Singapore restricts remittances to China after US$10 million in funds frozen
- The three-month suspension follows reports of remittances through Singapore being frozen in beneficiaries’ bank accounts by Chinese law enforcement
- Remittance companies have been directed by the Monetary Authority of Singapore to use only bank and card channels when transferring money to China
The three-month suspension, to start on January 1, follows reports that remittances to China through Singapore were frozen in their beneficiaries’ bank accounts in China by law enforcement agencies. The reason was unclear.
Remittance companies have been directed to use only bank and card channels when transferring money to China, according to the MAS’ statement.
As of December 15, Singapore police had received more than 670 reports of remittances being frozen, with about S$13 million (US$9.8 million) of funds affected, Singapore Police Force and the MAS said in a joint statement. Some 430 of the reports were against Samlit Moneychanger Pte Ltd.
The government ordered the suspension to “minimise risks to consumers remitting funds to China,” the MAS said. To keep transaction costs low, remittance companies tap overseas third-party agents, rather than banks, to complete the assets transfer from Singapore to China, it added.
“In recent months, for a very small proportion of such remittances, the monies received in beneficiaries’ bank accounts have been frozen by the PRC [People’s Republic of China] law enforcement agencies,” the MAS said. “It is not clear why these funds had been frozen.”
The MAS said it might terminate or extend the suspension after March 31, 2024 or take further measures as appropriate.
