Chinese national operated an unlicensed business exchanging renminbi, and was exposed after a customer reported that money did not arrive, leading to a three-week jail sentence.
According to Lianhe Zaobao, the accused, Dong Zhiguo (43, transliterated), a Chinese national, faced two charges under the Payment Services Act. On the 4th, he pleaded guilty to one, and the other was taken into consideration for sentencing.
According to the case details, the accused met a man at Marina Bay Sands casino and learned that this person was trying to connect with clients interested in exchanging renminbi. The accused was thus “inspired” and realized he could make a profit by providing currency exchange services.
Thereafter, the accused bought Singapore dollars at a rate lower than the market and sold them at a rate higher than the market, earning a profit from the rate difference. He conducted Singapore dollar transactions in cash, while the renminbi was transferred via Alipay.
Between October 26 and November 8, 2024, the accused conducted three transactions: exchanging S$5,500 for RMB 30,800, and RMB 10,800 for S$2,000. He made about S$299 in profit from these transactions.
● Conducting Deals in Restrooms to Avoid CCTV
The accused knew his actions were illegal, so he chose to conduct transactions in restrooms without surveillance cameras and would also delete the related transaction records from his phone.
On November 8, 2024, the accused attempted to exchange RMB 80,700 with a customer for S$15,000, but when the customer found the transfer had not gone through, they reported it to the police. The police launched an investigation and uncovered the defendant's unlicensed business. If the transaction had gone through, the accused could have made about S$611 in profit.
The accused was arrested on November 8.
The prosecution pointed out that the accused conducted three transactions involving S$7,500 within two weeks, making a profit. In addition, he acted with premeditation, conducting deals in restrooms to avoid the law, and requested the judge sentence him to three to four weeks’ imprisonment.