Criminal Conspiracy Charges in Mule Cases

What does criminal conspiracy mean?

Under Section 120A of the Penal Code, criminal conspiracy is when two or more people agree to do an illegal act, or a legal act by illegal means. ^[f1] Our page on the investigation and court process explains what happens after a charge.

The key word is “agree”. The agreement itself is the crime. Once it is made, the conspiracy is complete, whether the plan was carried out, attempted or dropped.

In mule account cases, prosecutors can use conspiracy to link everyone in a mule operation: syndicate leaders, recruiters and account holders. Even if your own role was small, the charge can tie you to the wider scheme.

Why do prosecutors use conspiracy in mule cases?

A conspiracy charge gives the prosecution three advantages.

Wider reach. It can cover anyone who was part of the agreement, even someone who never handled money or owned an account. That lets prosecutors charge recruiters, coordinators and go-betweens.

It can be easier to prove than single acts. Sometimes the prosecution has strong evidence of a group scheme but cannot tie each transfer to one person. Conspiracy moves the focus from individual acts to the shared plan. ^[f3]

The penalty can match the main offence. Under Section 120B, conspiracy to commit an offence punishable with 2 years’ imprisonment or more is punished as if the person had abetted it. ^[f2] If the planned offence is carried out, the penalty is the same as for the offence: for Section 424C, a fine of RM10,000 to RM150,000, 3 to 10 years in jail, or both.

If it is not carried out, the maximum is a quarter of the prison term, or the fine, or both.

What must the prosecution prove?

To convict you of conspiracy, the prosecution must prove three things.

There was an agreement. There must be evidence that you and at least one other person agreed to do something illegal. It need not be written or formal. An informal understanding, or a plan shared over messages, is enough. ^[f1]

You were part of it. The prosecution must show you personally joined the agreement, not just that you knew about it. Knowing others were running a mule scheme is different from agreeing to take part. ^[f4]

The plan was illegal. The agreed plan must involve an illegal act. In mule cases, that is usually one of the mule account offences under Sections 424A, 424B or 424C.

The prosecution does not have to prove the offence was completed. ^[f1] The agreement alone is the crime.

Knowing someone is not conspiracy

Conspiracy law draws a clear line between knowing people and agreeing with them. Being friends with someone who committed a crime is not conspiracy. Nor is working at the same company, or even knowing about a crime without joining it. ^[f4]

The prosecution must prove you actively agreed to take part. Your lawyer will test whether the evidence shows a real agreement or only a social link.

These alone do not prove a conspiracy:

• going to the same social events;
• being in the same WhatsApp group for ordinary purposes;
• working at the same place;
• a normal friendship with someone later found to be involved.

Common conspiracy situations in mule cases

The group chat. Several people discuss in a WhatsApp or Telegram group how to collect bank accounts and move transfers. If you were in the group and took part, the prosecution may argue you joined the conspiracy.

The recruitment chain. You recruited someone, who recruited others. The prosecution can treat the whole chain as one conspiracy. Where you sat in the chain affects the evidence against you, but not the charge.

The workplace arrangement. Workers at a factory or site agree to let someone use their accounts. If it was organised, for example by a senior worker, everyone involved may face conspiracy charges.

The family link. Family members agree to hand over their accounts as part of a scheme. Being family does not stop a conspiracy charge. The question is whether there was an agreement to commit the offence.

How can a conspiracy charge be defended?

No agreement. The strongest defence is that there was no agreement. If you knew nothing of the scheme, were part of no plan and agreed to nothing illegal, there is no conspiracy. ^[f3] Your lawyer will challenge the prosecution’s evidence of an agreement.

Knowing is not agreeing. Knowing others were in a mule scheme is not the same as agreeing to join. ^[f4] Your lawyer will argue that awareness is not taking part, especially if you did nothing to help the scheme along.

Withdrawal. If you first agreed but pulled out before the offence was committed, it may help your case, but it does not undo an agreement already made. ^[f5] Evidence includes messages refusing to go on, steps you took to stop the offence, or a report to the authorities.

Lack of knowledge. You may have agreed to something you believed was legal, such as helping a friend with a business deal, without knowing it was part of a crime. That undermines the charge. The agreement must be to do something illegal, so what you believed about the plan matters.

What to do if you face a conspiracy charge

Get legal advice now. If the planned offence is carried out, a conspiracy charge carries the same penalty as the main offence. ^[f2] A lawyer who handles mule account cases will know how prosecutors build these cases and how to challenge them.

Do not contact the co-accused. Any contact with others charged in the same case can be used as evidence that the conspiracy continued. Let your lawyer handle all contact.

Keep evidence that you are innocent. Messages showing you refused, raised doubts or distanced yourself from the scheme are valuable. Screenshots, call logs and witness statements all help.

Understand the charge sheet. Your lawyer will explain exactly what is alleged: who you are said to have conspired with, what the agreement was and what evidence the prosecution relies on. You need this to build your defence.

Conspiracy and the main offence are separate charges

You can be charged with both conspiracy and the mule account offence itself. For example, you might face conspiracy to commit a Section 424A offence and a separate charge under Section 424A.

The conspiracy charge targets the agreement. The other charge targets the act. Each has its own elements, so your lawyer may defend them differently: challenging the evidence of agreement for one, and your knowledge for the other.

Sources

1. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)
2. Raj, Ong & Yudistra, “Unveiling the Mystery: When Your Bank Account Gets Frozen by the Law” (2024)
3. Penal Code, Sections 120A, 120B (Criminal Conspiracy provisions)