New Measures to Combat Online Scam Financial Transactions
KUALA LUMPUR: Police now have the authority to block and seize transactions connected to online scams, including mule accounts, as confirmed in the Dewan Rakyat.
Empowering Law Enforcement to Fight Online Fraud
M. Kulasegaran, the Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform), announced that new amendments to the Criminal Procedure Code (Act 593) and the Penal Code (Act 574) became effective on October 30. These amendments now allow police to freeze or seize financial assets linked to online fraud.
Legal Focus on Online Mule Accounts
The amendments specifically target mule accounts. They equip the police with new legal tools to block financial transactions suspected of involving criminal activity, particularly online scams.
Section 116D and New Police Powers
Section 116D of Act 593 now grants police officers with the rank of Sergeant or higher the authority to seize or restrict funds in any financial account tied to criminal activity. This law aims to streamline action against fraud.
Government’s Response to Public Concerns
In response to Lim Lip Eng’s question, Kulasegaran clarified the government’s initiative to allow police or banks to block transactions temporarily. This measure would help address the challenges faced by scam victims.
Stopping Scammers from Withdrawing Funds
The new law gives the police the power to prevent scammers from withdrawing money from mule accounts. This will effectively block further transactions and minimize the victims’ losses.
Existing Laws and Seizure of Property
These amendments complement Section 435 of Act 593, which allows the police to seize property obtained through criminal activity. It ensures that both physical and financial assets involved in fraud are properly handled.
National Scam Response Centre’s Statistics
Kulasegaran revealed that between October 2022 and September 2023, the National Scam Response Centre (NSRC) received 131,036 calls. Of those, 52,836 were from scam victims who reported losses of RM302.1 million.