Updated: 04/22/2014 12:22 | By Channel NewsAsia
Shareholder of licensed moneylender fined
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SINGAPORE: A shareholder of a licensed moneylender has become the first to be convicted and fined for failing to get the approval from the Registry of Moneylenders before becoming a substantial shareholder of the company.
The Registry of Moneylenders, a division of the Insolvency and Public Trustee's Office, had on January 20, 2014, charged 33-year-old Samuel Chiang Tin Wei for the offence.
Between January 20, 2010 and February 4, 2010, Chiang had acquired 500,000 shares out of 1,000,000 issued shares in Moneyline Express.
The moneylender was granted a licence by the Registrar of Moneylenders for the period from November 14, 2008 to November 13, 2010.
Enforcement checks by the Registry of Moneylenders in 2010 revealed that Chiang did not obtain the approval of the registrar before becoming a substantial shareholder of Moneyline Express.
On Monday, Chiang pleaded guilty in the State Courts and was convicted. Chiang was sentenced to a fine of S$2,500, in default 12 days' imprisonment.
He is the first shareholder of a licensed moneylender to be convicted and fined.
The registry said it takes a tough stance against anyone who commits a breach under the Moneylenders Act -- in this instance, failing to obtain the approval of the registrar before becoming a substantial shareholder of the licensee; increasing or reducing his shareholding, and failing to notify the registrar in writing once he ceases to be a substantial shareholder of the licensee.
If convicted of the offence, the penalty is a fine of up to S$10,000. - CNA/ac
