Malaysia is looking at a new way to fight illegal online gambling: going after the money. On 3 November 2026, Deputy Communications Minister Teo Nie Ching told the Dewan Rakyat that the government is studying a proposal on bank accounts and payments. Under the proposal, the Malaysian Communications and Multimedia Commission (MCMC), Bank Negara Malaysia (BNM), banks and enforcement agencies would work together more closely to trace and block the transactions and bank accounts used by gambling networks.
The proposal is still being studied. No timeline, draft rules or technical details have been published. Officials have not said how it would work in practice.
What was said in Parliament
The issue came up during question time. Roy Angau Gingkoi (GPS-Lubok Antu) asked about a stricter way to block bank accounts and financial transactions linked to online gambling syndicates.
Teo replied that the government was studying a proposal to strengthen cooperation between MCMC, Bank Negara Malaysia, banks and enforcement agencies. According to theSun, she called it “a very good proposal” that could allow better monitoring and harsher action against online gambling.
RSN Rayer (PH-Jelutong) asked about coordinating the seizure of gambling proceeds. Teo said arrests and asset seizures are handled by the Royal Malaysia Police (PDRM), not MCMC.
Teo also gave updated figures. From 1 January 2025 to 31 October 2026, MCMC sent 738,372 takedown requests for online gambling content, and 724,879 of them were completed. That is about 98%. In the same period, 2,603 gambling websites were blocked.
Why the focus is turning to payments
Blocking websites and removing posts only goes so far when operators can simply move. Police made this point after a nationwide operation, Ops Dadu Khas, carried out over the weekend of 31 October to 1 November.
| Ops Dadu Khas (31 Oct to 1 Nov 2026) | Figure |
|---|---|
| Premises raided | 201 |
| Linked to online gambling | 108 |
| Linked to unlicensed lotteries | 93 |
| People arrested | 282 (223 Malaysians, 59 foreigners) |
| Cash seized | RM32,149 |
Police said the syndicates often moved between premises to avoid detection. They used cafes, drink stalls and sundry shops as fronts. Because the betting and the transactions happen online, the operations can run from almost anywhere.
Police are also looking at possible offences under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). Focus Gaming News reported that investigators are trying to identify the directors behind two names linked to the networks, Winbox and Alibaba. We have not seen any charges against named companies, so these remain allegations under investigation.
Freezing accounts is not new either. In May 2025, Penang Chief Minister Chow Kon Yeow told the state assembly that police had frozen 150 mule accounts used for online gambling in the state, involving RM32 million from 2023 to 2025.
What the law already allows
The proposal would add to tools that already exist. Here is how they fit together.
| Tool | What it does | Status |
|---|---|---|
| Penal Code sections 424A to 424C | Make it an offence to control someone else’s account, hand over control of your own, or carry out unlawful transactions through either | In force since 30 October 2024 |
| Police freezing powers (Penal Code and Criminal Procedure Code amendments) | Let officers of sergeant rank and above seize or stop transactions involving suspected criminal funds | In force since 30 October 2024 |
| AMLA 2001 | Money laundering investigations and seizure of proceeds | Being used in current gambling cases |
| Communications and Multimedia Act 1998 and Online Safety Act 2025 | Legal basis for MCMC website blocks and content removal | Ongoing |
| MCMC, BNM and bank cooperation | Monitor, trace and block gambling-linked transactions and accounts | Under study |
| New illegal gambling bill | Stronger enforcement powers against online gambling | Announced in February 2026; not confirmed as tabled |
The penalties for mule accounts are heavy. Under section 424B, a person who gives someone else control of their bank account or payment instrument faces a fine of RM10,000 to RM100,000, one to seven years in jail, or both.
On the separate gambling bill, Deputy Prime Minister Fadillah Yusof said in February that the government hoped to table it at the next sitting of Parliament. At the time, officials were still deciding between a standalone act and changes to existing laws such as the Common Gaming Houses Act 1953. We could not confirm from available reports whether the bill has since been tabled.
What this could mean for Malaysian readers
Online casinos are not licensed in Malaysia, and Malaysian player protections do not cover offshore operators. Our legal guide explains the current position in more detail.
The government has not said whether a bank-based system would target only syndicate accounts or would also look at the people sending money to them. Until details are published, any claim about how it would affect individual bank customers is speculation. Still, some points are clear from the law as it stands today:
- Never lend, rent or sell your bank account or e-wallet. Letting someone else use your account can be a criminal offence under section 424B, even if you were promised a small fee.
- Frozen accounts can hold other people’s money. When police freeze a mule account, the money in it becomes part of the investigation, no matter who sent it.
- Know how your payment method works. Our payment methods guide explains how common payment methods work and where the risks lie.
If you have lost money to an online scam, you can call Malaysia’s National Scam Response Centre on 997. It brings together police, banks and telcos to trace and freeze stolen funds, and acting quickly matters.
If gambling is causing money or family problems, our responsible gambling page lists support options.
What happens next
For now, the bank-cooperation plan is only being studied and is not yet policy. Several questions remain open:
- Which agency would lead it?
- Would new laws be needed?
- How would account holders be told about blocks, and how could they challenge them?
IntelCrawler will report any official details from MCMC, Bank Negara Malaysia or the Home Ministry as they are released.
Sources
- theSun: MCMC removes 724,879 gambling content, blocks 2,603 sites
- New Straits Times: 98pc of flagged online gambling content removed
- Focus Gaming News: Malaysia removes 98% of flagged online gambling content
- Malay Mail: Police arrest 282 in nationwide crackdown on online gambling and illegal lotteries
- Focus Gaming News: Malaysia arrests 282 in illegal online gambling and lottery raids
- Malay Mail via Yahoo News: More than 150 mule accounts used for online gambling frozen in Penang
- theSun: Police can freeze and seize mule bank accounts
- Malay Mail via Yahoo News: Govt seeks harsher penalties for mule account holders
- Bernama: Government drafting bill to address online gambling, says Fadillah
- theSun: Malaysia drafting new law to tackle illegal online gambling
- NZSK Legal: Scammed online in Malaysia? Recovering money
- VietnamPlus: Malaysia steps up crackdown on online gambling, cyber scams