IMPORTANT UPDATES : 21st July 2009

Message From GENNEVA Web Site


This serves to inform all our Valued Customers that Bank Negara Malaysia has commenced an investigation into GENNEVA Sdn Bhd on 21st July, 2009 under suspicion of conducting illegal deposit taking activities.

In view of the above investigation, our bank accounts have been frozen and our cash and Gold stocks have been sealed temporarily. Our director’s personal bank accounts have also been frozen.

GENNEVA is cooperating fully with Bank Negara Malaysia on the above investigations and we would like to assure all our Valued Customers on our commitment to protect their purchases with our company.

The Management would like to extend a big thank you to all Valued Customers for their kind understanding and we apologized for any inconveniences caused in relation to the above investigation.

We look forward to be of service to you again soon.

Meanwhile, please do not hesitate to contact us via email at genneva3@gmail.com should you need any clarifications on the above.

Please continue to visit our website www.genneva.com for news update.

Thank you

The Management

Bank Negara probes two firms after complaints

PETALING JAYA: Bank Negara Malaysia (BNM) is investigating Genneva Sdn Bhd and Etika Emas Estet Sdn Bhd on suspicion of conducting illegal deposit-taking activities.

The central bank said in a statement posted on its website yesterday that it raided the premises of Genneva and Etika Emas in Klang Valley yesterday following public complaints.

Officials from the two companies say that they are giving full cooperation to the central bank investigators.

Etika Emas president Mohd Amin Supian said he was surprised when Bank Negara officers’ visited his company.

He said that he was told that the visit was a routine check on the business operation.

He added that Etika Emas was a legitimate business dealing in physical gold.

A Genneva official, who did not want to be named, declined to comment except that his company was cooperating with Bank Negara.

Last week, Genneva senior general manager Tony Yao in a response to a StarProbe article said that his company’s business model is not a Ponzi scheme.

He explained that the company sold gold coins and bars to the public at a 5% discount to the prices set by the Federation of Goldsmiths and Jewellers Asso­ciations of Malaysia.

Bank Negara Malaysia Investigates Genneva Sdn Bhd and Etika Emas Estet Sdn Bhd

Bank Negara Malaysia has commenced investigations into Genneva Sdn Bhd and Etika Emas Estet Sdn Bhd under suspicion of conducting illegal deposit taking activities in breach of subsection 25(1) of the Banking and Financial Institutions Act 1989 (BAFIA).

The raids on Genneva Sdn Bhd and Etika Emas Estet Sdn Bhd were conducted today at their premises in Klang Valley following information received from members of the public.

Members of the public are reminded to be cautious of deposit taking schemes and investment schemes offered through various channels such as the internet, phone calls, or seminars conducted by individuals or companies that are not licensed or approved by the relevant authorities.

Members of the public may refer to the list of licensed institutions authorized to accept deposits which is available on Bank Negara Malaysia's website ( www.bnm.gov.my).

For further enquiries, members of the public can contact Bank Negara Malaysia at the following contact points:

BNMTELELINK (Customer Service Call Centre)
Tel: 1-300-88-5465
Fax: 03-21741515
Email: bnmtelelink@bnm.gov.my

BNMLINK (Customer Service Walk-In-Centre)
Block D, Bank Negara Malaysia ,
Jalan Dato' Onn, 50480, Kuala Lumpur
(Business hours: Monday-Friday, 9.00 am - 5.00 pm)

Bank Negara Malaysia
21 July 2009

Genneva’s gold scheme draws brickbats & bouquets

In Malaysia a strange gold scheme is winning hearts of many customers and it is spreading rumours that the scheme is a fraudulent one because it is logically not sustainable.

However, the business is thriving for Genneva Sdn Bhd, a company that sells gold coins and bars to the public, and more and more people are attracted to the scheme now.

Even though there are allegations that the project is a ponzi scheme, the company denied it vehemently saying that their project is very much safe and it can sustain any market fluctuations.

The group’s arguments is that their scheme is uniquely profitable, viable and sustainable business because its product, which is gold, is a safe haven in any time of uncertainty and is not subject to wild fluctuations in price in the world markets.

Genneva’s business model enables customers to purchase physical gold at a discount compared to domestic market prices. The company also provided a conditional buy-back guarantee for the purchase at the same price that the customer had paid for the gold. Genneva sources its gold needs from the international market, where prices can be lower by as much as 17% compared to the recommended retail selling prices by the Federation of Goldsmiths and Jewellers Associations of Malaysia.

The firm then sells its own issued gold coins and bars to the public at a discount compared with prevailing market prices set by the federation. It still would make a profit on these sales.

The company provides a conditional buy-back guarantee for purchasers who may want to resell their gold after buying it. The company is still able to generate continuous income from its profits made from trading gold to enable it to repurchase gold from the customers if they wish to sell it back to the company.

Under the scheme, Genneva’s obligation is to buy back the gold at the same price without discount after a 90-day holding period. There is a week’s grace to sell the gold back to Genneva. Any sale back to Genneva before or after 97 days will be at lower prices to be negotiated.

Genneva gives a discount of around 5% on the domestic market price set by the federation. The discount is paid either at the time of purchase or up to three months after that in instalments.

Genneva guarantees the standard and purity of all gold coins issued by the company as 99.9%. This means customers can also sell their gold coins or bars purchased from Genneva at any goldsmiths that accept gold trade-ins.

Genneva said the company’s business of buying and selling physical gold does not require a licence to operate from Bank Negara.

On June 28, the group formed Samudra-GV Sdn Bhd with a vision to open up the gold market to Malaysians of every race and religion by making the product available to people from all walks of life.