Account Frozen After a DuitNow Transfer?

Why do DuitNow transfers lead to freezes?

DuitNow is Malaysia’s real-time payment system, run by PayNet. Transfers arrive instantly, and each one leaves a digital record of the sender, receiver, amount, date and time. ^[f1]

That record means that when a scam victim reports to NSRC 997, investigators can trace where the money went quickly. ^[f3] If any of it reached your account, your account becomes part of the investigation.

Because tracing is so fast, your account can be frozen before you know anything is wrong. You check your balance one morning and find you are locked out. To see how freezes work in general, read our guide to understanding account freezes.

How does NSRC trace the money?

The National Scam Response Centre (NSRC) runs the 997 hotline. When a scam victim calls, NSRC follows the money from the victim’s account through every transfer that came after.

If the victim paid Account A, and Account A then paid you by DuitNow, your account is in the chain. ^[f2] NSRC can have every account in the chain frozen to hold on to the money.

PayNet’s real-time system makes tracing fast. A freeze can be in place quickly after the report, sometimes within hours. Knowing what mule accounts are helps explain why this system exists.

Can one transfer freeze your account?

Yes. You do not need to have received suspect money many times. ^[f4] One incoming DuitNow transfer traced back to scam money is enough for the authorities to freeze your whole account.

The freeze covers every ringgit in the account, not just the suspect amount. If you had savings of your own and received one small transfer from a scam chain, your whole balance is frozen.

This feels unfair, and it can catch innocent people:

• sellers on Carousell, Shopee or Mudah paid by a buyer using scam money
• friends who received a loan repayment
• family members who received a gift

In each case, the sender’s money came from a crime somewhere further up the chain.

What should you record now?

The most useful thing you can do now is build a paper trail for the payment that caused the freeze. ^[f5]

Save your DuitNow receipt. Screenshot the details showing the sender’s name, amount, reference number, date and time. If you have had several DuitNow transfers recently, save them all.

Save your messages with the sender. Keep WhatsApp or Telegram chats, emails or anything else showing why they paid you. A message like “here is the payment for the laptop” is useful evidence.

Save supporting documents. If you sold something, keep the listing, photos and delivery receipt. For a loan repayment, keep the original loan agreement. For a gift, note the occasion and how you know the person.

Our evidence preparation guide explains how to put your full record together.

What situations can lead to a freeze?

Payment for an online sale. You sold something online and the buyer paid by DuitNow using money from a scam victim. Your account is frozen because it received traced money.

A friend repays a loan. A friend paid back what they owed you by DuitNow. That friend got the money from someone involved in a scam, so your account is in the chain.

Splitting a bill. Someone in a group chat sent you their share of a meal or trip. If their money was linked to illegal activity, your account can be caught.

Freelance or gig work. A client paid you by DuitNow with money later traced to a scam. Your genuine work payment triggered the freeze.

In every case, investigators ask one thing: can you explain why you received this money? Clear records answer that question.

What should you do right now?

Check your recent DuitNow transfers. Look for payments from people you barely know or amounts that seem unusual.

Call your bank. Confirm the freeze, ask which authority ordered it, and get a reference number. Note the date and the name of the person you spoke to.

Do not delete any messages or records. Your chats and transaction records are evidence in your favour. Deleting them throws away your best defence.

Speak to a lawyer. A lawyer who handles AMLA and mule account cases can review your DuitNow records, tell you where you stand and represent you in the investigation. Our guide on what to do now sets out the full first-steps plan.

How does a DuitNow freeze get resolved?

Some DuitNow-related freezes involve receivers who had no idea the money came from crime. The investigation has to confirm this, and your records are what make that possible.

A lawyer can put your evidence before the investigating officer and, if you need money for living costs, apply in writing to the enforcement agency for a variation under AMLA Section 44A. An AMLA freeze under Section 44 lasts up to 90 days unless someone is charged, and a later seizure or Section 50 order lapses under Section 52A if no one is charged within 18 months.

Good records and early legal advice help you make your case for release.

Sources

1. PayNet, DuitNow Real-Time Payment System (www.paynet.my/duitnow)
2. Bank Negara Malaysia, National Scam Response Centre (NSRC) 997
3. Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), Sections 44A, 52A
4. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)
5. Raj, Ong & Yudistra, “Unveiling the Mystery: When Your Bank Account Gets Frozen by the Law” (2024)