Company director let stranger launder $284k through firm’s bank accounts

SINGAPORE - A 55-year-old man was sentenced to 15 months’ jail and a $5,000 fine on Thursday for his role in a money laundering scheme where he was the director of a company that received more than US$200,000 ($284,000) in criminal proceeds.

Leo Shiou Juanq had registered a company – Oasis Mg – and opened two corporate bank accounts sometime between August and September 2018.

He had done so at the behest of an unidentified male known as Max, said the police. The man had contacted Leo in May that same year, offering loans and a way to earn money without having to borrow it from him.

Although Leo was the director of the company, the bank accounts were under Max’s control after Leo gave away bank tokens, automated teller machine (ATM) cards, as well as cheque books associated with the two accounts.

“Between March and May 2019, criminal proceeds totalling US$204,901 were channelled through the accounts. The criminal proceeds originated from several victims, who had made the transfers believing that they were purchasing investment shares,” said the police.

In their statement, the police said that Leo had received a warning in early 2019 to refrain from giving up control of his bank accounts to others.

He also received multiple fund recall requests from banks regarding suspicious transactions using Oasis’ bank accounts, but Leo continued to act on Max’s instructions and chose not to report the matter or close the accounts.

For facilitating criminal conduct and failing to exercise reasonable diligence as the director of a company, Leo was convicted of offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA), and the Companies Act.

For the CDSA offence, he could have been jailed for up to 10 years or fined $500,000, or a combination of both.

The penalty for the Companies Act offence carries a jail term of up to 12 months and/or a fine of $5,000.

Leo was also charged under the Moneylenders Act for his involvement in a separate matter, which was taken into consideration for the purpose of sentencing.

The police take a serious view of anyone involved in laundering proceeds of crime, and offenders are dealt with firmly.

In their statement, they reminded the public to reject requests from strangers to register companies or open bank accounts, as they could be held accountable if the accounts are used for criminal activities. They also urge company directors to be mindful of their duties and exercise due diligence.