Two men handed jail terms for unlicensed remittance operation; $10m collected from migrant workers
Sign up now: Get ST's newsletters delivered to your inbox
Indian nationals Angappan Arivalagan (left) and Durairaj Kulothungan used the funds to buy items that tourists took out of Singapore to India.
ST PHOTOS: KELVIN CHNG
- Two Indian nationals operated an unlicensed remittance service, funneling $10.2 million through over 60 bank accounts linked to foreign workers in Singapore.
- They used workers' ATM cards and PINs to withdraw money, which was then sent to India by purchasing goods transported by tourists.
- The prosecutors highlighted the operation's sophistication and the need for strong deterrence against illegal cross-border money transfers.
AI generated
SINGAPORE – Two men were handed jail sentences on July 3 for their roles in an unlicensed remittance operation that saw them withdraw $10.2 million from more than 60 bank accounts belonging to migrant workers.
Indian nationals Angappan Arivalagan, 33, and Durairaj Kulothungan, 27, then used the funds to buy items – such as laptops and gold – that tourists took out of Singapore to India.
Their acts came to light in July 2023 when a member of the public called the police after seeing Durairaj withdraw large amounts of money using different cards from an ATM at Plaza Singapura.
After Durairaj was arrested, police found 51 ATM cards and almost $75,000 in cash on him.
The cousins were convicted under the Payment Services Act and Computer Misuse Act.
Angappan, who had worked as a driver in Singapore since 2012, was sentenced to 15 months and three weeks’ jail with a fine of $6,000, while Durairaj was handed a jail term of eight months and three weeks.
The court heard that during the Covid-19 period, Angappan convinced several workers living in the same dormitory as him that he could withdraw money on their behalf and arrange for the funds to be sent to India.
They agreed and handed over their ATM cards and PINs. Angappan initially tapped the Western Union remittance service.
But, while visiting his family in India in January 2023, he met an acquaintance who proposed that they use the “hawala” system for the migrant workers’ families to receive funds.
This involved buying items with the cash Angappan collected from the workers and moving the items overseas, where they were sold for a profit.
Durairaj started working for Angappan in March 2023 by helping to make daily withdrawals using the workers’ ATM cards.
Angappan then purchased different items and handed them to tourists for the trip back to India. He also roped in his wife, brother and cousins to help with administrative matters, including keeping an account of the funds.
Deputy public prosecutors Daphne Lim and Teng Yin Hang said that from January to March 12, 2023, a total of $4,099,305 was illegally remitted from 28 bank accounts, while $6,166,515 was illegally remitted from 33 bank accounts from March 13 to July 2023.
The court heard that when Angappan realised his cousin had been arrested, he deleted his messages with Durairaj and the customers. Angappan was also arrested in July 2023.
The prosecutors said Angappan and Durairaj did not have licences that entitled them to carry out cross-border money transfer services.
The DPPs sought a jail term of between 18½ and 24 months and $6,000 fine for Angappan, and 11 to 14 months’ jail for Durairaj, who they said played a lesser role in the operation.
Calling the operation a sophisticated one, the prosecutors said: “Such offences are difficult to detect, increasing the need for general deterrence.”
Those who carry on a business of providing any type of payment service in Singapore without a licence can be jailed for up to three years, fined up to $125,000, or both.
