Many people assume that when their bank account, e-wallet, Touch ‘n Go account, or digital banking account is frozen by the authorities, the action must have been taken under the π¨πππ-π΄ππππ π³ππππ πππππ, π¨πππ-π»ππππππππ πππππππππ πππ π·ππππππ π ππ πΌπππππππ π¨πππππππππ π¨ππ 2001 (π¨π΄π³π¨).
However, a lesser-known development was introduced through the πͺπππππππ π·πππππ πππ πͺππ π (π¨ππππ ππππ) π¨ππ 2024.
Under πΊππππππ 116π« ππ πππ πͺπππππππ π·πππππ πππ πͺππ π, a police officer not below the rank of Sergeant may direct a financial institution to freeze an account if there are reasonable grounds to believe that the monies are connected to the commission of an offence.
This means that the power to freeze accounts is no longer confined to specialised legislation such as AMLA or the MACC Act.
One notable distinction is the duration of the freeze. Under AMLA, a freezing order generally remains in force for 90 days and may only be extended upon the instructions or authorisation of the Public Prosecutor. Such extension may continue for a further period of up to 15 months, resulting in a maximum period of 18 months.
In contrast, πΊππππππ 116π« appears to permit the freezing of an account for a period of up to 18 months without the need for a separate extension process involving the Public Prosecutor.
That said, πΊππππππ 116π« remains a relatively new provision, and many of its practical implications have yet to be tested before the courts, particularly in relation to the remedies and avenues available to parties who are directly or indirectly affected by a freezing order.
Unlike the AMLA and the MACC Act 2009, πΊππππππ 116π« does not expressly provide a detailed framework for affected parties to challenge or seek relief against such orders.
Nevertheless, this does not necessarily mean that no remedies are available. The scope and operation of πΊππππππ 116π« may still be construed together with other provisions of law and will likely be clarified through future judicial decisions.
We look forward to contributing to the development and clarification of this evolving area of law.
