Tougher laws mean money mules can’t claim ignorance when selling bank, Singpass accounts to scammers

For the past three years, about 19,000 money mules could not be prosecuted, even as they helped scammers steal more than $1 billion from Singaporeans.

This is because under current laws, it is difficult to prove they intended to facilitate criminal activities by selling their bank and Singpass accounts.

But this will change with proposed laws, which if passed, will clamp down on money mules and those who sell their bank or Singpass accounts to anyone.

On Tuesday, the amendments to the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Bill and the Computer Misuse Bill were read in Parliament for the first time.

The amendments seek to empower the police to act against money mules, and those who abuse their Singpass accounts in scams and other crimes, by making it easier to prosecute such individuals.

Money mules are typically those who hand over control of their payment accounts to criminals, or who use their payment accounts to receive or transfer monies under the instruction of criminals.

In a joint release, the Ministry of Home Affairs (MHA) and Smart Nation and Digital Government Office (SNDGO) said that between 2020 and 2022, more than 19,000 money mules were investigated by the police.

But only fewer than 250 were prosecuted.

MHA and SNDGO said: “The amendments promote public vigilance and responsible behaviour in the use of payment and Singpass accounts.

“The amendments also seek to disrupt the operations of criminal syndicates preying on Singaporeans and will empower the police to better act against money mules, and those who abuse Singpass to perpetrate scams and other crimes.”

Scam victims in Singapore lost a total of $660.7 million in 2022, up from $632 million in 2021, bringing the total to more than $1.2 billion lost in two years.

Globally, $77.2 billion was lost to scams in 2021.

There has been an emerging trend of Singpass users selling their accounts, said MHA and SNDGO.

This has led to the larger problem of criminals using these accounts to register companies, open bank accounts and sign up for new phone lines, facilitating scams and other offences.

The Straits Times reported earlier this month that Singpass’ user data is now being tapped by the authorities to pre-emptively stop scams.

MHA and SNDGO said under current laws, it is often difficult to prosecute those who sell their accounts, as they have to prove that the Singpass user had knowingly disclosed credentials for wrongful gain or unlawful purposes, or that it would cause wrongful loss.

The proposed changes to the laws will make it easier for the authorities to prosecute offenders.

Among the changes are the introduction of the new offences of rash and negligent money laundering, and disclosing or dealing in Singpass credentials for criminal activities.

For the new money laundering offences, it is proposed that a person is deemed to have acted rashly if he carries out transactions he is suspicious about, but fails to check on them.

If he did not find such transactions suspicious, even though an ordinary, reasonable person would have noticed red flags, then he may be deemed to have acted negligently.

A person can also be found liable for a money laundering offence if he allows anyone to access his payment account without finding out the purpose.

Those convicted of rash money laundering can be jailed for up to five years and fined up to $250,000.

Those convicted of negligent money laundering can be jailed for up to three years and fined up to $150,000.

Those convicted of assisting another to retain benefits from criminal conduct can be jailed for up to three years and fined up to $50,000.

The proposed offences involving Singpass accounts will make it an offence for anyone to disclose their credentials while knowing, or suspecting, it will be used to commit an offence.

The user will be presumed to have known, or had reason to know, if he received any gain for doing so, or did so without finding out the identity and physical location of the person they are disclosing the details to.

The offence however, is not meant to apply to those who share their credentials for lawful purposes, or who are genuinely tricked into giving up their details.

MHA and SNDGO said the offences are based on actual situations where Singpass accounts were sold by users to criminal syndicates.

Obtaining or dealing in Singpass credentials to facilitate criminal activities will also be an offence, to deal with the criminals purchasing the credentials and syndicates that trade the credentials.

Under the proposed laws, those convicted of the offences above involving Singpass may be jailed for up to three years and fined up to $10,000.

MHA and SNDGO said: “Our payment accounts, including bank accounts, and Singpass accounts are for our own use. They should not be used by another person, especially if we do not know who the other party is or what the transactions are for.

“Everyone has a role to play in the fight against scams, and should exercise care and responsibility in the use of our payment accounts and Singpass.”