Police Can Block and Seize Online Scam Funds

Introduction: New Police Powers for Online Scam Cases

KUALA LUMPUR: The police can now block or confiscate financial transactions linked to online scams, including those involving mule accounts. This new authority was announced in the Dewan Rakyat.

Recent Legal Amendments Empowering the Police

M. Kulasegaran, Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform), shared that recent changes to the Criminal Procedure Code (Act 593) and the Penal Code (Act 574) took effect on October 30. These changes give the police the power to seize and restrict financial assets tied to online fraud.

Key Changes to Address Online Mule Account

The amendments specifically target online mule accounts. They introduce new provisions that allow the police to block or seize funds suspected of criminal involvement and stored in financial institutions.

New Police Authority Under Section 116D

A significant change is the introduction of Section 116D to Act 593. This section empowers police officers, ranked Sergeant or higher, to restrict or seize funds from payment instruments or financial institution accounts suspected of being involved in crimes.

Response to Lim Lip Eng’s Question

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

Preventing Further Transactions of Scam Funds

Kulasegaran emphasized that the new law would enable the police to prevent scammers from accessing victims’ money. This action stops funds from being withdrawn from mule accounts involved in scams.

Complementing Existing Legal Provisions

These amendments complement Section 435 of Act 593, which gives the police the authority to seize stolen or fraudulently obtained property, focusing mainly on physical assets. Police can act if they have reasonable suspicion that the property is being used in a crime.

National Scam Response Centre’s Statistics

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