Mule Account Offences in Malaysia: Penal Code Sections 424A to 424C
In Malaysia it is a criminal offence to let another person control your bank account or payment card, to control someone else's, or to move money through an account without a lawful purpose. Sections 424A to 424C of the Penal Code, in force since 30 October 2024, carry fines of up to RM150,000 and prison terms of up to 10 years.
This article explains what each offence covers, how the courts have sentenced recent cases, how a mule account case can also lead to money laundering charges and freezing orders under AMLA, the situations in which people are drawn in, and what to do if your account has been used.
Key takeaways
- Sections 424A to 424C of the Penal Code, inserted by the Penal Code (Amendment) Act 2024 (Act A1721), make it an offence to give away, take over or transact through a bank account or payment instrument without lawful authority or lawful purpose.
- Giving another person control of your own account or card under section 424B is punishable with a fine of RM10,000 to RM100,000, imprisonment of one to seven years, or both.
- Prosecutors still also use the older section 424 of the Penal Code, which covers dishonestly helping to conceal or remove property and carries up to five years' imprisonment, a fine, or both.
- The same facts can support a money laundering charge under section 4 of AMLA and lead to the account being frozen, so a mule case is rarely only a Penal Code case.
- If your account was used, stop the access at once, keep every message and record, alert your bank, and take legal advice before explaining your role to anyone.
On this page
- What is a mule account under Malaysian law?
- What do sections 424A, 424B and 424C prohibit?
- How are mule account cases being charged and sentenced?
- How does a mule account case relate to AMLA?
- How do people end up as account mules?
- What should you do if your account was used as a mule account?
- Frequently asked questions
What is a mule account under Malaysian law?
A mule account is a bank account or card used to receive and pass on money for someone else, usually scam proceeds. Parliament created specific offences so that the account holder can be prosecuted even where the scam itself cannot be proved against him or her.
The Penal Code (Amendment) Act 2024 (Act A1721) inserted sections 424A to 424D into the Penal Code (Act 574). Section 424D defines the key terms:
- a financial institution means a licensed bank under the Financial Services Act 2013 (Act 758), a licensed Islamic bank under the Islamic Financial Services Act 2013 (Act 759), or a prescribed institution under the Development Financial Institutions Act 2002 (Act 618);
- a payment instrument means a designated payment instrument, or designated Islamic payment instrument, prescribed under the Financial Services Act 2013 or the Islamic Financial Services Act 2013.
In practice the offences cover the account, the card and the online banking login that controls it. They do not depend on the amount: a transfer of a few hundred ringgit can found a charge.
Under new section 116D of the Criminal Procedure Code, a police officer of Sergeant rank or above can also order that dealings in a suspected mule account be stopped.
What do sections 424A, 424B and 424C prohibit?
The three sections target different people in a mule chain: the recruiter, the holder who hands over an account, and anyone who moves money through an account without a lawful purpose.
| Section | Who it targets | Penalty on conviction |
|---|---|---|
| 424A | A person who possesses or controls another person's account or payment instrument without lawful authority or lawful purpose, such as a syndicate member holding other people's cards | Fine of RM5,000 to RM50,000, or six months to five years' imprisonment, or both |
| 424B | A holder who, directly or indirectly, gives another person possession or control of his or her own account or payment instrument without lawful authority or lawful purpose | Fine of RM10,000 to RM100,000, or one to seven years' imprisonment, or both |
| 424C(1) | A holder who transacts through his or her own account or payment instrument without lawful purpose, for example receiving scam money and forwarding it | Three to 10 years' imprisonment, or a fine of RM10,000 to RM150,000, or both |
| 424C(2) | A person who transacts through another person's account or payment instrument without lawful authority or lawful purpose | Same as section 424C(1) |
Section 424C(1) refers only to the absence of a lawful purpose, since no authority is needed to use your own account. Because each section provides for a fine or imprisonment, a court can impose a fine alone: in January 2026 a man was fined RM20,000 under section 424C(1) for receiving RM15,000 from a used car scam.
How are mule account cases being charged and sentenced?
Most mule account cases are heard in the Sessions Court, and prosecutors choose between the new offences and older Penal Code provisions. Section 424, which punishes dishonestly concealing or removing property or assisting in it, is still widely used. It carries up to five years' imprisonment, a fine, or both, with no minimum fine. Reports from the Johor Bahru Sessions Court in 2026 show the range:
- in June 2026, four men were charged under section 424 over accounts linked to fake loan, investment and job offers, and a woman under section 424C(1) for using corporate accounts to receive about RM157,000;
- in August 2026, a 22-year-old student who pleaded guilty under section 424 to helping a man move RM525 into her account was fined RM500;
- on the same day, a man who pleaded guilty to nine charges of letting his account receive over RM36,000 from victims of fake room rentals was jailed for nine months.
Sentences turn on the number of transactions, the amounts, the victims' losses, previous convictions and any guilty plea. Charges are often brought one transaction at a time, so one account can lead to many charges.
How does a mule account case relate to AMLA?
A mule account case can quickly become a money laundering case. The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613), or AMLA, gives the authorities separate powers over the person and the funds.
- A charge under section 4(1) of AMLA is possible where the holder received or transferred proceeds of an unlawful activity and knew, had reason to believe or had reasonable suspicion of their origin. On conviction, imprisonment of up to 15 years is mandatory since 1 March 2026, together with a fine of at least five times the amount or RM5 million, whichever is higher. See our article on the section 4 offence.
- Since the AMLA (Amendment) Act 2025 (Act A1761) came into force on 1 March 2026, any federal offence punishable with imprisonment of one year or more is a serious offence, a definition the mule account offences appear to meet.
- The account can be frozen under section 44 of AMLA and the money later forfeited even if no one is convicted, as explained in bank account frozen under AMLA.
The difference is the mental element. The Penal Code offences do not require proof that the money was criminal proceeds; a money laundering charge requires that link plus knowledge or suspicion.
How do people end up as account mules?
Most account holders charged did not set out to commit a crime. They accepted an offer that seemed harmless. Typical scenarios include:
- a part-time job on social media to receive payments for a company and transfer them on for a commission;
- an offer to rent or sell your account, card and login for a fee;
- a friend or relative who asks to borrow your account because their own is blocked;
- a loan offer that requires you to hand over your card, PIN or login as security;
- a director letting an outsider operate the company's account.
Banks warn of the same red flags: easy commissions, requests to receive and pass on money, requests for your PIN, password or TAC, and pressure to act quickly or keep it secret.
Being deceived is relevant but not a complete answer. Handing your card and login to a stranger for a fee is what section 424B describes.
What should you do if your account was used as a mule account?
Stop further use at once, preserve the evidence, and get legal advice before you give a statement.
If you let someone use the account
- Change your passwords and PIN, cancel the card, and use the bank's kill switch or account lock.
- Do not move any money left in the account.
- Keep the advertisement, chat messages, phone numbers, names and transaction records.
- Take legal advice before a police interview or a written explanation to the bank, because what you say can be evidence.
If the account was used without your knowledge
- Call your bank's 24-hour hotline and the National Scam Response Centre on 997.
- Lodge a police report promptly and keep proof of when you discovered the problem.
You can check an account or phone number against police records at semakmule.rmp.gov.my, though a nil result does not prove it is safe.
If the account has been frozen, or you have been called to give a statement or charged, our criminal litigation team can advise after reviewing the documents at a consultation.
Frequently Asked Questions
Is it an offence to let a friend use my bank account in Malaysia?
Yes, it can be. Under section 424B of the Penal Code, giving another person possession or control of your own bank account or payment card without lawful authority or lawful purpose is an offence in Malaysia, punishable with a fine of RM10,000 to RM100,000, imprisonment of one to seven years, or both. Whether an arrangement is lawful depends on its real purpose.
What is the penalty for a mule account in Malaysia?
The penalty depends on the charge. Under the Penal Code in Malaysia, controlling another person's account under section 424A carries a fine of RM5,000 to RM50,000 or six months to five years' jail; giving away your own account under section 424B carries RM10,000 to RM100,000 or one to seven years; transacting without a lawful purpose under section 424C carries three to 10 years or RM10,000 to RM150,000.
Can I be charged if I did not know my account was used for a scam?
Possibly. In Malaysia, the mule account offences in sections 424A to 424C of the Penal Code turn on whether the account was given away or used without lawful authority or lawful purpose, not on proof that the holder knew of the scam. A money laundering charge under section 4 of AMLA needs knowledge, reason to believe or reasonable suspicion. Evidence of how the account came to be used is therefore important.
Will my bank account be frozen if it was used as a mule account?
Very likely. In Malaysia, a police officer of Sergeant rank or above can order that dealings in a suspected mule account be stopped under section 116D of the Criminal Procedure Code, and an enforcement agency can freeze it under section 44 of AMLA. The bank may also restrict or close the account and refuse future accounts under its own terms. Each measure has different time limits and remedies.
What should I do if someone used my bank account without my permission?
If your bank account in Malaysia was used without your permission, call your bank's 24-hour hotline and the National Scam Response Centre on 997, lock the account and card, and lodge a police report promptly. Keep records of when you discovered the problem and every step you took. Do not move any remaining money. If the police contact you about the account, take legal advice before giving a statement.
Need advice on your own situation?
Every case turns on its own facts and documents. Our lawyers in Puchong and Mont Kiara advise once we have reviewed your documents at a consultation, online or in person.
Related reading
This article is general information on Malaysian law as at October 2026 and is not legal advice. Laws and procedures change, so please seek advice on your own facts before acting.
