SINGAPORE — A number of Singaporeans who helped set up firms for individuals linked to the $2.8 billion money laundering case have started removing their names from the companies, amid an investigation by the Accounting and Corporate Regulatory Authority (Acra).
They were previously listed as directors, secretaries or shareholders of companies set up by several of the foreigners nabbed in the Aug 15 anti-money laundering blitz.
In total, the Commercial Affairs Department (CAD) arrested nine men and one woman.
The Singaporeans were also listed in firms incorporated by associates of those arrested, including the wives of some of the accused.
Acra confirmed with The Straits Times that it has contacted a number of corporate service providers (CSPs) in an ongoing probe relating to the money laundering case.
Foreigners are required to engage a registered filing agent, including CSPs, to incorporate a company in Singapore.
They must also appoint at least one director who is living in Singapore. He can be a citizen, permanent resident, or entrepreneur pass or employment pass holder.
Corporate service provider Grof, formerly named Sprout, said it commenced termination of services with several companies on Aug 24. The exercise was completed by early September.
Jackson Lim, co-founder of Grof, said fewer than five companies were involved, but declined to provide the exact number.
"When the news broke, we did our internal checks to see if we had any clients that were related to the 10 accused," said Lim, who ST learnt was registered as secretary or director of about 1,400 live companies.
He said he found his name listed as secretary or director of firms linked to three associates of the accused persons.
ST had earlier reported the names of 24 people linked to the 10 accused. They were on a list the Ministry of Law (MinLaw) sent to traders of precious metals and stones, to flag for suspicious transactions.
"When The Straits Times published the names of the associates, we used it in collaboration with our internal checks, which was very helpful," said Lim.
He added that his firm has been cooperating with the authorities since September to conduct audits and inspections.
"We assisted them in a couple of ways — first, to provide personal documents of the directors or shareholders of the company they are looking into," said Lim, adding that Grof also provided documents to demonstrate its risk assessment processes.
He said Acra inspected Grof's entire onboarding suite, and the firm's client monitoring system.
The role played by filing agents in registering firms has come under the spotlight amid the probe.
In court last Wednesday, prosecutors said one of the 10 accused, Su Jianfeng, had registered a firm which they alleged was a shell company. The firm, An Xing Technology, was purportedly an IT management consultancy business.
Su, 35, claimed he was the chief executive of the firm. But when questioned by the police, the Vanuatu national, who faces four money laundering charges, could not pinpoint his office address.
He is also listed as a director and shareholder in the firm.
In a ministerial statement on the ongoing money laundering investigation, Second Minister for Home Affairs Josephine Teo told Parliament on Oct 3 that several regulatory probes were under way, including by the authorities overseeing CSPs.
In a separate statement, Second Minister for Finance Indranee Rajah said Acra will introduce additional measures on errant CSPs in early 2024, and roll out possible restrictions on the number of directorships an individual can hold.
ST learnt that Serangoon resident Amy Chin helped register firms for at least three associates of the arrestees. Business records showed she is registered as a shareholder or director of more than 200 companies.
The associates include Wu Qin, whose husband is Su Haijin, the accused who jumped from his residence in Ewart Park, in Bukit Timah, while allegedly trying to flee from the police. Wu is named in the MinLaw list.
Chin was previously listed as a director in Culbert Management, which was set up by Wu. Lim and another Singaporean — identified as J.J. in a previous report — were listed as company secretaries.
Chin, who is also a Singaporean, is also listed as either a director or shareholder of companies set up by Su Caihuang — the wife of accused Wang Dehai — and Wang Qiujiao, whose registered address is a condo unit at New Futura, the same unit which Chen Qingyuan bought in 2018.
Chen was among the 10 individuals arrested in the CAD operation, and Wang Qiujiao was named in MinLaw's list.
Chin said she had never met any of the individuals behind the companies, and added that she has no recollection of how she came to be associated with the companies.
"I didn't do any checks on them. I just helped to set up their companies. I earned around $50 for each firm I helped set up. To me, it was good money," she said, adding that most of the discussions were conducted over WhatsApp.
Chin admitted she did not conduct any due diligence when she gave her details for the roles.
She said she was never involved in any of the operations, and was there only in name.
Chin, who said she terminated her roles in the companies in late 2022, is currently working in an administrative role at a catering company. Business records show she is still a director in three companies in Singapore.
ST reported on Sept 3 that a Singaporean was listed as director, secretary and shareholder in 185 companies, including nine linked to three of the accused.
The resident of Bedok, who was identified in the report as J.J, runs a firm that provides secretarial services. He rejected calls from ST when contacted last Thursday.
Meanwhile, a number of Singaporeans have been convicted in court for their role in setting up shell companies, which were later used by scammers to steal money from victims based overseas.
They included an unemployed Singaporean who was fined $4,000 on Sept 27 for failing to exercise reasonable diligence in his role as director of 186 firms.
Er Beng Hwa, 49, was offered $50 a year for each firm incorporated in Singapore in which he was named the nominee director. He was also promised $50 each time he opened a bank account for the firms, and if he had to turn up to sign papers.
He was part of a probe that saw police arrest 12 individuals who had helped incorporate 35 local companies between July 2020 and February 2021.
They also opened Singapore bank accounts, which were used to launder more than US$36 million (S$49.4 million) from victims of scams.
The 12 individuals had taken advantage of rules that allowed the registration processes to open bank accounts to be conducted remotely during the Covid-19 pandemic.
The anti-money laundering operation on Aug 15 involved more than 400 police officers and saw raids at properties in areas such as Tanglin, Bukit Timah, Orchard Road, Sentosa and River Valley. Ten foreigners, all originally from China, were charged the next day with offences including money laundering, forgery and resisting arrest.
It is Singapore's worst money laundering case and one of the world's largest.
This article was first published in The Straits Times. Permission required for reproduction.
