Criminal Breach of Trust (CBT)
The law punishes the dishonest taking or misuse of monies or property entrusted to a person. This offence is known as Criminal Breach of Trust (“CBT”)..
CBT offences typically begin with trust and end with an abuse of that trust. Common examples include an employee entrusted with managing company funds, a director who has control over a business bank account, or a delivery driver entrusted to deliver goods. In such offences, the offence harms two interests: the trust placed in the offender and the monies or property misappropriated.
These two factors play an important role in determining the seriousness of a CBT offence:
- The degree of trust reposed in the offender; and
- The amount of money or value of property involved.
Generally, the higher the position of trust, the more serious the offence. Likewise, the larger the amount misappropriated, the heavier the punishment.
Given the severe consequences that can follow, it is important to understand what constitutes a CBT offence and how your rights can be protected. If you are under investigation or facing charges, it is strongly advisable to seek legal advice early.
What Is Criminal Breach of Trust?
CBT is defined under Section 405 of the Penal Code 1871 (“PC”):
Section 405
Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or intentionally suffers any other person to do so, commits “criminal breach of trust”.
In essence, the offence consists of two key components:
- Entrustment or dominion over property; and
- Dishonest misappropriation, conversion, use, or disposal of that property.
Common Misconceptions About CBT
Some misunderstandings frequently arise in CBT cases:
- You do not need to own the property to commit CBT.
- CBT is about dishonesty, not mere carelessness, negligence, or poor business decisions.
Whether an act amounts to CBT often depends on intention, authority given, and the terms under which the property was entrusted.
Different Roles, Different Consequences
Not all CBT offences are treated alike. The law imposes harsher punishments on offenders who occupy positions of greater trust and responsibility.
- Public servants and professionals (e.g. government officials, bankers, lawyers, directors)
Section 409 of the PC
Punishment: Up to 20 years’ imprisonment and shall be liable to a fine. - Employees (e.g. cashier, secretary, administrative staff)
Section 408 of the PC
Punishment: Up to 15 years’ imprisonment and shall be liable to a fine. - Transportation or storage (e.g. warehouse or delivery staff)
Section 407 of the PC
Punishment: Up to 15 years’ imprisonment and shall be liable to a fine. - All other CBT cases (e.g. warehouse or delivery staff)
Section 406 of the PC
Punishment: Up to 7 years’ imprisonment, or fine, or both.
Common Scenarios Leading to CBT Charges
CBT charges commonly arise in situations such as:
- “Borrowing” company funds for personal expenses
- Taking client monies without authorisation to repay personal debts
- Selling or disposing of goods that were meant to be delivered
What may appear to be a temporary or practical solution can quickly escalate into a criminal investigation.
Under Investigation or Being Charged?
Early legal advice can make a meaningful difference in how a CBT case develops. At GJC Law, our criminal defence lawyers assist clients from the first point of investigation through to resolution, with careful attention to evidence, procedure, and strategy.
If you require guidance, you may speak with our team to understand how your case may be approached and protected from the outset.
