SINGAPORE - A director of three companies incorporated in Singapore has been sentenced to 16 days’ jail after scammers used the firms’ bank accounts to receive US$2.87 million (S$3.89 million) from victims overseas.

Felicia Tham Li Ling had agreed to take on the roles, but then relinquished control of the companies’ local bank accounts to foreigners, the police said in a statement on May 8.

They added that her lack of oversight and due diligence as a director later resulted in the three companies being used to receive fraudulent proceeds from foreign scam victims between January and May 2018.

The 45-year-old was convicted of three counts of failing to use reasonable diligence in the discharge of her duties as company director. Four other charges of a similar nature were taken into consideration.

In addition to the jail term, she was disqualified from being a company director for five years.

The police said Tham’s arrangement started sometime in 2016, with her taking on nominee director appointments for companies incorporated by corporate service provider JJ & E Management, a firm in Singapore.

The police statement did not indicate the relationship between her and JJ & E Management.

Investigations by the Commercial Affairs Department showed she took on roles at the firms she helped incorporate, to fulfil a statutory requirement for Singapore-based companies to have at least one local resident director.

Between December 2017 and February 2018, she agreed to take on a directorship in three business entities – Jana United, Amey Cespa (AWRP) ODC, and Motexo.

After the companies were incorporated, Tham gave up control of all local bank accounts linked to them.

The police said she did not have any access to the companies’ account facilities or bank statements after doing so, with the foreign directors of the companies inheriting control of the accounts.

The three companies involved in the charges have been struck off.

Checks by The Straits Times showed Tham is currently a director in 84 companies, shareholder in four companies, and company secretary of one firm. 

She formerly held directorship roles in around 160 companies. 

Corporate service providers have come under increased scrutiny in Singapore amid the S$3 billion money laundering probe.

Action has been taken against at least five registered qualified individuals (RQIs) and four registered filing agents (RFAs) since the case broke in August 2023.

RFAs are professional services firms that transact with the Accounting and Corporate Regulatory Authority (Acra). RQIs are principally responsible for ensuring that the RFA complies with Acra’s regulations.

Wang Junjie, the director and RQI of LW Business Consultancy, was sanctioned by Acra in January 2024.

ST had reported in September 2023 on his links to 185 companies, where he held various positions, including directorships. Nine of the companies were linked to the individuals involved in the money laundering case.

Business records showed that over the years, he had been director of hundreds of companies.

Jackson Lim Wei, a director and RQI of Sprout Corporate Services, was similarly sanctioned in February 2024.

He held positions in several companies linked to individuals in the case and their associates.

In October 2023, ST reported that Serangoon resident Amy Chin had helped to register firms for at least three associates of the money laundering network.

At the time, she was linked as director, shareholder or company secretary of more than 200 firms.

Chin said she terminated her roles in the companies sometime in late 2022. A check on the business registry showed she currently serves as director in three companies, and shareholder in two firms.

In an earlier interview with ST, she said she had not met any of the individuals behind the companies, and also admitted that she had simply helped to set up companies in exchange for money, without conducting any due diligence.

In their statement on May 8, the police said company directors who fail to exercise reasonable diligence in the discharge of their directors’ duties run the risk of allowing their companies to facilitate the retention or control of benefits derived from criminal conduct.

Those found guilty of failing to use reasonable diligence in the discharge of their duties as a company director can be jailed for up to a year or fined up to $5,000.