According to a source, MACC arrested the people after receiving information about criminal activities carried out by a licensed trust company under the finance ministry and Bank Negara Malaysia.

The source said the company was found to have used funds collected from investors for their personal benefit after an estimated RM104 million was misappropriated from the company to several private companies owned by proxies.

Four of the five people arrested are directors at the company, with all five people arrested at the MACC headquarters in Putrajaya when providing their statements last night. They have been remanded until Jan 21.

MACC chief commissioner Azam Baki confirmed the arrests and said the case is being investigated under Section 18 of the MACC Act 2009.

He explained that the investigation required MACC officers to possess significant expertise to monitor and trace the movement of funds.

Azam also said the probe was aimed at assisting the government in strengthening public confidence in the regulatory bodies that issue licences for trust companies, as well as to create a safe platform for potential investors.