Singapore’s local banks will offer limited-purpose accounts to most citizens and permanent residents who have been refused regular banking services.

The Monetary Authority of Singapore (MAS) outlined the arrangement in a written parliamentary reply.

MAS Chairman Gan Kim Yong said banks generally close or reject accounts only after assessing the risk of misuse.

Such cases typically involve serious criminal convictions or investigations, or strong suspicions of involvement in scams, fraud, money laundering or terrorism financing.

Individuals whose accounts have been closed or whose applications have been rejected can request a limited-purpose bank account (LPBA).

These accounts provide access to essential payment services but have fewer features than regular bank accounts to reduce the risk of misuse.

Local banks will offer LPBAs to Singaporeans and permanent residents except in very limited circumstances.

These include individuals who repeatedly allow their accounts to be used for illegal activities or refuse to cooperate with necessary bank checks.

Banks will also apply safeguards such as enhanced transaction monitoring to prevent misuse.

Featured image: Edited by Fintech News Singapore, based on image by ImageFlow via Magnific

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