Two men received jail terms in Singapore for operating an unlicensed remittance business that collected $10 million [1] from migrant workers.
The sentencing highlights the legal risks associated with unregulated financial services and the vulnerability of migrant populations to unlicensed money transfer operations.
Angappan and Durairaj were convicted under the Payment Services Act and the Computer Misuse Act for their roles in the illegal operation [1]. The court said the pair operated the business without the required licenses to handle financial transfers for the workforce.
Angappan was sentenced to 15 months and three weeks’ jail with a fine of $6,000 [2], the court said. Durairaj was handed a jail term of eight months and three weeks [3], the court said.
The operation targeted migrant workers, collecting a total of $10 million [1] before the authorities intervened. The use of the Computer Misuse Act in the convictions suggests that the illegal remittance process involved unauthorized access or manipulation of digital systems to facilitate the transfers.
Singapore maintains strict oversight of money transmission to prevent money laundering and protect consumers from fraud. The sentencing of these two individuals serves as a deterrent against the establishment of shadow banking systems that bypass national financial regulations.
“Two men received jail terms in Singapore for operating an unlicensed remittance business”
This case underscores the Singaporean government's commitment to enforcing the Payment Services Act to maintain financial integrity. By targeting unlicensed remittance operators, the state aims to protect migrant workers, who often rely on these services to send money home, from potential fraud and the loss of funds in unregulated systems.
