Frozen Bank Account Lawyer in Penang

Who this page is for in Penang

Penang has two halves: the island, and Seberang Perai on the mainland. The same freeze rules apply to an account on either side.

The George Town page has more on the city.

Is the law different on the mainland?

No. The freeze and mule-account rules are federal law. They apply the same on the island as in Butterworth, Bukit Mertajam or Nibong Tebal.

Only the local police unit and the courthouse depend on where you are. The offences, penalties and AMLA rules are the same across the state.

Which court sits in Penang?

The High Court of Pulau Pinang sits at Kompleks Mahkamah Pulau Pinang. ^[f6]

The prosecution decides whether a charge goes to the Sessions Court or the Magistrates’ Court. Read the court off your notice or charge sheet rather than guessing.

Can you release money for living costs?

A freeze can leave you unable to pay rent, staff or suppliers. If an enforcement agency froze the account under the Anti-Money Laundering Act (AMLA), you can apply in writing to that agency under section 44A. You can ask it to release money for reasonable living or business costs. ^[f1]

The agency’s more senior officer decides, and release is not automatic, so bring evidence. If police froze the account under section 116D, the route is different: you apply to the Sessions Court. ^[f2] A lawyer can tell you which route fits and prepare the application.

What does section 424A cover?

Penal Code section 424A covers possessing or controlling someone else’s payment card or bank account without lawful authority. The penalty is a fine of RM5,000 to RM50,000, jail of 6 months to 5 years, or both. ^[f3]

You can check whether an account or phone number is flagged on the PDRM Semak Mule portal, which listed more than 190,000 flagged accounts in 2024 to 2025. ^[f4] If yours is flagged, that is a reason to get advice.

Police, legal aid and the Bar in Penang

The police contingent (IPK) for Penang is on Jalan Penang. Its district police headquarters (IPD) are Timur Laut, Barat Daya, Seberang Prai Utara, Tengah and Selatan. ^[f7]

If you are asked to give a statement, it may be at a police station or the IPD that covers you, so check the letter. Take advice before you go.

The Legal Aid Department (Jabatan Bantuan Guaman, JBG) lists a Penang office, which helps people who pass its income test. ^[f8] The Penang Bar Committee is the Malaysian Bar’s local body, and the Bar Council Legal Aid Centre for Penang is at Greenhall. ^[f9]

To complain about how your bank handled things, separate from any criminal case, Bank Negara Malaysia runs BNMLINK on 1-300-88-5465. ^[f5]

What to do first

Leave any remaining balance alone and keep every letter from the bank. Save your statements, the freeze notice and records that show where your money came from, especially business income.

If you run a business account, ask a lawyer whether a section 44A application could release money for expenses. ^[f1] A lawyer can also check whether an AMLA order or a section 116D police freeze applies to your account, and what comes next.

Sources

1. AMLA 2001, sections 50 and 44A. https://www.lawnet.com.my/amla-2001
2. Criminal Procedure Code, section 116D (2024). https://www.parlimen.gov.my/
3. Penal Code, section 424A. https://www.lawnet.com.my/penal-code
4. PDRM Semak Mule portal. https://semakmule.rmp.gov.my/
5. Bank Negara Malaysia, BNMLINK. https://www.bnm.gov.my/
6. https://lom.agc.gov.my/ilims/upload/portal/akta/outputaktap/1719599_BI/010722_Act%20613_final.pdf
7. https://lom.agc.gov.my/ilims/upload/portal/akta/outputaktap/2368175_BI/Act%20A1722.pdf
8. https://www.kehakiman.gov.my/en/about-us/court/high-court/location-high-court-malaysia
9. https://www.rmp.gov.my/direktori/direktori-pdrm/pulau-pinang
10. https://www.jbg.gov.my/index.php/ms-my/info-jbg/senarai-pengarah-cawangan
11. https://www.malaysianbar.org.my/article/find/bc-legal-aid-centres/legal-aid-centres/find-legal-aid-centres