Police now have the authority to freeze and seize funds in bank accounts suspected of being mule accounts, as part of the latest measure to combat financial scams involving such accounts.

Deputy law and institutional reform minister M Kulasegaran stated that this measure has been made following recent amendments to the Penal Code and Criminal Procedure Code. These amendments, passed in July, took effect on 30 October. 

He told Parliament that these amendments allow police to block suspicious transactions in any bank or financial institution in a bid to stop scammers from withdrawing stolen money from mule accounts.

“This amendment allows the police to not only seize but also to prevent the property from being used for other transactions with the aim of preventing money from victims of online scams from being withdrawn from mule accounts.

“And will further complement the existing provisions, namely Section 435 of Act 593 (Criminal Procedure Code) concerning the police’s power to seize property suspected of being stolen, including fraud, which learns more towards physical property,” he said. 

Kulasegaran also clarified that police officers ranked sergeant or higher are authorised to freeze accounts suspected of financial crime. However, this action requires specific criteria to be met: there must be a reasonable belief that an offence has been committed, suspicion that the funds were used or intended for criminal activity, and grounds to believe that the funds serve as evidence of an offence.

Additionally, he said a proposed Online Safety Bill would compel online platforms to remove harmful content or content suspected of financial crime during investigations.

“Under the new Bill, online financial crimes are categorised as serious and will be given priority. If a certain content is reported as an online financial crime, platform providers have the responsibility to take down the content temporarily until further investigation is carried out,” he said. 

(Source: Malaymail)

• TAGS:
• Financial Scams
• M Kulasegaran
• Mule Accounts