SINGAPORE, Jan 8 — Parliament approved a new law yesterday, granting the police authority to instruct banks to block banking transactions of individuals suspected of being potential scam victims.
According to CNA, the Protection from Scams Bill was introduced amidst ongoing concerns about the rise of scams in Singapore, as highlighted by Minister of State for Home Affairs and Social and Family Development Sun Xueling during the bill’s second reading.
“This bill enables the police to take swift action and fill a critical gap in our efforts to combat scammers,” she was quoted as saying.
As reported, the bill will authorise designated officers, including those from the police and the Commercial Affairs Department, to issue restriction orders to banks if there is reasonable belief that account holders may be transferring funds to scammers.
These orders will block money transfers, the use of ATM services, and all credit facilities, although individuals will still have access to their funds for daily living expenses.
The minister explained that the purpose of the bill is to “buy the police more time to engage and convince” individuals that they are being scammed, which may include involving their family members in the process.
CNA reported that the restriction orders will apply to the seven Domestic Systemically Important Banks (DSIBs) — DBS, OCBC, UOB, Citibank, HSBC, Maybank, and Standard Chartered Bank — which hold the majority of consumer bank accounts in Singapore.
Additionally, the orders can be issued to non-DSIB banks if there is reason to believe that victims may transfer funds to scammers.
Sun was reported as saying that the Ministry of Home Affairs (MHA) is “mindful of the need to strike a balance between protecting an individual from further harm and not unduly inconveniencing him”.
Several safeguards have been implemented, including the requirement that restriction orders only be issued “as a last resort” after all other attempts to persuade the individual have failed.
Individuals will also have the right to appeal the restriction orders to the Commissioner of Police, with the ministry ensuring that this process will be handled promptly.
The bill will set an initial duration for a restriction order of up to 30 days, with the possibility of extending it up to five times, if deemed necessary by the officer. After five extensions, the order must expire, even if the victim remains at risk of transferring further funds to the scammer.
Sun said that the ministry is taking a practical approach to the matter, acknowledging that it cannot provide indefinite assistance to victims.
