Stronger measures spelt out in Moneylenders Act include freezing accounts of culprits

[Wedge Antilles]

Stronger measures spelt out in Moneylenders Act include freezing accounts of culprits
By S.Ramesh, Channel NewsAsia | Posted: 12 January 2010 1619 hrs
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SINGAPORE: Singapore's Parliament is debating changes to the Moneylenders Act aimed at strengthening measures to tackle the scourge of loan shark activities in the country.

Moving the second reading of the Bill in Parliament on Tuesday, Senior Minister of State for Home Affairs, Associate Professor Ho Peng Kee said a key focus is to introduce powers that will disrupt the finances that sustain loan shark operations.

Among them - mandatory caning for first time offenders who hurt people or damage properties and a framework to freeze assets.

Professor Ho explained that freezing assets will hurt loan sharks where it matters most and disrupt the criminal proceeds.

Such a freezing order is applicable to proceeds of loansharking in the form of cash, shares, bank accounts as well as physical assets such as houses and vehicles.

He explained that despite several measures in 2005, loan shark activities persist.

Except for a respite in 2007 when the number of loan shark and harassment cases dropped slightly, the number of reports has continued to rise.

There were 11,879 cases in 2008 and 18,645 cases last year.

And as loan shark syndicates evolve to take on more characteristics of organised criminal groups, it is no longer sufficient to deal with them as discrete acts of runners and harassers.

He stressed that Singapore needs measures that will choke the supply of funds and availability of foot soldiers, target the irresponsible borrowers and take loan sharks out of the system for as long as it is needed.

To cripple the many layers of a loan shark syndicate, Professor Ho warned that anyone who facilitates a loansharking operation will attract the wrath of the law.

This includes acts like selling pre-paid SIM cards to loan sharks, transporting runners to harassment targets and acting as a lookout.

Professor Ho added that over the past three to four years, loan sharks have been recruiting youths.

Last year, 154 youths aged 19 years and below were arrested for loan shark and related harassment activities compared to 63 arrested in 2008. - CNA/vm

 

[General Veers]

Tougher loan shark laws

Singapore
Home > Breaking News > Singapore > Story
Jan 13, 2010

Tougher loan shark laws

HDB implementing rules to track borrowers on the move

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Tougher penalties for loan sharks include mandatory jail terms and possible caning even for first-time offenders. -- PHOTO: WANBAO

<!-- story content : start --> PARLIAMENT on Tuesday passed a slew of changes to the Moneylenders Act to give the authorities more ways to tackle the worsening loan shark scourge at every level. At the top: The assets of suspected kingpins under criminal detention can be frozen, and prosecutors will have greater access to the financial records of illegal moneylenders and their associates. The courts will be empowered to deal with those who orchestrate loan shark operations from overseas, and syndicate members can gain immunity from prosecution if they provide information that brings down their bosses. Tougher penalties for loan sharks include mandatory jail terms and possible caning even for first-time offenders.

At the middle and bottom rungs of the illegal moneylending menace, those who help loan sharks as runners or by harassing borrowers also face harsher punishment, including mandatory jail and possible caning. To curb the rising number of young people lured into loan shark activities, an adult who uses a person aged below 16 for loan shark activities will face mandatory jail, as well as possible fines and caning. Borrowers will also be tracked more closely. The Housing Board is implementing new rules from next month to trace borrowers on the move.

Read the full story in Wednesday's edition of The Straits Times.
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