Singapore's Bold Move to Combat Scams with Banking Restrictions

Singapore has enacted a law empowering police to instruct banks to limit transactions for possible scam victims. The Protection from Scams Bill aims to curb rising scam cases, allowing authorities to intervene decisively. Restrictions include halting money transfers and ATM use, safeguarding consumer finances without long-term inconvenience.

In a proactive measure against rising scams, Singapore has passed a law empowering police to instruct banks to restrict transactions of potential victims. The Protection from Scams Bill, supported unanimously in Parliament, seeks to cut off financial pathways for scammers, offering a defense mechanism for consumers.

Minister of State for Home Affairs and Social and Family Development, Sun Xueling, emphasized the 'grave concern' surrounding scams in Singapore as he introduced the bill for its second reading. The legislation allows specified police officers to issue restriction orders to banks, provided there's a reasonable suspicion that account holders are targeted by scammers.

The new rules will suspend various financial services temporarily, ensuring individuals access their funds for daily needs while allowing space for authorities to counsel victims. This legislation involves significant 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 individuals to appeal promptly against such orders.

(With inputs from agencies.)