KUALA LUMPUR – The Penal Code (Amendment) Bill 2024, aimed at amending the Penal Code (Act 574) to combat online crimes using “mule” accounts for online fraud, was passed in the Dewan Rakyat today.
Dewan Rakyat Speaker Tan Sri Johari Abdul, presiding over the session, announced that the bill received majority support, Bernama reported.
The proposed amendments include two main aspects: new provisions for offences related to mule accounts and definitions of “financial instrument” and “payment instrument” as well as introducing four new sections.
Earlier, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, when presenting the bill for its second reading, said losses from online fraud crimes over the past three years totalled RM2,651,398,000.34.
Through the amendment, the Madani government was seeking bipartisan support to enhance public safety and well-being, she said.
Azalina said currently, existing legislation does not provide for account owners who allow their bank accounts to be used by others without authority or lawful purpose to be prosecuted.
“As such, the gaps in existing laws and the urgent need to protect all Malaysians from falling victim to online fraud crimes necessitate amendments to Act 574.
“These amendments aim to comprehensively and effectively combat online fraud, particularly involving mule accounts,” she said.
She said various measures by authorities, including police, to curb online fraud syndicates through strengthened enforcement, operations, arrests, and prosecution of offenders, had been taken.
Azalina pointed out that fraud activities facilitated by mule accounts serve as temporary repositories for victims’ funds before transferring to other accounts and investigations often reveal that these accounts were either “leased” or granted access to third parties, complicating law enforcement efforts.
“Investigators also face challenges when account owners are unaware of the identities of the third-party users who have misused their bank accounts for illegal money transfers,” she added.
Before the reading, legislators debated the addition of four new provisions to Section 424 of the act, targeting online crimes involving mule accounts.
Lim Lip Eng (Kepong-PH) highlighted concerns that merely prosecuting mule account holders fails to address syndicates’ masterminds. He urged broader enforcement against these groups, which the bill did not explicitly outline.
“I urge the government to prosecute syndicates using mule accounts,” Lim stressed, arguing that focusing solely on account holders overlooks syndicate leaders.
He stressed the need for fair punishment to prevent wrongful convictions of unwitting individuals involved in these schemes.
Meanwhile, Aminolhuda Hassan (Sri Gading-PH) expressed confidence in the bill’s ability to empower authorities against online scammers and restore public trust in digital banking security.
Echoing similar sentiments, R.S.N. Rayer (Jelutong-PH) called on financial institutions to utilise their technological capabilities to safeguard customer accounts effectively.
Addressing concerns raised by lawmakers, Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M. Kulasegaran (Ipoh Barat-PH) disclosed that 14,490 online scam cases had been reported in the first half of the year, with losses totalling RM2.65 billion since 2022.
The deputy minister affirmed that the amendments include provisions to prosecute masterminds. He assured that these measures could also extend to indirect accomplices in online fraud losses.
He clarified that banks could only refund losses from online banking fraud if customers could prove they had taken adequate security measures. – July 10, 2024