ross-border-money-transfers-in-singapore-when-they-can-go-wrong

Earlier in December 2025, the Singapore Police Force reported that it took action against a 33-year-old man who was allegedly providing cross-border money transfer services in Singapore without a valid licence. The individual opened a company and a Wise business account for the purposes of “overseas remittance” and was buying and selling USDT for his clients, advertising his services on Binance and Huobi crypto exchanges.

During two months in 2022, the company received more than GBP 1.4 million from overseas Wise accounts, with some of these funds now established as the proceeds of crime. Currently, the individual faces a fine, a prison sentence, or both for providing unlicensed cross-border money transfer services in Singapore.

Is It Illegal to Use Unlicensed Money Transfer Services?

The short answer is no, it is not a crime to use unlicensed money transfer services in Singapore. However, those who use unlicensed remittance service providers to transfer their money across borders face other serious risks, which include:

• Having their funds investigated by the authorities,
• Having funds frozen or seized due to an account suspension on any side of the transaction,
• Losing their money due to a scam or fraud,
• Having the transaction stopped halfway.

That said, using unlicensed money transfer services in Singapore is simply not worth the risks and consequences involved. Fortunately, there is no shortage of licensed money transmitters to choose from.

Regulations on Cross-Border Money Transfers in Singapore

The main piece of regulation that governs cross-border money transfers in Singapore is the Payment Services Act 2019. In addition to cross-border money transfers, the Payment Services Act of Singapore regulates domestic money transfers, account issuance, e-money issuance, digital payment token services, and money exchange.

The Singapore remittance law requires providers to hold a valid license to provide services to the public. Additionally, the Monetary Authority of Singapore (MAS) imposes separate anti-money laundering and countering the financing of terrorism (AML/CFT) guidelines that must be followed by remittance providers.

Legal Consequences of Providing Unlicensed Cross-Border Money Transfers

The Payment Services Act 2019 sets steep penalties for providers of unlicensed money transfer services in Singapore.

Thus, individuals who provide this type of service without a valid license or an exemption can face a fine of up to $125,000, imprisonment for up to 3 years, or both. Additionally, if a person continues providing this service after conviction, a further fine of $12,500 per day would apply. In other cases, the penalties for illegal remittance in Singapore can increase up to $250,000 and $25,000 per day if the offence continues after conviction.

How to Transfer Money Legally in Singapore

If you seek safe cross-border money transfer services in Singapore, it’s always recommended to use licensed financial institutions or payment service providers. In doing so, it’s also necessary to account for foreign exchange controls and limits imposed by receiving countries to comply with their legislation and avoid violations.

You can check if a service provider has a licence for payment remittance in Singapore by searching the legal section on their website. As a second step, you can double-check their licence in the MAS’s Financial Institution Directory, searching for remittance service providers.

Additionally, you may need to check any limitations on transfers imposed by the receiving country. For example, there is a USD 50,000/year limit per person for cross-border transfers from Singapore to China. Other countries may have similar restrictions on the remittance amount or use of non-bank payment service providers as well.