Director jailed after more than US$210,000 laundered through company
Sim Chee Wei was jailed for eight months and one week, while his company SIMCW Tech was fined S$32,000 (US$25,000).
A view of the State Courts building in Singapore. (File photo: CNA/Ili Nadhirah Mansor)
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SINGAPORE: A director and his company were sentenced on Tuesday (Jan 6) over money laundering offences.
Sim Chee Wei was sentenced to eight months and one week's jail for one count under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and another count under the Companies Act (CA). Another count each under the CDSA and CA was taken into consideration during sentencing.
His company SIMCW Tech was fined S$32,000 (US$25,000) for one charge under the CDSA, with a further count under the same Act taken into consideration during sentencing.
Sim and SIMCW Tech were first charged in March.
According to a Singapore Police Force press release on Tuesday, Sim had incorporated SIMCW Tech and another company, SCWEI Tradings, in August 2022 as part of a purported business arrangement with an unidentified Chinese investor.
Sim was the sole director of both companies. He opened corporate bank accounts for both companies and relinquished control of these accounts to the purported Chinese investor.
Police received information on Aug 29, 2022 that criminal proceeds amounting to US$210,102.74 from an overseas investment scam had been transferred into SIMCW Tech’s Singapore bank account.
"SIMCW Tech was unable to provide a satisfactory explanation for the abovementioned sum of money," the police said.
Investigations showed that Sim failed to exercise any supervision over the affairs of both companies and was unaware of the transactions in their respective bank accounts, demonstrating neglect.
Those convicted of possessing property reasonably suspected to be the benefits of criminal conduct can be jailed up to three years or face a maximum fine of S$150,000, or both.
For corporate entities, offenders can be fined up to S$300,000 for each charge.
If found guilty of failing to use reasonable diligence in the discharge of duties as a director, offenders may be jailed up to 12 months or fined up to S$5,000.
