Financial Abuse and its Legal Implications

This paper is an initial exploration on the issue of financial abuse and its legal implications. Studies have shown how financial abuse as a sinister form of emotional abuse, but was sometimes not recognized as such by targeted individuals, mostly women. Financial abuse is an unauthorised and improper use of funds, property or any resources belonging to another individual and includes theft, fraud and exploitation, pressure in connection with wills, property, inheritance or financial transactions, misuse or misappropriation of property, assets, possessions, savings, capital or benefits. Financial abuse may affect psychological and physical health through the stress associated with poverty and facing an uncertain financial future. Financial abuse is common but rarely talked about and the same applies in Malaysia. The objective of this paper is to explore the legal risks if financial abuse happens. Among the legal risks include falling into insolvency and foreclosure of property. Such legal implications of financial abuse should be controlled and managed to minimise the risks it impacted. The methodology used for this paper is a library based-research on journal articles, published reports from the authorities, legislations and legal historical records via the library, internet and the relevant materials. This paper will suggest that awareness programmes and early detection could progressively help to understand the consequence of financial abuse.