Foreign Criminal Syndicate Suspected of Using Shell Companies for Money Laundering; "Nominee" Director and Secretary Charged
Two men acting as a company director and secretary have been charged in court for allegedly allowing Singapore-registered companies to be used by a foreign criminal syndicate for money laundering.
The defendants, Poh Wei Hsiung (36) and Poh Wei Yang (35), were each charged in the State Courts on Friday (March 20) with two counts under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and two counts under the Companies Act.
According to a police statement released on Thursday (March 19) and the charge sheets, the two local companies involved are Sigma Solutions and Fioba.
Between February and August 2023, these two Singapore-registered companies allegedly received remittances totaling US$1,080,328 (approx. S66,000), respectively. The funds are believed to be proceeds from overseas investment and inheritance scams.
Investigations revealed that the two companies were actually controlled by foreigners. To meet local registration requirements, they were required to appoint a Singapore resident as a director. Poh Wei Hsiung, who runs a corporate service firm, assisted in registering the two companies and served as the secretary, while hiring Poh Wei Yang to act as the director.
The duo subsequently opened bank accounts for the companies. Police noted that Poh Wei Yang, as a director, failed to properly supervise company operations and could not provide a reasonable explanation for the massive funds received in the accounts. Poh Wei Hsiung, acting as secretary, similarly failed in his oversight duties and is also suspected of abetting Poh Wei Yang’s negligence in supervising the company’s financial activities.
The two are accused of dereliction of duty, which allowed the company accounts to be used to receive fraudulent funds.
Case Adjourned to May 8; Defendants Out on Bail
Following the mention of the charges, the prosecution stated that more time is needed to investigate Poh Wei Hsiung’s case. Regarding Poh Wei Yang, the prosecution is ready for a guilty plea mention; however, Poh Wei Yang requested time to submit a representation and has not yet indicated if he intends to plead guilty.
The case has been adjourned to May 8 for a further mention. Both men are currently out on bail of S$15,000 each. The charge sheets did not specify the relationship between the two men.
Under the law, any individual possessing property reasonably suspected of being criminal proceeds can, if convicted, face a maximum jail term of three years, a fine of up to S$150,000, or both. For companies, each charge carries a maximum fine of S$300,000.
Those who fail to exercise reasonable diligence in their duties as a director face up to 12 months in prison or a fine of up to S$5,000.