The Monetary Authority of Singapore and the Singapore Police Force replied to concerns raised by consumers about the increasing incidence of funds being frozen in beneficiaries’ bank accounts in China, after being remitted through licensed remittance companies in Singapore.
MAs said it is not clear that the freezing of the remitted funds in China was motivated by concerns of money laundering by these remittance companies. In fact both the authorities said they have not received information showing that the remittance companies were involved in money laundering or scams, or that the funds were frozen because the remittance companies had processed the proceeds of money laundering or scams in Singapore. Should there be information to suggest otherwise, MAS and SPF will take appropriate regulatory or enforcement action.
It said companies providing remittance services are licensed by MAS and required to meet the same standards of anti-money laundering controls as other regulated financial institutions. In the provision of their services, remittance companies it said may pass the funds to intermediary institutions, based in Singapore or overseas, for the onward transmission of the funds to the beneficiaries. These intermediaries include banks, operators of card payment systems, or third-party agents. The remittance companies are required to conduct due diligence on the intermediary institutions with which they work.
It noted that currently reported cases of frozen funds in beneficiary accounts in China concern remittances that had been processed through overseas third-party agents. This is a common and accepted mode of remittance offered by remittance companies to keep transaction costs low for customers, and has been around for decades.
MAS’ advises licensed remittance companies in Singapore to suspend the use of non-bank and non-card channels when transmitting money to persons in China from 1 January to 31 March 2024 is aimed at minimising risks to remitters and not related to any specific money laundering concern.
9. In the meantime, MAS said the Singapore Government has been asking the PRC Government to help affected remitters understand how they can get their accounts and monies in China unfrozen by the PRC law enforcement agencies. MAS and SPF had also organised an outreach session on 18 December 2023 for affected remitters. The PRC Embassy in Singapore and the three remittance companies whose customers had been affected by the remittance problem also attended this outreach session.
