SINGAPORE, Feb 28: On Friday, it was announced in parliament that Singapore is exploring various options for compensating victims of scams. Minister of State for Home Affairs, Sun Xueling, informed lawmakers that establishing a streamlined fund for victims to recover lost funds presents several operational hurdles.
In 2024, scams resulted in a staggering loss of at least SGD 1.1 billion (approximately USD 822 million), while the Singapore Police Force managed to recoup over SGD 182 million of these losses, resulting in a net loss of around SGD 930 million.
Sun responded to inquiries regarding the possible establishment of a restitution fund for scam victims, which could be financed by proceeds seized from recent money laundering cases. However, she explained that it is challenging to confirm that all money recovered by the Anti-Scam Centre is linked solely to scams, as the syndicates involved often engage in various forms of criminal activity, including illegal money lending.
“There may be other proceeds associated with different crimes, leading to additional victims who might also assert a claim to those funds,” she stated, according to Channel News Asia’s report on her remarks in parliament.
Identifying whether the recovered funds match the amounts lost by specific victims is complicated due to the mixing of funds, particularly in cases involving cryptocurrency, she added.
Consequently, establishing a restitution fund would complicate the determination of which victim has rights to the recovered money, the minister noted. She emphasized that the amount recovered represents only a fraction of the total losses incurred due to scams.
“The number of claimants may vastly exceed the actual funds available,” Sun remarked. Even if victims are able to reclaim some funds, it would likely be a “small fraction” of their initial losses.
On Wednesday, Law and Home Affairs Minister K Shanmugam indicated that assets confiscated in a SGD 3 billion (USD 2.2 billion) money laundering case are being gradually liquidated and returned to government resources. By December 2024, a total of 54 properties, 33 vehicles, and 11 country club memberships had been sold, with proceeds from the liquidation of non-cash assets being directed to the government’s consolidated fund.
