Chinatown shops illegally compare rates for renminbi remittance
Two money transfer shops in Chinatown were found to have shared information with each other on their remittance rates for renminbi for over six years.
Hanshan Money Express and ZGR Global, formerly known as Zhongguo Remittance, had colluded since at least Jan 1, 2016 to Feb 22, 2022 instead of determining their rates for remitting the Chinese currency independently, said the competition watchdog on Nov 25.
The Competition and Consumer Commission of Singapore issued a legal notice -- the Proposed Infringement Decision -- to the two money transfer companies on the same day for flouting the law against agreements to prevent, restrict or distort competition here.
By exchanging information on rates, the two companies had “removed the risks of price competition” and “significantly reduced uncertainty” about what their competitor was offering to customers, said the commission.
Both have shops at People’s Park Complex.
This lessened the pressure to offer competitive outward remittance rates, added the watchdog.
The legal notice issued to the two errant companies sketches the facts considered by the commission and is meant to help them make their cases to the competition body.
The commission will consider their representations and other evidence before reaching a decision.
Outward remittance rates refer to the amount of foreign currency exchanged and remitted overseas for local currency paid. For example, an outward remittance rate of “5.00” for a renminbi remittance, means that 5 yuan will be remitted to the overseas bank account for each Singapore dollar paid to the remittance service provider.
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