Singapore’s financial regulator has suspended remittance to China via certain channels to help prevent funds from subsequently being frozen by mainland law enforcement agencies. 

The Monetary Authority of Singapore (MAS) has issued a notice directing remittance companies to suspend the use of non-bank and non-card channels when transferring money to persons in the People’s Republic of China (PRC), according to a statement. 

The suspension will last for three months from 1 January 2024 to 31 March 2024. Thereafter, MAS may terminate the suspension, extend it or take further measures. The 14-day period before January 1 is intended for remittance companies to make necessary changes to their practices or complete existing remittances. 

The use of remittance via non-bank or non-card channels is a popular choice due to lower transaction costs, for example, from more favorable exchange rates.

PRC Enforcement

According to the MAS, some recent remittances resulted in the monies received in beneficiaries’ bank accounts being frozen by PRC law enforcement agencies. 

As of 15 December 2023, the Singapore Police Force (SPF) has received more than 670 reports of remittances being frozen, including 430 reports against Samlit Moneychanger Pte Ltd. In total, around S$13 million ($9.8 million) has been affected. 

«It is not clear why these funds had been frozen. Nonetheless, to minimize risks to consumers remitting funds to China, MAS has decided to temporarily suspend the use of non-bank and non-card channels by remittance companies for money transfers to China,» the regulator said.

Inter-Government Engagement

Meanwhile, Singapore is actively in touch with PRC officials to address the issues. The Ministry of Foreign Affairs (MFA) has engaged the PRC Embassy in Singapore to express their concerns and understand how affected remitters can unfreeze funds and accounts. The Singapore Embassy in Beijing has also raised this matter with PRC Ministry of Foreign Affairs officials, as has the SPF with its PRC counterparts. 

«The Singapore Government has no jurisdiction over the beneficiary bank accounts frozen by the PRC law enforcement agencies,» according to a separate statement. «Nevertheless, we are in close contact with the PRC Government on the information required to facilitate the PRC law enforcement agencies’ decision on unfreezing of the accounts.» 

Outreach Session

The advice to remit only via bank and card network channels was first provided by Singapore authorities in an outreach session organized by the SPF and MAS on Monday evening. The session was attended by 39 affected individuals alongside representatives from the PRC Embassy in Singapore and three remittance companies – Hanshan Money Express, Samlit Moneychanger and Zhongguo Remittance. 

«We urge the affected remitters to provide all the information necessary to facilitate the unfreezing of their accounts by the PRC law enforcement agencies, and to seek redress within the legal framework of Singapore,» authorities added.  

«SPF will not hesitate to take enforcement action against anyone who breaks the law in Singapore, including the organization of or participation in a public assembly without a Police permit.»