Singapore’s bold move to combat scams with banking restrictions

In a proactive measure against the rise of scams, Singapore passed a law empowering police to order banks to restrict transactions by potential victims. The Scam Protection Bill, supported unanimously in Parliament, seeks to close financial avenues for fraudsters, offering a defense mechanism for consumers.

Minister of State for Home Affairs and Social and Family Development Sun Xueling highlighted the “serious concern” surrounding scams in Singapore as he tabled the bill for its second reading. The legislation allows certain police officers to issue restraining orders to banks, as long as there is reasonable suspicion that account holders are being targeted by fraudsters.

The new rules will temporarily suspend various financial services, ensuring people access their funds for daily needs while giving authorities space to advise victims. This legislation involves major banks such as DBS, OCBC, UOB, among others. Importantly, these measures will be imposed only as a last resort after consultation fails, with the possibility for people to promptly appeal against such orders.

(With contributions from agencies).