Samlit Moneychanger employees charged with failing to address complaints about frozen remittances

SINGAPORE: Two Samlit Moneychanger employees were charged in court on Thursday (Jul 9) with failing to comply with an order from the authorities to continue handling complaints from customers whose remittances were frozen in China.

Novianti, a 45-year-old director, and Malik Sameer, a 36-year-old compliance manager, face 17 charges for allegedly failing to comply with a Monetary Authority of Singapore (MAS) direction.

Sameer also faces 22 other charges related to obstructing justice and failing to comply with orders to assist the police.

In 2023, the police received more than 670 reports of remittances frozen by Chinese authorities, with about S$13 million (US$10 million) in funds affected. At the time, Samlit Moneychanger was named as one of the affected companies.

As of mid-December 2023, about 430 police reports related to the frozen remittances had been made against Samlit.

The authorities began investigating Novianti, a Singaporean, and Sameer, an Indian national, in February 2024 after receiving reports that beneficiaries in China could not access money remitted through Samlit because it had been frozen or confiscated by the Chinese authorities.

The investigation was also prompted by Samlit abruptly surrendering its payment services license, intending to discontinue the business during an ongoing MAS inspection, said the Singapore Police Force (SPF) and MAS in a joint press release on Thursday.

In view of the number of reports made, MAS directed the company on Feb 22, 2024, to continue assisting and addressing complaints by affected remitters.

"This included providing the affected remitters with relevant remittance information to facilitate their appeals to law enforcement agencies in China regarding the freezing of monies in their beneficiaries’ accounts," said SPF and MAS.

But the moneychanger allegedly failed to comply.

During investigations, Sameer allegedly interfered with the police’s access to two email accounts used by Samlit, said the authorities in the joint press release.

He is also accused of not complying with 20 orders from SPF requiring him to provide passwords and authentication access to seized devices and email accounts.

Each offence of failing to comply with a MAS direction carries a maximum fine of S$1 million.

Those found guilty of obstructing justice may face up to seven years' jail, a fine, or both, while those convicted of failing to comply with an order to assist the police may face up to six months' jail, a fine of up to S$5,000, or both.

As part of the investigations, the police also looked into possible fraudulent trading, said SPF and MAS.

"The investigation findings till date did not reveal sufficient evidence for criminal charges," they said.

"The police, in consultation with the Attorney-General’s Chambers, will be taking no further action at this point. This does not preclude further investigation if police receive new material information or evidence."