Malaysia Anti Money Laundering Law |
The Legal Basis for Freezing a Bank Account

What is CPC Section 116D?
In simple terms, this provision grants the police extensive authority to issue direct instructions or orders to any person or entity controlling “suspected funds” (such as a bank), prohibiting any use or movement of those funds before a formal court order is obtained.

How is this different from previous freezing procedures?
Previously, a freezing action would generally require an order signed by a Public Prosecutor before it could be enforced.
However, under Section 116D, the police may take immediate action to intercept and freeze the funds without first obtaining such approval.

Why was this law amended?
The primary objective is to combat the growing problem of mule accounts.
In the era of online scams and cyber fraud, illicit funds can be transferred within minutes. As such, the authorities require powers that enable them to act swiftly to prevent the dissipation of funds.

What if an innocent person is affected?
Although the provision is intended to combat criminal activities, there are cases where individuals are unknowingly implicated and have their bank accounts frozen despite having no involvement in any wrongdoing.
In such situations, it is important to understand the applicable legal procedures and seek assistance through the proper legal channels to resolve the matter.