South Korean national charged with cheating and money laundering offences in Singapore

A 63-year-old South Korean national, Kim Taek Hoon, has been charged in Singapore for multiple offences, including cheating, money laundering, and failing to declare cash received from overseas. The charges involve various provisions under Singapore’s Penal Code and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (“CDSA”), following an extensive investigation by the Commercial Affairs Department (“CAD”) in cooperation with several other agencies.

Kim is alleged to have received the benefits of criminal conduct totaling more than S$1.5 billion from South Korea and Japan between 2014 and 2017. He is accused of using the illicit funds to purchase nearly 28,000 gold bars, each weighing 1 kg.

These gold bars were then concealed in shipments falsely declared as air-powered tools for export to South Korea and Japan. More than 23,000 gold bars were allegedly smuggled in this manner.

The charges, which involve various provisions under Singapore’s Penal Code and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (“CDSA”), come after an extensive investigation by the Commercial Affairs Department (“CAD”) in cooperation with several other agencies.

Kim faces a total of 21 charges:

• Nine counts of cheating logistics providers under Section 417 of the Penal Code.
• Four counts of cheating Singapore Customs under Section 417 of the Penal Code.
• Four counts of failing to report cash exceeding S$20,000 received from overseas, under Section 48E of the CDSA.
• Four counts of converting cash into gold bars, which he allegedly knew represented criminal proceeds, under Section 47(2)(b) of the CDSA.

The case against Kim began in December 2023, following an intelligence probe initiated by the CAD. The investigation was supported by the Anti-Money Laundering / Countering the Financing of Terrorism Division (“ACD”) of the Ministry of Law and Singapore Customs, with crucial information provided through international cooperation with foreign counterparts, including INTERPOL.

Kim was apprehended after CAD received intelligence suggesting his involvement in a scheme to purchase gold bars in Singapore and export them to South Korea and Japan under false declarations.

It is alleged that between 2014 and 2017, Kim received large sums of smuggled cash from South Korea and Japan, concealed within shipments of mechanical tools. Despite each cash receipt exceeding S$20,000, Kim allegedly failed to declare the funds as required under Singapore law.

Kim is further accused of using the illicit cash to purchase gold bars in Singapore, which he then concealed in shipments of air impact wrenches for export to South Korea and Japan.

The shipments were falsely declared to only contain air impact wrenches. As a result, Kim allegedly deceived logistics providers into processing the shipments and misled Singapore Customs into issuing Cargo Clearance Permits based on the fraudulent declarations.

Mr David Chew, Director of the CAD, commented on the case: “Singapore is a major transhipment centre and trade hub for the region with tonnes of cargo flowing through our air and sea ports.”

“This flow of trade is vital to our economy, but transnational criminal syndicates will seek to abuse these large legitimate flows to conceal their laundering of illicit proceeds. This case illustrates Singapore’s ability to detect these anomalous trade flows and arrest the perpetrators.”

Mr Chew also emphasized the importance of international cooperation in combating transnational crime, stating, “The CAD would like to thank INTERPOL and our foreign counterparts for their assistance in exchanging critical information and rendering assistance in this case. This case successfully demonstrates the importance of international cooperation in taking to task individuals who may be part of a bigger transnational criminal syndicate.”

If convicted, Kim faces severe penalties. The offence of money laundering under Section 47(2)(b) of the CDSA carries a maximum imprisonment term of up to 10 years, a fine of up to S$500,000, or both. Cheating under Section 417 of the Penal Code carries an imprisonment term of up to 3 years, a fine, or both.

Additionally, failing to report cash received from outside Singapore that exceeds S$20,000 can result in a fine not exceeding S$50,000, imprisonment for up to 3 years, or both.

Kim remains in custody as the case proceeds through the Singaporean judicial system. The investigation continues as authorities seek to uncover any broader connections to transnational criminal syndicates.