Deputy Prime Minister and Chairman Monetary Authority of Singapore (MAS) In his written parliamentary response, Gan Kim Yong addressed the safety of digital banking services for minors under the age of 16.
He clarified that bank accounts for minors can only be opened by parents, either jointly or in the child’s name only.
For joint accounts, parents retain full control over the running of the account, while individual accounts for minors are subject to stricter restrictions, including a reduced daily trading limit from S$50 to S$100. There are safeguards that parents can adjust.
These measures are complemented by monitoring tools that allow parents to track account activity, receive real-time notifications, and, if necessary, freeze transactions via a “kill switch.”
Gan emphasized the importance of parental supervision, noting that parents decide when to open and close accounts, set transaction limits and supervise their children’s financial activities.
Such accounts are intended to inculcate financial management skills in children while providing a controlled environment.
All accounts, including those of minors, are protected by security measures, including real-time alerts and mechanisms to prevent fraudulent transactions.
of Shared responsibility frameworkThe regulations outlining the obligations of financial institutions and telecommunications companies to mitigate phishing scams also apply to these accounts.
This framework ensures that banks compensate fraud victims in the event that organizational responsibility is breached.
The fraud investigation timeline is the same for all accounts, with banks expected to resolve standard cases within 21 business days and complex cases within 45 business days.
Gunn’s comments echo recent efforts by banks like OCBC. launched Singapore’s first bank account for children as young as 7 years old, with a focus on financial literacy and parental control.
Security measures are detailed in the Electronic Payments User Protection Guidelines and Shared Responsibility Framework, which will come into effect on December 16, 2024.
