Salary Frozen After Unknown Transfer?

Why was your salary account frozen?

Your account was frozen because money linked to a criminal investigation went into it. ^[f2] A scam victim may have been told to send money to your account number, or a syndicate may have used your account details without your knowledge.

The freeze is not a verdict. It holds the account while police find out where the money came from and who was involved. Your employer can still pay your salary in, but all withdrawals and transfers are blocked.

A freeze caused by an unknown transfer does not mean you are accused of a crime. It means your account is part of an open investigation.

How does an unknown transfer lead to a freeze?

Your account number can end up in a scam chain without you doing anything.

A fraudster may give your account number to a victim and tell them to transfer money to it. The fraudster may have found your details in a leaked database, on a discarded bank slip or through a compromised transaction.

Once the victim reports the scam and gives your account number, police can freeze the account under AMLA 2001 or the Criminal Procedure Code. ^[f2] The freeze covers the whole account, including your salary.

What rights do you have?

You have specific rights when your account is frozen because of someone else’s actions.

The right to know. Ask your bank which authority ordered the freeze and the reference number of the order. This helps your lawyer take the right next step.

The right to give a statement. You can give police a statement explaining what you know about the transfer and that you took no part in it. ^[f4] Get legal advice before you give one, because the rules on how police statements can be used are technical.

The right to ask for money to live on. Under AMLA Section 44A, you can apply in writing to the agency that froze the account to release money for living costs. ^[f1] That covers rent, food, utilities, medical costs and other essentials.

If the police froze it under CPC Section 116D instead, the application to vary it goes to the Sessions Court.

The right to a time limit. Under AMLA Section 52A, the freeze lapses if no one is charged within 18 months. ^[f3] If the investigation clears you earlier, the freeze can be lifted earlier.

What should you do right now?

If your salary account is frozen because of an unknown transfer, take these steps now.

Find the unknown transfer. Note the date, amount, sender’s name if shown, and reference number. Your lawyer and the police will need these details.

Talk to your employer. Explain that your salary account is blocked for now and ask whether they can pay you into another account in your name that is not frozen, if you have one. Ask in writing. Your employer still has to pay your salary during a freeze.

Do not touch the unknown money. If you saw the deposit before the freeze, do not withdraw or transfer it. Leaving it alone supports your position that you took no part in the transaction.

Collect your bank records. Gather your statements for the past 6 to 12 months. They show regular salary credits and normal household spending, which supports your claim that you use the account honestly.

Speak to a lawyer. A lawyer who handles account freeze cases can apply for money for living costs, deal with the investigating officer and work towards lifting the freeze.

How does a lawyer handle your case?

Preparing your statement. Your lawyer helps you prepare a clear, truthful statement for police. It explains how you use the account, what you know about the unknown transfer, and your financial situation.

Applying for living costs. If you need money urgently, your lawyer makes the Section 44A application to the agency that froze the account. It includes proof of your monthly costs, dependants and commitments.

Dealing with the investigating officer. Your lawyer presents your evidence to the officer and follows up on progress. Your lawyer keeps following up so the case does not stall.

Getting the freeze lifted. Once the investigation clears you, your lawyer works with the authority to lift the freeze and restore full access. The salary paid in during the freeze stays in the account.

Sources

1. Raj, Ong & Yudistra, “Unveiling the Mystery: When Your Bank Account Gets Frozen by the Law” (2024)
2. Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), Sections 44A, 52A
3. Bank Negara Malaysia, Anti-Money Laundering Guidelines
4. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)