Banking Solutions for Singaporeans with Frozen Bank Accounts on Law Enforcement Grounds to Receive E-payment of Salary and Government Support
Ministry of Home AffairsSpeakers
Summary
This question concerns Dr Tan Wu Meng's inquiry regarding the number of Singaporeans with bank accounts frozen on law enforcement grounds and the available solutions for receiving salaries and government support. Minister K Shanmugam stated that the SPF froze over 16,700 suspected scam accounts in 2022, though specific demographics and the number of individuals denied new accounts are not tracked. He explained that banks may provide restricted accounts for basic needs but can decline high-risk individuals, such as those involved in serious crimes. Finally, he noted that individuals with frozen accounts may apply to the Courts to withdraw funds for reasonable living or legitimate expenses.
Transcript
25 Dr Tan Wu Meng asked the Minister for Home Affairs (a) since 2022, how many Singaporeans have had an existing bank account frozen on law enforcement grounds; (b) how many of such individuals have been prevented by the same bank or other banks from opening a second bank account; and (c) what banking solutions are available for such individuals so that they can apply for jobs which require e-payment of salary or access Government support where payments go to a bank account.
Mr K Shanmugam: The Singapore Police Force (SPF) only freezes bank accounts when there is reason to suspect that they are involved in criminal activities.
In 2022, the SPF’s Anti-Scam Command froze more than 16,700 bank accounts which were suspected to be involved in scammers’ operations. SPF does not track whether these bank accounts belonged to Singaporeans or foreigners, the number of bank accounts frozen due to suspected involvement in crimes other than scams, nor the number of individuals whose bank accounts were frozen and subsequently prevented from opening other bank accounts.
For individuals whose bank accounts are frozen, banks may decide to offer new accounts, but these may come with restricted access to certain facilities or be subject to enhanced monitoring measures. Such restricted accounts will still meet the basic banking needs of the individuals, including receiving their salaries and Government support.
Banks may decline to offer new accounts, if the individuals concerned are deemed to be of high risk, for example, those who have committed serious crimes, such as being involved in the financing of terrorism.
Individuals whose bank accounts are frozen can make an application to the Courts to withdraw money for reasonable living or legitimate expenses.