Police Granted Power to Seize Scam Transactions

Introduction: Empowering the Police to Act Against Online Fraud

KUALA LUMPUR: The police now have the ability to block and seize financial transactions tied to online fraud, including mule accounts. This was confirmed in a recent announcement in the Dewan Rakyat.

Details of the Recent Legal Amendments

M. Kulasegaran, the Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform), explained that recent amendments to the Criminal Procedure Code (Act 593) and the Penal Code (Act 574) came into effect on October 30. These updates grant the police authority to intervene in financial transactions linked to online scams.

Targeting Online Mule Accounts

The amendments focus on online mule accounts. They introduce new measures that allow law enforcement officers to freeze or seize funds linked to financial crimes, such as online scams. These funds are often stored in banking institutions.

Police Powers Under Section 116D

The key change involves the introduction of Section 116D in Act 593. This section empowers police officers of the rank of Sergeant and above to restrict or seize assets linked to any payment system or bank account involved in criminal activity.

Response to Lim Lip Eng’s Inquiry

Kulasegaran responded to a question from Lim Lip Eng (PH-Kepong). Lim had asked about the government’s plans to allow authorities to temporarily block transactions from scam victims’ accounts.

Preventing Withdrawal of Funds

Kulasegaran emphasized that the amendments enable police to prevent further transactions. This blocks scammers from accessing stolen funds held in mule accounts.

Complementary Measures in Existing Law

These updates complement Section 435 of Act 593, which grants police the authority to confiscate stolen property, including assets obtained through fraud. Police can act when they have reasonable suspicion that the property is involved in criminal activity.

NSRC Call Statistics

Kulasegaran shared that between October 2022 and September 2023, the National Scam Response Centre (NSRC) received 131,036 calls. Of these, 52,836 were from scam victims who reported losses totaling RM302.1 million.