Date: For Parliament Sitting on 3 November 2026
Name and Constituency of Member of Parliament
Mr Victor Lye, Ang Mo Kio GRC
Questions
Mr Victor Lye: To ask the Prime Minister and Minister for Finance (a) whether the Government will consider a mechanism to independently review cases where an individual is denied basic banking services by multiple financial institutions; and b) if not, how an individual who is not legally prohibited from operating a bank account can regain access to essential payment services.
Mr Victor Lye: To ask the Prime Minister and Minister for Finance (a) whether the Government will study international approaches, including relevant safeguards adopted in the UK, EU and Canada, in ensuring access to basic banking services for persons who may be excluded due to their credit rating, income status or any other non-criminal reason; and (b) whether these approaches will be considered, with appropriate anti-money laundering and scam-prevention controls, for introduction in Singapore.
Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade), and Chairman of MAS:
1. Mr Speaker, my response will cover the question raised by Mr Victor Lye in today’s Order Paper, as well as the question filed by him for a subsequent Sitting.
2. We agree that access to basic banking services is important for daily living. Banks will not lightly deny access to a banking account. A bank will close or decline an application for an account only after carefully assessing the risk of abuse of the bank account. Such cases usually involve a serious criminal conviction or investigation, or strong suspicion of involvement in scams, fraud, or money laundering and terrorism financing offences. If an individual has been declined a bank account, he or she can request the bank to open a limited purpose bank account or LPBA. These are accounts with more limited features, designed to reduce the risk of their abuse for illicit activities.
3. The local banks will offer a LPBA to every Singaporean or Permanent Resident whose existing account is closed or application for a new account is rejected, except in very limited situations. For example, recalcitrant individuals who have repeatedly allowed their bank accounts to be misused for illicit activities or those who do not cooperate with needed checks by the banks.
4. With LPBAs, individuals will have access to essential payment services. Banks will subject these accounts to safeguards, such as enhanced transaction monitoring to mitigate the risk of the accounts being used for illicit purposes.
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