Citadelle Corporate Services is said to have handled Wirecard monies without a trust business licence. Senjo Group is said to have falsified accounts.
The CAD (Commercial Affairs Department) of the Singapore Police Force and MAS (Monetary Authority of Singapore) on Friday (3 July) launched a joint investigation into two companies identified as potentially involved with embattled payments provider Wirecard.
The investigation follows a 29 June announcement that MAS and ACRA (Accounting and Corporate Regulatory Authority) are collaborating with CAD to scrutinise Wirecard’s Singapore operations. The agencies are looking to determine if Wirecard exploited Singapore’s financial system for illicit purposes.
Citadelle Corporate Services, which provides company formation and administration services, is alleged to have handled monies for Wirecard in a trustee capacity, without being licensed to do so by MAS under the Trust Companies Act. By itself, the contravention carries a penalty of up to 3 years imprisonment, a fine up to SGD 75,000, or both.
According to The Straits Times, Citadelle was drawn into the Wirecard probe after a Philippine lawyer said he opened six euro bank accounts in the name of his law firm, MKT Law, on behalf of Citadelle Corporate. The accounts were said to be for Wirecard.
Senjo Group, one of Wirecard’s outsourced payments processing partners, and two its subsidiaries, are said to have falsified accounts, which under the Penal Code is punishable with up to 7 years imprisonment, a fine, both.
According to the FT, Wirecard told auditors that EUR 1 billion of cash resulting from arrangements with these payment partners from 2016 to 2018 was held in escrow accounts managed by Citadelle as a trustee.
“The review surfaced reasons to suspect that offences may have been committed,” the CAD and MAS said.
As part of the investigation, the CAD and MAS have obtained documents and records from Citadelle and Senjo, and have interviewed persons involved in the companies.