A company director and his firm were sentenced on Tuesday, January 6, for money laundering offences involving funds linked to an overseas investment scam.
Sim Chee Wei was sentenced to eight months and one week's jail after pleading guilty to one charge under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and another under the Companies Act. One additional charge under each Act was taken into consideration during sentencing. His company, SIMCW Tech, was fined S$32,000 (US$25,000) for one CDSA charge, with another count under the same Act also taken into consideration.
Sim and SIMCW Tech were first charged in March. According to the police, Sim had incorporated SIMCW Tech and another firm, SCWEI Tradings, in August 2022 as part of a purported business arrangement with an unidentified Chinese investor. Sim was the sole director of both companies.
He opened corporate bank accounts for the two firms and subsequently relinquished control of the accounts to the purported investor.
On August 29, 2022, the police received information that criminal proceeds amounting to US$210,102.74 from an overseas investment scam had been transferred into SIMCW Tech's Singapore bank account.
"SIMCW Tech was unable to provide a satisfactory explanation for the abovementioned sum of money," the police said in a press release on Tuesday.
Investigations found that Sim had failed to exercise supervision over the affairs of both companies and was unaware of the transactions taking place in their respective bank accounts. The authorities said this demonstrated neglect in his duties as a director.
Under the law, individuals convicted of possessing property reasonably suspected to be the benefits of criminal conduct can face a jail term of up to three years, a fine of up to S$150,000, or both. Corporate entities may be fined up to S$300,000 for each charge.
Separately, directors who fail to exercise reasonable diligence in the discharge of their duties may be jailed for up to 12 months, fined up to S$5,000, or both.
