Factory Worker Tricked Into Mule Account?

How factory workers are recruited as mules

It starts at work. A senior worker, a dormitory roommate or an employment agent asks you for something. They may ask you to open a bank account, hand over your ATM card or share your online banking password. ^[f1]

The reasons sound normal. “The company needs it for processing.” “I can help you send money home more cheaply.” “Let me use your account for a few days and I will pay you.” In a dormitory where everyone knows everyone, saying no feels awkward or even risky.

What you do not see is the syndicate behind the request. Your account receives money from fraud victims and passes it on. ^[f5] When the bank flags the transactions and police investigate, it is your name on the account.

How dormitory recruitment works

Factory dormitories make this easy for syndicates. Workers live close together, share space and depend on each other. There is little privacy and a lot of pressure to fit in.

If a roommate or senior asks a favour, refusing can cause trouble at work and where you live. ^[f1]

Agents work differently. Some open accounts for workers when they first arrive, then keep the ATM cards and PINs and say they will “manage” the accounts. ^[f4] Workers who have never used a Malaysian bank may not understand what is happening.

When many workers at one factory have their accounts used the same way, it can point to an organised scheme rather than each worker planning a crime.

What the law says

The Penal Code has three mule account offences. Section 424A covers holding or controlling someone else’s account or card, which is what an agent who keeps workers’ cards is doing. ^[f4]

Section 424B covers giving another person control of your own account, card or PIN. The penalty is a fine of RM10,000 to RM100,000, or 1 to 7 years’ jail, or both. ^[f2] A worker whose account was handed over may face this charge.

What you knew, and why you handed over the account or card, matter to your defence. If you did not understand what you agreed to, were pressured, or someone took over your account without your real agreement, your lawyer can raise that.

See the knowledge element page for why this matters. If an agent collected your card on arrival and you did not understand why, tell your lawyer.

Your rights as a foreign worker

The Federal Constitution protects your right to a lawyer. ^[f3] This applies to everyone in Malaysia, whatever your nationality or work permit.

A lawyer. Ask for a lawyer before you give any statement to police. Say clearly: “I want a lawyer.” You have the right to consult one.

An interpreter. If your Malay or English is weak, you can have an interpreter during questioning and in court. Do not sign anything written in a language you cannot read.

Your embassy. Ask police to contact your embassy or consulate. They can help you find a lawyer and tell your family.

Not answering questions against yourself. You do not have to answer questions that could show you committed an offence. A lawyer can tell you which questions to answer.

Protecting your job and your permit

A criminal charge does not by itself cancel your work permit, but your employer or Immigration may act, so ask your lawyer early. You cannot work while you are held in remand.

If your employer threatens to dismiss you because of a charge, tell your lawyer. Read about protections for foreign workers facing criminal allegations.

If your agent misused your account, report it to police with your lawyer present. Agents who take workers’ documents or exploit them may be charged under the Anti-Trafficking in Persons Act. ^[f4] This puts on record who was really behind it.

How your lawyer builds your defence

You did not understand what you agreed to. If you did not know what the account would be used for, or the request was in a language you do not fully understand, your lawyer can argue you never really agreed. Your lawyer will record the language barrier and how little you knew about banking.

You were pressured. Proof of pressure from agents, seniors or dormitory leaders can show you were exploited. Messages, witnesses and the number of workers recruited all help.

You did not profit. If you received only your normal salary and none of the crime money, this can support your account that you were not a willing part of it. Bank statements proving this are important.

You helped the investigation. Giving information about the scheme and naming the agents involved, with your lawyer’s guidance, may help your position.

What to do now

Stay calm and stay in Malaysia. Leaving while under investigation makes things worse and can look like guilt.

Get a lawyer. Look for a lawyer who handles foreign worker cases, ideally one who speaks your language. A lawyer can explain your position and be with you when police call you in.

Keep evidence. Keep your employment contract, pay slips, messages from agents or coworkers, and any papers about the account. Do not delete anything from your phone.

Talk to other affected workers. If coworkers had their accounts used too, their stories support yours. Tell your lawyer about them.

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. Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007