Arrested Over a Mule Account: What Happens Next

What happens when you are arrested?

An arrest for a mule account offence follows a set legal process. Knowing each step helps you protect your rights.

When the police arrest you, they must tell you why. You are taken to a police station and booked, and your belongings are listed and kept.

What you say and do after an arrest can affect the rest of your case.

Your right to a lawyer

From the moment you are arrested, you have the right to a lawyer. CPC Section 28A lets you consult a lawyer before the police question you. ^[f1] Article 5(3) of the Federal Constitution guarantees your right to be represented by a lawyer of your choice. ^[f4]

Ask for a lawyer straight away. You do not need to explain why; it is your legal right. If you do not have a lawyer, ask to contact a relative or friend who can find one. Legal aid from the National Legal Aid Foundation (YBGK) may also cover arrest and remand.

Do not sign anything or make a statement until you have spoken to a lawyer. This is not about hiding anything. It makes sure your words are recorded correctly and your rights are respected.

How remand works

After an arrest, the police may ask a Magistrate for a remand order, which lets them hold you while they investigate. ^[f2] For an offence carrying under 14 years in jail, which includes s424A, s424B and s424C, the first period is up to 4 days and the police can ask for up to 3 more, so 7 days at most. Only offences carrying 14 years or more allow 7 days and then 7 more.

You must be brought before a Magistrate for the remand hearing. It is not a trial. The Magistrate only decides whether the police have good enough reason to keep holding you.

Your lawyer can attend and argue against remand. The Magistrate considers whether remand is really needed, or whether you can be released on bail or on your own promise to return.

If you are a family member reading this, knowing the remand dates helps you arrange a lawyer and be at the hearing.

What are the charges under Sections 424A, 424B and 424C?

If the police decide to charge you, the charge may fall under one or more of the Penal Code’s mule account sections.

• Section 424A: holding or controlling someone else’s account without lawful authority. The penalty is a fine of RM5,000 to RM50,000, prison of six months to five years, or both. ^[f5]
• Section 424B: handing over control of your own account. The penalty is a fine of RM10,000 to RM100,000, prison of one to seven years, or both. ^[f5]
• Section 424C: transactions through an account without a lawful purpose. The penalty is a fine of RM10,000 to RM150,000, prison of three to ten years, or both. ^[f5]

All three are bailable offences, so you have the right to apply for bail. ^[f5]

How does bail work?

For a bailable offence, you have a right to be released on bail. ^[f3] The court or the police set the amount and conditions. ^[f6] It depends on how serious the charge is, your circumstances and whether the court thinks you might run away.

Your lawyer can apply for bail and argue for an amount you can afford. The court looks at your job, your family ties, any past record and how strong the prosecution’s case is.

Bail can be paid in cash or through a surety, meaning a person who promises the court you will turn up. You are then released on conditions. These can include handing in your passport and reporting to a police station at set times.

If you cannot afford the amount set, your lawyer can ask for it to be reduced. The court can lower bail so that it does not become a punishment.

What happens after bail?

You must keep to the bail conditions and attend every court date. If you miss one, your bail can be cancelled and a warrant issued for your arrest.

Your lawyer starts preparing your defence. That means reading the police papers, gathering evidence in your favour and choosing the right defence strategy.

The investigation and court process continues after bail. Your lawyer keeps you updated and represents you at each hearing.

What should your family know?

If your family wants to help, they can:

• contact a lawyer for you;
• attend the remand and bail hearings;
• pay bail for you;
• bring your identity documents and any job or financial records that support a bail application.

Our guide on what to do when a family member is arrested sets out the steps families can take.

Why you should get legal advice before you cooperate

Cooperating with the police matters, but doing so without advice can harm your case. Being cooperative is different from volunteering information that can be used against you.

Give your identity details. Beyond that, use your right to consult a lawyer before you are questioned. A lawyer can explain your rights and what to check in your statement.

This matters most in mule account cases. Whether someone was an innocent user or is criminally liable can depend on small facts and how they are explained.

Sources

1. Criminal Procedure Code (CPC), Sections 28A, 117, 387
2. Federal Constitution of Malaysia, Article 5(3)
3. Penal Code (Amendment) 2024, Sections 424A, 424B, 424C
4. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)
5. Malaysian Bar Council, Legal Aid Centre Information