Singapore’s Parliament has passed the Protection from Scams Bill, granting authorities the power to issue Restriction Orders (ROs) that temporarily freeze bank transactions and credit facilities for individuals identified as potential scam victims.

The legislation aims to combat the growing threat of financial scams while protecting vulnerable individuals from significant losses.

What you need to know about the bill

ROs will be issued by designated police or Commercial Affairs Officers as a last resort after other interventions, such as engaging relatives, social workers, or counselors, have been explored.

Officers will assess specific factors, including whether the victim is still in communication with scammers, has transferred funds, or continues to believe the scammer, before issuing an RO.

These orders will initially last 30 days and can be renewed up to five times if necessary.

They apply to both Joint-Alternate and Joint-All accounts, despite operational challenges, to ensure comprehensive protection.

The bill includes an appeals process for individuals who believe an RO was wrongly issued.

Appeals will be reviewed by the Commissioner of Police, whose decision is final, and focus on documentary evidence to expedite the process.

Internal controls ensure that ROs are approved at an appropriate level of seniority, such as the Director or Deputy Director of the Commercial Affairs Department, to prevent misuse of this authority.

To minimise disruption, individuals subject to ROs can request limited access to funds for documented needs, such as medical expenses or bill payments, by providing supporting documents.

Withdrawals are designed to be processed within hours to balance convenience with security.

Additionally, the RO may be varied to allow specific transfers or withdrawals if justified by the individual’s circumstances.

The bill also addresses the potential involvement of third parties.

If a third party assists an individual under an RO in transferring money to scammers, they could be subject to a separate RO if deemed at risk of becoming a scam victim themselves.

The legislation includes criteria for adding new offenses to the schedule, focusing on offenses with a clear nexus to scams, such as cheating or fraud.

It also grants immunity to banks and their staff for actions taken in good faith and with reasonable care when enforcing ROs. Non-compliance with an RO could result in fines of up to S$3,000.

While some lawmakers questioned whether this penalty is sufficient, the government defended it as consistent with existing legal frameworks under the Criminal Procedure Code.

Balancing Protection with Financial Autonomy

Critics have raised concerns about balancing financial autonomy with protection.

However, the government emphasised that ROs are temporary, used judiciously, and subject to case-specific assessments to ensure they are only applied when absolutely necessary.

Public education remains a critical focus, with initiatives like the ScamShield Suite providing accessible scam resources and a 24/7 helpline (1799) to help individuals verify suspicious situations.

This measure builds on existing collaboration between banks and the police at the Anti-Scam Command, which has been effective in detecting and preventing scams.

Featured image: Sun Xueling, Minister of State, Ministry of Home Affairs and Ministry of Social and Family Development (screengrab from The Online Citizen)