SINGAPORE – A 34-year-old man who was the director of two firms that received $18 million from e-mail impersonation scams was sentenced to nine years’ jail and three strokes of the cane on April 24. He also received an enhanced sentence of 450 days’ jail.

The enhanced sentence was for committing the offences while he was released from prison under a remission order. The police did not say what he was previously jailed for.

Muhammad Zahir Johana pleaded guilty to five charges, including two for drugs and one for possession of an offensive weapon.

The remaining two related to the bank accounts of his companies being used for criminal activity to receive the scam monies.

Another 10 charges, which included several for drugs and criminal intimidation, were taken into consideration for sentencing.

Zahir was the director of Imcomz Trade and Infra Tradez, which received about $18 million from e-mail impersonation scams perpetrated against foreign companies in December 2021.

He had incorporated both companies under the instructions of an unidentified individual whom he knew as one Mr Ma and had met through a group named SG Black Market Hire on Telegram. He was promised a reward of $20,000 for doing so.

To facilitate the incorporation of both companies and the opening of their corporate bank accounts that were used to receive criminal benefits, Zahir relinquished his Singpass credentials to the person, the police said.

Investigations also showed that Zahir had reason to believe that the unidentified individual was engaged in criminal conduct, and that his actions would facilitate the control of this person’s benefits from criminal conduct. This offence carries a jail term of up to 10 years and a fine of up to $500,000.

The police said Zahir also failed to exercise reasonable diligence in the discharge of his duties as a director of both companies and the authorised signatory of the companies’ corporate bank accounts.

As a result, criminal benefits of about $18 million were moved through the corporate accounts of both companies, with most of it later being transferred to several local and overseas bank accounts.

Those found guilty of failing to use reasonable diligence in the discharge of duties as a director can be jailed for up to 12 months or fined up to $5,000.

Those found guilty of relinquishing their Singpass credentials for wrongful gain can be jailed for up to three years and fined up to $10,000.

Zahir had been released from prison under a remission order on Sept 25, 2021, and was to stay out of trouble until May 12, 2024. But because he committed the offences during this period, he was handed an additional enhanced sentence.

The police said they will take stern enforcement action against anyone who commits these offences and people who knowingly allow their bank accounts to be used by scammers to receive monies, hide their tracks and launder the proceeds of crime.

“There is a need to deter these offenders from using Singapore’s financial system as a conduit for illicit funds as it affects Singapore’s reputation as an international financial centre,” the police added.

• Additional reporting by David Sun