To keep transaction costs low for customers, remittance companies sometimes engage overseas third-party agents, instead of banks, to complete the transfer from Singapore to China, according to MAS in a news release last December.
Most of the time, the money sent through these channels is successfully deposited in the beneficiaries’ bank accounts in China.
“However, in recent months, for a very small proportion of such remittances, the monies received in beneficiaries’ bank accounts have been frozen by the PRC law enforcement agencies,” said MAS, adding that it was unclear why those funds were frozen.
However, the authorities noted that the Chinese Embassy had posted a notice on Oct 24 last year, advising Chinese nationals in Singapore to use official banking channels to remit funds to China.
Singapore’s Foreign Affairs Ministry also engaged the Chinese embassy in Singapore on multiple occasions regarding the issue, raising the government’s concerns on the impact on remitters in Singapore and asking how affected remitters could get Chinese authorities to unfreeze their money and accounts.
The Singapore embassy in Beijing also raised the matter with the Chinese foreign affairs ministry, with the Singapore police doing the same with its counterparts in China.
An outreach session was held by MAS and the police last December for people whose funds were affected. It was also attended by representatives from the Chinese Embassy in Singapore, as well as three remittance companies.
