The Police is investigating a 36-year-old man for offences under the Payment Services Act 2019 and the Employment of Foreign Manpower Act 1990. The man is alleged to have carried on a business of providing cross-border money transfer services without a valid licence issued by the Monetary Authority of Singapore.
In October 2022, officers from the Commercial Affairs Department and Jurong Police Division conducted a six-hour joint operation at Sungei Tengah Lodge, located along Old Choa Chu Kang Road. During the operation, a man, who is a work pass holder, was found to have allegedly provided unlicensed cross-border money transfer services. Cash, remittance transaction records and a handphone were seized.
Under Section 5 of the Payment Services Act 2019, it is an offence for anyone to carry on a business of providing any type of payment services (including cross-border money transfer services) in Singapore without a license unless he is exempted under the Act. The offence carries an imprisonment term of up to three years, a fine of up to $125,000, or both.
Under Section 10(1) of the Employment of Foreign Manpower Act 1990, foreigners working in Singapore must possess a valid work pass and can only work in the occupation stated in the work pass. Those convicted will face a maximum fine of $20,000 or imprisonment of up to two years, or both. Errant individuals may also be barred from working in Singapore.
The Police would like to advise members of the public to only use payment service providers licensed by the Monetary Authority of Singapore. Unlicensed payment service operators are not regulated and not subjected to strict anti-money laundering and counter financing of terrorism measures. The Police will not hesitate to take action against any individual or entity involved in providing any cross-border money transfer services, as they pose the risk of being conduits for money laundering and terrorist financing.
Dealing with unlicensed payment service providers also give opportunities for scammers to defraud you. The Police would like to warn members of the public of the following three variations of remittance scams, where victims had engaged payment service providers offering cross-border money transfer services. The victims were approached or had approached the providers through social media applications or chat groups (e.g, WeChat):
- Outward remittance scam (Singapore to China)
Remitter A wanted to remit funds into his own or his beneficiary’s bank account in China. He was asked to transfer the Singapore Dollar amount into a local money mule’s bank account but the remittance to his beneficiary’s bank account in China did not occur and the scammer became uncontactable.
- Outward remittance scam (Singapore to China)
Remitter B wanted to remit funds into his own or his beneficiary’s bank account in China. Scammer then arranged for someone (“collector”) to meet the remitter at the latter’s residence or place of work in Singapore to count and confirm Singapore Dollar amount to be remitted. Once confirmed, the scammer would arrange for the agreed Renminbi amount to be deposited into the assigned bank account in China. However, not long after the remitter confirmed the deposit and the collector left with the Singapore Dollar amount, the beneficiary’s bank account was frozen by the foreign law enforcement agency allegedly for receiving scam victims’ monies or for money laundering.
- Inward remittance scam (China to Singapore)
Remitter C wanted to transfer some funds from his China bank account to receive physical cash in Singapore Dollar in Singapore. Scammer directed him to meet up with someone in a Remitter B-type transaction and after confirming the amount furnished by Remitter B, he would transfer the agreed Renminbi amount to the China bank account provided by the scammer (not Remitter B’s beneficiary’s account). However, Remitter C was later stopped from leaving with the Singapore Dollar amount, when Remitter B’s beneficiary’s account was frozen.
Members of the public who wish to remit funds out or into Singapore should be aware of the strict Foreign Exchange Controls in foreign countries and should do so through licensed banks or payment service providers to avoid the risk of funds being lost, misappropriated or being used for money laundering or terrorist financing.
If you have information related to such crimes or if you are in doubt, please call the Police Hotline at 1800-255-0000, or submit it online at www.police.gov.sg/iwitness. Please dial ‘999’ if you require urgent Police assistance.
For more information on scams, members of the public can visit www.scamalert.sg or call the anti-scam hotline at 1800-722-6688. Join the ‘Spot the Signs. Stop the Crimes’ campaign at www.scamalert.sg/fight by signing up as an advocate to receive up-to-date messages and share them with your family and friends. Together, we can help stop scams and prevent our loved ones from becoming the next victim.
For media queries, please contact:
Singapore Police Force Public Affairs Department
Media Information Centre Hotline: 6478 2122 / 6478 2133 / 9777 5640
Saleha Noor, Manager (Communications and Engagement Department)
DID: 6317 1000 HP: 9772 9435 Email: Saleha_Mohd_Noor@mom.gov.sg
SINGAPORE POLICE FORCE
07 November 2022 @ 10:15 AM