Mr Muhamad Faisal Bin Abdul Manap (Aljunied): Madam, access to a bank account is essential in daily life in Singapore. In response to a cut filed in 2022 by my colleague, Mr Gerald Giam, then-Deputy Chairman of MAS Mr Lawrence Wong had spoken on the Limited Purpose Bank Accounts, which was then in its pilot phase. These accounts are meant to help ex-offenders to access basic banking services, including receiving their salaries and Government payouts. I seek an update on how many local banks are offering such accounts for ex-offenders and whether MAS has data on the take-up rate for such accounts by ex-offenders.
Madam, one of my constituents recently approached me for assistance with opening a bank account. My constituent is an ex-offender and needed a bank account in order to receive her salary. I sent appeals to six different local banks, which were all unsuccessful. I also sent an appeal to MAS. MAS offered to forward my constituent’s appeal to DBS, UOB and OCBC but stated they were unable to compel any banks to open an account for my constituent. I urge MAS to work with the Ministry of Home Affairs and the Singapore Prison Service in ensuring ex-offenders can open bank accounts.
The Second Minister for Finance (Mr Chee Hong Tat): Madam, Mr Faisal Manap asked about bank accounts for ex-offenders. MAS does not prohibit banks from opening accounts for ex-offenders. However, banks may choose to offer accounts with more limited functions to ex-offenders of financial crimes to manage the higher risk of them being misused.
To promote financial inclusion, MAS has worked with major retail banks to offer Limited Purpose Bank Accounts (LPBAs). From January 2022 to June 2024, banks have offered more than 3,600 LPBAs. These address the basic banking needs of most ex-offenders and other persons whom banks have assessed to pose higher financial crime risks.
With LPBAs, individuals can receive salaries and government payouts, and make payments. Banks monitor LPBA use more closely to ensure only funds from agreed sources are received and to detect suspicious transactions.
Banks will assess each case individually to decide whether to offer LPBAs and they have offered LPBAs to ex-offenders of serious financial crimes where the risks are manageable. Banks may also decline to open an account for individuals who are assessed to pose unacceptable risks that cannot be mitigated by the LPBA’s safeguards, such as those who repeatedly allow bank accounts to be misused, have violated financial sanctions or are unwilling to cooperate with the bank’s due diligence.
We encourage individuals to provide the necessary information to banks to allow proper due diligence to be carried out. This balances financial inclusion against the risk of our financial system being abused, which would then be to the public’s detriment.
Mr Faisal Manap’s resident was convicted of money laundering offences and sentenced to 20 months’ jail. She had continued to use her bank accounts to receive funds from people she did not know, despite repeated warnings from the Commercial Affairs Department not to do so. The banks have rejected the appeal because the appellant’s bank account is still subject to a seizure order, and she has not provided the necessary information and supporting documents to the banks.
MAS will continue to work with the banks to see if more can be done to help the appellant. Members can also refer affected residents who require assistance to MAS.
Prime Minister’s Office
28 February 2025
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2576
Office of the Leader of the Opposition 