The recent amendments to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (“AMLA Act 2001”) raise an important question:
When do the new provisions on seizure duration actually apply?
At the outset, it is trite that the right to property is constitutionally protected under Article 13 of the Federal Constitution. This right can only be lawfully taken away through due process of law.
This position was reaffirmed by the Court of Appeal in Rosalind Tan Kheng Suan v Peguam Negara Malaysia & Ors [2025] 9 CLJ 440, where the Court emphasised that enforcement agencies and the Public Prosecutor do not have the power to permanently deprive a person of property absent a lawful process such as prosecution or forfeiture.
Position Prior to the Amendment
Under the previous section 52A AMLA Act 2001:
- A seizure order would lapse after 12 months;
- If there was a prior freezing order, time runs from the date of freezing, not seizure.
If no prosecution or forfeiture is initiated within that period, the property must be returned to the person from whom it was seized.
Position After the Amendment (Effective 1 March 2026)
The amendment to section 52A AMLA Act 2001 extends the duration from 12 months to 18 months.
The Key Question
Does this extended period apply to all ongoing investigations?
Answer: No.
Effect of the Saving Provision
By virtue of the saving provision:
- The applicable law depends on when the offence was committed;
- Not when the investigation, seizure, or prosecution begins.
Example
Alleged offence: January 2026
Amendment comes into force: 1 March 2026
Investigation begins: April 2026
Seizure occurs: May 2026
Charges filed: June 2026
- The case will still be governed by the pre-amendment law;
- The 12-month limit continues to apply.
Why This Matters
- This is not merely procedural. It directly affects: –
- The validity of continued seizure
- The timeline for enforcement agencies
- The right of recovery of property
If the statutory period lapses without proper legal action, the property must be returned.
The trigger for the application of the AMLA (Amendment) Act 2025 is the date of the alleged offence, not the date of investigation or seizure.
