A major investigation is underway in Singapore involving the police and the Monetary Authority of Singapore (MAS) against two key figures of Samlit Moneychanger, a licensed payment services provider.
A 43-year-old woman, serving as the Director, and a 34-year-old man, the Compliance Manager, are under scrutiny for allegedly engaging in fraudulent trading practices and failing to meet their regulatory obligations.
The investigation was triggered by reports that funds remitted to China through Samlit were inaccessible to beneficiaries, having been either frozen or seized by Chinese authorities.
This prompted MAS to inspect the operations of Samlit, during which the company reportedly failed to provide necessary documentation and satisfactory explanations regarding its remittance transactions.
Amid the regulatory inspection, Samlit informed MAS of its decision to relinquish its payment services license and cease operations, a move that came alongside reports of unusual activities in both the company’s and the Director’s personal bank accounts.
As a result, the authorities are investigating the firm for potential fraudulent trading under the Insolvency, Restructuring and Dissolution Act 2018, alongside violations of obligations under the Financial Services and Markets Act 2022 and the Payment Services Act 2019. MAS has taken steps to secure the funds in Samlit’s accounts to ensure the completion of outstanding remittance transactions.
Violations of these laws carry severe penalties, including fines and imprisonment. The ongoing investigations do not preclude remitters from pursuing private claims against Samlit.
MAS has directed Samlit to continue assisting affected remitters in unlocking their funds in China, even as the company prepares to wind down. The government is also planning outreach to those impacted, emphasising the availability of legal recourse within Singapore’s framework.
This case highlights the authorities’ commitment to enforcing the law and protecting consumers in Singapore’s financial sector, stressing the importance of compliance and transparency among licensed entities.
The regulator said in a statement,
“Samlit remains a licensee under the Payment Services Act 2019 until 29 February 2024. MAS has directed Samlit to ensure that beneficiaries of uncompleted remittance transactions receive the funds within seven business days, even after the surrender of its license.
If the funds are not received by a beneficiary within seven business days, Samlit is required to contact the remitter immediately for further instructions. Samlit is also required to properly discharge all outstanding obligations, including making adequate provisions for unforeseen liabilities, prior to winding down.”
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- Source: https://fintechnews.sg/89211/remittance/mas-and-singapore-police-probe-samlit-moneychanger-amid-fraud-allegations/
