KUALA LUMPUR: The government today approved amendments to the law to combat online financial fraud crimes, including the alarming issue of account mules in the country.
The Penal Code (Amendment) Bill 2024 and the Criminal Procedure Code (Amendment) Bill 2024 will be presented for the first reading in the Dewan Rakyat by the Minister in the Prime Minister's Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said.
The amendments under the Penal Code introduces several new sections to provide for offences and penalties related to payment instruments or accounts in financial institutions.
Under Section 424a, provisions are made for offences and penalties regarding the possession or control of any payment instrument of another person or any other person's account in a financial institution without lawful authority or legitimate purpose.
Section 424b addresses the provision of possession or control of a payment instrument or account in a financial institution to any other person without lawful authority or legitimate purpose.
Under this section, anyone who, directly or indirectly, without lawful authority or legitimate purpose, gives possession or control over their payment instrument or account in a financial institution to any other person, can be fined between RM10,000 and RM100,000 or imprisoned between one and seven years, or both.
Subsection 424c(1) concerns a person involved in any transaction using their payment instrument or account in a financial institution without a legitimate purpose.
Subsection 424c(2) concerns a person involved in any transaction using another person's payment instrument or account in a financial institution without lawful authority or legitimate purpose.
Additionally, Section 424d aims to provide definitions for "financial institution" and "payment instrument" in the context of the proposed new Sections 424a, 424b, and 424c.
Azalina was previously reported saying the amendments were being made because existing laws do not provide for any offences for bank account holders who allow their accounts to be used by others for illegal purposes and obstruct the police in intercepting the movement of victims' funds channeled to mule accounts.