From 18 June 2024, new regulations from the Ministry of Manpower (MOM) now require Work Permit holders leaving Singapore after their employment ends to close their bank accounts beforehand. This measure aims to prevent potential misuse of inactive accounts for illegal activities such as money laundering or fraud.
Please note that this rule does not affect holders of S Passes or Employment Passes.
Why this rule?
The main idea is to safeguard your account from being exploited for illicit activities. Instances have occurred where individuals handed over their ATM cards and passwords before departure, resulting in misuse. Closing your account can prevent such occurrences.
If you fail to close your account upon cancellation or expiration of your work permit, the bank will automatically freeze it. Rest assured, your funds will remain secure. Upon returning to Singapore, you can retrieve your money by verifying your identity. During the freeze period, however, you will be unable to access or conduct any transactions with your account.
You have the option to close your bank account either online or by visiting the bank in person. It’s advisable to verify the specific procedures with your bank, as they may vary.
Employers also have a responsibility in this process.
When applying for work permits for their foreign workers, the MOM website prompts them to remind their workers to close their bank accounts before their contracts conclude and they return home.
The MOM distributed these reminders through the FWMOMCare app on 14 June 2023. Initially launched in May 2020 during the COVID-19 pandemic to monitor foreign workers’ health, this app has since expanded its capabilities. It now allows reporting of unsafe work conditions, accessing telemedicine services, and booking leisure center facilities, serving as a comprehensive information hub for work permit holders.
Therefore, if you or someone you know holds a work permit in Singapore, ensure to close the bank account before departing the country. This simple action can prevent future complications and potential legal issues. Remember, it’s always better to err on the side of caution!
