user information committed in 2019.



MCMC in a statement said U Mobile Sdn Bhd received five compounds totalling RM250,000, followed by Celcom Axiata Bhd and Tune Talk Sdn Bhd with three compounds each (totalling RM150,000 per company), Maxis Broadband Sdn Bhd (two compounds totalling RM100,000), YTL Communications Sdn Bhd (one, RM40,000) and Tone Plus (one, RM10,000).


The compounds were issued for offences under Section 127 of the Communications and Multimedia 1998 Act read together with Section 242 of the same act, which stipulates a fine of no more than RM100,000 or two years imprisonment, or both upon conviction.

MCMC said the action reflects its commitment towards protecting consumer interest and ensuring that the prepaid SIM card registration process is completed in compliance with guidelines set by the Commission.

Apart from enforcement, MCMC said it has taken other proactive measures to curb false SIM card registrations, among them making it mandatory for SIM card registrations to be done through encrypted and secure automated platforms only.

According to MCMC's guidelines on registration of end-users of prepaid public cellular services, these automated platforms include MyKad readers, biometric readers or Optical Characteristics Recognition (OCR) applications, which service providers or its dealers are required to use to verify the authenticity of identification documents provided by applicants.

MCMC added that service providers shall not register more than five SIM cards per person for any new individual customer.

It said it will not compromise on this matter and action will be taken against those who fail to comply with the guidelines.

In an FAQ published in 2017, MCMC stated that the Malaysian government required service providers to register prepaid mobile service users since 2006. At the time, the directive was issued to curb the misuse of prepaid public cellular services as well as addressing national security concerns related to terrorism and criminal behaviour.

During the registration process, users have to provide personal information such as full name, permanent address and identification number, while foreigners are required to submit details such as full name, passport number, passport issuing country, as well as any other information as may be required by the Commission.

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