Anti Money Laundering Law

Legal Quick Guide: Which Malaysian Authorities Can Freeze a Bank Account? What Does a Freezing Order Contain?

1. Which Malaysian Government Authorities Have the Power to Issue a Freezing Order?

It is not limited to the police.

The following enforcement agencies may issue freezing orders in the course of their investigations:

Royal Malaysia Police (PDRM)
Malaysian Anti-Corruption Commission (MACC)
Bank Negara Malaysia (BNM)
Inland Revenue Board (LHDN)
Royal Malaysian Customs Department (Customs)
Immigration Department (Immigration)
Other legally authorised enforcement agencies

Legal Quick Guide: Bank Account Suddenly Frozen? Understanding These “3 Documents” Is Crucial!

Common Situation When an Account Is Frozen:

Your personal or company bank account suddenly becomes unable to transfer funds.

When you contact the bank, the bank only informs you that there is “an ongoing investigation” and asks you to lodge a police report and provide an explanation.

After complying and submitting the police report to the bank, you may find yourself waiting indefinitely, while the police station is unable to provide any specific information regarding the investigation.

Recently, many people have asked: What should I do if my personal or company bank account is suddenly frozen and I can no longer transfer funds? When they contact the bank, the bank simply says that “there is an ongoing investigation” and advises them to lodge a police report and submit supporting documents. However, even after doing so and waiting for some time, the account remains frozen. When they approach the police station for clarification, they are often unable to obtain a clear explanation.

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.