Director of 980 Companies in Singapore Jailed for Laundering US$5 Million via China-Linked Firms

21 Dec, 2023

Director of 980 Companies in Singapore Jailed for Laundering US$5 Million via China-Linked Firms

The story revolves around a Singaporean individual, Xie Yong, who delved into facilitating Chinese clients in establishing companies in Singapore. What began as a venture to aid clients in setting up businesses swiftly snowballed into a legal debacle involving mismanagement and money laundering within a staggering 980 companies under his directorship.

Xie Yong, also known as Alex, found himself in a legal quagmire, culminating in a four-week jail term and a substantial fine of S$57,000, accompanied by a five-year ban from holding directorial positions. These penalties stemmed from multiple breaches under the Companies Act, particularly his failure to fulfill his duties as a director.

Initially founding Tox Technology, later rebranded as DD Corporate Services, in 2013, Xie's company initially focused on offering corporate services, accounting, and annual return filings. However, his business expanded into China in 2020, attracting a clientele primarily from the region. This expansion led Xie to become the director of numerous companies established for Chinese clients, meeting Singapore's requirement for a resident director.

Amid this growth, serious complications emerged. Two companies under Xie's directorship, Wei Hui and Joy Trader, became embroiled in money laundering schemes. These companies were misused to facilitate illicit fund transfers totaling millions of dollars, involving scams and fraudulent activities. Despite facing red flags and being blacklisted by local banks, Xie persisted, seeking other individuals to act as directors for the companies he established for clients.

Deputy Public Prosecutor Janice See advocated for a substantial sentence, citing Xie's blatant disregard for due diligence and neglect in overseeing the companies' affairs. The case highlights the critical importance of diligent governance, emphasizing the pivotal role directors play in upholding ethical business practices and preventing financial malfeasance.

This cautionary tale underscores the imperative for stringent oversight and ethical conduct within corporate governance, emphasizing the need for responsible leadership to curb financial improprieties and uphold the integrity of corporate entities.