Protection from Scams Bill introduced to empower Police to issue restriction orders to banks to restrict banking transactions of individuals

9 December 2024

On 11 November 2024, the Protection from Scams Bill (“Bill”) was introduced for first reading in Parliament. The Bill empowers the Police to issue restriction orders (“ROs”) to banks to restrict an individual’s banking transactions, if there is reasonable belief that the individual will make money transfers to scammers. This will enable the Police to better protect targets of ongoing scams who refuse to believe that they are being scammed.

Background

In a press release issued on 11 November 2024, the Ministry of Home Affairs (“MHA”) explained that despite safeguards and extensive public education efforts, the number of scam cases involving the voluntary transfer of monies by victims to scammers remains high. These scams involve scammers manipulating victims into transferring their monies to the scammers. In some instances, victims would proceed with the money transfers despite being told by the Police, banks, or family members that they were being scammed. These included victims of investment scams and government officials impersonation scams, which contributed to very high average monetary losses. Currently, the Police have no powers to stop the victims from transferring their monies to the scammers if they insist on doing so.

Restriction orders

The Bill seeks to protect targets of ongoing scams by empowering the Police to issue ROs to banks to restrict the banking transactions of the individual, if there is reasonable belief that the individual will make money transfers to a scammer. The intent is to protect the individual from losing his money to scammers.

In determining the scope of the RO, MHA has given due consideration to strike a balance between protecting the public from scams and maintaining a sense of personal responsibility. There is also a mechanism to avoid unduly inconveniencing the individual who is subjected to the RO.

Issuance of RO

The decision to issue an RO will be made by a Police officer, based on an assessment of the facts and circumstances of each case. The Police may take into account relevant facts provided by the individual or his family members in making the decision.

A Police officer may issue an RO to a bank if he has reasonable belief that:

  • the individual will execute a money transfer to a scammer; and
  • the RO is necessary for the protection of the individual.

The RO will be issued only as a last resort, after other options to convince the individual have been exhausted.

Scope of RO

The Police will only issue ROs for scam cases, i.e. cases of cheating that are conducted substantially via digital or telecommunication channels (i.e. calls, SMSes, or online communications). Traditional cheating cases involving in-person interactions will not be covered (e.g. transfers to an errant renovation contractor, or to a family member or friend).

Individuals issued with an RO can expect the following banking facilities to be restricted:

  • money transfers out of the bank accounts and into other accounts (including via online banking, mobile banking, PayNow, and in person over the counter);
  • ATM facilities; and
  • all credit facilities, for example credit card transactions, access to personal loan facilities.

If the RO is to be issued, it will be issued by default to the seven domestic systemically important banks (“D-SIBs”) in Singapore. These are the major retail banks which manage most of the consumer deposits in Singapore. The RO can also be issued to a non-DSIB, should there be reasonable suspicion that a non-DSIB account is directly involved, i.e. the individual will be effecting transfers from a non-DSIB account to a scammer.

Measures to minimise inconvenience from RO

The Government will put in place a mechanism for an individual (who is the subject of an RO) to have access to his monies for legitimate reasons (e.g. to sustain daily living and pay bills). These cases will be assessed on a case-by-case basis, upon the individual’s application to the Police.

Duration of RO

An RO will be in effect for a maximum of 30 days at a time. If more time is required to put in place the necessary intervention measures, the Police can extend the RO for up to 30 days at a time, up to a maximum of five extensions. Where it is assessed that the individual is no longer at risk of being scammed, the Police can cancel each RO ahead of the 30-day limit.

Appeal mechanism

An individual can appeal to the Commissioner of Police against the Police officer’s decision to issue an RO. Given that the RO will remain active pending the assessment of the appeal, MHA will ensure that the appeal process is conducted expeditiously. The decision of the Commissioner of Police is final.

Public consultation

MHA conducted a public consultation on a draft version of the Bill from 30 August 2024 to 30 September 2024, as well as focus group discussions with representatives from various age groups. More information on the consultation is available from our article “MHA consults on proposed Protection from Scams Bill empowering Police to issue restriction orders to banks to restrict banking transactions of scam targets”.

MHA said that, overall, respondents were supportive of the Bill and provided their suggestions and feedback on the proposals, which MHA has taken on board where appropriate.

Reference materials

The following materials are available on the Parliament website www.parliament.gov.sg and the MHA website www.mha.gov.sg: