ZGR Global and Hanshan fined $5.37m over illegal rate sharing

Staff from both firms engaged in frequent exchanges of real-time remittance rates, report said.

ZGR Global Pte. Ltd. and Hanshan Money Express Pte. Ltd. have been fined a total of $5,365,007 by the Competition and Consumer Commission of Singapore (CCCS) for illegally exchanging commercially sensitive information on their outward Chinese Yuan (CNY) remittance rates.

The conduct was found to violate Section 34 of the Competition Act 2004, which prohibits agreements or practices that restrict competition in Singapore.

Both companies operated remittance counters at People’s Park Complex and were direct competitors in the CNY remittance market.

CCCS's investigation revealed that from January 2016 to February 2022, staff from both firms engaged in frequent exchanges of real-time remittance rates.

These exchanges were conducted verbally, via paper slips, and through WhatsApp messages, enabling each party to quickly access and respond to changes in the other's pricing.

According to CCCS, the firms shared not only Published Rates—those visible to customers—but also Transaction Rates, which were applied during actual customer transactions and not readily disclosed.

The exchange of tiered rates and rate change timings significantly reduced pricing uncertainty and undermined competitive behavior between the two companies.

CCCS determined that the conduct resulted in similar pricing between the two firms, limiting rate options for consumers and weakening competitive pressure in the remittance sector.

Whilst the illegal exchanges continued for years, the companies only ceased the practice in early 2022, after CCCS initiated formal engagement following the easing of COVID-19 restrictions.

The financial penalties were calculated based on each company’s turnover and the seriousness of the infringement. Hanshan received a 10% penalty reduction for admitting liability under CCCS’s Fast Track Procedure, in addition to a reduction for cooperating with the investigation.

CCCS advises businesses to decline participation in anti-competitive information sharing, publicly distance themselves from such discussions, and report any suspicious activity.

The agency also offers a leniency programme and whistle-blower rewards of up to $120,000 for individuals who provide information leading to enforcement actions.