Requirement for Verification of Account Number and Accountholder Name during Fund Transfers
Ministry of FinanceSpeakers
Summary
This question concerns Assoc Prof Jamus Jerome Lim’s inquiry into whether banks must verify both account numbers and names during fund transfers. Deputy Prime Minister Gan Kim Yong, representing the Prime Minister, stated that the Monetary Authority of Singapore is reviewing name-matching solutions while studying international practices. He explained that existing protocols require banks to facilitate refunds for erroneous transfers, as it is illegal for recipients to retain such funds. The Minister emphasized that consumers should personally verify recipient details before transferring and remain vigilant against demands from purported government officials. Currently, banks follow clear guidance to assist customers in recovery, though users are ultimately encouraged to double-check account numbers or PayNow details.
Transcript
19 Assoc Prof Jamus Jerome Lim asked the Prime Minister and Minister for Finance (a) whether MAS requires banks to verify both account number and accountholder name when receiving or transmitting funds; and (b) if not, why not.
Mr Gan Kim Yong (for the Prime Minister): The Monetary Authority of Singapore (MAS) has been studying the experience of a few countries in implementing account number and name matching, and is reviewing possible approaches and solutions with the banking industry.
Under our current system, if consumers have made an erroneous transfer, he or she should approach the bank, which will engage the recipient's bank to inform the unintended recipient, to initiate a refund. If the unintended recipient refuses to return the funds or is unresponsive, the bank will advise the consumer on next steps to take, which may include making a Police report. It is illegal for the recipient to retain the erroneous transfer. There is clear guidance and protocols in place to guide banks' actions in such erroneous transfer situations.
We urge consumers to be vigilant against demands for fund transfers from any person. Particularly, Government officials will never ask members of the public to transfer money, disclose banking log-in details, install mobile apps from unofficial app stores or transfer calls to the Police. When unsure, do not proceed. To prevent erroneous transfers, consumers can adopt measures, such as confirming the account number or PayNow details of the intended recipient, before performing the transfer.