Singapore's Swift Action: New Law to Freeze Scammed Bank Accounts

Singapore has enacted a law empowering police to freeze the bank accounts of scam victims as a last resort to prevent further financial losses. Police can issue restriction orders to banks for potential scam victims, lasting 30 days and renewable up to five times, targeting major banks and possibly expanding to crypto and e-wallet platforms.

Singapore's parliament passed a pivotal law on Tuesday empowering police to freeze the bank accounts of scam victims as a pre-emptive strike against further financial losses.

This legislation allows law enforcement to issue restriction orders on banks when necessary to protect victims from financially benefiting scammers through bank transfers or withdrawals. The initiative comes in response to alarming scam statistics, with losses reaching S$385.6 million in the first six months of 2024 alone.

The new orders will initially apply to Singapore's key banks and may extend to crypto exchanges and e-wallets. Speed is crucial, argues Minister of State Sun Xueling, to safeguard individuals' finances swiftly. However, repeated actions by victims may shift the responsibility back to them.

(With inputs from agencies.)