South Korean National Who Exported Gold Bars Concealed In Shipments Of Other Goods Charged For Cheating, Money Laundering And Other Offences

On 23 August 2024, 63-year-old South Korean national Kim Taek Hoon ("Kim") was charged in court for cheating offences under the Penal Code (Cap 224, 2008 Rev Ed) ("Penal Code"), money laundering offences as well as offences in relation to a failure to make requisite declarations for cash received from outside Singapore under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap 65A, 2000 Rev Ed) ("CDSA").

Kim was charged with the following offences:

1. Nine counts of an offence under Section 417 of the Penal Code for cheating the logistics providers;
2. Four counts of an offence under Section 417 of the Penal Code for cheating Singapore Customs ("Customs");
3. Four counts of an offence under Section 48E of the CDSA for failing to make a report in relation to cash exceeding the prescribed amount of S$20,000 which he received from overseas; and
4. Four counts of an offence under Section 47(2)(b) of the CDSA for converting cash, which he had reasonable grounds to believe represented another person's benefits from criminal conduct, into gold bars

Background

The Suspicious Transaction Reporting Office ("STRO")'s detected possible smuggling activities through analysis of financial intelligence from Suspicious Transaction Reports ("STRs"), Cash Movement Reports ("CMRs"), Precious Stones and Precious Metals Dealers ("PSMDs") Cash Transaction Reports ("CTRs") and international cooperation with foreign counterparts.

This investigation arose from an intelligence probe conducted by the Commercial Affairs Department ("CAD") and cooperation with various agencies including Customs and the Anti-Money Laundering / Countering the Financing of Terrorism Division ("ACD") of the Ministry of Law.

Kim was arrested in December 2023 after the CAD received information suggesting his potential involvement in a scheme to purchase gold bars in Singapore and export them in concealed shipments (where declarations were made that they contained other items such as mechanical tools) to South Korea and Japan.

Investigations by the CAD revealed that between 2014 and 2017, Kim allegedly received smuggled cash from South Korea and Japan which were concealed in shipments of tools. Kim had further allegedly failed to make the requisite declarations of the receipt of cash from overseas, despite each receipt of cash exceeding the prescribed value of S$20,000.

Kim allegedly used the cash to purchase gold bars in Singapore, before concealing the gold bars in shipments of air impact wrenches for export to South Korea and Japan through three logistics providers in Singapore, while declaring that the shipments only contained air impact wrenches. Kim faces charges of cheating for allegedly deceiving the logistics providers into processing the shipments, as well as deceiving Customs into issuing Cargo Clearance Permits for these shipments.

Director CAD, Mr David Chew said, "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 (through the analysis of STRs, CMR and CTRs) to detect these anomalous trade flows and arrest the perpetrators. 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. The CAD also appreciates STR filers and PSMD CTR filers who file reports in a timely manner, contributing to the detection of this complex case of trade-based money laundering".

If convicted, the offence of money laundering for individuals under Section 47(2)(b) of the CDSA carries an imprisonment term of up to 10 years, a fine of up to S$500,000, or both.

The offence of cheating under Section 417 of the Penal Code carries an imprisonment term of up to 3 years, a fine, or with both.

The offence of failing to make a report in respect of cash, the total value of which exceeds S$20,000, which is moved to the person from outside Singapore, carries a fine not exceeding S$50,000 or to imprisonment for a term not exceeding 3 years or to both.