Man who allegedly opened corporate bank accounts and received over $830k in scam proceeds to be charged

A 42-year-old man will be charged in court on Wednesday (May 13) for his suspected involvement in money laundering activities.

In a news release on Tuesday, the police said that, acting on the instruction of unknown persons who promised him $5,000 monthly, the man incorporated a company as its sole shareholder and director on Dec 21, 2021.

He then opened corporate accounts with two banks for the company, and received $32,778 and USD$630,000 ($802,000) in suspected scam proceeds.

The man also disclosed the internet banking details for both accounts to the unknown persons.

"These monies were allegedly derived from job scams and business email compromise scams perpetrated against victims within and outside Singapore," said the police.

"The man failed to exercise diligence over the company’s operations and had no control of the company or knowledge of the fraudulent transfers. 

"His alleged neglect of his duties as a director of the company enabled the receipt of scam proceeds in the company’s bank accounts," added the police.

The man is expected to face five charges in total — one count under the Companies Act, and two counts each under the Computer Misuse Act and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act. 

If found guilty of failing to use reasonable diligence as a company director, the man faces a fine of up to $5,000 or a jail term of up to 12 months.

If convicted of unauthorised access to computer material, he faces a fine of up to $5,000 and/or a jail term of up to two years.

The penalty for possessing property suspected to be the benefits of a crime is a jail term of up to three years and/or a fine of up to $150,000. As the man's offence is amalgamated, he will be liable to double the prescribed punishment, if convicted. 

Scam mules who enable scammers by laundering scam proceeds can also be sentenced to caning of up to 12 strokes; the courts will have discretion on whether to impose caning.

The police said they take a serious stance against anyone involved in laundering proceeds of crime and advised caution in assuming directorships and opening bank accounts that are later relinquished. 

Members of the public are also urged to refrain from allowing personal or corporate bank accounts to be used for receiving or transferring money for others. 

Under the Facility Restriction Framework, those involved in mule-related offences – whether they are under investigation and assessed to be at risk, or have been warned, issued with composition sums, prosecuted, or convicted – may also face restrictions on banking services and mobile line subscriptions to prevent further facilitation of scams.

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helmy.saat@asiaone.com