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Consequences of freezing bank accounts.

Monday, 2 December, 2024 - 00:56

The Malaysian Court of Appeal has awarded damages to a person whose accounts were frozen under counter-money laundering laws describing the conduct of the officer making the order as "‘oppressive, arbitrary or unconstitutional".

A report in Free Malaysia Today, an online newspaper, says that former bank officer LIM Hui Jin was the victim of the tort of misfeasance in public office and has awarded the plaintiff MYR500,000 (about GBP90,000) in general damages and MYR100,000 in exemplary damages as a result of the unlawful freezing of Lim's bank accounts, forcing him to spend money on legal fees and to take out a loan and sell an interest in property for living expenses as the accounts remained frozen for more than four years.

The award is against The Inspector-General of Police and the government of Malaysia which have been found to be vicariously liable for the conduct of officer K Sopawan.

Justice SUPANG Lian sitting with Justices WONG Kian Kheong and AZIMAH Omar decided that the original award of MYR2,000 for general damages was insufficient.

Exemplary Damages

It is the award for exemplary damages, maintained by the Court of Appeal, that raises eyebrows. Exemplary damages are awarded by a court, literally, to set an example to others that the conduct complained of is viewed particularly seriously by the Court.

The action against the individual officers was dismissed, in the case of unnamed deputy public prosecutor because there is a Federal Court ruling that an unnamed public servant cannot be held liable. The case against the other was dismissed because he had investigated a report against LIM's mother, not against LIM.

The case against Lim's mother arose from a report by a shareholder in a business owned with Lim's mother, alleging crimina breach of trust. Her accounts were frozen and then an officer, K Sopawan, froze LIM's bank accounts. HIs mother was charged and (this isn't clear) she was convicted only for the convictions for criminal breach of trust and money laundering to be quashed because, FMT says " her constitutional rights to a fair investigation and trial were violated."

https://www.freemalaysiatoday.com/category/nation/2024/11/28/ex-bank-of…

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