Bukit Aman commercial crime investigation department director Ramli Yoosuf said the absence of specific laws to regulate online donation drives was among the main challenges faced by police, Bernama reported.

“It makes it difficult to take action,” he was quoted as saying.

Last year, police dismantled an online fraud syndicate that claimed it was collecting donations for three charitable organisations with the arrest of 55 people.

Ramli also said that between 2019 and 2023 police investigated 85 cases of donation fraud nationwide, involving RM667,845.

Currently, Malaysia only has the House to House and Street Collections Act 1947, which is limited to the physical collection of funds from house to house or premise to premise, he said.

Under the act, parties that wish to conduct fundraising activities are required to obtain a permit or approval from the police and the state Islamic religious department.

The law was last reviewed in 1978, before the advent of information and communication technologies.

“Currently, online fundraising activities would only be considered an offence if fundraisers collected donations in the name of a charity or organisation without the knowledge or consent of the entity concerned,” Ramli said.

An investigation would only be carried out under Section 420 of the Penal Code, which deals with cheating, if a police report was lodged by the charity or NGO.

He said that given the prevalence of online fundraising activities, a specific legislation to deal with such matters was critical, especially in view of the greater internet access available.

“The generosity and goodwill of Malaysians, who are known for their charitable nature and willingness to help, have led to the proliferation of online fundraising platforms,” he said.

He said there was also a need for clear SOPs to regulate online fundraising activities, not only to ensure transparency, but also to facilitate more comprehensive enforcement action.