Law enforcement can block or impose restrictions on the bank accounts of people who are victims of scams. The law provides for the suspension of transactions and the prohibition of using ATMs and credit facilities. The restraining order is limited to “a maximum of 30 days” and each order can be extended up to five times.
Singapore () – The Parliament of the city-state of Singapore today approved a new law authorizing the police to “freeze” or impose “restrictions” on the bank accounts of potential victims of online scams. The law, called “Protection from Scams Bill”, comes at a time of “deep concern” about the phenomenon, as confirmed by the Minister of the Interior and Social and Family Development, Sun Xueling, which affects the entire Asian continent. “This bill – said the representative of the Executive – allows law enforcement to act decisively and close a gap in our arsenal against fraudsters.”
The law, which received the green light in its second reading, will allow certain officials, including the Police and the Department of Commercial Affairs, to issue restraining orders to banks if there is a reasonable belief that account holders are making transfers to scammers. These restriction orders include the suspension of money transfers, the use of ATMs and all credit facilities, although people will continue to have access to their money for everyday expenses.
“The objective is to give the police more time to involve and convince the individual who has been defrauded, even with the help of their relatives,” the minister explained to Parliament. The senior government official then specified that the restriction orders will affect the seven Domestic Systemically Important Banks (DSIB): Dbs, Ocbc, Uob, Citibank, Hsbc, Maybank and Standard Chartered Bank, which represent the vast majority of bank accounts in consumers in Singapore.
Orders may also be issued to banks that are not members of the DSIB if there are reasonable grounds to believe that victims are making transfers to fraudsters. Sun said the Ministry of Home Affairs (MHA) is “mindful of the need to strike a balance between protecting an individual from further harm and causing them undue inconvenience”. Several safeguards have been planned, including requiring that restraining orders be issued only “as a last resort” if all other efforts “have failed.” The rule limits the duration of a restraining order to “a maximum of 30 days,” and each order can be extended up to five times.
Preliminary indicators show that the number of fraud cases and losses increased by 10% and 40%, respectively, in 2024 compared to the previous year. One of the most frequently used scam methods by criminals is impersonating government officials to promote investments, followed by alleged love affairs, which accounted for 86% of all reported scams and 94% of total losses between January and September. from last year. “In some cases, the police observed that the victims were so deceived that they refused to believe that they had been scammed,” the minister explained. Until now the authorities and banks had no legal power to prevent transactions. “The victim – adds Sun – would continue to lose more money […]. In some of these cases, victims turned to the government for financial assistance.” Therefore “in these situations the authorities should have the power to intervene decisively.” Finally, the government official specified that the bill alone “will not significantly reduce the total number of scams” and that it is only “one of the many methods used” to combat them.
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