SINGAPORE: Singapore’s regulator has ordered remittance companies in the city-state to halt the use of non-bank and non-card channels when transmitting money to persons in China from January 1.
The three-month suspension follows reports of remittances to China through Singapore being subsequently frozen in their beneficiaries’ bank accounts in China by law enforcement agencies, the Monetary Authority of Singapore said in a statement late Monday. It’s unclear why these funds had been frozen.
To keep transaction costs low, remittance companies tap overseas third-party agents, rather than banks, to complete the assets transfer from Singapore to China, the regulator said.
The Singapore Police Force had received over 670 reports of remittances being frozen, with about S$13 million (US$9.8 million) of funds affected, according to a separate statement. Some 430 of the reports were against Samlit Moneychanger Pte Ltd.