SINGAPORE: A director and his company were charged on Wednesday (Mar 12) over suspected money laundering activities.
Sim Chee Wei, 39, is accused of failing to exercise reasonable diligence in the discharge of his duties as a director of two companies – SIMCW Tech and SCWEI Tradings.
He is said to have relinquished control of the companies’ bank accounts and failed to exercise supervision of the companies’ affairs from August 2022 to September 2024.
Due to his supposed neglect, SIMCW Tech allegedly possessed property suspected to be the benefits of criminal conduct. It possessed US$209.90 (S$280) on Aug 18, 2022 and US$209,892.84 on Aug 19, 2022. Both sums of money were suspected to be the proceeds of crime.
For these alleged offences, Sim was handed two charges under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and two charges under the Companies Act.
SIMCW Tech was given two charges of possessing property suspected to be from criminal conduct under the CDSA. The company’s two charges mirror that of Sim’s CDSA charges.
According to a Singapore Police Force press release on Tuesday, Sim incorporated two companies in August 2022 as part of a purported business arrangement with an unidentified Chinese investor.
Sim then opened corporate bank accounts for both companies and gave control of the accounts to the Chinese investor.
On Aug 29, 2022, the police received a report that payments amounting to US$210,102.74 – supposedly from an investment scam overseas – was transferred into SIMCW Tech’s bank account.
The company was unable to account for how it came by this money.
Both Sim and his company stated that they would be engaging lawyers and did not indicate a plea.
Their next hearings have been fixed for Apr 9.
The police said it will take “stern eniforcement action” against companies that are incorporated for illegal purposes such as the laundering of crimnal proceeds, and against directors whose neglect allows companies to be run for illicit purposes.
“Such abuse affects Singapore’s reputation as an international financial centre and business hub,” the police said.
The offence of possessing property suspected to be benefits of criminal conduct under the CDSA carries a jail term of up to three years, a fine of up to S$150,000, or both, if the person is an individual.
For corporate entities, offenders can be fined up to S$300,000 for each charge.
For failing to use reasonable diligence as a director under the Companies Act, an offender may be jailed for up to 12 months or fined up to S$5,000.
