Singapore, January 2025 – A former director of a Corporate Service Provider (CSP) has been charged with 15 offences related to Singapore’s S$3 billion money laundering case, including falsifying accounts, making false statements, and dishonestly breaching directors’ duties.
Case Overview
The accused, Wang Junjie (transliteration), aged 42, was the former director of LW Business Consultancy Pte Ltd (LWBC). He also served as a director of 83 other companies and as company secretary for 142 companies.
The charges allege that Wang:
- Conspired to falsify accounts and submitted false documents to the Inland Revenue Authority of Singapore (IRAS) and Ministry of Manpower (MOM)
- Forged contracts with intent to deceive banks
- Dishonestly failed to discharge his statutory duties as a director
Investigations revealed that Su Haijin (41, Cypriot) and Su Baolin (43, Cambodian), key suspects in the $3 billion money laundering case, engaged LWBC to provide corporate secretarial services for their Singapore-registered entities.
Due to breaches of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements, LWBC’s Registered Filing Agent (RFA) license was revoked by the Accounting and Corporate Regulatory Authority (ACRA), and Wang’s Qualified Individual (QI) status was similarly withdrawn.
Importance of Strengthening CSP Compliance and Risk Management
This case highlights the critical need for Corporate Service Providers (CSPs) to not only maintain internal compliance but also perform rigorous due diligence on clients’ identities, sources of funds, and business activities.
Key compliance actions CSPs must implement include:
- Conducting comprehensive Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD), verifying Ultimate Beneficial Owners (UBOs) and sources of funds
- Implementing dynamic risk monitoring and ongoing transaction surveillance
- Exercising caution toward high-risk clients and refusing services where necessary
- Maintaining professional independence and refusing to engage in or overlook unlawful activities
In today’s stringent regulatory environment, superficial compliance is no longer sufficient. Only by building a robust, dynamic compliance framework can CSPs effectively shield themselves and their stakeholders from criminal liability.
Leveraging Compliance Technology
With solutions like AlgoCandy Singapore AML/CFT & KYC Compliance Platform, CSPs can significantly enhance compliance practices by enabling:
- In-depth client and UBO background screening
- Real-time suspicious activity monitoring and alerts
- Sanctions list and PEP screening
- Automated audit trail generation and regulatory reporting
In the evolving global regulatory landscape, genuine and substantive compliance is essential for the sustainable success of all CSPs.