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Source: www.mha.gov.sg |
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Oral Answer to Parliamentary
Question on the activities of loan sharks, 23 January 2007 |
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Mr Wee Siew Kim: |
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To ask the Deputy Prime Minister and
Minister for Home Affairs if he will update the House on the activities
of loan sharks, including |
(i) the number of police reports on harassment
by loan sharks made by family members, neighbours and wrongly
identified neighbours of debtors in the last 12 months;
(ii) the trend of loan sharking and harassment
activities over the last 3 years;
(iii) the enforcement measures taken by the
police in curbing illegal lending activities and harassment;
(iv) the current procedures, deterrent measures
and penalties for these criminals; and
(v) the success rate of the police over the last
3 years and the expectations of the police force on future trends in
this area of crime.
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Assoc Prof Ho Peng Kee: |
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In 2006, there were 10,221 reported cases of
unlicensed moneylending (UML) harassment activities. |
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This is an increase of 19%, compared with the
corresponding period in 2005 when there were 8,568 reported cases. Similarly,
the 2005 figures represent a 47% increase over 2004, which had 5,809 reported
cases. |
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UML syndicates of today are becoming more elusive in
their operations. In their bid to avoid detection and arrest by the authorities,
they use technology and capitalise on electronic banking facilities to achieve
"virtual" transactions, not only with their borrowers/debtors but also between
syndicate members. |
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By making use of the bank accounts and
telephone numbers of desperate debtors, they are able to conceal their
own identities. |
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Taking cognizance of this trend, Police has
committed significant manpower for intelligence gathering, investigation and
enforcement against these UML operators. |
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At the same time, Police adopts a
holistic approach in combating the UML situation in Singapore. |
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Let me provide an overview of the
measures we have adopted as part of a comprehensive plan to combat
UML activities in Singapore. |
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a) Enhancing penalties in the
Moneylenders Act |
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The penalties set out in the
Moneylenders Act were enhanced effective from 1 Jan last year, to
double the fines and imprisonment terms for first-time offenders
of unlicensed moneylending. For repeat offenders, imprisonment was
made mandatory. |
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In harassment cases, caning was
introduced for offenders who commit damage to property1
during the course of harassment. Repeat offenders of harassment
were made subject to mandatory caning when, hurt to person or
damage to property is caused. |
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b) Confiscation of Assets of UML
Syndicates |
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Secondly, two offences2
under the Moneylenders Act have been gazetted as predicate
offences under Schedule 2 of the Corruption, Drugs Trafficking &
Other Serious Crimes (Confiscation of Benefits) Act, or CDSA in
short, on 9 Sep 05. |
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In this way, unlicensed moneylenders
who have been charged and convicted in court for these offences,
may have their assets seized and confiscated. |
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The prospect of seizure and
confiscation of the assets of illegal moneylenders and their
syndicate leaders would make UML more unprofitable and
unattractive. |
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c) Use of CL(TP) Act against
syndicate members |
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Thirdly, Police has invoked the
Criminal Law (Temporary Provisions) Act to deal with the members
of these syndicated UML operations, whenever necessary. |
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d) Formation of the Anti-UML Task
Force (AUML TF) |
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Fourthly, at the enforcement front,
Police formed a dedicated Anti-Unlicensed Moneylending Task Force
(AUML TF) in the Criminal Investigations Department in Jul 2005 to
take a more focused approach against unlicensed moneylending
syndicates instead of leaving it to individual Divisions to tackle
the problem. |
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In 2006, a total of 168 ambush
operations and 9 intelligence-led operations were conducted
against UML activities. |
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Apart from dealing with UML members,
the Task Force is also on the look out for errant debtors who end
up assisting or abetting UML activities. |
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These acts of abetment include
offering their bank accounts to UML operators, or registering for
prepaid SIM cards or other communication lines in their names for
use by UML operators. |
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Debtors who take loans from UML
syndicates and subsequently sell their property to innocent
victims without changing their address, can be charged for
offences under the National Registration Act. |
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e) Cancellation of the passports of
known UML syndicate members |
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Next, let me touch on the passport
cancellation policy against ex-UML syndicate leaders, which came
into effect on 1 Sep 05. By curbing their ability to travel
overseas, ex-UML syndicate leaders are prevented from continuing
to operate their UML businesses from abroad after their release
from prison. |
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As at Dec 06, 28 passports have been
cancelled. These ex-syndicate leaders would be subjected to a
10-year travel ban commencing from the date of their release from
prison or, for those who have been fined only, the date of their
conviction. |
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f) Installation of CCTVs to deter
UML runners from harassing debtors |
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Another initiative is the
collaboration between Police and the Town Councils to install more
CCTVs for general crime prevention which also serve to deter and
prevent UML harassment activities. |
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g) Collaborative efforts with other
agencies |
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Lastly, as part of the comprehensive
approach in dealing with this problem, Police has been engaging
various external agencies, such as the Monetary Authority of
Singapore (MAS), Association of Banks in Singapore (ABS), local
banks, SingPost, HDB and IRAS to tackle the UML situation from
different fronts, by tightening up on procedures and policies to
limit the opportunity for exploitation by UML syndicates. |
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Mr Wee also asks about the current
procedures in dealing with these UML cases. Presently, upon
receiving a report of harassment by unlicensed moneylenders,
uniformed police officers will be deployed to perform on-scene
investigation. |
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Officers will take photographs of the
scene, and record statements and particulars of the witnesses,
victims and the alleged borrower, if they are present. |
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Officers will also obtain important
evidence such as debtor's notes and contact numbers, and pass
these onto the Anti-UML Task Force, which will carry out further
in-depth investigation, gather intelligence and mount operations
against UML syndicates. |
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As for the success rate in tackling
illegal moneylending, let me assure the House that Police is
keeping to a very high tempo in its anti-UML enforcement efforts. |
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Due to the secretive nature of the
current modus operandi of UML syndicates, extensive intelligence
gathering and investigation are needed before we can arrest the
perpetrators and bring down the syndicate. It therefore takes time
for these efforts to bear fruit. |
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We have, however, managed to achieve
some measure of success in dealing with UML syndicates. |
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In 2006, 294 persons were arrested for
UML offences and related harassment activities. This is an
increase of 11% as compared to 2005 . In 2006, Police also dealt
with 39 UML syndicate members under the CL(TP) Act, which is an
increase of 63% compared to 24 in 20053. In addition,
Police smashed 8 syndicates last year4 . |
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Police will continue to closely
monitor the unlawful moneylending situation, partnering the
relevant agencies and members of public to holistically combat the
UML problem. |
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Footnotes: |
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1Caning
was already available for those who cause harm to others in the
course of harassment. 2The
two offences are carrying on a business of Moneylending without a
Licence under Section 8(1)(b) of the Moneylenders Act (including
abetment); and Harassing Debtor Besetting His Residence under
Section 33 of the Moneylenders Act (including abetment).
3The arrest figure of 265 persons
in 2005 was 32.6% lower than that of 393 persons in 2004 over the
same period.
4In 2005, 1 syndicate was smashed
(note : the Anti-UML Taskforce was only started in Jul 05) |
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Source: www.mha.gov.sg
News Release 23 Jan 2007 |
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