How Police Trace Money in Mule Cases

Where a money trail begins

A trace can start with a victim, not a suspect. Someone realises they have been scammed and reports it, for example through the NSRC 997 hotline, which lets victims report and trigger urgent freezes ^[f1].

That report names the account the money went to first. That account becomes the starting point of the trail. Investigators then ask where the money went next, and next again.

Following the money account by account

Every bank transfer leaves a record: the date, the amount, the sending account, and the receiving account. Investigators read these records to map how the money moved from one account to the next.

In mule cases, this work is done by the Commercial Crime Investigation Department (CCID) at Bukit Aman ^[f3]. They do not need to see the cash, because the records show the path.

How a freeze fits in

A trace and a freeze can go together. A police officer of Sergeant rank or above can freeze an account and block transactions at once, on suspicion, without a court order ^[f2].

The freeze stops the money moving further while the trail is followed. You may first find out you are part of an investigation from a failed transaction, not a phone call.

Why the named account holder is found early

The person whose name is on a receiving account is easy to identify, because the record points straight to them. The people in control, hidden behind several layers, are much harder to reach.

The Semak Mule portal listed more than 190,000 flagged accounts as of 2024/2025 reporting ^[f4]. Being identified early does not decide guilt. It reflects how bank records work, not what you intended.

What a trace shows, and what it does not

A trace shows that money entered an account, when, and where it went next. It does not show what the account holder knew or meant. Money can pass through the account of someone who was tricked into lending it.

That gap matters for your defence. Section 424C of the Penal Code, on transactions through an account without a lawful purpose, carries 3 to 10 years in jail, or a fine of RM10,000 to RM150,000, or both ^[f5]. What the records say about your intent has to be examined, not assumed.

What to do if a trace has reached you

Do not move money, close accounts, or delete anything once you suspect a trace. Keeping the record intact helps show the truth.

Keep the messages that explain how your account came to be used, such as a job offer or a request from someone you trusted. These show what you understood at the time.

What your own records add

Bank records show the movement of money, not the reason behind it. Your own records can fill that gap.

Keep copies of the relevant bank statements and transaction alerts. Being able to point to each entry and explain what you thought it was is better than relying on memory. Note the date you first learned your account was frozen.

If you reported anything, keep the reference number. A call to the National Scam Response Centre on 997 creates a record that can support your account of being a victim ^[f1]. Keep any complaint to your bank in the same file.

Bring all of this to a lawyer before you give a statement. The CCID follows the money trail ^[f3], and a lawyer can help make sure the honest story behind the transfers is recorded alongside it.

Sources

1. https://www.nsrc.gov.my/
2. https://www.parlimen.gov.my/
3. https://www.rmp.gov.my/
4. https://semakmule.rmp.gov.my/
5. https://www.lawnet.com.my/penal-code