Dewan Rakyat Speaker Johari Abdul, presiding over the session, announced that the bill had received majority support.

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, law and institutional reform minister 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.

Through the amendment, the government was seeking bipartisan support for these amendments 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 those involving mule accounts,” she said.

She said various measures by authorities, including the police, to curb online fraud syndicates through strengthened enforcement, operations, arrests and prosecution of offenders, had been taken.

Azalina said fraud activities facilitated by mule accounts served as temporary repositories for victims’ funds before they were transferred to other accounts.

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.