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A 42-year-old man will be charged in court on 13 May 2026 for his suspected involvement in money laundering activities. The man will be charged with:

1. one count of an offence under Section 157(3)(b) of the Companies Act 1967 (“CA”), for contravention of Section 157(1) of the CA;
   
   
2. two counts of an offence under Section 3(1) read with Section 10(1) of the Computer Misuse Act (Cap 50A, 2007 Rev Ed) (“CMA”); 
   
   
3. one count of an offence under Section 55(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (“CDSA”), punishable under Section 55(2)(a) read with Section 80(1)(b) of the CDSA; and
   
   
4. one count of an offence under Section 55(1) of the CDSA, punishable under Section 55(2)(a) read with Section 80(1)(b) of the CDSA and Section 124(8)(a)(ii) of the Criminal Procedure Code 2010 (“CPC”).

Background

On 21 December 2021, the man incorporated a company as its sole shareholder and director. He subsequently opened corporate accounts with two banks for the company. The bank accounts received S$32,778 and USD 630,000 in suspected scam proceeds. These monies were allegedly derived from job scams and business email compromise scams perpetrated against victims within and outside Singapore. 

Investigations revealed that the man had incorporated the company and opened the bank accounts at the instruction of unknown persons who promised him S$5,000 monthly for doing so. He also disclosed the internet banking access details for both accounts to the unknown persons. 

The man failed to exercise diligence over the company’s operations and had no control of the company or knowledge of the fraudulent transfers. His alleged neglect of his duties as a director of the company enabled the receipt of scam proceeds in the company’s bank accounts. 

Under Section 157(3)(b) of the CA, the offence of failing to use reasonable diligence in the discharge of duties as a director carries a fine of up to S$5,000 or an imprisonment term of up to 12 months.

Under Section 3(1) of the CMA, the offence of unauthorised access to computer material carries a fine not exceeding S$5,000 or an imprisonment term not exceeding two years or both. 

Under Section 55(1) of the CDSA, the offence of possessing property reasonably suspected to be benefits of criminal conduct carries an imprisonment term not exceeding three years or a fine not exceeding S$150,000, or both, if the person is an individual. As the offence is amalgamated pursuant to Section 124(8)(a)(ii) of the CPC, the person is liable to 2 times the punishment that is prescribed. 

The Police take a serious stance against any person involved in laundering proceeds of crime, and offenders will be dealt with firmly in accordance with the law. Individuals are advised to be cautious when assuming directorships and opening bank accounts that are subsequently relinquished. To avoid becoming involved in money laundering activities, members of the public should refrain from allowing their or their companies’ bank accounts to be used for receiving or transferring money for others. Scam mules who enable scammers by laundering scam proceeds will face discretionary caning of up to 12 strokes. This includes certain money-laundering offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, Singpass offences under the Computer Misuse Act; and certain SIM-card offences under the Miscellaneous Offences (Public Order and Nuisance) Act.  

Under the Facility Restriction Framework, individuals involved in mule-related offences – whether they are under investigation and assessed to be at risk, or have been warned, issued with composition sums, prosecuted, or convicted – may face restrictions on banking services and mobile line subscriptions to prevent further facilitation of scams.

For more information on scams, members of the public can visit www.scamshield.gov.sg or call the ScamShield Helpline at 1799. Anyone with information on such scams may call the Police Hotline at 1800-255-0000 or submit information online at www.police.gov.sg/i-witness. All information will be kept strictly confidential.