Section 424B: Lending Your Account Is Criminal

What Is Section 424B?

Section 424B of the Penal Code makes it a crime for an account owner to hand control of their own bank account, payment card or login details to someone else. ^[f1] It was added in 2024 under the Penal Code (Amendment) Act 2024. ^[f2]

It sits alongside Section 424A (holding someone else’s account) and Section 424C (making transactions without a lawful purpose). Together, the three sections are Malaysia’s main criminal law against mule account networks.

Who Does This Law Target?

Section 424B targets the account owner. ^[f3] It applies to anyone who gives up control of their own bank account, debit card, credit card, e-wallet or internet banking to someone else.

The other person does not have to be a stranger. Giving your account details to a friend, relative, colleague or anyone else can bring you under this section. ^[f4] Being close to the person is not an exception.

This is the key difference from Section 424A. Under 424A, the offence is committed by the person who receives and holds the account. Under 424B, it is committed by the owner who gives the account away.

What You Knew and Why You Did It Matter

Section 424B is about giving control of your own account without lawful authority or a lawful purpose. ^[f5] The offence is the handover itself.

What you knew and why you did it matter to your defence and to any sentence. Explanations such as “I was just helping a friend” or “I was told it was for a real business” are not a certain defence, so give your lawyer the whole story.

Keep every message that shows what you were told at the time.

Common Situations

Section 424B investigations can follow a few patterns.

Lending to a friend or relative. A friend says they need your account “for a while” to receive a payment. You share your login or hand over your ATM card.

The payment turns out to be scam money. Your account is frozen and you are under investigation.

Selling or renting your account. Someone offers you a fee to “rent” your bank account for a week. You open the account, hand over the card and PIN, and take the fee. The account is then used to receive and move stolen money.

Pressure at work. An employer or senior colleague asks you to open a bank account and hand over the details “for company use”. The account is then used for something else.

In each case, the owner can be investigated under Section 424B. What the owner believed the account was for, and why they handed it over, matter to the defence. Students and young adults can be targets of these approaches.

The Penalty

The penalty under Section 424B is a fine of RM10,000 to RM100,000, one to seven years in prison, or both. ^[f1] That is much heavier than Section 424A, which has a maximum of RM50,000 and five years.

The court sets the actual sentence based on the facts. It may look at how much money went through the account, whether the owner was paid, and how far the accused cooperated with the investigation.

How Section 424B Links to Account Freezes

If your account is frozen and Section 424B is involved, the authorities suspect you gave someone else control of it. The account freeze keeps the money trail in place while they investigate.

Under AMLA, a section 44 freeze lasts up to 90 days unless you are charged, and a later seizure or section 50 order lapses after 18 months if no one is charged. A police freeze under CPC Section 116D lapses after 18 months if no prosecution is started. Until then, you may be able to apply for a variation so that money is released for basic living costs. A lawyer can prepare this application for you.

The investigation may also lead to Section 424A charges against the person who received your account details. In Malaysia, both sides of the handover are now crimes.

What You Should Do

If you gave someone access to your account and you are now under investigation, or your account is frozen, these steps can help.

Do not try to close the account or open a new one. This can look like obstructing the investigation.

Keep every message with the person you gave the account to. Text messages, WhatsApp chats and any agreements are all relevant evidence.

Speak to a lawyer who handles mule account defence as soon as you can. Much depends on what you handed over, to whom, why, and what happened to the account afterwards. A lawyer can work out your position and advise you before any police interview.

Gathering your evidence and documents early gives your lawyer more to work with. It also shows the authorities you are cooperating in good faith.

Sources

1. Penal Code (Amendment) Act 2024, Section 424B
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)