Singapore to Introduce Law Granting Police Power to Restrict Banking Transactions in Scam Cases

Singapore's home ministry plans to introduce a law allowing police to temporarily restrict banking transactions for individuals targeted by scams. Despite public education efforts, scam cases involving voluntary money transfers remain high. The proposed bill aims to better protect victims by issuing restriction orders on banking transactions, with a public feedback period until Sept. 30.

Singapore's home ministry announced on Friday its intention to introduce a law that will give police the authority to temporarily halt the banking transactions of scam targets who refuse to acknowledge they are being deceived.

The initiative comes in response to a high number of scam cases, where victims voluntarily transfer money to fraudsters despite extensive public education efforts. In the first half of 2024, self-effected transfers accounted for 86% of reported scams, the ministry noted.

Under the proposed bill, police would be empowered to issue restriction orders to banks, suspending specific financial activities if there's a reasonable belief that the individual plans to send money to the scammer. These orders would cover money transfers from victims' accounts and all credit facilities and would initially be in place for 28 days, offering police time to take additional actions.

The law will apply to scams conducted through digital and telecommunication means, such as phone calls, SMS, or online interactions, excluding cases involving in-person deception. Affected individuals can appeal the orders, and the ministry is seeking public feedback on the bill until Sept. 30.

(With inputs from agencies.)