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On 1 October 2025, a 64-year-old South Korean national Kim Taek Hoon (“Kim”) was sentenced by the State Courts to a jail term of 60 months’ for the following offences: 

1. Two counts under Section 417 of the Penal Code (Cap 224, 2008 Rev Ed) (”Penal Code”) for cheating logistics providers; 
2. One count under Section 417 of the Penal Code for cheating Singapore Customs (“Customs”);
3. One count under Section 48E of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap 65A, 2000 Rev Ed) (“CDSA”) for failing to make a report in relation to cash exceeding the prescribed amount of S$20,000 which he received from overseas; and
4. One count under Section 47(2)(b) of the CDSA for converting cash, which he had with reasonable grounds to believe represented another person’s benefits from criminal conduct into gold bars.

Another 16 charges under the Penal Code and the CDSA were taken into consideration for sentencing. These include cheating offences, failing to make a report in relation to cash exceeding the prescribed amount and money laundering offences. 

Background

The Suspicious Transaction Reporting Office (“STRO”) detected possible smuggling activities through its analysis of financial intelligence, and exchange of information with foreign counterparts, leading to a further probe into the case by the Commercial Affairs Department (“CAD”).

Pursuant to the intelligence probe conducted by the CAD, formal investigations subsequently commenced in cooperation with various agencies including Customs and the Anti-Money Laundering / Countering the Financing of Terrorism Division (“ACD”) of the Ministry of Law. Information was also shared amongst the authorities in Singapore, South Korea, Japan and INTERPOL to jointly develop further leads.

Kim was arrested in December 2023 after the CAD received information suggesting his potential involvement in a scheme to purchase gold bars in Singapore and export them in concealed shipments (where declarations were made that they contained items such as mechanical tools) to South Korea and Japan. 

Investigation Findings

Failing to make a report in relation to cash exceeding the prescribed amount

Investigations by the CAD revealed that between 2014 and 2017, Kim received cash from South Korea and Japan which were concealed in shipments of grease pumps. 

Under Section 48E(1) of the CDSA (or the current Section 62(1) of the CDSA 1992), a person who receives cash exceeding the prescribed amount of S$20,000 (or its equivalent in a foreign currency), from outside Singapore must make a report of the receipt within 5 business days beginning on the day of the receipt. 

Between January 2017 and May 2017, Kim received packages amounting to a total of at least S$761,031,625 from outside Singapore. Kim failed to make any of the requisite reports on the movement of the cash in accordance with the law, despite receiving cash exceeding the prescribed amount of S$20,000. 

Converting benefits of criminal conduct

Investigations showed that the cash received by Kim was not declared when it was exported from Korea and Japan to Singapore, which constituted an offence under the laws of those countries. CAD’s findings also showed that Kim had reason to believe that the cash received from overseas was derived from his accomplice’s involvement in criminal conduct and believed it was sent to him as part of an illegal activity. Despite that, Kim used the cash to purchase gold bars from a jewellery wholesaler in Singapore. Between January 2017 and May 2017, Kim used the total sum of S$761,031,625 to purchase 12,907 pieces of 1-kg gold bars from a jewellery wholesaler in Singapore. 

After Kim purchased the gold bars, he concealed the gold bars in shipments of air impact wrenches for export to South Korea and Japan through three logistics providers in Singapore, declaring that the shipments only contained air impact wrenches. 

Cheating Customs and logistics providers

Between January 2015 and December 2015, Kim cheated Pantos Logistics Pte Ltd (“Pantos”) by deceiving Pantos that a total of 153 exports made to South Korea consisted only of air impact wrench, when these exports contained approximately 3,174 pieces of 1-kg gold bars. 

Between January 2017 and May 2017, he cheated Cosmo SCM Pte Ltd (“Cosmo”) by deceiving Cosmo that a total of 86 exports to South Korea and Japan consisted only of air impact wrench, when these exports contained approximately 14,184 pieces of 1-kg gold bars. 

Between January 2015 and December 2015, Kim also deceived Customs on 264 occasions (through Pantos, Cosmo and DHL Express Singapore Pte Ltd (“DHL”) by declaring that the exports consisted only of air impact wrench, when the exports contained approximately 5,527 pieces of 1-kg gold bars. 

Director CAD, Mr David Chew said, “Singapore faces an inherent risk of trade-based money laundering given its position as a financial centre and a leading regional trade and transportation hub. This case illustrates STRO’s ability to detect the abuse of our status as a trade hub to launder illicit monies and our investigator’s ability to work with overseas counterparts to take robust action against the money launderers. Close inter-agency coordination and effective international cooperation facilitated information sharing which was instrumental in the detection and dismantling of this criminal syndicate’s money laundering operations. We would also like to express our appreciation to our South Korean and Japanese counterparts, as well as INTERPOL, for their prompt information exchanges and extensive assistance rendered in this multi-national trade-based money laundering investigation.”

Penalties for Non-Compliance

If convicted, the offence of failing to make a report in respect of cash moved from outside Singapore of which the total value exceeds S$20,000, under Section 48E(1) of the CDSA (or the current Section 62(1) of the CDSA 1992) carries a fine not exceeding S$50,000 or an imprisonment term not exceeding 3 years, or both.

The offence of money laundering for individuals under Section 47(2)(b) of the CDSA (or the current Section 54(2)(b) of the CDSA 1992) carries an imprisonment term of up to 10 years, a fine of up to S$500,000, or both.

The offence of cheating under Section 417 of the Penal Code carries an imprisonment term of up to 3 years, a fine, or both.