5 charged for involvement in shell companies suspected to be used for money laundering

SINGAPORE — Five people — including four company directors — were charged for being involved in seven shell companies suspected to be used, or intended to be used, to launder money and retain benefits from criminal conduct.

The individuals were charged in court last Monday (March 29) and on Thursday (April 8) with offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.

From 2016 to 2019, authorities received eight police reports from victims claiming to have been deceived into transferring a total of US$1,676,737 (S$2.25m) into corporate bank accounts of six Singapore-registered companies.

The companies are Plutusteam, Glidertex, Birseltex Global, Temco Industrial, Integrated Invest and Modelana Trading, the police said in a press release on Thursday.

An attempt was also made to wire HK$3,244,282 (S$559,000) into the corporate bank account of Jiangsu Chengde Steel Tube Share. The payment did not go through as the account was closed.

Tan Hock Keat, a director of corporate service provider DM Advisory at the time, allegedly assisted and took instructions from an unidentified “George Clarke” to incorporate the companies to set up corporate bank accounts.

Tan engaged Phua Wee Hao, then a bank officer, to recruit local nominee directors to incorporate the companies and set up the associated bank accounts.

The nominee directors included Wong Poh Kiong, Wong Zhang Jie and Low Ruey Ming.

Control over the bank accounts was subsequently entrusted to “George Clarke” via Phua and Tan.

CHARGES FACED

On March 29, Tan Hock Keat was charged in court with entering into an arrangement to assist “George Clarke” to retain benefits from criminal conduct.

Phua and Wong Zhang Jie were handed the same charge on Thursday.

Phua was additionally charged with abetting Wong Zhang Jie and Low to fail to act honestly and exercise reasonable diligence as company directors.

Lastly, Wong Zhang Jie, Wong Poh Kiong and Low were charged with failing to act honestly and exercise reasonable diligence as company directors.

Those convicted of entering or abetting the entering of an arrangement to facilitate the benefits of criminal conduct may be fined a maximum of S$500,000, jailed for up to 10 years, or both.

Meanwhile, failing to exercise reasonable diligence in the discharge of duties as a director of a company carries a maximum fine of S$5,000, a jail term of up to 12 months, or both.