Director and company secretary to be charged over suspected involvement in money-laundering activities

[SINGAPORE] Two men who served respectively as director and company secretary of two Singapore-incorporated companies will be charged for their suspected involvement in money-laundering activities on Mar 20, said the police on Thursday (Mar 19).

The two companies had allegedly obtained fraudulent funds of about US$1.1 million and 44,808 euros (S$65,928) in their respective bank accounts from investment and inheritance scams perpetuated against victims overseas between February and August 2023. 

The director, 35, was unable to provide satisfactory explanations for the receipt of the fraudulent sums by the two companies despite his involvement in opening both bank accounts.

The secretary, 36, who liaised with the director to open the accounts, similarly failed to exercise proper oversight and is alleged to have abetted the director’s failure to supervise the companies and their financial activities.

To fulfil Singapore’s company incorporation requirements that mandated the appointment of a local resident as a director in foreign-owned firms, the secretary of the two companies engaged the other man to serve as the resident director of both companies. 

Both the director and secretary are expected to be charged with two counts of offences for possessing property suspected to be benefits from criminal conduct, as well as two counts of offences for failing to exercise reasonable diligence as the companies’ director.

The latter charge will also be brought on the company secretary due to his alleged abetment in the director’s oversight over the companies’ finances.

If convicted, the men face jail terms of up to four years or fines of up to S$305,000.

To avoid involvement in money laundering activities, the police stated that members of the public should refrain from allowing their or their companies’ bank accounts to be used for receiving or transferring money for others.