In a significant move to combat the rising tide of scams in Singapore, the Ministry of Home Affairs (MHA) has introduced the Protection from Scams Bill. This proposed legislation aims to empower police officers to order banks to restrict transactions for individuals suspected of being scam victims.
Key Features of the Bill
- Restriction Orders (RO): The police will have the authority to issue ROs to banks if there’s reasonable belief that an individual is at risk of transferring money to scammers.
- Duration: Each RO can last up to 30 days and may be renewed up to five times, depending on the circumstances.
- Financial Access: Affected individuals can still access a fixed amount of money for legitimate expenses, with additional requests considered on a case-by-case basis.
Why This Legislation?
The necessity for such a bill arises from alarming statistics: reports of scams in Singapore soared from 9,500 in 2019 to approximately 46,000 in 2023, with losses reaching about $650 million.
Many victims have been informed by police, banks, or family members that they are being scammed yet continue to transfer their money. The MHA explained that current laws do not allow police to step in effectively when victims refuse assistance.
Public Involvement and Support
The MHA conducted a public consultation via the REACH website from 30 August to 30 September 2023, alongside focus group discussions. Feedback was largely supportive, with many suggestions incorporated into the final draft of the bill.
“The fight against scams requires a whole-of-society approach,” stated the MHA, emphasizing the need for collaborative action.
Implementation Scope
The bill primarily targets ongoing scams involving voluntary monetary transfers. In addition to the seven main Domestic Systemically Important Banks (DSIB) — DBS, OCBC, UOB, Citibank, HSBC, Maybank, and Standard Chartered — the police may also involve smaller banks where there’s suspicion of scam activity.
Importantly, the proposed measures don’t cover traditional cheating cases that involve in-person interactions, like disputes with renovation contractors.
Next Steps
Moving forward, the bill will be debated in Parliament, following which it may take effect if passed. The move is pivotal in bolstering the protective measures available against scams in Singapore, allowing police to actively intervene when necessary.