12 people charged after company bank accounts used to launder US$36 million in scam proceeds

A DOZEN people linked to 35 Singapore-registered companies were charged in court on Thursday (June 1) after their company bank accounts, operated by foreign agents, were used to receive and launder criminal proceeds of around US$36 million from scams.

The 12 people were charged either because they failed to use reasonable diligence in the discharge of their duties as directors of Singapore-registered companies, abetted the directors of the companies in the above offence, or both

In addition, two of them were also charged over lodging documents with false information.

The Accounting and Corporate Regulatory Authority (Acra) had earlier cancelled the Registered Qualified Individuals (RQI) registrations of two of the people charged.

Investigations by the Commercial Affairs Department found that between July 2020 and February 2021, foreign agents had used foreign corporate services providers (CSPs), mostly based in China, to engage Singapore CSPs to incorporate local companies and open bank accounts in Singapore. 

The local nominee directors of the 35 Singapore-registered companies neglected their duties as directors by allowing the foreign agents to operate these company bank accounts, said the Singapore Police Force and Acra in a joint release.

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Around US$36 million was laundered through the compromised bank accounts, and came from both local and overseas victims of business e-mail compromise scams, investment scams and love scams. 

The police and Acra urged the public to “understand the legal duties and obligations before becoming directors for companies, as directors would be liable for any breaches of their duties”.

Failure to use reasonable diligence in the discharge of duties, or abetting the offence, carries a punishment of an imprisonment term of up to 12 months or a fine of up to S$5,000. Lodging documents with false information in a material respect carries a punishment of an imprisonment term of up to two years, and/or a fine up to S$50,000.