In a recent announcement, the Singapore Police revealed that two men, aged 65 and 28, will be charged for allegedly operating a payment service business without the required licence. Investigations by the Commercial Affairs Department (CAD) found that between July 2020 and April 2022, a corporate bank account in Singapore was used to receive funds from overseas for individuals based locally on 58 separate occasions.
The bank account in question reportedly processed close to USD45 million (approximately SGD61 million) in cross-border transactions. The older suspect is the director of the company that owned the bank account, while the younger man allegedly held significant influence over the firm’s operations. Despite the scale of transactions, neither the individuals nor the company possessed a licence to conduct payment services in Singapore, nor were they exempted under the Payment Services Act 2019.
Serious Penalties for Unlicensed Payment Activities
Both suspects are set to appear in court on 26 June 2025. Under Section 5 of the Payment Services Act 2019, individuals found guilty of providing unlicensed payment services can face fines of up to SGD125,000, imprisonment for up to three years, or both. For companies, fines can reach SGD250,000, with additional daily penalties of up to SGD25,000 if the offence continues after conviction.
Police Urge Public to Use Licensed Financial Institutions
The Singapore Police Force has issued a stern warning against using unlicensed cross-border payment service providers. Authorities emphasised that such providers fall outside the regulatory framework, making them vulnerable conduits for money laundering and terrorist financing. Members of the public are strongly encouraged to only transact through financial institutions or payment service providers licensed by the Monetary Authority of Singapore to ensure the safety and legality of their cross-border payments.