A new legislative proposal, which would allow police to issue restrictions on banking transactions for individuals suspected of being scam targets, was introduced in Singapore’s Parliament on November 11, 2024. This bill aims to strengthen protections against increasing financial scams by halting potentially harmful transactions.

In response to a rising tide of financial scams, the Singapore government has proposed a bill empowering police to intervene directly in banking transactions deemed at risk of being scam-related. This bill, dubbed the “Protection for Scams Bill,” was tabled to help vulnerable individuals who may not recognize they are being scammed.

The police would be authorized to issue Restriction Orders (ROs) to banks, aimed at individuals likely to transfer funds to scammers. This measure is considered when there is “reasonable belief” of scam involvement and all other persuasive efforts have failed.

ROs would apply to key transactions including bank transfers, ATM withdrawals, and credit facilities. Initially targeting seven major banks, the order could extend to other institutions if needed.

An RO can last up to 30 days with the possibility of extension for five additional 30-day periods if the threat persists. Police can rescind the order early if the individual’s risk diminishes.

Affected individuals can appeal an RO to the Commissioner of Police. While the appeal is processed, the restriction remains in effect, but the Ministry of Home Affairs (MHA) promises a swift review.

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To reduce inconvenience, those under an RO can request limited access to funds for essential needs, which police will assess on a case-by-case basis.

The proposed “Protection for Scams Bill” marks a significant shift in Singapore’s approach to combatting financial scams, with the goal to provide the police with necessary tools to intervene before citizens fall victim to scams. This approach reflects growing concerns over the sophisticated nature of digital scams and the need for more proactive measures.

The Singaporean government’s proposed bill introduces police powers to restrict banking transactions for individuals at risk of scam involvement to bolster defenses against a sharp rise in scam incidents and substantial financial losses in recent years.

Source: Mothership SG (2024)

Keywords: Police Power Bill, Banking Transactions Halt, Scam Cases