The Singapore Police Force announced that the man will be charged on 17 July 2025 under Section 51(1)(a) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (CDSA). The charge alleges that he was involved in facilitating another person’s retention of benefits derived from criminal conduct. In addition, he will face a separate charge under Section 157(1) of the Companies Act 1967 for failing to exercise reasonable diligence in his duties as a company director.
Investigation details reveal that in January 2022, the accused reportedly entered into an arrangement with an unknown individual he connected with via the messaging app Telegram. The deal involved offering “fast cash” in return for helping incorporate a company. The man allegedly surrendered control of the company and its bank accounts to the other party. The Commercial Affairs Department’s probe uncovered that the accused continued this arrangement despite having reasonable suspicion that the other party was engaged in illegal activities.
Between 14 and 16 March 2022, the company’s bank accounts received approximately USD 274,945, believed to be proceeds from scams involving investment fraud and romance deception targeting foreign victims.
Legal Consequences of Money Laundering and Director Misconduct
Under the CDSA, anyone found guilty of assisting others to retain benefits from criminal acts may face a fine of up to SGD 500,000, imprisonment for up to ten years, or both. The offence related to negligence in director duties carries a maximum penalty of SGD 5,000 fine or up to 12 months’ imprisonment. Additionally, convicted individuals may be disqualified from holding director positions for up to five years.
The Singapore Police Force has reiterated its strong stance against money laundering. It emphasises that it will take decisive action against anyone who allows their personal or company bank accounts to be exploited for laundering illicit proceeds.
This case highlights the risks associated with careless company management and the importance of exercising due diligence, especially when dealing with unknown individuals offering quick financial gains. The authorities continue to urge the public to remain vigilant and report any suspicious activities linked to financial crimes.
If you are aware of any suspicious schemes or unusual financial arrangements, contact the authorities promptly. Singapore remains committed to maintaining a robust regulatory framework to combat money laundering and protect its financial integrity.