A Singapore-registered company (“Company A”) and its director will be charged in court on 12 March 2025 for their suspected involvement in money laundering activities. The director, a 39-year-old man, will also be charged for failing to exercise reasonable diligence in the discharge of his duties as a director of Company A and another company (“Company B”).
Investigations revealed that the man incorporated Company A and Company B in August 2022 as part of a purported business arrangement with an unidentified Chinese investor. Thereafter, the man opened corporate bank accounts for both companies, and relinquished control of the accounts to the Chinese investor.
On 29 August 2022, the Police received a report that payments amounting to USD 210,102.74 arising from an alleged investment scam overseas, was transferred into a bank account in Singapore belonging to Company A.
Company A was allegedly unable to account satisfactorily how it came by the property and will be charged with two counts of possessing property that may be reasonably suspected of being benefits of criminal conduct under Section 55(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (“CDSA”).
The said charges against Company A are alleged to be attributable to the man’s neglect as a director and he will be charged with two counts under Section 55(1) read with Section 80(1)(b) of the CDSA. For relinquishing control of Company A and Company B’s bank accounts and failing to exercise any supervision over the affairs of these companies, the man will also be charged for two counts under Section 157(1) of the Companies Act 1967.
The offence of possessing property reasonably suspected to be benefits of criminal conduct under Section 55(1), punishable under Section 55(2) of the CDSA carries an imprisonment term not exceeding three years or a fine not exceeding $150,000, or both, if the person is an individual. In the case of a corporate entity, offenders can be given a fine not exceeding $300,000 for each charge.
The offence of failing to use reasonable diligence in the discharge of duties as a director under Section 157(1) punishable under Section 157(3)(b) of the Companies Act 1967, carries a punishment of an imprisonment term of up to 12 months or a fine of up to $5,000.
The Police will not hesitate to take stern enforcement action against companies that are incorporated for illegal purposes such as the laundering of criminal proceeds and against directors whose neglect allows their companies to be run for illegal purposes. Such abuse affects Singapore’s reputation as an international financial centre and business hub.
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.
SINGAPORE POLICE FORCE
11 March 2025 @ 4:20 PM