What Is The Penalty of Unlicenced Moneylending in Singapore

Moneylender in Singapore means a person who is the principal or agent, carries or hold himself out in any way as carrying on the business of moneylending, whether or not he carries on any other businesses.

In the case where the person is a body corporate, shall on conviction be punished with a fine of not less than $50,000 and not more than $500,000 or;

shall on conviction be punished with a fine of not less than $30,000 and not more than $300,000 and with imprisonment for a term not exceeding 4 years; and

in the case of a second or subsequent offence, shall on conviction be punished with a fine of not less than $30,000 and not more $300,000 and with imprisonment for a term not exceeding 7 years. 


Meanwhile, unlicensed moneylenders will also be subjected to as a criminal case and will be punished with the following penalty as well.

first time of an offence under the above will be liable to be punished with caning with not more than 6 strokes;

second or subsequent offence shall be liable to be punished with caning with not more than 12 strokes

Source
1. Moneylenders Act, Chapter 188
2. Criminal Procedure Code 2010, sections 325(1) and 330(1)

Think twice before assisting unlicenced moneylenders

Since opening of two new casinos in Singapore, The Marina Bay Sands and Resort World Sentosa, there is a rise in loansharking / moneylending activities in Singapore. Many of which are instigated by the loanshark syndicate themselves, while there are also been debtors-turned-runner who assist in collecting debts from other debtors.

They commit acts of harassment by splashing paint on debtor’s doors and scrawling loanshark-related graffiti on walls of HDB blocks.


However, at point of time, there are also cases that they wrongly splashed paint on innocents neighbors.

First-time offenders found guilty of assisting in the carrying out of the business of unlicensed moneylender may be fined between S$30,000 to S$300,000, jailed up to 4 years and given 6 strokes of cane.

Apart from the offence stated above, first-time offenders may also face charges of loanshark harassment which can be fined S$5,000 to S$50,000, given a mandatory jail term up to 5 years and caning up to 6 strokes.

Thinking of working for loanshark ? Pay might be good, but the price to pay is high as well.

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