Singapore Police Empowered to Freeze Bank Accounts to Stop Scam Transfers Under New Law

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Asia

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Image Source: Agence France-Presse

Singapore has implemented a powerful new anti-scam law enabling police to suspend a person's bank account, ATM access, and credit facilities for up to 30 days if there is clear evidence the individual is being scammed even if they are willingly transferring money.

The legislation, which officially came into force on Tuesday, marks a significant shift in the country’s approach to tackling financial fraud. Under previous laws, authorities could not intervene even when it was evident a person was about to fall victim to a scam.

“This restriction order is necessary for the protection of the individual and society,” Singapore’s Ministry of Home Affairs said in a statement on Monday. “It will be issued only as a last resort, after all other attempts to convince the individual have been exhausted.”

The new powers allow for suspension of an individual's bank accounts, credit facilities, and ATM access for up to 30 days, with the possibility of renewal for a maximum of five times (i.e., up to 180 days total). Victims will still be allowed to withdraw funds needed for daily living expenses, authorities confirmed.

The law addresses a critical loophole: “self-effected transfers” where scam victims unknowingly transfer money to fraudsters. During parliamentary debates leading up to the law’s passage in January, lawmakers cited data showing that such self-initiated transactions accounted for 86% of scam reports and a staggering 94% of total losses in the first nine months of the previous year.

One notable example presented during the debates involved a 64-year-old woman who transferred S$400,000 (US$314,000) to a scammer posing as a romantic partner online part of a growing category of fraud known as romance scams.

Scams of this nature are increasingly sophisticated and have contributed to a surge in financial crimes across the region. A 2023 report by the UN Office on Drugs and Crime estimated that East and Southeast Asia lost US$37 billion to cyber fraud in a single year.

While the law has been widely supported by authorities and the public, some legal experts acknowledge the concerns about personal freedoms. Eugene Tan, Associate Professor of Law at Singapore Management University, previously commented that the measure may appear “intrusive,” but stressed that scams have become a “social menace that imposes a burden on society and the victim’s family.”

The law comes amid a regional crackdown on large-scale cyber fraud operations, including a recent case involving Malaysian national Tedy Teow Wooi Huat, founder of the MBI Group. Teow’s multibillion-dollar Ponzi scheme lured investors from across the Asia-Pacific with promises of high returns, operating under the guise of a property firm and leveraging a fraudulent digital currency known as M-Coin.

Working in coordination with Chinese authorities, Malaysian police recently seized US$900 million in assets, including luxury yachts and real estate, linked to Teow’s scam network. Seventeen suspects, including a major property developer, were arrested during Operation Northern Star. Teow was extradited to China in 2024.

As Singapore strengthens its cybercrime laws, officials hope the new restriction orders will serve both as a preventive tool and a deterrent to scammers who often prey on the elderly and vulnerable. The government is also considering harsher penalties, including caning, for the most serious scam-related offenses.

In the meantime, authorities urge the public to remain vigilant, report suspicious behavior, and seek immediate help if they suspect they are being scammed.