The man admitted he had never clarified how the businesses would be operated when he opened two companies for a stranger. - Photo: ST
SINGAPORE: After being introduced to an unknown individual by his friend, a man agreed to help open two companies for the stranger and act as their sole director.
Sim Chee Wei, 40, did this despite not knowing anything about the business of the companies he helped register, and even opened a corporate bank account before giving its details to the foreigner.
The account received more than $250,000 in scam proceeds from the US.
Sim, who had opened SIMCW Tech, and the firm’s bank account, had facilitated the work of a transnational scam syndicate.
On Tuesday (Jan 6), SIMCW Tech was fined $32,000 for possessing property reasonably suspected to be the benefits of criminal conduct.
Sim was sentenced to eight months and one week’s jail after pleading guilty to one count of possessing property suspected of being criminal proceeds, and one count of failing to use reasonable diligence in the discharge of duties as a director.
Court documents show that the Commercial Affairs Department was notified on Aug 29, 2022, that a US-based company had been deceived into making fraudulent wire transfers to SIMCW’s bank account twice in August 2022.
The transfers, valued at US$209,892.84 (S$268,450), involved scam proceeds.
Sim had been introduced by a friend named “Roy” in court documents to a stranger who claimed to be a Chinese national. He said he did not know the person’s name, background and contact details.
Despite that, Sim agreed to help register two firms, SIMCW Tech and SCWEI Tradings, in partnership with the stranger.
Sim admitted he had never clarified how the businesses would be operated, whether they would have any employees, or where the offices would be located.
Still, Sim agreed to help open a local corporate bank account under SIMCW Tech on Aug 16, 2022. He handed over details of the bank account to Roy.
After Aug 19, 2022, he noticed there was more than US$200,000 in the account. He tried to withdraw the money for his own use, but the funds had already been flagged by the bank as criminal proceeds.
In a statement on Jan 6, 2026, the police said Sim failed to exercise any supervision over the affairs of both companies he helped to register, and he was unaware of the transactions taking place in the bank account.
The police said they took a serious stance against anyone involved in laundering crime proceeds as these crimes compromise the integrity of Singapore’s financial system.
They added: “To ensure that Singapore remains a safe and trusted place for business and finance, the police will take tough enforcement action against such perpetrators, who will be dealt with in accordance with the law.”
In 2023, the Accounting and Corporate Regulatory Authority prosecuted nine nominee directors, including a man who ran a business helping Chinese clients set up companies here and became a nominee director of 980 companies.
More than $5 million was laundered by the companies under him, and he was sentenced to four weeks’ jail, fined $57,000 and banned from being a director for five years. - The Straits Times/ANN
