7-1-2025 (SINGAPORE) Singapore’s Parliament has enacted groundbreaking legislation granting police authority to restrict banking transactions of potential scam victims. The Protection from Scams Bill, passed on Tuesday, marks a decisive step in the city-state’s fight against sophisticated financial deception schemes.
Under the new legislation, law enforcement officials can direct banks to temporarily freeze accounts when there is reasonable suspicion that holders may fall prey to scammers. The measure primarily targets Singapore’s seven major banks – DBS, OCBC, UOB, Citibank, HSBC, Maybank and Standard Chartered – which manage the bulk of consumer accounts in the nation.
Minister of State for Home Affairs Sun Xueling, who introduced the bill, revealed alarming statistics showing a 40% surge in scam-related losses and a 10% increase in cases during 2024. “Self-effected transfers, where victims willingly send money to fraudsters, constitute 86% of all reported scams and 94% of financial losses,” she noted.
The legislation implements a structured approach to account restrictions. Initial orders last up to 30 days, with provisions for five possible extensions. Whilst restricted, account holders maintain access to funds for essential daily expenses, though ATM facilities and credit services are suspended.
Parliament members, whilst unanimously supporting the bill, raised concerns about its implementation. Workers’ Party MP Jamus Lim suggested allowing account holders to designate trusted administrators who could freeze transactions, as an alternative to police intervention. Progress Singapore Party’s Hazel Poa advocated for an opt-out provision with appropriate safeguards.
Addressing implementation queries, Sun clarified that authorities anticipate issuing between five and ten restriction orders monthly. The measure will affect both types of joint accounts – those requiring all holders’ consent and those permitting individual transactions – though the Ministry aims to refine this approach through technical solutions.
The legislation represents part of a broader strategy to combat financial fraud, with authorities acknowledging its limited scope but emphasising its importance in preventing substantial individual losses. The government has indicated willingness to expand restrictions to other financial platforms, including cryptocurrency exchanges and remittance services, should circumstances warrant.
Critics note that the projected 60-120 annual restriction orders appear modest compared to Singapore’s roughly 50,000 yearly scam cases. However, officials maintain that the law targets particularly damaging cases involving social engineering, where individual losses can be significant.
