At the time of the announcement, Singapore was among the first regions to implement such legislation globally. The initiative enables police and officers of the Commercial Affairs Department, the city’s white-collar crime investigation agency, to command bank transactions to be halted if there is any compelling evidence that an account holder is set to transfer funds to a scammer. Regulators plan to suspend bank accounts, ATM access, and credit facilities for individuals who face restriction orders. However, according to the law, they can still withdraw money for daily living expenses.
Commenting on the announcement, representatives from the Ministry of State for Home Affairs underlined that the move taken by regulators aims to provide police with more time to engage and convince the individual that they are scammed, including via enlisting the support of their family members. Additionally, the restriction order is set to be issued only as a last resort if all other measures to convince the individual have failed. The order has a time limit of 30 days, with police being able to renew it a maximum of five times.
Furthermore, the decision to introduce this anti-scam law comes during a period of increased fraud in the region, with vulnerable people, such as elderly or lovelorn victims, facing more risks. For example, officials noted a recent case in which a 64-year-old woman was duped into providing approximately USD 292,440 to a supposed lover. Also, current safeguarding measures were found insufficient, with self-effected transfers accounting for 86% of all scam reports and 94% of losses from January to September 2024. The legislation was developed to specifically meet the needs and circumstances of Singapore.
Despite facing concerns over how the anti-scam law could come as an intrusion into private transactions, other regulators have supported the bill. The Minister of State for Home Affairs highlighted that the scam situation represents a grave concern, with preliminary data showcasing a 10% increase in cases in 2024 compared to 2023, while losses scaled by 40%.
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