Police Now Can Block Scam Transactions

Police Can Now Block and Seize Funds in Online Fraud Cases

KUALA LUMPUR: Police now have the power to block or seize transactions involving funds linked to online fraud, including mule accounts. This change was announced in the Dewan Rakyat.

Legal Amendments Explained

M. Kulasegaran, the Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform), shared that recent amendments to the Criminal Procedure Code (Act 593) and the Penal Code (Act 574) came into effect on October 30. These amendments give police the authority to freeze or seize funds related to online scams.

Targeting Mule Accounts

These changes primarily focus on mule accounts. Now, police can block or seize funds held in financial institutions that are suspected of criminal involvement.

Key Change: Section 116D

The new Section 116D, added to Act 593, allows police officers with the rank of Sergeant or higher to seize or block transactions involving funds tied to criminal activity, especially in online scams.

Kulasegaran Responds to Lim Lip Eng

Kulasegaran responded to Lim Lip Eng (PH-Kepong), who asked when the government would introduce laws allowing police or banks to temporarily block transactions in scam cases.

Blocking Fund Withdrawals

Kulasegaran explained that the law now enables police to block transactions, ensuring scammers cannot withdraw funds from mule accounts.

Complementing Existing Laws

This new measure complements Section 435 of Act 593. Section 435 allows police to seize stolen property, including fraudulently obtained assets. It focuses mainly on physical property.

NSRC Call Statistics

Kulasegaran also shared data from the National Scam Response Centre (NSRC). From October 2022 to September 2023, the NSRC received 131,036 calls. Of these, 52,836 were from scam victims, who reported a total loss of RM302.1 million.