A love or investment scam victim: can I get money back through forfeiture proceedings?

You lost your savings to someone you met online who promised marriage, or to an "investment platform". Months later, police tell you some of the money was frozen in a mule account. You hear the government may forfeit it. Can you get it back?

How the money gets frozen or seized

Under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), enforcement agencies can freeze (s.44) or seize property suspected to be the proceeds of an unlawful activity. Cheating is an offence under the Penal Code, so money obtained from scam victims can fall within this.

Two kinds of forfeiture

• After prosecution (s.55): in a prosecution for a money laundering offence, the court orders forfeiture of property proved to be proceeds of an unlawful activity, among other things. This is subject to section 61.
• Without prosecution (s.56): if there is no prosecution or conviction, the Public Prosecutor may apply to a High Court judge for forfeiture within 12 months from the date of seizure or freezing. The judge orders forfeiture if satisfied the property is proceeds of unlawful activity and there is no purchaser in good faith for value (s.56(1),(2)). This is also subject to section 61.

Forfeited property vests in the Federal Government. That is why victims must act before forfeiture is ordered.

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Your rights as a third party

Section 61(1) states that forfeiture applies without prejudice to the rights of bona fide third parties.

The Gazette notice

The court must cause a notice to be published in the Gazette calling on any third party who claims an interest in the property to attend court on a specified date to show cause why it should not be forfeited (s.61(2)).

What you must show

The court must return the property to the claimant when satisfied that (s.61(4)):

• the claimant has a legitimate legal interest in the property;
• no participation, collusion or involvement in the offence can be imputed to the claimant;
• the claimant lacked knowledge and was not intentionally ignorant of the illegal use of the property;
• the claimant did not acquire the right from the accused to avoid forfeiture; and
• the claimant did all that could reasonably be expected to prevent the illegal use.

A lack of good faith may be inferred from the objective circumstances (s.61(3)).

What should I do first?

1. Make a police report if you have not, and keep the report number.
2. Tell the investigating officer you are a victim who wants to claim any frozen money.
3. Gather proof: bank transfer records, the recipient account details, chats with the scammer, and any police letters.
4. Watch for the Gazette notice and any court notice, and note the hearing date.
5. File your claim and evidence and attend court on the date.

Example

A victim transfers RM60,000 to an investment scam, and RM25,000 of it is frozen in a mule account. No one is charged, and the Public Prosecutor applies to forfeit the money. The victim responds to the Gazette notice, shows the bank transfers and police report, and the court orders the RM25,000 returned to her.

Common mistakes

• Assuming the police will return the money without a claim.
• Missing the Gazette notice and the hearing date.
• Not being able to trace the transfer to the frozen account.
• Several victims competing for the same funds without proper records.

When to speak to a lawyer

Speak to a lawyer when you learn money has been frozen or seized, or when you see a forfeiture notice, particularly where several victims claim the same funds. See our civil litigation page; you can also contact us.

Frequently asked questions

If there are many victims, how is the money shared?

The court decides on the claims before it. Each claimant must prove his interest. Records tracing your transfer to the frozen account are essential.

Can I also sue the account holder?

Yes. A civil claim against the person who received the money is separate from the forfeiture proceedings.

What if the money has already been forfeited?

It becomes harder. Take advice quickly about whether any route remains open.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613), AGC Laws of Malaysia
2. Penal Code (Act 574), Attorney General's Chambers Laws of Malaysia
3. Government of Malaysia portal, NSRC 997 Hotline (National Scam Response Centre)
4. Royal Malaysia Police (PDRM): how to make a police report, including road accident reports under section 52 of the Road Transport Act 1987

Fact-checked on 18 Oct 2026