Singapore banks to provide basic accounts after regular access is refused
Access will have narrow exceptions, including repeated illegal use of accounts and refusal to cooperate with bank checks, MAS said.
Singapore’s local banks will make limited-purpose accounts available to most citizens and permanent residents unable to access regular banking, according to the Monetary Authority of Singapore (MAS). The regulator set out the arrangement in a written response to Parliament.
A person can ask for a limited-purpose bank account (LPBA) following an account closure or a rejected application. Essential payments will be supported, although the accounts will have fewer functions than regular accounts as a precaution against misuse.
MAS chairman Gan Kim Yong said banks usually consider misuse risks before deciding to close accounts or refuse applications. These decisions typically involve serious criminal convictions, investigations or strong suspicions concerning scams, fraud, money laundering or terrorism financing.
Only narrow exceptions will prevent access to LPBAs, MAS said. People may be excluded for repeatedly permitting illegal activity through their accounts or declining necessary bank checks. Safeguards will include closer monitoring of transactions.
