Employee of Licensed Moneylender, Tan Teck Leng, Fined $8,000 for Breach of the Moneylenders Act

29 Aug 2019 Posted in Press releases

1. Tan Teck Leng (陈 德 能), a loan officer of the moneylending business, 96 Credit, was convicted under the Moneylenders Act on 26 August 2019 for knowingly giving false information to an authorised officer of the Registry of Moneylenders (“Registry”). The Registry carries out regular inspections on licensed moneylenders. Where breaches of moneylending laws are found, enforcement measures are taken.

2. The Registry had brought charges against Tan in the State Courts on 3 June 2019. On 26 August 2019, Tan pleaded guilty and was convicted for one out of 2 charges of the offence under section 25(4)(a) of the Moneylenders Act (Cap 188) for knowingly giving false information to an authorised officer of the Registry. The other charge was taken into consideration for the purpose of sentencing. Tan was sentenced to a fine of $8,000 (in default 1 month’s imprisonment).

3. During the investigations carried out by the Registry, Tan claimed that five loans taken out by a borrower between December 2016 and April 2017 were settled in full by the borrower before new loans were disbursed to the borrower. Investigations revealed that in fact, Tan had handed over cash to the borrower for the latter to pay into the moneylender’s bank account via a cash deposit machine so as to create a façade that the loans were fully repaid by the borrower before new loans were issued. The end effect of these successive activities was that the borrower’s initial loan was rolled over repeatedly at an administrative fee of 10% of the loan principal each time, in addition to the interests. Such a practice, deemed as “re-loan”, has been prohibited by the Registry due to its abusive (unethical or exploitative) nature. On 13 March 2019, Tan gave a false statement to an authorised officer of the Registry that he did not hand over cash sums to the borrower for the aforementioned purpose.

4. 96 Credit held a moneylending licence from 8 November 2010 to 28 March 2019. It was later incorporated as 96BM Credit Pte. Ltd. on 29 March 2019. Appropriate action may be taken against the licensed moneylender, depending on the facts and circumstances of the matter.

5. Forty-eight licensed moneylenders or their officers have been convicted and fined for offences under the Moneylenders Act and Rules (“MLA/R”) since 2011 (see Annex).

6. The Registry takes a serious view against licensed moneylenders or its assistants who give false statements in the course of its investigations in order to evade enforcement, and will not hesitate to take firm action against perpetrators.

7. The Registry reminds all licensed moneylenders to adhere closely to the moneylending law and regulations at all times. The Registry carries out regular inspections on licensed moneylenders. Where breaches of moneylending laws are found, enforcement measures are taken, including the suspension or revocation of licences, forfeiture of security deposits, warnings and prosecutions. Those convicted of breaches of the Moneylenders Act/Rules face a fine of up to $40,000 and/or an imprisonment term of up to two years on each charge.

29 AUGUST 2019
REGISTRY OF MONEYLENDERS
MINISTRY OF LAW

Annex

List of past convictions since 2011

Last updated on 29 Aug 2019