Introduction to New Police Powers

KUALA LUMPUR: Police now have the authority to block and seize transactions linked to online scams, including those involving mule accounts. This was announced in the Dewan Rakyat.

Legal Amendments Granting the Police New Authority

Deputy Minister M. Kulasegaran from 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) took effect on October 30. These changes empower police officers to seize financial assets connected to online fraud.

The Focus on Online Mule Accounts

The new amendments specifically target mule accounts. They also introduce provisions that allow the police to block or seize funds suspected of being involved in financial crimes. These funds may be held in financial institutions.

Police Powers Under Section 116D

A key change is Section 116D, which gives police officers of Sergeant rank or higher the authority to seize or restrict transactions. This applies to funds suspected of being connected to criminal activities, including online scams.

Kulasegaran’s Response to Lim Lip Eng

Kulasegaran answered a question from Lim Lip Eng (PH-Kepong). Lim asked when the government would introduce measures enabling police or banks to temporarily block transactions in online fraud cases.

Preventing Funds from Being Withdrawn

He emphasized that the new law allows police to block these funds. This prevents scammers from withdrawing money from mule accounts.

Complementing Existing Fraud Laws

These amendments work alongside Section 435 of Act 593. This section allows police to seize property suspected of being obtained through fraud or other crimes. It mainly focuses on physical assets.

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 calls came from scam victims who reported losses of RM302.1 million.