On 24 April 2024, 34-year-old Muhammad Zahir bin Johana (“Zahir”) was convicted and sentenced to an imprisonment term of nine years, with an enhanced sentence of 450 days’ imprisonment, and three strokes of the cane for the following offences:
One count of being concerned in an arrangement, having reasonable grounds to believe the control of another person’s benefits of criminal conduct is facilitated, and that other person is a person who engages in criminal conduct, under Section 44(1)(a) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (“CDSA”);
- One count of failing to exercise reasonable diligence as a company director under Section 157 of the Companies Act 1967 (“Companies Act”);
- One count of possession of an offensive weapon under Section 453 Penal Code 1871;
- One count of consumption of a specified drug under Section 8(b)(ii) of the Misuse of Drugs Act 1973; and
- One count of possession of a controlled drug under Section 8(a) of the Misuse of Drugs Act 1973.
Another 10 counts of offences, which include possession of a controlled drug, possession of drug utensils, failure to report for mandatory urine tests, criminal intimidation, among others, were taken into consideration for the purpose of sentencing.
Investigations by the Commercial Affairs Department ("CAD") revealed that Zahir was the director of two companies, Imcomz Trade Pte. Ltd. and Infra Tradez Pte Ltd (collectively known as “both companies”), which received approximately S$18 million derived from cases of email impersonation scams perpetrated against foreign companies in December 2021.
CAD’s investigations revealed that Zahir incorporated both companies for the promised reward of S$20,000 under the instructions of an unidentified individual, whom he got to know from a group named “SG Black Market Hire” on Telegram. Zahir relinquished his Singpass credentials to the unidentified individual to facilitate the incorporation of both companies and the opening of corporate bank accounts for both companies that were used to receive criminal benefits. Investigations also showed that Zahir had reasons to believe that the unidentified individual was engaged in criminal conduct, and that his actions would facilitate the control of the unidentified individual’s benefits from criminal conduct.
Although Zahir was the director of both companies and the authorised signatory of the companies’ corporate bank accounts, he failed to exercise reasonable diligence in the discharge of his duties as a director of both companies. As a result of these offences, criminal benefits totaling approximately S$18 million were received in the corporate accounts belonging to both companies, the majority of which was dissipated. Zahir committed these offences while subject to a remission order made by the Commissioner of Prisons.
Zahir was also investigated by Bedok Police Division and the Central Narcotics Bureau for offences involving possession of an offensive weapon and criminal intimidation, and drug-related offences respectively.
Under the CDSA, the offence of entering into an arrangement, knowing or having reasonable grounds to believe that, by the arrangement, the retention or control by or on behalf of another of that other person’s benefits from criminal conduct is facilitated, and having reasonable grounds to believe that that other person is a person who engages in or has engaged in criminal conduct, carries a punishment of up to ten years’ imprisonment, a fine of up to S$500,000, or both.
Any person who commits a breach of Section 157(1) of the Companies Act shall be guilty of an offence punishable under Section 157(3)(b) of the same Act and shall be liable on conviction to a fine not exceeding S$5,000 or to imprisonment for a term not exceeding 12 months.
Any person who relinquishes his Singpass credentials for any wrongful gain shall be liable on conviction to a fine not exceeding S$10,000 or to imprisonment for a term not exceeding three years or to both.
Scams, such as those perpetrated online and/or from overseas, are a major crime concern. Singapore takes a serious view on scams and related money laundering activities. The Police will not hesitate to take stern enforcement actions against any individuals who commit these offences and persons who facilitate them by knowingly allowing their bank accounts to be used by scammers to receive monies, hide their tracks, and launder the proceeds of crime. There is a need to deter these offenders from using Singapore’s financial system as a conduit for illicit funds as it affects Singapore’s reputation as an international financial centre.
SINGAPORE POLICE FORCE
24 April 2024 @ 7:11 PM