Firm charged with providing unlawful payment services after its bank accounts allegedly received $104m

Singapore authorities have charged a local company and one of its directors with providing payment services without a license. The case centers around allegations that Singapore Precious Metals Exchange (SPME) received over US$80.9 million (S$104 million) between January 2020 and September 2022 from overseas payers, with the funds intended for transfer to other international bank accounts.

Unlicensed Payment Services and Potential Risks

SPME, which operates an exchange platform for buying, storing, and trading precious metals – including peer-to-peer gold bar transactions – is accused of facilitating these cross-border payments without the required authorization. Victor Foo Seang Kwang, 55, a Malaysian permanent resident and a director of SPME, faces a similar charge for allegedly allowing the company to operate the unlicensed service.

Did You Know? The alleged illicit financial activity occurred over a period of nearly three years, spanning from January 2020 to September 2022.

Concerns Over Illicit Financial Activity

Police statements indicate concerns that such unlicensed payment services could be exploited for illicit financial activities, specifically mentioning money laundering. Investigations reportedly revealed that SPME allegedly received funds from “payer entities” and instructions related to gold bar transactions, which authorities suspect were used to justify the flow of money to “payee entities.”

Expert Insight: The alleged operation highlights the potential for vulnerabilities within seemingly legitimate businesses to be exploited for financial crimes. The use of precious metal transactions as a potential cover for fund transfers is a common tactic observed in cases involving illicit financial flows.

Potential Legal Consequences

Pre-trial conferences in the cases against Foo and SPME are scheduled for March 2. If convicted, Foo could face up to three years in jail, a fine of up to $125,000, or both. SPME, if found guilty, could be fined up to $250,000.

Frequently Asked Questions

What is SPME accused of doing?

SPME is accused of providing cross-border payment services without a license, allegedly receiving over US$80.9 million (S$104 million) between January 2020 and September 2022.

Who else is facing charges in this case?

Victor Foo Seang Kwang, a director of SPME, is also charged with allowing the company to provide payment services without a license.

What are the potential penalties if convicted?

If convicted, Victor Foo could face up to three years in jail and a fine of up to $125,000, or both. SPME could be fined up to $250,000 if convicted.

How might this case impact regulations surrounding precious metal trading and financial transactions in Singapore?