Singapore to Charge Two Individuals Over Scam-Linked Money Laundering

The case includes one of Singapore’s earliest prosecutions for “rash money laundering” since the offence took effect in February 2024.

Singapore police said a 56-year-old man and a 50-year-old woman were due to be charged in court on 5 August 2026 over separate allegations involving the receipt and transfer of scam proceeds through local bank accounts.

According to a statement issued by the Singapore Police Force on 4 August, the investigation began after an overseas company reported falling victim to an impersonation scam in August 2024. Fraudulent payment instructions had allegedly caused funds to be transferred into bank accounts maintained by the two individuals.

Nearly SGD 200,000 Received Through Personal Accounts

Police investigations found that the man allegedly received close to SGD 200,000 in his personal bank accounts between 2023 and 2024.

The amount included USD 47,450 originating from an overseas scam victim. The remaining funds were believed to have come from other scam victims, police said.

The money was subsequently transferred to other entities, including a Singapore company of which the man was a director.

He is expected to face nine counts under Section 54(3) of Singapore’s Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, commonly known as the CDSA, for allegedly possessing property representing the benefits of criminal conduct.

He will also face one charge under the Companies Act 1967 for allegedly failing to exercise reasonable diligence in carrying out his duties as a company director.

For an individual, possessing criminal proceeds while knowing—or having reasonable grounds to believe—that the property represents another person’s benefits from criminal conduct is punishable by up to 10 years’ imprisonment, a fine of up to SGD 500,000, or both.

A breach of the director-diligence requirement may result in a fine of up to SGD 5,000, imprisonment for up to 12 months, or both.

Early Use of Singapore’s “Rash Money Laundering” Offence

The woman’s account was identified during the same investigation. Police said it received more than SGD 9,000 from a victim of a love scam in August 2024.

Despite allegedly having suspicions about the origin of the funds, she did not make further enquiries and transferred more than SGD 8,000 to a person she did not know, acting on instructions from another unidentified individual.

She is expected to be charged with rashly transferring property representing another person’s benefits from criminal conduct under Section 54(3A) of the CDSA.

Police described the matter as one of the earliest prosecutions for rash money laundering since the new offence came into force on 8 February 2024.

For individuals, the offence carries a maximum penalty of five years’ imprisonment, a fine of up to SGD 250,000, or both.

Compliance Significance

The prosecution illustrates Singapore’s expanding use of criminal liability beyond cases in which a person can be shown to have had actual knowledge that funds were illicit.

The rash money laundering provision is particularly relevant where an account holder notices suspicious circumstances but proceeds with a transaction without conducting reasonable enquiries. In practice, it increases the legal risk for people who transfer funds for unknown parties, follow unexplained payment instructions or allow personal and corporate accounts to be used as pass-through channels.

For financial institutions, the alleged activity highlights several monitoring indicators:

• Personal accounts receiving funds from multiple suspected scam victims;
• Incoming overseas payments followed by rapid transfers to other parties;
• Transfers between an individual’s account and a company connected to that individual;
• Customers moving funds on behalf of unidentified or unacquainted persons; and
• Transactions inconsistent with the customer’s expected personal or commercial activity.

The accompanying Companies Act charge also underlines the potential intersection between anti-money laundering enforcement and directors’ corporate governance responsibilities when company accounts or entities are used in the movement of suspected criminal proceeds.

The allegations have not been proven in court. Both individuals are entitled to the presumption of innocence unless and until convicted.

Source: Singapore Police Force — Two Individuals To Be Charged For Money Laundering Offences