Section 424C

What it means

Section 424C of the Penal Code makes it an offence to make transactions through an account without a lawful purpose ^[f1]. Unlike the other two mule-account sections, it targets making the transactions themselves, not just holding or lending an account.

It is one of three linked offences aimed at the mule account chain. Section 424A covers holding someone else’s account, section 424B covers giving away your own, and section 424C covers the transactions themselves.

The penalty

The penalty is a fine of RM10,000 to RM150,000, or jail of 3 to 10 years, or both ^[f1]. This is the heaviest of the three mule-account sections.

By comparison, section 424A carries RM5,000 to RM50,000, or 6 months to 5 years ^[f2], and section 424B carries RM10,000 to RM100,000, or 1 to 7 years ^[f3]. The gap is why the section you are charged under matters so much.

Arrest and bail

Police may arrest without a warrant, but section 424C is bailable, so bail is a right. The court or the police set the amount and conditions. A compound cannot settle a 424C charge.

Why 424C is the most serious

Section 424C carries the highest penalties of the three: 3 to 10 years in jail, or a fine of RM10,000 to RM150,000, or both ^[f1]. It covers making the transactions themselves, not just holding or lending an account.

That does not remove the need for the prosecution to prove its case, and a genuine lack of knowledge or involvement can still be raised. The related section 424D belongs to the same 2024 set of payment-instrument offences. Because 424C carries the highest penalty, ask a lawyer for advice before you give any statement.

Sources

1. Penal Code, Sections 424A, 424B, 424C (https://www.lawnet.com.my/penal-code)