Section 424A
The Penal Code offence of possessing or controlling someone else's account or payment instrument without lawful authority.
Sources checked 2026-09-17
What it means
Section 424A of the Penal Code makes it an offence to possess or control another person’s bank account or payment instrument without lawful authority [f1]. In plain terms, it covers holding a card, account or login details that belong to someone else.
It was added as part of Malaysia’s response to scam-related mule accounts. It is one of three linked offences with section 424B and section 424C, each aimed at a different role.
The penalty
The penalty is a fine of RM5,000 to RM50,000, or jail of 6 months to 5 years, or both [f1]. It is the lightest of the three mule-account sections, but it is still a criminal offence with a real jail term.
The section you are charged under matters because the penalties differ. Section 424B, for handing over your own account, carries a fine of RM10,000 to RM100,000, or jail of 1 to 7 years, or both [f2].
Arrest and bail
Police may arrest without a warrant, but section 424A is bailable, so bail is a right. The court or the police set the amount and conditions. A compound cannot settle a 424A charge.
Where 424A fits
The three sections cover different roles:
- Section 424A: holding an account that is not yours.
- Section 424B: giving control of your own account to someone else.
- Section 424C: making transactions through an account without a lawful purpose.
Mule accounts are a large enforcement area: police detected 46,048 mule accounts in 2023 and 50,295 in 2024 [f3]. How the account came into your hands, and what you knew, can matter to your defence. A lawyer can look at that with you before you give your first statement.
Sources
- Penal Code, Sections 424A and 424B (https://www.lawnet.com.my/penal-code)
- Royal Malaysia Police, mule-account case figures (https://www.rmp.gov.my/)
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What is section 424A about?
Section 424A of the Penal Code makes it an offence to possess or control another person's bank account or payment instrument without lawful authority. It targets people holding accounts, cards or login details that are not theirs. It is one of three mule-account sections added in 2024.
What is the penalty under section 424A?
A fine of RM5,000 to RM50,000, or jail of 6 months to 5 years, or both. It is the lightest of the three mule-account sections. Sections 424B and 424C carry heavier penalties, so the section you are charged under makes a real difference.
How is 424A different from 424B?
Section 424A is about holding someone else's account. Section 424B is about handing over your own account to another person. If you gave a recruiter access to your account, 424B is more likely to apply. A lawyer can tell you which section fits your facts.
Related pages
If your situation is a little different, these pages cover the closest topics.
Need a Lawyer for Your Frozen Account Case?
Request Lawyer ContactFor people seeking legal representation. For general information, use our guides and tools.
Independent information resource, not a law firm. We do not provide legal advice. Where appropriate and with your consent, we can connect you with an independent lawyer. Availability and acceptance of a case are not guaranteed. How referral works