The Singapore Ministry of Home Affairs (MHA) Anti-fraud bill Public comment on the bill is expected to be sought in the coming months.
The Bill aims to give police the power to issue restraining orders (ROs) to banks, temporarily restricting the banking activities of individuals who are the target of persistent fraud who continue to transfer money despite warnings.
From 2022 onwards, banks will be required to implement kill switches and Money Lock A notable feature is that there continues to be a high number of fraud cases involving voluntary remittances by the victim.
86% of scams reported in the first half of 2024 involved victims voluntarily transferring funds to fraudsters after being manipulated through digital or communication channels.
The proposed bill would allow police to issue ROs for frauds committed remotely, including through online communications and telephone calls.
The RO will stop transfers from the victim’s bank account, suspend access to credit facilities and provide mechanisms for the victim to access funds for legitimate purposes.
If deemed necessary, police can issue these orders against all seven of Singapore’s systemically important banks (D-SIBs) – DBS, OCBC, United Overseas Bank (UOB), Citibank, Maybank, Standard Chartered and HSBC.
These orders will initially be in place for 28 days but can be extended if police determine the individual remains at risk.
The MHA stresses that ROs will only be used as a last resort, after other efforts to persuade individuals to stop sending remittances have failed.
An individual subject to an RO has the right to appeal the decision to the Home Secretary, whose decision is final.
The ministry has invited the public to submit their opinions on the bill by September 30, 2024.
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