Local remittance firm surrenders licence, to shut down amid investigations for suspected fraud

A REMITTANCE business is planning to wind up amid investigations into the firm and its employees for suspected fraudulent trading, along with suspected failure to comply with the firm’s obligations as a licensed payment services provider. 

The firm, Samlit Moneychanger, is located on the first floor of People’s Park Complex in Chinatown.

Bloomberg in January reported that it was being sued by three Chinese nationals for US$48,417, as part of other claims, alleging breach of agreements.

On Friday (Feb 23), the Singapore Police Force (SPF) and Monetary Authority of Singapore (MAS) said they commenced investigations into the firm’s director, a 43-year-old woman, and another 34-year-old man as its compliance manager for their “suspected involvement in Samlit carrying on a business for a fraudulent purpose”.

They are also being investigated for “suspected failure to comply with various obligations as a licensed payment services provider”.

MAS previously investigated Samlit regarding claims that China-based beneficiaries of remittance transactions, which were made in Singapore through the firm, were unable to access their funds as these were frozen or confiscated by authorities in China.

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The authorities, however, noted that Samlit “has not been forthcoming” in providing the information required, and “has not satisfactorily explained” the purported remittance fund flows.

MAS was notified on Tuesday that the firm intended to surrender its payment services licence and discontinue its business.

It also received reports about “unusual transfer activities” in Samlit’s corporate bank accounts, along with its director’s personal bank account.

In view of this information received, SPF and MAS launched a joint investigation against the firm, while also securing the funds in Samlit’s corporate bank accounts.

The funds secured are sufficient to meet its uncompleted remittance obligations and are also “necessary given the circumstances surrounding Samlit’s sudden surrender of licence”, said both authorities.

They added that the investigations are separate from, and do not affect, any potential private claims by remitters against Samlit – which remains a licensee under the Payment Services Act until Feb 29.

The firm has been directed to continue providing relevant documentation to affected remitters who are appealing to law enforcement agencies in China to unfreeze their beneficiaries’ accounts, even after the surrender of its licence.

It is also expected to ensure that beneficiaries of uncompleted transactions receive their funds within seven business days, and properly discharge all outstanding obligations prior to its winding down.

“MAS regrets that Samlit has not taken a more responsible course of action, but has chosen to surrender its licence at this time… The authorities understand the frustrations faced by the affected remitters and urge the affected remitters to seek redress within the legal framework of Singapore.”

The government intends to reach out to these affected remitters over the weekend to share more information with them.