Malaysia legislation
Section 44
Section 44
(a)
an investigation with regard to an unlawful activity has commenced against that person; and
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Activities
(b)
either—
(i)
the enforcement agency has reasonable grounds to suspect that an offence under subsection 4(1) or a terrorism financing offence has been or is being or is about to be committed by that person; or
(ii)
the enforcement agency has reasonable grounds to suspect that the property is the proceeds of an unlawful activity or the instrumentalities of an offence.
(2)
An order under subsection (1) may include—
(a)
an order to direct that the property, or such part of the property as is specified in the order, is not to be disposed of, or otherwise dealt with, by any person, except in such manner and in such circumstances, if any, as are specified in the order;
(b)
an order to authorize any of its officers to take custody and control of the property, or such part of the property as is specified in the order if the enforcement agency is satisfied that the circumstances so require;
(c)
where custody and control of the property is taken under paragraph (b), an order to authorize any of its officers to sell any frozen moveable property by a public auction or in such other manner as may be practicable if the enforcement agency is of the opinion that the property is liable to speedy decay or deterioration;
(d)
an order to authorize any of its officers to hold the proceeds of the sale, after deducting therefrom the costs and expenses of the maintenance and sale of the property sold under paragraph (c); and
68 Laws of Malaysia
(e)
an order as to the manner in which the property should be administered or dealt with.
(3)
In making an order under subsection (1), the enforcement agency may give directions to the person named or described in the order relating to the disposal of the property for the purpose of—
(a)
determining any dispute as to the ownership of or other interest in the property or any part of it;
(b)
its’ proper administration during the period of the order;
(c)
the payment of the costs of that person to defend criminal proceedings against him.
(4)
An order made under subsection (1) may direct that the person named or described in the order shall—
(a)
be restrained, whether by himself or by his nominees, relatives, employees or agents, from selling, disposing of, charging, pledging, transferring or otherwise dealing with or dissipating his property;
(b)
not remove from or send out of Malaysia any of his money or property; and
(c)
not leave or be permitted to leave Malaysia and shall surrender any travel documents to the Director General of
Immigration within one week of the service of the order.
(5)
An order made under subsection (1) shall cease to have effect after ninety days from the date of the order, if the person against whom the order was made has not been charged with an offence under this
Act or a terrorism financing offence, as the case may be.
(6)
An enforcement agency shall not be liable for any damages or cost arising directly or indirectly from the making of an order under this section unless it can be proved that the order under subsection (1)
was not made in good faith.
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(7)
Where an enforcement agency directs that frozen property be administered or dealt with, the person charged with the administration of the property shall not be liable for any loss or establish a claim to the property or to an interest in the property unless the court before which the claim is made finds that the person charged with the administration of the property has been negligent in respect of the administration of the property.
(8)
The enforcement agency effecting any order to freeze any property under this section shall send a copy of the order and a list of the frozen property to the Public Prosecutor forthwith.
(9)
Where the frozen property is in the possession, custody or control of a financial institution, the enforcement agency shall notify the relevant regulatory or supervisory authority (if any), as the case may be, of such order.
(10)
Any person who fails to comply with an order of the enforcement agency issued under subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five times the sum or value of the frozen property at the time the property was frozen or five million ringgit, whichever is the higher, or to imprisonment for a term not exceeding seven years or to both.
Variation or revocation of order to freeze property