On Dec. 18, SIN MAS suspended non-bank, non-card remittances.
SIN MAS issued a notice directing licensed payment service providers providing cross-border money transfer services (remittance companies) to suspend use of non-bank and non-card channels when transmitting money to persons in China, for 3 months.
Suspension
Follows reports of remittances to China made by individuals through remittance companies in Singapore being subsequently frozen in the beneficiaries’ bank accounts.
It is not clear why these funds were frozen; SIN MAS thus suspended remittances for immediate protection of consumers, and to stem the number of reported new cases.
Remittance companies in Singapore must now engage only a bank or an operator of a card network, or a licensed financial institution, to assist in the transmission of money.
The companies involved have been told to render necessary assistance to customers, strengthen complaints handling, and review arrangements with remittance partners.
Effectiveness
This restriction will last for a period of 3 months, from Jan. 1, 2024 to Mar. 31, 2024.
Mar. 2024 Extension
On Mar. 27, 2024, SIN MAS extended suspension for additional 6 months until Sep. 30.
Updated PSN11Notice on temporary restrictions in relation to the provision of cross-border money transfer services to the People’s Republic of China, re the extension.
SIN MAS has not received any reports of funds remitted to China through permitted channels being frozen by Chinese law enforcement agencies since suspension began.
The extension aims to minimize risks for consumers sending funds to China.
In Aug. 2024, SIN MAS proposed extending/expanding suspension, see #221966.
