Singapore anti-scam law lets police freeze bank accounts

Singapore has passed legislation giving police unprecedented powers to take control of a person's bank account if there is proof the individual is being scammed.

The law, passed Tuesday, is believed to be the first of its kind in the world.

It allows police and officers of the commercial affairs department — the city's white-collar crime investigation agency — to order bank transactions stopped if there is compelling evidence an account holder is about to transfer money to a scammer, even if willingly.

Persons issued with restriction orders will have their bank accounts, ATM access and credit facilities suspended, but can withdraw funds for daily living expenses, according to the law.

"The intent is to buy the police more time to engage and convince the individual that he is being scammed, including through enlisting the help of his family members," Minister of State for Home Affairs Sun Xueling told parliament.

She said that "the restriction order will only be issued as a last resort if all other efforts to convince the individual has failed".

It has a time limit of 30 days that can be renewed a maximum of five times.

Sun specifically cited examples of elderly or lovelorn victims, noting the case of a 64-year-old woman who was duped into parting with Sg$400,000 by a supposed lover.

Unique legislation

Existing safeguards were inadequate, she said, as "self-effected transfers" accounted for 86 percent of all scam reports and 94 percent of losses from January-September last year.

"I am not aware of other countries having similar legislation," political analyst Eugene Tan said on Wednesday.

"This is a unique legislation, designed to the specific circumstances of Singapore."

"It may well be that this is another manifestation of the nanny state that Singapore is reputed to be and for which it makes no apology," added Tan, associate professor of law at the Singapore Management University.

Opposition MP Jamus Lim of the Workers' Party voiced concern over how the legislation "represents a significant intrusion into private transactions", but supported the bill.

Sun told lawmakers that "the scam situation continues to be of grave concern", citing preliminary data showing cases could have risen by 10 percent in 2024 from 2023, with losses up by 40 percent.

The home affairs ministry said in November that scam losses totalled Sg$650 million ($476 million) in 2023.

Tan, the analyst, said while the law could appear intrusive, the government saw scams as a "social menace that imposes a burden on society and the victim's family".

The scamming problem is "at the cusp of being a crisis, if we are not there already", he said.