Singapore banks introduce safeguard for large digital withdrawals

Accounts losing over 50% of balance may enter a 24-hour cool-off period.

Banking customers in Singapore may experience delays in digital payments and transfers due to a new safeguard threshold, warned the Association of Banks in Singapore (ABS), where accounts losing over 50% of its balance will enter a cool off period if not rejected.

Beginning 15 October 2025, a safeguard will kick in if a transaction and withdrawals over the past 24 hours result in more than 50% of an account’s balance to be transferred out.

Non-digital banking transactions, including cash withdrawals at bank branches and ATMs, will not be affected, the ABS said.

This is part of Singapore banks' enhanced fraud surveillance on all digital transactions, targeting accounts that might be quickly emptied of its funds due to a potential scam.

The ABS advised customers to “plan time-sensitive banking transactions (e.g. for share purchases) in advance to avoid incurring fees and charges” due to any delay.

Customers affected by the 24-hour cooling period with legitimate transactions need not to take any action, as funds will be automatically released after the cooling period.

In circumstances where customers urgently need transactions to be processed during the 24-hour cooling period, they will need to verify their transactions with the bank— done either through branches, ATMs, or calling the contact centre, depending on options offered by their bank.

Meanwhile, if a legitimate transaction is rejected, customers can re-initiate the transaction if the transaction is verified by the bank, ABS said.