Protection from Scams Bill Introduced in Parliament

The Protection for Scams Bill (“Bill“) was introduced for First Reading in Parliament on 11 November 2024. The Bill empowers the Police to issue Restriction Orders (“ROs“) to banks to restrict an individual’s banking transactions if there is reasonable belief that the individual will make money transfers to scammers.

The key aspects of the Bill include the following:

  • Issuance of ROs – A Police Officer may issue a RO to a bank if he has reasonable belief that: (i) the individual will execute a money transfer to a scammer; and (ii) the RO is necessary for the protection of the individual. The RO will be issued only as a last resort, after other options to convince the individual have been exhausted.

  • Scope of RO – The Police will only issue ROs for scam cases, i.e., cases of cheating that are conducted substantially via digital or telecommunication channels. Individuals issued with a RO can expect the following banking facilities to be restricted: (i) money transfers out of the bank accounts and into other accounts; (ii) ATM facilities; and (iii) all credit facilities.

  • Measures to minimise inconvenience – A mechanism will be put in place for an individual (who is the subject of a RO) to have access to his monies for legitimate reasons (e.g., sustaining daily living, paying bills). 

  • Duration of RO – An RO will be in effect for a maximum of 30 days at a time. The Police can extend the RO for up to 30 days at a time, up to a maximum of five extensions. 

  • Appeal Mechanism – An individual can appeal to the Commissioner of Police against the Police Officer’s decision to issue a RO.

The Ministry of Home Affairs had conducted a public consultation on the Bill from 30 August 2024 to 30 September 2024, as well as focus group discussions. For more information on the public consultation, please see our Legal Update here.

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