Updated: 03/06/2014 17:21 | By Channel NewsAsia
Tougher measures against debtors who help unlicensed moneylending syndicates
SINGAPORE: Those who have been convicted or issued a stern warning for helping unlicensed moneylending syndicates will be barred from using ATMs and internet banking facilities for a year.
Second Minister for Home Affairs S Iswaran announced on Thursday that the police is working with banks on a three-year pilot trial to terminate such services for affected persons.
Speaking in Parliament, he said that authorities have detected an increasing incidence of debtors helping unlicensed moneylending syndicates.
They do so by allowing their bank accounts to be used for transactions.
This new initiative is aimed at curbing such illicit operations.
After a year, banks will assess whether to reinstate the services.
Overall though, Mr Iswaran said, the number of reported unlicensed moneylending and related harassment cases has fallen to around 8,300, last year.
This is a decrease of more than 2,500 cases or 23 per cent from 2012.
And since 2009, there has been a cumulative decline of over 55 per cent in such cases.
There has also been a shift in the harassment tactics of loanshark syndicates.
For instance, harassment cases with damage to property fell by almost a third, or 2,461 cases, over the past year.
Mr Iswaran attributed the fall in numbers to tough laws, enforcement efforts such as the installation of CCTVs, public education and community partnership.
To combat organised crime syndicates, Mr Iswaran said the ministry is working on legislation targeting such syndicates.
This includes those who are based overseas, but conduct their unlawful activities in Singapore. - CNA/de
