CCCS penalizes remittance giants $ 5.36 million for illegal information exchange

CCCS penalties

The Competition and Consumer Commission of Singapore (CCCS) just dropped the hammer on two Chinese Yuan remittance companies.

The damage is enormous, with $5.36 million in penalties.

But here’s the thing:

This wasn’t about price fixing or market manipulation in the traditional sense. It was about something far more subtle (and dangerous).

Let our experts at ACE break down exactly what happened, why it matters, and what every Singapore business needs to know to avoid the same fate.

The two players in this expensive game

Two remittance giants operating out of People’s Park Complex found themselves in CCCS’s crosshairs:

ZGR Global Pte. Ltd. (formerly Zhongguo Remittance)
Hanshan Money Express Pte. Ltd.

These aren’t small players. They’re the two leading providers of Chinese Yuan remittance services in one of Singapore’s busiest commercial buildings. And they operate right next to each other.

What did they do wrong? (And why it cost them millions)

For over 9 years (starting from at least January 2016), these companies did something that seems almost innocent on the surface:

They shared information. However, not just any information, it is commercially sensitive remittance rate data.

CCCS investigators discovered the companies used three methods to exchange information:

Face-to-face conversations over the counter
Physical paper slips with detailed rate breakdowns
Phone calls for immediate updates

Here’s what made this particularly damaging: The exchanges happened multiple times per day.

Every morning, they’d share their opening rates. Every time one company changed its rates, it would immediately notify the other.

The investigation revealed they exchanged two critical pieces of information:

Published rates: The rates displayed on websites and platforms
Transaction rates: The actual rates applied to real customer transactions, including sophisticated “tiered rates” based on transaction amounts (much worse)

These actions leave devastating consequences on the Singapore exchange rate market.

Before this illegal coordination, both companies, Hanshan Money Express and ZGR Global, had to:

Monitor each other’s rates carefully
Send staff to pose as customers to check competitor pricing
Make pricing decisions under uncertainty

But once they started sharing information directly, all that competitive uncertainty disappeared.

The real-world impact on customers

CCCS found clear evidence that this information sharing led to:

More similar rates between the two companies
Reduced variety in pricing options for customers
Less genuine competition in the CNY remittance market

As CCCS Chief Executive Alvin Koh put it:

“By colluding together to exchange such information, the Parties undermined competition in the market for CNY remittance services, which reduced options for customers.”

In addition, CCCS investigators uncovered:

Internal WhatsApp chat logs from company staff
Physical paper slips are used to share rate information
Detailed records of daily information exchanges

Pattern analysis showing rate convergence during the information-sharing period

WhatsApp messages showing how one company’s staff would immediately update their internal systems after receiving competitor rate information, with captions like “Hanshan’s rates, [which ZGR Global’s] counter has already followed.”

What can you learn from this illegal information exchange case?

What you may consider legal to do in the business world may, in fact, be illegal.

This case sends a clear message about what crosses the line in competitive intelligence.

The key principle here is that businesses must act independently when making market decisions.

What is legal?

Observing competitors’ publicly available pricing
Adapting to market conditions independently
Using public information to inform business decisions

What is illegal

Direct communication about pricing strategies
Sharing information about when rates will change
Coordinating the extent of price changes
Exchanging non-public commercial information

Additionally, CCCS provides clear guidance for businesses approached for anti-competitive information sharing:

Step-by-step process	What to do
Step 1: Publicly distance yourself	Make it clear you’re not interested in such arrangements.
Step 2: Report to CCCS	Contact CCCS to report the attempted coordination.
If you are already involved	CCCS offers two lifelines: Leniency Programme: Companies can receive full immunity or up to 50% reduction in penalties for coming forward with information Whistleblower Rewards: Individuals can receive up to $120,000 for providing information leading to successful enforcement actions

How ACE can help you stay compliant

When you’re unsure whether your company’s actions comply with Singapore law, our experts provide the insights you need to avoid devastating penalties.

At ACE, we specialize in helping businesses navigate Singapore’s complex regulatory landscape, including:

Competition law compliance audits to identify potential risks
Strategic guidance on competitor interactions and information gathering
Regulatory risk assessments for business practices and partnerships
Crisis management if regulatory issues arise

Don’t let uncertainty about legal compliance put your business at risk.

The cost of expert guidance is minimal compared to the millions in fines that can result from violations.

Contact ACE today to ensure your business operations stay on the right side of Singapore law.

If your company needs help filing taxes for the year 2025 or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call /WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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