Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS) Gan Kim Yong addressed the safety of digital banking services for minors under 16 in a written parliamentary reply.
He clarified that bank accounts for minors can only be opened by parents, either as joint accounts or accounts solely in the child’s name.
In joint accounts, parents retain full control over account operations, while sole-name accounts for minors have stricter safeguards, such as lower daily transaction limits of S$50 to S$100, which parents can adjust.
These measures are complemented by monitoring tools that allow parents to track account activity, receive real-time notifications, and freeze transactions via a “kill switch” if necessary.
Gan emphasized the importance of parental oversight, noting that parents decide when to open or close accounts, set transaction limits, and supervise their child’s financial activity.
Such accounts aim to instill financial management skills in children while providing a controlled environment.
All accounts, including those for minors, are protected by security measures such as real-time alerts and mechanisms to prevent unauthorized transactions.
The Shared Responsibility Framework, which outlines duties for financial institutions and telecommunications companies to mitigate phishing scams, applies to these accounts as well.
This framework ensures banks compensate scam victims if institutional responsibilities are breached.
Investigation timelines for fraudulent activity remain the same for all accounts, with banks expected to resolve standard cases within 21 business days and complex cases within 45 business days.
Gan’s remarks follow initiatives by banks like OCBC, which recently launched Singapore’s first bank account for children as young as seven, emphasizing financial literacy and parental controls.
The security measures are detailed in the E-Payment User Protection Guidelines and the Shared Responsibility Framework, which will take effect on 16 December 2024.
