Counterfeit Coin Act 1957

"Why that bank officer take my coin away, he said it is counterfeit and don't give me the value of the coins when I change it at the bank. Can they do that?" A friend ask me when I meet him during our "teh tarik" session recently. Many people don't know in Counterfeit Coin Act 1957 (Act 429), any person who receive counterfeit coins may cut or destroy the coins. This is to prevent that coin from circulating as a genuine money in the future. Many normal people also don't know that some collectors do collect counterfeit coins. It has some value to them, especially the coins that almost identical to the original coins like Omega counterfeit coin. 

The Act is very short with only 5 sections:

COUNTERFEIT COIN ACT 1957 

An Act to provide for the defacement of counterfeit coins. [Peninsular Malaysia—15 August 1957; Sabah and Sarawak—23 September 1965] Short title and application 1. (1) This Act may be cited as the Counterfeit Coin Act 1957.

(2) This Act shall apply throughout Malaysia.

Interpretation

2. In this Act, unless the context otherwise requires—

“counterfeit” has the meaning assigned to it by the Penal Code [Act 574];

“current coin” means any coin made by law a legal tender in Malaysia.

Coin suspected to be diminished or counterfeit may be cut by any person to whom it is tendered

3. (1) Where any coin is tendered as current coin to any person who suspects the same to be diminished otherwise than by reasonable wear or to be counterfeit, such person may cut, break, bend or deface such coin.

(2) If any coin so cut, broken, bent or defaced appears to be diminished otherwise than by reasonable wear, or to be counterfeit, the person tendering the same shall bear the loss thereof.6 Laws of Malaysia ACT 429

(3) If the same is of due weight and appears to be lawful coin, the person cutting, breaking, bending or defacing the same shall receive the same at its face value.

(4) If any dispute arises whether the coin so cut, broken, bent or defaced is diminished in manner aforesaid or counterfeit, it may be heard and finally determined in a summary manner by a Magistrate’s Court which is hereby empowered to examine upon oath as well the parties as any other person in order to the decision of the dispute.

(5) Every public officer, to whom in the performance of his duties there is tendered in payment of any part of the revenue of any Government in Malaysia or presented for inspection or otherwise any coin which appears to be a counterfeit of current coin or to have been unlawfully diminished, shall cut, break or deface or cause to be cut, broken or defaced every such coin.

Many people already knew selling counterfeit as genuine is illegal. How about selling the counterfeit coins as counterfeit? Is that illegal? What do you think?