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Singapore

Man charged for role as director of suspected shell companies which received money from scams

Man charged for role as director of suspected shell companies which received money from scams

File photo of a gavel. (Photo: Jeremy Long)

SINGAPORE: A 79-year-old man was charged on Thursday (Apr 28) for his role as a director of suspected shell companies which received money from investment scams, police said.

Lau Kak En was charged with two counts under the Companies Act for “allegedly failing to exercise reasonable diligence in the discharge of his duties as a director of two Singapore-registered companies”.

Between September 2018 and August 2020, he was acting as director of more than 100 companies in Singapore.

“Investigations revealed that Lau had taken over the directorships through a corporate services provider in Singapore, which provided directorship services to clients who wished to incorporate companies in Singapore,” police said.

It is a statutory requirement that a Singapore company must have at least one director who “is ordinarily resident in Singapore”.

Two locally-registered companies – CESM and CDBF Worldwide – purportedly received funds amounting to Є95,570.12 (S$139,506) and US$274,863.22 (S$380,324) in their respective bank accounts during Lau’s time as director there.

The money was suspected to be derived from investment scams, said police.

If convicted, Lau could be fined up to S$5,000 or jailed for up to 12 months. He may also be disqualified from acting as director for up to five years.

Police advised individuals to “consider their ability to act as directors for companies and ensure that they are able to exercise reasonable diligence in the discharge of their duties”.

“Should a director exercise inadequate supervision over the company’s affairs, there is a risk that the company may be used to facilitate illicit activities, such as the laundering of criminal proceeds,” it said.

Source: CNA/ga(gr)

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