Anti-scam law that lets police freeze potential victims' bank accounts to kick in on Jul 1: MHA

Business Times

2 days ago

[SINGAPORE] Singapore police will soon be able to restrict bank transfers of individuals suspected of being scam targets to better protect them, said the Ministry of Home Affairs (MHA).
This comes as an anti-scam law passed in Parliament on Jan 7 will come into force on Tuesday (Jul 1).
Once the Protection from Scams Act 2025 takes effect, police officers and commercial affairs officers appointed under Section 64 of the Police Force Act may be able to issue restriction orders to banks to restrict the banking and credit facilities of potential scam victims as a 'last resort', the MHA said.
The officers will decide on whether to issue a restriction order after assessing the facts and circumstances of each case, including relevant facts provided by an individual or his family members, the MHA said.
An officer may issue an order to a bank if there is 'reasonable belief' that an individual will transfer money to a scammer, withdraw money with the intent of giving it to a scammer, or apply for or draw down on a credit facility with the intent of benefitting a scammer.
Such orders may also be issued if it is deemed 'necessary' to protect an individual, but they will only be used as 'a last report, after other options to convince the individual have been exhausted', the ministry said.
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Individuals who receive a restriction order may expect money transfers from their bank accounts into other accounts to be restricted. These include transfers via online banking, mobile banking, PayNow and in person over the counter services.
ATM services and all credit facilities – including credit card transactions and access to personal loan facilities – will also be restricted, the MHA said.
The restriction orders will be issued to seven domestic systemically important banks by default. This refers to major retail banks that manage most of the consumer deposits in Singapore.
The banks are: DBS, OCBC, UOB, Citibank, Hongkong and Shanghai Banking Corporation, Malayan Banking and Standard Chartered.
Restriction orders may also be issued to other banks beyond this list if there is 'reasonable suspicion' that an individual will be transferring money from an account under such a bank to a scammer.
Individuals who are issued restriction orders may access their monies for legitimate reasons – such as for daily expenses or paying bills – by applying to the police to request to do so. Such requests will be assessed on a case-by-case basis, the MHA said.
Restriction orders will be effective for no more than 30 days at a time and can be extended for up to 30 days each time, with a maximum of five extensions. Subsequently, they will lapse even if an individual remains set on transferring money to a scammer.
They may be cancelled ahead of the 30-day period if the police assess the individual to be no longer at risk of being scammed.
Individuals who receive restriction orders or joint account holders of bank accounts subject to restriction orders may lodge an appeal to the Commissioner of Police against the decision. The restriction order will remain active until the outcome of the appeal is decided and the decision of the Commissioner of Police will be final, the MHA said.