Man fined S$5,000 for setting up shell company that was used to launder criminal proceeds through S’pore
Beh Chuen Leng served as the resident director of a company in Singapore that he had incorporated on behalf of a foreigner, but failed to exercise any supervision over the company’s affairs.
SINGAPORE — A man assisted in the incorporation of a firm here and it turned out to be a shell company that was set up as a conduit to launder criminal proceeds through Singapore.
For failing to exercise reasonable diligence in the discharge of his duties as a director of a company, Beh Chuen Leng was on Monday (Aug 24) fined the maximum amount of S$5,000 under Section 157(1) of the Companies Act and disqualified from being a director for one year.
Two other charges under the Companies Act were taken into consideration for sentencing, the police said in a news release.
Beh served as the resident director of a company in Singapore that he had incorporated on behalf of a foreigner.
Besides assisting with the incorporation of the company and the opening of its bank account, the police said that Beh ceded all control of the company — including its bank account — to the foreigner.
He also failed to exercise any supervision over the company’s affairs.
On Jan 26, 2015, the company received a sum of US$114,852.52 (about S$157,300) from a victim who had been deceived into transferring money to the company’s bank account.
The money was later transferred out of Singapore within a short amount of time.
“Investigations revealed that the company had no legitimate business operations in Singapore and was a shell company that was set up as a conduit to launder criminal proceeds through Singapore,” the police said.
The police warned 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,” they said.
