Six To Be Charged For Providing Payment Services Without Licence Under The Payment Services Act 2019

The Police have investigated into several cases of individuals conducting unlicensed cross-border money transfer services in contravention of Section 5(1) of the Payment Services Act 2019.

In six separate cases, a total of two women and four men, aged between 28 and 47, will be charged in court on 5 September 2024, for allegedly carrying on a business of providing cross-border money transfer services without a valid payment services licence.

The details of the cases are as follows:

1. On 4 May 2021, Police received information that a 33-year-old woman, was providing cross-border money transfer services to China. Investigations revealed that the woman had between May 2020 and 31 December 2020, provided unlicensed cross-border money transfer services through a Chinese social media site where her family in China would then assist to transfer the Chinese Renminbi to the beneficiaries. The total amount involved for the offence period exceeded S$100,000.
   
   
2. On 28 November 2021, Police investigated a 37-year-old woman following reports that she had provided cross-border money transfer services to foreign domestic workers from Myanmar. Investigations revealed that the woman had offered the unlicensed cross-border money transfer services to foreign domestic workers between 31 January 2021 and 28 November 2021. The total amount involved for the offence period was approximately S$1.25 million.
   
   
3. On 6 August 2022, Police received information that a 26-year-old man was providing cross-border money transfer services to Indonesia. Investigations showed that the man had offered unlicensed cross-border money transfer services to foreign domestic workers between 1 May 2022 and 10 Oct 2022. The total amount involved for the offence period exceeded S$190,000.
   
   
4. On 15 October 2023, Police received information that a 38-year-old man was providing cross-border money transfer services to migrant workers in a dormitory. Investigations revealed that between August 2021 and September 2023, the man had provided unlicensed cross-border money transfer services to the migrant workers in the construction sector, collecting cash from them and remitting the money to his family in Bangladesh to facilitate the transfer of equivalent Bangladeshi Taka to the beneficiaries. The total amount involved for the offence period exceeded S$118,000.
   
   
5. Acting on information received, the Police conducted a raid at Dalhousie Lane on 12 May 2024 and uncovered that a 46-year-old man had engaged in unlicensed cross-border money transfer services for foreign domestic workers. Investigations revealed that on 12 May 2024, the man had collected cash of more than S$34,000 from foreign domestic workers for the purpose of remitting the equivalent Sri Lankan Rupees to the beneficiaries in Sri Lanka. Police had also seized the amounts that he had received for the unlicensed cross-border money transfer services found in his possession.
   
   
6. On 17 October 2022, Police received information that a 33-year-old Bangladeshi man was providing cross-border money transfer services to migrant workers in a dormitory. Investigations revealed that between 15 October 2020 to 17 October 2022, the said man had offered the unlicensed cross-border money transfer services to migrant workers in the construction sector. He would collect cash from the migrant workers and remit the money to his family in Bangladesh to facilitate the transfer of equivalent Bangladeshi Taka to the beneficiaries. To support his unlicensed remittance business, he sold the cash he collected in SGD to the workers in the dormitory and had them transfer the equivalent amount in Bangladeshi Taka to his business account held with bKash, a mobile financial service provider in Bangladesh. The total amount involved for the offence period exceeded S$65,000.

The offence of carrying on a business of providing any type of payment services (including cross-border money transfer services) in Singapore without a license unless he is exempted under the Act under Section 5(1) of the Payment Services Act 2019 carries a fine of up to S$125,000 or imprisonment of up to three years or both. In the case of a continuing offence, the offence carries a fine of up to S$12,500 for every day or part of a day during which the offence continues after conviction.

The Police will not hesitate to take action against any individual or entity involved in providing unlicensed cross-border money transfer services. Members of the public are strongly advised to use financial institutions or payment service providers licensed by the Monetary Authority of Singapore when conducting cross-border money transfers. The Police would like to caution against engaging in unlicensed payment service activities, as unlicensed payment service providers are not regulated and are not subjected to stringent anti-money laundering and counter terrorism financing measures.