A Singapore-based company was used as a shell company to launder criminal proceeds through Singapore in 2015.
The man who set up the company — Beh Chuen Leng — was convicted in court on Monday (Aug. 24) for failing to exercise reasonable diligence in the discharge of his duties as a director.
Was director for a company he incorporated on behalf of a foreigner
According to a police news release, Beh served as the resident director of a Singapore company that he had incorporated on behalf of a foreigner.
Besides assisting with the incorporation of the company and the opening of its bank account, Beh ceded all control of the company, including its bank account, to the foreigner and did not exercise any supervision over its affairs.
On Jan. 26, 2015, the company received a sum of US$114,852.52 (S$157,158.45) from a victim who had been deceived into transferring funds to the company’s bank account.
The funds were subsequently transferred out of Singapore within a short period of time.
Investigations revealed that the company had no legitimate business operations in Singapore and was, in fact, a shell company set up as a conduit to launder criminal proceeds through Singapore.
Fined S$5,000 and disqualified from being director for a year
The man was convicted in court and fined the maximum fine of S$5,000 on Monday (Aug. 24). He was also disqualified from being a director for one year.
Two other charges under the Companies Act were taken into consideration for his sentencing.
For failing to exercise reasonable diligence in the discharge of his duties as a director, he could have been fined up to S$5,000 or jailed up to 12 months.
The police said that they take a serious view of the offence and will not relent in taking offenders to task:
"Individuals should not be a director of a company when they have limited oversight or control, as the company may be used for illegal purposes such as the laundering of criminal proceeds."
Top photo via Unsplash / Bill Oxford.