SINGAPORE: The suspension of cross-border money transfers to China through non-specified channels has been extended till Sep 30.
This was first implemented on Jan 1 after the police received complaints from Chinese nationals in Singapore who said their remittances were frozen in China.
The Monetary Authority of Singapore (MAS) said on Wednesday (Mar 27) that the suspension, which was initially meant to end on Mar 31, was extended “to minimise risks to consumers remitting funds to China”.
“Since the suspension was first implemented on Jan 1, 2024, MAS has not received reports of monies remitted to China through the specified channels subsequently being frozen by PRC law enforcement agencies,” it said in a media release, referring to the People’s Republic of China.
“MAS will continue to closely monitor the situation and practices of remittance companies.”
Cross-border money transfers to China remain possible through specified channels, which include banks and card payment system operators.
Licensed payment service providers can also make transfers through non-bank payment institutions that are licensed in China.
Alternatively, they can go through a licensed financial institution that has engaged a bank or an operator of a card network.
Last year, the Singapore Police Force (SPF) said it had received more than 670 complaints as of Dec 15 regarding remittances being frozen in China. The affected funds amounted to around S$13 million (US$9.6 million).
About 430 of the reports were against Samlit Moneychanger, SPF and MAS said in a joint media release. The remittance company and two of its executives are under investigation in relation to the frozen money transfers.
To keep transaction costs low for customers, remittance companies sometimes engage overseas third-party agents, instead of banks, to complete the transfer from Singapore to China, according to MAS in a news release last December.
Most of the time, the money sent through these channels is successfully deposited in the beneficiaries’ bank accounts in China.
"However, in recent months, for a very small proportion of such remittances, the monies received in beneficiaries’ bank accounts have been frozen by the PRC law enforcement agencies," said MAS, adding that it was unclear why those funds were frozen.
However, the authorities noted that the Chinese Embassy had posted a notice on Oct 24 last year, advising Chinese nationals in Singapore to use official banking channels to remit funds to China.
Singapore’s Foreign Affairs Ministry also engaged the Chinese embassy in Singapore on multiple occasions regarding the issue, raising the government’s concerns on the impact on remitters in Singapore and asking how affected remitters could get Chinese authorities to unfreeze their money and accounts.
The Singapore embassy in Beijing also raised the matter with the Chinese foreign affairs ministry, with the Singapore police doing the same with its counterparts in China.
An outreach session was held by MAS and the police last December for people whose funds were affected. It was also attended by representatives from the Chinese Embassy in Singapore, as well as three remittance companies.
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This was first implemented on Jan 1 after the police received complaints from Chinese nationals in Singapore who said their remittances were frozen in China.
The Monetary Authority of Singapore (MAS) said on Wednesday (Mar 27) that the suspension, which was initially meant to end on Mar 31, was extended “to minimise risks to consumers remitting funds to China”.
“Since the suspension was first implemented on Jan 1, 2024, MAS has not received reports of monies remitted to China through the specified channels subsequently being frozen by PRC law enforcement agencies,” it said in a media release, referring to the People’s Republic of China.
“MAS will continue to closely monitor the situation and practices of remittance companies.”
Related:
Cross-border money transfers to China remain possible through specified channels, which include banks and card payment system operators.
Licensed payment service providers can also make transfers through non-bank payment institutions that are licensed in China.
Alternatively, they can go through a licensed financial institution that has engaged a bank or an operator of a card network.
HUNDREDS OF COMPLAINTS
Last year, the Singapore Police Force (SPF) said it had received more than 670 complaints as of Dec 15 regarding remittances being frozen in China. The affected funds amounted to around S$13 million (US$9.6 million).
About 430 of the reports were against Samlit Moneychanger, SPF and MAS said in a joint media release. The remittance company and two of its executives are under investigation in relation to the frozen money transfers.
Related:
To keep transaction costs low for customers, remittance companies sometimes engage overseas third-party agents, instead of banks, to complete the transfer from Singapore to China, according to MAS in a news release last December.
Most of the time, the money sent through these channels is successfully deposited in the beneficiaries’ bank accounts in China.
"However, in recent months, for a very small proportion of such remittances, the monies received in beneficiaries’ bank accounts have been frozen by the PRC law enforcement agencies," said MAS, adding that it was unclear why those funds were frozen.
However, the authorities noted that the Chinese Embassy had posted a notice on Oct 24 last year, advising Chinese nationals in Singapore to use official banking channels to remit funds to China.
Singapore’s Foreign Affairs Ministry also engaged the Chinese embassy in Singapore on multiple occasions regarding the issue, raising the government’s concerns on the impact on remitters in Singapore and asking how affected remitters could get Chinese authorities to unfreeze their money and accounts.
The Singapore embassy in Beijing also raised the matter with the Chinese foreign affairs ministry, with the Singapore police doing the same with its counterparts in China.
An outreach session was held by MAS and the police last December for people whose funds were affected. It was also attended by representatives from the Chinese Embassy in Singapore, as well as three remittance companies.
Continue reading...