Singapore police are investigating 77 people, aged between 19 and 80, over their alleged involvement in unlicensed moneylending activities following a five-day islandwide enforcement operation.
The operation was conducted from Sept 21 to 25 by officers from the Criminal Investigation Department and Singapore’s seven Police Land Divisions, the Singapore Police Force said on Oct 6.
77 People Under Investigation
Preliminary investigations found that the 77 individuals allegedly played different roles in facilitating unlicensed moneylending operations.
Seven of them are alleged to have harassed debtors at their homes.
Another 38 are being investigated as runners who allegedly assisted unlicensed moneylenders by carrying out Automated Teller Machine (ATM) transfers.
The remaining 32 allegedly opened bank accounts and provided their ATM cards, personal identification numbers (PINs) and/or internet banking tokens to unlicensed moneylenders to facilitate their activities.
Police said investigations into all 77 individuals are ongoing. Being investigated does not mean the individuals have been convicted of an offence.
Bank Accounts Can Lead to Criminal Liability
Singapore’s Moneylenders Act provides that a person may be presumed to have assisted in unlicensed moneylending if their phone line, bank account, ATM card or internet banking token is used to facilitate such activities.
The law specifically prohibits carrying on or holding oneself out as conducting a moneylending business without the required licence, unless the person falls within specified exempt or excluded categories.
This means individuals who lend their bank accounts or banking credentials to moneylending syndicates can face serious legal consequences even if they are not directly involved in lending money.
Penalties Can Include Jail, Fines and Caning
Under the Moneylenders Act 2008, a first-time offender convicted of carrying on or assisting in a business of unlicensed moneylending can face up to four years’ imprisonment, a fine of between S$30,000 and S$300,000, and caning of up to six strokes.
Those convicted for a second or subsequent offence can face up to seven years’ imprisonment, along with fines of S$30,000 to S$300,000 and up to 12 strokes of the cane.
Separate penalties apply to people who act on behalf of unlicensed moneylenders to carry out or attempt harassment.
For a first conviction involving such harassment, offenders can face up to five years in prison, a fine of between S$5,000 and S$50,000, and caning of between three and six strokes, according to police.
Police Warn Against Helping Loansharks
Authorities warned that unlicensed moneylenders may subject borrowers and their families to persistent and dangerous harassment.
Police cited tactics including setting fires, splashing paint at residences and locking gates with chains or bicycle locks.
Members of the public have been urged not to borrow from or assist unlicensed moneylenders in any way.
Police also warned that people who allow their bank accounts to be used by unlicensed moneylending syndicates may be prosecuted and barred from using ATM and internet banking facilities for one year.
Foreigners who borrow from or are convicted of assisting unlicensed moneylenders may also have their work or student passes cancelled and be deported after completing their sentences.
Another Major Operation Last Month
The latest enforcement action comes less than a month after police investigated 98 people in another islandwide operation conducted from Aug 25 to 31.
That operation involved similar alleged activities, including harassment of debtors, ATM transfers and the provision of bank accounts and banking credentials to unlicensed moneylenders.
In August, police also arrested 11 people suspected of supporting an alleged unlicensed moneylending syndicate believed to be responsible for at least 25,500 ScamShield reports and 1,509 police reports. Six men were subsequently set to face charges.
The repeated enforcement operations highlight the authorities’ continued focus on disrupting the networks that support illegal moneylending, including individuals who provide financial accounts and other services to such syndicates.
Anyone with information about suspected unlicensed moneylending activities can contact the police hotline at 1800-255-0000 or submit information through the police’s I-Witness platform. Police said information provided would be kept confidential.
