Singapore, February 2025 – A Singaporean man has been sentenced to 10 months in prison after the High Court found him guilty of serious compliance failures in a money laundering case involving his corporate secretarial businesses.
Case Overview
The defendant, Zheng Jia (transliteration), 42, a Singapore Permanent Resident and a chartered accountant, operated three companies providing accounting and corporate secretarial services. Collectively, these companies managed over 384 registered entities in Singapore.
Since 2017, Zheng had been assisting clients from China in setting up Singapore companies and serving as their nominee director. Although he engaged a third-party AML (Anti-Money Laundering) platform for customer screening, the investigation revealed that the screening was superficial and insufficient. He failed to conduct proper customer due diligence (CDD) to verify the backgrounds and sources of funds of the clients. Consequently, corporate accounts under his management were used to receive and transfer proceeds from scams.
Initially fined SGD 8,500 at the first instance, Zheng’s penalty was escalated to a 10-month imprisonment upon the prosecution’s appeal. The High Court emphasized that professional service providers are key gatekeepers in the financial system and must exercise vigilant compliance to prevent financial crimes.
The Importance of True Compliance
This case highlights a crucial lesson: merely using a third-party AML platform does not guarantee compliance. Businesses must ensure they are using AML platforms that fully meet Singapore’s regulatory standards and implement comprehensive, continuous due diligence and monitoring processes internally.
Platforms like AlgoCandy’s Singapore AML/CFT & KYC Compliance Platform offer an end-to-end solution to help businesses stay compliant. AlgoCandy supports organizations with:
- Deep customer background checks
- Real-time suspicious transaction monitoring
- Comprehensive list screening (sanctions lists, PEP lists, etc.)
- Transparent audit trails
- Periodic risk assessment updates
By meeting both local and international AML/CFT compliance standards, AlgoCandy empowers companies to build dynamic, sustainable, and auditable compliance frameworks, significantly reducing the risk of criminal liability due to compliance negligence.
In an era where financial crimes are becoming increasingly sophisticated, investing in a professional and compliant platform is no longer optional — it is a fundamental responsibility and a cornerstone for sustainable business growth.
