424A vs 424B vs 424C: Key Differences

Three Sections, Three Different Offences

Sections 424A, 424B and 424C came in through the Penal Code (Amendment) Act 2024. ^[f1] All three deal with mule accounts, but each covers a different role.

Knowing which section you face is the first step in a defence. Each one has its own elements (the points the prosecution must prove), its own penalty and its own defences. ^[f5]

Section 424A: Holding Another Person’s Account

Section 424A covers anyone who possesses or controls another person’s payment instrument without lawful authority. ^[f2] That means holding, using or having access to someone else’s bank account, debit card, credit card or e-wallet.

The penalty is a fine of RM5,000 to RM50,000, 6 months to 5 years in prison, or both. ^[f2] It is the lightest of the three.

The key words are “without lawful authority”. If you had real permission or a legal reason to hold the account, that is the core of your defence. See our Section 424A guide for the full detail.

Section 424B: Giving Away Your Own Account

Section 424B covers account holders who hand control of their own payment instrument to someone else. ^[f3] Lending your banking login, sharing your PIN or giving someone your debit card can all count.

The penalty is a fine of RM10,000 to RM100,000, 1 to 7 years in prison, or both. ^[f3] It is higher than the 424A penalty.

One example is lending your account to a friend, relative or employer. The offence is giving control of your own account without lawful authority or a lawful purpose. What you knew and why you did it matter to your defence. Our Section 424B guide explains this in detail.

Section 424C: Transactions Without a Lawful Purpose

Section 424C covers anyone who makes transactions through a payment instrument without a lawful purpose. ^[f4] It is the widest and most serious of the three.

The penalty is a fine of RM10,000 to RM150,000, 3 to 10 years in prison, or both. ^[f4]

What sets 424C apart is that it is about transactions: money moving through an account without a lawful purpose. What you knew and why you made them matter to your defence. See our Section 424C guide for the full analysis.

Penalties Side by Side

The penalties rise from 424A to 424C.

Section 424A: Fine RM5,000 to RM50,000. ^[f2] Prison 6 months to 5 years. Or both.

Section 424B: Fine RM10,000 to RM100,000. ^[f3] Prison 1 to 7 years. Or both.

Section 424C: Fine RM10,000 to RM150,000. ^[f4] Prison 3 to 10 years. Or both.

The court sets the actual sentence based on the facts, the amount of money involved and your role.

What the Prosecution Must Prove for Each

Each section has different elements, and those differences decide which defences are open to you. ^[f5]

For Section 424A, the prosecution must prove you possessed or controlled another person’s payment instrument, without lawful authority.

For Section 424B, it must prove you gave control of your own payment instrument to someone else, without lawful authority or a lawful purpose. What you knew and why you did it matter to your defence.

For Section 424C, it must prove you made a transaction through a payment instrument without a lawful purpose. Again, what you knew and why you made it matter to your defence.

Which Section Fits Your Situation

What you did decides which section the police and prosecution focus on. Here are three examples.

If you held someone else’s ATM card, had their online banking login or used their e-wallet, the case likely involves Section 424A. The question will be whether you had lawful authority.

If you gave your own bank card to someone, shared your banking password or let someone else run your account, the case likely involves Section 424B. The question will be whether the handover had a lawful purpose.

If money moved through your account and investigators believe it was linked to crime, the case likely involves Section 424C. The question will be whether the transactions had a lawful purpose, and what you knew about them.

Common Mix-Ups

Some people think the three sections are one offence under different names. They are not. Each covers a specific act, and you can be charged under one, two or all three, depending on the facts.

Another mix-up is about knowledge. “I didn’t know” is not an automatic defence under any of the three sections, but what you knew and why you acted as you did matter under each.

The general exceptions in Chapter IV of the Penal Code may also give a defence in some cases.

A charge under the wrong section, or an investigation that mixes the sections up, is something a lawyer can spot and challenge. It is one reason early advice matters in mule account defence.

How a Lawyer Works Out the Right Section

A lawyer reads the police report, the investigation papers and your account of events to decide which section applies. The police investigation may have focused on the wrong one.

Getting the section right early lets your lawyer concentrate on the exact points the prosecution must prove. That shapes everything from the documents you gather to the approach in court.

If the police have contacted you or you have been charged, a lawyer can explain where you stand and start preparing your defence. Our guide to finding legal help explains what to look for.

Sources

1. Penal Code (Amendment) Act 2024, Sections 424A, 424B, 424C
2. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)
3. Raj, Ong & Yudistra, “Unveiling the Mystery: When Your Bank Account Gets Frozen by the Law” (2024)
4. Penal Code (Act 574), Chapter IV: General Exceptions