The Association of Banks in Singapore (ABS) and the Monetary Authority of Singapore (MAS) say the 24-hour safeguard still applies even when customers move money to their own accounts at other banks, as ownership cannot be verified across institutions.
Singapore’s major banks will now automatically delay digital transfers that move more than half of an account’s balance within a day.
The measure, which took effect on 15 October, covers current and savings accounts, including joint accounts, with balances of at least S$50,000.
The two bodies were responding to letters in The Straits Times that raised concerns about delays linked to banks’ anti-scam checks.
One writer questioned the hold placed on transfers to a customer’s own account elsewhere, while another urged banks not to slow down genuine payments.
ABS and MAS said the enhanced surveillance measure was introduced because scammers have been able to drain victims’ balances quickly and cause major losses.
The safeguard applies when an account shows a rapid outflow of half its balance, giving customers time to reassess large transactions and cancel them if they suspect fraud.
They said the measure is being refined to balance convenience and security.
Banks have already whitelisted some transactions such as recurring GIRO deductions and payments to billing organisations.
Expanding this list requires caution, as scammers have shifted funds through victims’ own accounts before dispersing them.
Banks also do not have the information needed to confirm that an account at another institution belongs to the same customer.
The joint statement said,
“We seek customers’ understanding when some convenience needs to be forgone for security when undertaking large value funds transfers. We also encourage consumers to plan ahead for such transfers.
Banks, together with the Monetary Authority of Singapore (MAS), will continue to work together to safeguard customers’ hard-earned savings, and reduce the incidence of painful financial losses arising from scams.”
Featured image: Edited by Fintech News Singapore, based on image by sutinyuukrung15 via Freepik
