SINGAPORE – A 43-year-old woman and 34-year-old man, the director and compliance manager respectively of Samlit Moneychanger, are being investigated for allegedly running a fraudulent business and failing to comply with regulations for licensed payment services.
The police and Monetary Authority of Singapore (MAS) said that their joint investigations into Samlit, located in Chinatown, began on Feb 23.
MAS inspected the firm following reports that people in China who were supposed to receive money remitted through Samlit had been unable to access the funds as they had been frozen or confiscated by the Chinese authorities.
Of the 39 complaints received by the Consumer Association of Singapore in Singapore from January to Nov 14, 2023 regarding frozen or confiscated remittance transactions, 27 involved Samlit.
Bloomberg reported in January 2024 that three Chinese nationals working in Singapore sued Samlit for 347,501 yuan (S$66,000) claiming that the moneychanger breached agreements.
The authorities said more than 670 complaints were made to the Singapore police by Dec 15, 2023 about frozen remittances to China worth a combined $13 million, with nearly two-thirds of these reports linked to Samlit.
This comes as Beijing ramps up efforts to root out alleged money laundering and other illicit activities, with the police in China blocking hundreds of remittances from Singapore.
MAS and the police said Samlit has not been forthcoming in providing information that MAS needed nor “satisfactorily explained the purported remittance fund flows”.
On Feb 20, amid MAS’ inspection, Samlit told the authority that it intended to surrender its licence for providing payment services and stop its business.
There were also reports about unusual transfer activities in both Samlit’s corporate bank accounts and its director’s personal bank account.
MAS has also taken steps to secure the funds in Samlit’s corporate bank accounts, including instructing Samlit to seek approval before withdrawing or transferring any funds.
“This is necessary given the circumstances surrounding Samlit’s sudden surrender of licence,” the joint statement said, adding that the secured funds are sufficient to meet Samlit’s uncompleted remittance obligations.
A person convicted of fraudulent trading can be jailed up to seven years, fined up to $15,000 or both.
For failing to comply with the obligations of a licensed payment services provider, a person can be jailed up to 12 months, be fined up to $1 million or both. They are also liable to be fined further for continuing offences.
MAS and the police said that these investigations are separate from any private claims Samlit might be facing from remitters, and they have directed Samlit to provide relevant documentation to affected remitters so that they can appeal to Chinese authorities to unfreeze their beneficiaries’ accounts.
Samlit will retain its payment services licence until Feb 29, and has been directed to ensure that the beneficiaries of uncompleted remittance transactions receive their funds within seven businesses days, even after it has surrendered its licence. If Samlit is unable to do so, it should contact the remitter for further instructions.
The firm must also discharge all outstanding obligations and make sufficient provisions for unforeseen liabilities before it closes down its business.
“The authorities understand the frustrations faced by the affected remitters and urge the affected remitters to seek redress within the legal framework of Singapore,” MAS and the police said.
“The police will not hesitate to take enforcement action against anyone who breaks the law in Singapore, including the organisation of or participation in a public assembly without a police permit.
“The Government will be reaching out this weekend to the affected remitters who had remitted monies through Samlit to share more information with them.”
