SINGAPORE, Aug 25 — A man assisted in the incorporation of a firm here and it turned out to be a shell company that was set up as a conduit to launder criminal proceeds through Singapore.

For failing to exercise reasonable diligence in the discharge of his duties as a director of a company, Beh Chuen Leng was yesterday fined the maximum amount of S$5,000 (RM15,234) under Section 157(1) of the Companies Act and disqualified from being a director for one year.

Two other charges under the Companies Act were taken into consideration for sentencing, the police said in a news release.

Beh served as the resident director of a company in Singapore that he had incorporated on behalf of a foreigner.

Besides assisting with the incorporation of the company and the opening of its bank account, the police said that Beh ceded all control of the company — including its bank account — to the foreigner.

He also failed to exercise any supervision over the company’s affairs.

On January 26, 2015, the company received a sum of US$114,852.52 (about RM479,601.49) from a victim who had been deceived into transferring money to the company’s bank account.

The money was later transferred out of Singapore within a short amount of time.

"Investigations revealed that the company had no legitimate business operations in Singapore and was a shell company that was set up as a conduit to launder criminal proceeds through Singapore,” the police said.

The police warned that they take a serious view of the offence and will not relent in taking offenders to task.

"Individuals should not be a director of a company when they have limited oversight or control, as the company may be used for illegal purposes such as the laundering of criminal proceeds,” they said. ― TODAY