Requirement for Verification of Account Number and Accountholder Name during Fund Transfers

Assoc Prof Jamus Jerome Lim asked the Prime Minister and Minister for Finance (a) whether MAS requires banks to verify both account number and accountholder name when receiving or transmitting funds; and (b) if not, why not.

Mr Gan Kim Yong (for the Prime Minister): The Monetary Authority of Singapore (MAS) has been studying the experience of a few countries in implementing account number and name matching, and is reviewing possible approaches and solutions with the banking industry.

Under our current system, if consumers have made an erroneous transfer, he or she should approach the bank, which will engage the recipient's bank to inform the unintended recipient, to initiate a refund. If the unintended recipient refuses to return the funds or is unresponsive, the bank will advise the consumer on next steps to take, which may include making a Police report. It is illegal for the recipient to retain the erroneous transfer. There is clear guidance and protocols in place to guide banks' actions in such erroneous transfer situations.

We urge consumers to be vigilant against demands for fund transfers from any person. Particularly, Government officials will never ask members of the public to transfer money, disclose banking log-in details, install mobile apps from unofficial app stores or transfer calls to the Police. When unsure, do not proceed. To prevent erroneous transfers, consumers can adopt measures, such as confirming the account number or PayNow details of the intended recipient, before performing the transfer.