Company director let stranger launder $284,000 through company bank accounts

SINGAPORE — A 55-year-old man was sentenced to 15 months in prison and fined $5,000 on Thursday for his role in a money laundering scheme where he was a director of a company that received more than $200,000 US dollars ($284,000) in proceeds of crime.

Leo Shiou Juanq had registered a company – Oasis Mg – and opened two corporate bank accounts between August and September 2018.

He had done so at the request of an unidentified man known as Max, police said. The man had contacted Leo in May of the same year, offering him loans and a way to earn money without having to borrow from him.

Although Leo was the director of the company, the bank accounts were under Max’s control after Leo gave bank tokens, ATM cards, as well as checkbooks associated with both accounts.

“Between March and May 2019, proceeds of crime totaling US$204,901 were funneled through the accounts. ‘investment,’ police said.

In their statement, police said Leo received a warning in early 2019 to refrain from handing over control of his bank accounts to others.

He also received multiple fund recall requests from banks regarding suspicious transactions using Oasis bank accounts, but Leo continued to act on Max’s instructions and chose not to report the matter or close the accounts. .

For facilitating criminal conduct and failing to exercise due diligence as a director of a business, Leo was convicted of offenses under the Corruption, Drug Trafficking and Other Serious Crimes Act (Forfeiture of Benefits) (CDSA) and Companies Act.

For the CDSA violation, he could have been jailed for up to 10 years or fined $500,000, or a combination of both.

The penalty for breaching the Societies Act is up to 12 months imprisonment and/or a $5,000 fine.

Leo was also charged under the Pawnbrokers Act for his involvement in a separate case, which was considered for sentencing purposes.

The police take anyone involved in laundering the proceeds of crime seriously, and offenders are dealt with firmly.

In their statement, they reminded the public to reject applications from foreigners to register businesses or open bank accounts because they could be held liable if the accounts are used for criminal activity. They also urge business leaders to be mindful of their duties and exercise due diligence.