No "ARAHAN BAYARAN" from EPF..please help

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asked on Oct 15, 2014 at 02:11
by   Chaster
EPF approved my friend’s health withdrawal application, however rejected her request for payment under “ARAHAN BAYARAN” (which is collect cash from the bank counter) and insists that she open a bank account with their panel of banks. What the hell…looks like EPF is owned by the banks nowadays. Members should be given the choice if they want CASH or whatsoever method of payment because it is their money anyway. 

EFP rules is at such that if you wish to withdraw under “ARAHAN BAYARAN” you must be a bankrupt and a person needs to prove it by producing a letter from the insolvency department, furthermore if your withdrawal is under RM1,000. Is EPF nowadays governed by insolvency law? I though bankrupts’ EPF are protected by law. 

Anyway, unfortunately my friend believe that she might be a bankrupt (not confirmed, she was abroad), however she is unable to open any saving accounts because the banks have already blacklisted her since she owes other banks. She can’t be a bankrupt yet because her travelling abroad is not restricted, moreover she just recently renewed her passport. Therefore she is in limbo now and not knowing what to do. She is better off being a bankrupt if that the case of just producing a letter.  
As such, hopefully you can advise on the following matter and answer some of my questions:-

1) Have anyone managed to request an “ARAHAN BAYARAN” which was approved by EPF? If yes, please share your experience
2) Can a bankrupt person just walk into a bank and open a basic saving account? Do the bank have a system to check if someone is a bankruptcy?
3) Since she can’t open an account in Malaysia, can she open an account in Singapore? Is Singapore banks connected (online) with Malaysian banks to track blacklisted or even bankrupt people?
4) Would it be a problem nowadays for a Malaysia to open a Singapore basic bank account?

Hope to have some help soon. Thanks
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