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U Mobile Sdn Bhd together with Celcom Axiata Berhad, Tune Talk Sdn Bhd, Maxis Broadband Sdn Bhd, YTL Communication Sdn Bhd, and Tone Plus Sdn Bhd were each issued compound of between RM10,000 to RM250,000 for failing to register prepaid plan SIM cards without verifying the customer information, in 2019.
The telco companies were found guilty under the Communications and Multimedia Act (CMA) 1998 punishable by prison time of no more than 2 years, fines not exceeding RM100,00, or both.
It is also understood that this is not the first time that Malaysian telco companies have been fined for similar reasons.
Reportedly, Maxis, Digi, Celcom and other service providers have received compounds for failing to comply with service standards and registration guidelines in 2016.
Since 2016, Malaysia requires that mobile prepaid service providers register their users as a means to combat the misuse of prepaid phone numbers for crimes and terrorism.
The rule was also made to protect Malaysian phone users from fraudulent activities and identity theft.
According to the rules, each and every prepaid phone user would need to provide their personal details for registration at the minimum age of 12, and that each individual cannot have more than 5 SIM cards registered under their name.
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