Singapore’s Ministry of Home Affairs (MHA) has announced plans to introduce the Protection from Scams Bill in the coming months and is seeking public feedback on the proposed legislation.
The bill aims to empower the police to issue Restriction Orders (ROs) to banks, enabling them to temporarily restrict banking transactions of individuals targeted by ongoing scams who continue to transfer money despite warnings.
Despite various safeguards implemented by banks since 2022, such as the kill-switch and money lock features, scam cases involving voluntary money transfers by victims remain prevalent.
In the first half of 2024, 86% of reported scams involved victims willingly transferring funds to scammers, often after being manipulated through digital or telecommunication channels.
The proposed bill would allow the police to issue ROs for scams conducted remotely, such as those involving online communications or phone calls.
The ROs would suspend money transfers from the victim’s bank accounts and halt access to credit facilities, providing a mechanism for victims to access their funds for legitimate purposes.
If deemed necessary, the police can issue these orders to all seven Domestic Systematically Important Banks (D-SIBs) in Singapore, which include DBS Bank, OCBC, United Overseas Bank (UOB), Citibank, Maybank, Standard Chartered Bank, and HSBC.
These orders would be initially valid for 28 days, with the possibility of extension if the police determine that the individual remains at risk.
The MHA emphasizes that ROs will only be used as a last resort after other efforts to convince the individual to stop the transfers have failed.
Individuals subject to an RO will have the right to appeal the decision to the Minister for Home Affairs, whose decision will be final.
The Ministry is inviting the public to submit their feedback on the proposed bill by 30 September 2024.
Featured image credit: Edited from Freepik
