PUTRAJAYA, June 23 — The Court of Appeal has upheld the fine of RM5,000 imposed on a registered pawnshop for carrying out the business of selling unredeemed gold items other than pawnbroking.
A three-member panel consisting of Justices Datuk Seri Kamaludin Md Said, Datuk Supang Lian and Datuk Ahmad Nasfy Yasin held that the selling of unredeemed pledges in the business premises of a pawnbroker is an offence under Section 16 (3) of the Pawnbrokers Act 1972.
The court had dismissed Kedai Pajak Shin Ngien Sdn Bhd’s appeal to set aside its conviction and fine for the offence.
In the court’s judgment, Justice Supang said selling unredeemed pledges by the pawnee in the business premises is not part of the pawnbroking business.
“We find that such activities, if carried out, amount to an offence under Section 16 (3) of the Act,” she said in the 34-page judgment, dated to May 24 this year.
Justice Supang said the objective of the Pawnbrokers Act is to not only safeguard the interests of the pawner but also the security of the pledges.
“We are in agreement with the magistrate who had meticulously scrutinised the relevant evidence, that the appellant (Kedai Pajak Shin Ngien) has failed to demonstrate that the sale of unredeemed pledges of gold items by pawnbrokers in their business premises is a universal practice amongst pawnbrokers in Malaysia,” she said.
The practical effect of the sale of unredeemed pledges within the same premises, an act fraught with substantial risks due to the high-risk lending practices rife within the pawnbroking industry, engenders the compromise of the safety of the pledged items, thereby amplifying the risks of illegal activities like money laundering.
“Thus, the legislators have resorted to confining pawnbrokers within the realm of pawnbroking business only, with a view to ensuring these businesses operate in a transparent, secure, and safe manner,” Justice Supang said, adding that by adopting such an approach, those entities can be effectively monitored and regulated to ensure compliance with the existing local laws and regulations.
Kedai Pajak Shin Ngien was found guilty by the Magistrate’s Court and fined RM9,000 for the offence. On appeal, the High Court upheld the conviction but reduced the fine to RM5,000, prompting the pawnshop to appeal to the Court of Appeal.
According to the charge sheet, the offence was committed at its premises in Sungai Way, Petaling Jaya, at 11.30am on March 1, 2017.
— Bernama
