What Section 424B Actually Means

What does Section 424B say?

Section 424B of the Penal Code makes it an offence to hand control of your own bank account to another person without lawful authority or lawful purpose. In plain terms, it applies when you give someone your ATM card, online banking login or a one-time password so they can use your account. ^[f1]

The penalty is a fine of RM10,000 to RM100,000, 1 to 7 years jail, or both. ^[f1] The law treats this seriously even when the account holder did not move the money personally.

What does a 424B case turn on?

At its core, a 424B case asks whether you gave up control of your account, to whom, and whether there was a lawful authority or purpose. That might be through a job offer that asked for banking access, a request from someone you trusted, or a deal that later turned out to be a scam.

What you knew at the time and why you did it matter to your defence. The bare fact that the account changed hands is not the whole story.

How is 424B different from 424A and 424C?

Section 424A is the opposite role: holding or controlling someone else’s account without lawful authority. It carries a fine of RM5,000 to RM50,000, or 6 months to 5 years jail, or both. ^[f2] Section 424C, the most serious, is using an account for transactions without a lawful purpose, with 3 to 10 years jail, or a fine of RM10,000 to RM150,000, or both. ^[f3]

If you were controlling someone else’s account, start with our Section 424A explainer. For more background on 424B before you get in touch, see our Section 424B explainer.

Is 424B a serious charge?

Yes. The penalty range includes real jail time, so take it seriously. But Sections 424A, 424B and 424C are all bailable, so bail is a right once you are charged, although the court sets the amount and conditions. ^[f6]

Our bail process guide explains what a bail application involves and what courts consider.

What happens to your account during a 424B case?

A 424B investigation can come with a frozen account, sometimes before anyone tells you which section is involved. Under the 2024 amendments, a police officer of Sergeant rank or above can freeze an account and block transactions at once under CPC Section 116D, without a court order. ^[f4]

If the freeze comes with an AMLA order, a Section 44 freeze lapses after 90 days unless you are charged, and a Section 50 order lapses after 18 months without a charge. ^[f5] A lawyer can tell you which kind of freeze is on your account.

Where does a lawyer come in?

Knowing what the section says is a start. How it applies to your facts is a separate question. Our Section 424B lawyer page explains what a lawyer’s review of your defence involves.

A lawyer looks at how and why the account changed hands, what evidence exists and what stage your case is at. Then they explain a sensible next step for you.

How does the WhatsApp message work?

Send a short message on how your account got involved and what stage you are at: under investigation, called in for a statement, or charged. You do not need every detail sorted first.

Where appropriate, we can help connect you with an independent lawyer, who can explain your situation. Whether to go further is your decision.

Sources

1. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)
2. Penal Code (Amendment) Act 2024, Sections 424A, 424B, 424C
3. Criminal Procedure Code (Amendment) Act 2024, Section 116D
4. Raj, Ong & Yudistra, “Unveiling the Mystery: When Your Bank Account Gets Frozen by the Law” (2024)