Incidence of Reports from Theft Victims that Their Belongings Are Sold at Second-hand and Pawnshops

The Ministry of Home Affairs does not track the number of reports from theft victims of their belongings being sold in second-hand shops or pawnshops.

Second-hand goods dealers and pawnbrokers today are regulated under the Second-hand Goods Dealers Act (SHGDA) and the Pawnbrokers Act (PBA) respectively unless they meet certain exemption criteria or are granted a waiver.

Under these regimes, they are required to take reasonable steps to satisfy themselves that the goods that they transact in are not stolen or obtained through fraudulent or dishonest means. These include verifying the identity of the person selling or pawning the item and screening the goods against the information furnished by the Police.

In the event that any item is found to have been reported stolen or lost, the second-hand dealers and pawnbrokers are expected to detain the item and make a Police report without undue delay. Victims who find their belongings being sold in second-hand shops or pawnshops should also make a Police report.

Upon receipt of a Police report, Police will look into the potential criminal offences disclosed and seize the item if necessary. Upon the conclusion of investigations, Police will seek an order from the Court to return the item to the victim. If there is more than one claimant, a disposal inquiry may have to be convened for the Court to determine which claimant is legally entitled to the item.

Thank you, Sir, and the Minister of State for his comprehensive answer. I have a supplementary question. In the course of my community work, I have elderly residents and their loved ones who have come to me distraught about the loss of their valuables. Oftentimes, for these seniors, these valuables can be keepsakes left behind by their dearly departed loved ones.

These residents later discover their items have been inadvertently pawned or sold away without their knowledge by people who have access to their belongings at home – sometimes, by family members, sometimes by caregivers. In one instance, my elderly resident lost over a dozen gold accessories and items, which were pawned away by her domestic worker on different occasions to two pawnshop chains over a one-year period. A Police report was made but these pawnshops merely offered the family a discount on the redemption.

Would the Ministry not agree that pawnshops, second-hand shops, especially those belonging to the same chain, need to coordinate their customer data so that they can make informed due diligence assessments and profiling of their clients so that red flags can be shared with each other and with crime enforcement agencies, if needed?

I thank the Member for her question. I can empathise with the situation that the Member's resident is faced with. Specific to her question, today, chain operators already have a centralised information database, precisely for the purpose that the Member mentioned, for the sharing of information and to profile their customers.

But I think the larger question that she is asking is, what are the customer due diligence checks that are in place? As I have mentioned earlier in my main reply, the Pawnbrokers Act requires pawnbrokers to take reasonable steps to ensure that the goods they deal in are not stolen or obtained through fraudulent or dishonest means. That would require the pawnbrokers to do the first step, to do the customer due diligence, through measures, such as obtaining and verifying the information and identity of the person who comes into the pawnshop, before any transaction has taken place. Some of the practices on the ground also involve the pawnbrokers asking questions about the cost, the ownership as well as specifications of the goods and even to ask for the proof of purchase and screening against the information they obtain from the Police.

Even with all these, as I can see from the Member's question, there may be instances where owners have found these belongings that have been stolen landing in the second-hand dealer shop or the pawnshop. Members of the public who find themselves in these situations can then report these to the Police or lodge complaints with the Registry of Pawnbrokers under the Ministry of Law so that investigations can take place.