What is
Unlicensed Moneylending?
Moneylending in Singapore
Under the Moneylenders Act 2010 (Revised Edition), Chapter 188,
anyone who wishes to operate a moneylending business is required to
apply for a Moneylender’s Licence from the Registrar of
Moneylenders. Licensed Moneylenders are required by law to abide to
the provisions under the Moneylenders Act and its Rules. For more
information on Moneylending in Singapore and how one can apply for
a Moneylender’s licence, the public can visit the Insolvency &
Public Trustee’s Office (IPTO) website at the following link.
Verifying whether a moneylender is legal
To verify whether a moneylender is licensed, the public may
access the IPTO website at the following link to check against an
updated list of licensed moneylenders maintained by the Registry of
Moneylenders.
What are loansharks?
Loansharks are unlicensed moneylenders, who illegally give out
loans when not licensed to do so by the Registry of Moneylenders.
Loansharks often lend money at unfair terms, such as at exorbitant
rates of interest as high as 20% and 1018% per annum, frequently to
people who are desperate for money and unable to get loans from
legitimate sources.
Because they operate outside the law, loansharks resort to
unscrupulous and often violent harassment acts to ensure repayment
from their debtors. These include splashing paint on the front
doors’ of debtors and innocent bystanders; scrawling graffiti
detailing debtors’ personal details on walls; sending “Hell Notes”
to frighten debtors; locking the front doors of debtors’ units;
damaging cars belonging to debtors and innocent residents; and even
setting fire to the front doors’ of debtors.
Loansharks are also known to outsource their illegal business by
employing the vulnerable for their operations. These may include
forcing debtors who are unable to repay their loans to conduct acts
of harassment on other debtors; offering youths quick cash in
return of committing acts of harassment; and offering money to
people who open bank accounts to facilitate in their illegal money
transfers.
What constitutes loansharking activities
Those who may dabble in loansharking activities of any nature
are warned, as Police take a serious view on such offences.
Anyone who contributes or facilitates a loansharking operation
will not escape the law. Persons carrying out any of the following
acts are deemed to have participated in loansharking
activities:
Carrying out acts of loanshark harassment (eg.
splashing paint, scribbling on walls, setting fire; locking gates;
sending hell notes);
debt collection;
providing funds or allowing premises to be used
for loansharking business;
providing or selling prepaid SIM cards to
loansharks;
opening bank accounts to facilitate fund transfers
of loansharking syndicates;
promoting or advertising loansharking
activities;
giving instructions to carry out
harassment;
provide transport for runners; or
acting as a lookout or verifying harassment on
behalf of the loansharks.
Punishments
Assisting loansharks:
First-time offenders – fine between $30,000 and
$300,000, jail up to four years, liable to six strokes of the
cane
Repeat offenders – fine between $50,000 and
$500,000, jail up to five years, liable to 12 strokes of the
cane
Conducting acts of harassment:
First-time offenders – fine between $5,000 and
$50,000, jail up to five years, liable to six strokes of the
cane
Repeat offenders – fine between $6,000 and
$60,000, jail up to nine years, liable to 12 strokes of the
cane
