2 Chinatown shops found to illegally compare rates for remitting renminbi: Competition watchdog

Two neighbouring money transfer shops in Chinatown have been found to have shared information on their remittance rates for renminbi for more than six years.

Hanshan Money Express and ZGR Global, formerly known as Zhongguo Remittance, had colluded since at least Jan 1, 2016, till 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 remittance companies on the same day for flouting the prohibition on 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 in reaching its current assessment and is meant to help the pair make their cases to the competition body.

The commission will consider their representations and other evidence before making a decision.

Outward remittance rates refer to the amount of foreign currency exchanged and remitted overseas for local currency paid.

For example, a rate of “5.00” for a renminbi remittance, means that five yuan will be remitted to the overseas bank account for each Singapore dollar paid to the remittance service provider.

Source: Straits Times © SPH Media Limited. Permission required for reproduction.

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