Construction Worker Mule Account? Know Your Rights

How do construction workers get pulled into mule schemes?

You came to Malaysia to work on a construction site. As part of getting the job, you opened a local bank account for your salary. ^[f1] This is normal and required.

Then your agent or a senior worker asks for your ATM card, your PIN or your online banking login. They say it is for “processing” or “company purposes”.

You hand it over because they arranged your job and your permit, and you trust them.

A syndicate then uses your account to move money from scam victims. ^[f2] When police trace the money, your name is on the account. The agent has gone, and you are the one being questioned.

What are your rights if the police come?

If police come to your site or your hostel, you have rights whatever your nationality or permit status.

You can have an interpreter. If you do not speak Malay or English well, you have the right to an interpreter. ^[f3] Do not give a statement in a language you do not fully understand. Ask for an interpreter in your own language.

You can ask for a lawyer. You can ask to speak to a lawyer before you answer questions. This applies to everyone in Malaysia, not only citizens. Tell the officer: “I want a lawyer before I give a statement.”

You can contact your embassy. As a foreigner, you can ask the police to tell your embassy or consulate. They may help with a lawyer referral and with contacting your family at home.

What do Sections 424A and 424B mean for you?

Section 424A of the Penal Code covers holding or controlling someone else’s account or card. Letting someone else hold or control your own account is an offence under Section 424B. ^[f2] The penalty under Section 424B is a fine of RM10,000 to RM100,000, or 1 to 7 years in jail, or both.

The offence is about letting someone use your account, not whether you moved the money yourself. If you gave your card or PIN to your agent, the prosecution may say you “allowed” it.

Your defence is about why you handed it over. If your agent pressured you, if you thought it was part of your job, or if you did not understand what would happen, these facts help you. A lawyer who handles mule account defence can present them properly.

How does the agent’s power over you affect your case?

Some construction workers have their passports held by agents or employers. ^[f4] That makes it hard to refuse any request, including handing over a bank card.

An agent who keeps your passport without lawful authority may commit an offence under the Passports Act 1966. It can also be a sign of forced labour or trafficking. ^[f4] This can help your defence, because it can show you were in a weak position and could not freely say no.

Write down what you know about the agent: name, phone number, company and any messages or instructions. If coworkers saw the agent take ATM cards or passports, what they saw can support your defence.

What happens to your work permit?

A criminal charge does not automatically cancel your work permit. ^[f5] If you are not held in remand, you may be able to keep working while the case goes on.

A conviction, though, may affect renewing your permit or coming back to Malaysia later. That is one reason to get proper legal help with the case.

If your employer wants to dismiss you because of the charge, a lawyer can write to explain that a charge is not proof of guilt. Malaysian employment law gives some protection to workers, including foreign workers, who think they were dismissed without just cause.

What will your lawyer focus on?

Your lawyer will usually look at four things.

Who had the power. Your lawyer will set out your relationship with the agent or employer.

Could you refuse? Did you understand what you were agreeing to? Were you threatened?

Language and understanding. If you did not understand the bank forms, the ATM steps or what was happening to your account, that matters. Your lawyer can show you did not know enough to truly agree.

What you got. Did you get any of the money that went through your account? If you only received your normal salary, that supports the point that you did not take part willingly.

Your cooperation. Telling the police what happened and giving details about the agent, through your lawyer, can help your position.

What should you do right now?

Do not run. Leaving Malaysia during an investigation can make things worse. It can be seen as a sign of guilt and may lead to an arrest warrant.

Get a lawyer early. A lawyer who handles foreign worker cases understands both criminal and immigration law. They can protect your case and your work status together.

Keep all evidence. Keep your work contract, salary records, messages from the agent and any papers about your job. Do not delete messages, even threatening ones.

Contact your embassy. Your embassy or consulate can help with lawyer referrals, interpreters and contacting your family.

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 (Amendment) Act 2024, Sections 424A, 424B, 424C
4. Passports Act 1966, Section 12(1)(f): holding another person’s passport without lawful authority