Cops can now block suspicious transactions

Cops can now block suspicious transactions

The police are now authorised to block transactions or seize funds suspected to be linked with financial crimes, such as mule accounts, the Dewan Rakyat heard.

Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M. Kulasegaran said recent amendments to the Criminal Procedure Code (Act 593) and Penal Code (Act 574), which were enforced on Oct 30, empower the police to not only to seize but also to block financial assets from further transactions.

“The amendments made to Acts 574 and 593 through these Bills focus on establishing offences related to online mule accounts and introduce new provisions granting police officers the authority to seize funds suspected of being involved in criminal activities stored in financial institutions.

“Specifically, the amendment to Act 593 introduced a new provision, Section 116D, which empowers police officers with the rank of sergeant or higher to seize or restrict transactions involving funds held and suspected of being involved in any payment instrument or financial institution account, and to make provisions for related matters,” he said during the Minister’s Question Time in the Dewan Rakyat yesterday.

Kulasegaran was replying to a question from Lim Lip Eng (PH-Kepong) on when the government would introduce legislation empowering the police or banks to temporarily block banking transactions by people targeted by scams.

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Freezing such assets from further transactions prevents the withdrawal of victims’ funds from mule accounts in online scams.

This complements existing provisions under Section 435 of Act 593, which relate to the police’s power to seize property suspected of being stolen, including through fraud, and focus primarily on physical assets.