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Source:
www.gov.sg |
Second Reading Speech for the Moneylenders
(Amendment) Bill - Speech by Associate Professor Ho Peng Kee, Senior
Minister of State for Law and Home Affairs , 21 November 2005 |
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Mr Speaker, Sir, I beg to move, ˇ°That the
Bill be now read a Second timeˇ±. |
Objective of Bill |
This Bill seeks to amend the Moneylenders
Act by introducing higher penalties to curb the rise in illegal
moneylending activities and related harassment cases. |
Background |
In 1993, we introduced a number of measures
to deal with unlicensed moneylending activities. |
These included: enhancing penalties for
carrying out unlicensed moneylending activities and related harassment
cases; classifying these offences as seizable and non-bailable;
subjecting debt collectors who were hired by illegal moneylenders to the
same penalties as the illegal moneylenders and making illegal
moneylenders and debt collectors liable to be caned up to 6 strokes. |
But the number of unlicensed moneylending
and related harassment cases continues to rise: from some 1,500 cases in
1995 to almost 6,000 cases in 2004. |
In some instances, parties who did not
borrow money were also harassed; for example, new occupants of dwellings
that were formerly occupied by debtors and people who had lost or
misplaced their identity cards. |
In addition, the number of arrests made in
harassment cases more than doubled from 123 arrests in 2003 to 284
arrests in 2004. |
We must tackle the rise in illegal
moneylending cases resolutely, adopting a comprehensive approach. |
On the enforcement front, Police formed a
dedicated Anti-Unlicensed Moneylending Task Force in June this year.
With this Task Force in place, Police will take a more focused approach
in intelligence-gathering and investigations against unlicensed
moneylending syndicates. |
Next, police intelligence has uncovered a
distinct pattern of higher-tier loansharks operating from overseas after
being punished, in order to escape Police detection. Therefore, MHA has
put in place measures to deny convicted higher-tier loansharks travel
facilities for 10 years from the date of their release. |
On a wider front, MHA is also collaborating
with other agencies such as Minlaw, MAS, HDB and IRAS to curb unlicensed
moneylending activities. |
In addition, MHA will continue to review our
legislation to better empower Police to deal with the syndicates, for
example, we have provided powers under the Corruption, Drug Trafficking
and Other Serious Crimes (Confiscation of Benefits) Act to confiscate
benefits derived from unlicensed moneylending activities. |
The proposed amendments |
Sir, with these amendments under
consideration, Parliament should send a strong signal to loan sharks
that we will not tolerate the conduct of unlicensed moneylending
activities, where exorbitant interest rates are charged and borrowers
and even non-borrowers are harassed in their own homes. |
Therefore, this Bill seeks to increase the
penalties for unlicensed moneylending under the Moneylenders Act as
follows: |
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(a) First, the
existing fines for offenders who carry out unlicensed moneylending
activities or harassment cases will be doubled; |
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(b) Secondly, the
meaning of ˇ°harassmentˇ± will be refined to make it difficult for
any accused to argue that an isolated act does not constitute
harassment; |
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(c) Thirdly, in
harassment cases, first time offenders who in the course of
harassment, cause damage to property or hurt to person will be
liable to caning; and |
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(d) And lastly,
repeat offenders of illegal moneylending will be subject to
mandatory imprisonment whilst repeat offenders of harassment when
hurt to person or damage to property is caused will be subject to
mandatory caning. |
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People who use a corporate entity such as a
company to carry out unlicensed moneylending activities will not be able
to hide behind the corporate veil. If such activities are carried out
with their consent, connivance or neglect, they as well as the corporate
entity are liable to be prosecuted for the offence of illegal
moneylending. |
Bank accounts are now used by runners to
collect debts on behalf of unlicensed moneylenders. |
Debtors are increasingly being asked to make
interest and principal repayments of their debts by depositing them into
bank accounts. Such arrangements make it difficult for the police to
detect unlicensed moneylending activities. |
As such, a new provision will create a
presumption that any person whose bank account or ATM card has been
proven to have been used in the collection of debts by an unlicensed
moneylender is presumed to have assisted in the carrying out of
unlicensed moneylending activities. But this is a rebuttable presumption
and innocent persons should have little difficulty in proving otherwise. |
In line with the higher punishments
proposed, we are also making it clear that offences under the Act will
be tried before the District Court. |
Conclusion |
In conclusion Sir, these amendments are
needed to send a strong signal that the Government has zero tolerance
for unlicenced moneylending activities. The enhanced deterrent effect
should also help stem the increase that we have seen in such activities. |
These amendments are part of a larger
exercise to update the Moneylenders Act. The broader review, which
addresses issues other than unlicensed moneylending, should be completed
by early next year. |
Sir, I beg to move. |
Source:
www.mha.gov.sg News Release 21 Nov
2005 |
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