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Man charged after allegedly setting up company and bank accounts for unlicensed moneylender

SINGAPORE — A 54-year-old man who allegedly set up a company and two corporate bank accounts for an unlicensed moneylender in exchange for having his debts written off was charged on Wednesday (Dec 22).

SINGAPORE — A 54-year-old man who allegedly set up a company and two corporate bank accounts for an unlicensed moneylender in exchange for having his debts written off was charged on Wednesday (Dec 22).

Leo Shiou Juangq is believed to have responded to a text message from an unlicensed moneylender known as Max in 2018 and ended up borrowing money from him, the police said in a release on Wednesday.

Between August and September that year, Leo allegedly registered a company — Oasis MG — and opened two corporate bank accounts.

Leo allegedly let Max control the company and bank accounts so that the moneylender would write off his debts, the police said.

"Criminal proceeds of at least US$204,901 were allegedly channelled through the accounts," said the police.

Leo was listed as the director of Oasis MG from August 2018 until November 2019 and "fail(ed) to exercise reasonable diligence" in the discharge of his duties as a company director, according to court documents.

As the director of a company, Leo should have monitored the business activities of Oasis to ensure it was not used as "a vehicle to acquire benefits from criminal conduct", charge sheets stated.

For this offence under the Companies Act, Leo faces up to 12 months' jail and/or a fine of up to S$5,000 if convicted.

For allowing two corporate bank accounts to be used by Max "and having reasonable grounds that Max had engaged in criminal conduct", Leo could be jailed for up to 10 years and/or fined up to S$500,000 under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.

Leo also faces a third, unrelated charge for assisting an unlicensed moneylender by handing over his OCBC ATM card to a person known as Kelvin at Boon Keng Road.

"The police take a serious stance against any person involved in the laundering of proceeds of crime, and offenders will be dealt with firmly in accordance with the law," said the police.

The police urged members of the public to "reject requests from others to register companies and/or open bank accounts, or receive money in your bank accounts, as you may be held accountable if they are used for criminal activities". CNA

 

For more stories like this, visit cna.asia.

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crime court unlicensed moneylender bank account Companies Act

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