SINGAPORE – In a significant legal development, Kim Heng Jewellers and Goldsmiths has been fined $35,000 following the first prosecution under Singapore’s Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act. The fine was imposed due to serious lapses that enabled the sale of valuables related to a malware scam.
Background of the Case
Located at People’s Park Complex on Park Road, Kim Heng sold over $313,000 in valuables. Out of this amount, more than $140,000 was ultimately traced back to two victims of a malware scam. The store’s employees failed to conduct the necessary due diligence, despite clear indicators that the funds were likely linked to illicit activities.
The Court Proceedings
The court found the business guilty of processing a charge involving more than $173,000 without sufficient checks. According to Deputy Public Prosecutor Thaddeus Tan, the owner, Mr Henry Ho, had previously provided his staff with materials from a Ministry of Law briefing in 2019 but did not adequately ensure they understood how to apply the information.
Details of the Transactions
- On 15 September 2023, an elderly woman (referred to as AS1) attempted to purchase a gold chain worth $28,000, using a compromised corporate account for payment.
- The following day, she ordered multiple items amounting to over $173,000, which were similarly processed without necessary checks.
- By 2 October, transactions totaling more than $112,000 were executed under questionable circumstances, again without proper verification.
Reactions and Implications
This case underscores the importance of vigilance in financial transactions, particularly in the jewelry sector, where large sums are often handled. The prosecution serves as a warning to businesses about their responsibilities under the law and highlights the ramifications of neglecting proper customer verification protocols.
While Mr Ho has faced criticism for his management practices, it’s clear that the responsibility for compliance cannot be overlooked in any sector, especially one that is susceptible to financial fraud.