Police have arrested a 19-year-old male for his suspected involvement in loanshark activities in Clementi, police said in a statement.

Officers spotted the youth behaving suspiciously near an Automated Teller Machine (ATM) around Clementi Ave 3 on Saturday. They arrested him after they found loanshark-related paraphernalia, including a mobile phone containing debtors' records, three ATM cards and five ATM transaction receipts, on him.

Preliminary investigations found that he is not a debtor, but had been assisting loansharks by carrying out electronic fund transactions.

Investigations are ongoing.

Under the Moneylenders Act 2010, first-time offenders found guilty of assisting in the operating of a loansharking business may be fined between $30,000 and $300,000 and jailed for up to four years. They are also liable for up to six strokes of the cane.

In the statement, Commander of Clementi Police Division, Deputy Assistant Commissioner of Police Melvin Yong commended his officers and added that the police will continue to come down hard on those involved in loanshark activities.