SINGAPORE: Two remittance companies have been fined a total of S$5.36 million (US$4.14 million) for illegally exchanging information on Chinese yuan (CNY) rates, the Competition and Consumer Commission of Singapore (CCCS) announced on Thursday (31 July).
The anti-competitive practice, which lasted six years, reduced market pressure and limited customers’ access to better rates, CCCS said.
ZGR Global, formerly known as Zhongguo Remittance, was fined S$2.79 million, while Hanshan Money Express was penalised S$2.57 million.
Hanshan received a 10 per cent discount—about S$285,000—after accepting liability under CCCS’ fast-track procedure, a streamlined process to resolve cases more efficiently.
Both firms were also granted additional reductions for cooperating with investigations.
The penalties represent the highest imposed for information exchange conduct in Singapore.
The companies have two months to appeal or must pay the fines by 1 October.
The case came to light after a member of the public observed that two neighbouring outlets at People’s Park Complex were offering unusually similar rates and reported the matter to CCCS.
Alvin Koh, CCCS chief executive, noted that businesses are allowed to observe competitors’ behaviour and adjust their strategies accordingly, but they must not share pricing information or coordinate actions.
“By colluding together to exchange such information, the parties undermined competition in the market for CNY remittance services, which reduced options for customers,” Koh stated.
Passing Slips and Making Calls
According to CCCS, ZGR Global and Hanshan Money Express are leading providers of CNY remittance services at People’s Park Complex and are direct competitors.
Initially, the firms monitored each other’s rates by sending staff to pose as customers.
From at least January 2016, however, they began directly sharing rate information at the start of business and updating each other whenever rates changed during the day.
Employees communicated these rates verbally over the counter, via phone calls, and through paper slips.
Messages retrieved from ZGR Global’s internal WhatsApp group showed photos of these slips, with captions such as “Hanshan’s rates, (which ZGR Global’s) counter has already followed” and “Next door requested to add one tier.”
Remittance providers usually set different rates depending on the amount sent, and these rates are not publicly available.
By sharing such commercially sensitive information, both companies could instantly adjust their rates, reducing competition.
“Similar to exchange rates, remittance rates are highly volatile. They affect how much money the recipients will receive for the same amount of local currency,” said Zara Mok, senior assistant director at CCCS’ legal and enforcement team.
Evidence showed that during the period of information exchange, the firms’ outward CNY remittance rates became significantly more similar.
CCCS Action and Penalties
CCCS formally engaged the firms in July 2021, but they only stopped exchanging information in February 2022.
A proposed infringement decision was issued in November 2024, followed by a supplementary decision in April this year, giving the parties an opportunity to respond before a final ruling.
In deciding the penalties, CCCS considered each company’s turnover, the nature and seriousness of the infringement, and any aggravating or mitigating factors.
CCCS advised businesses to decline participation in anti-competitive arrangements, publicly distance themselves from such discussions, and report them immediately.
Companies already involved may apply for CCCS’ leniency programme, which offers full or reduced penalties for voluntary disclosure.
Individuals can also report cartel activity through CCCS’ whistleblowing scheme, which provides rewards of up to S$120,000.
Commenting on the significance of the penalties, Koh said: “These decisions send a clear signal that anti-competitive practices, including cartel activities, will not be tolerated in Singapore.”
Speaking to CNA, ZGR Global said it is reviewing the CCCS decision and considering its options.
“We take our legal obligations very seriously and remain committed to conducting our business with integrity, in full compliance with competition laws and in the best interest of our customers and stakeholders,” the company stated.
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