Singapore court sentenced two Indian nationals July 3 over illegal money transfers exploiting migrant workers' bank accounts. Defendants, 33-year-old Arivalagan and 27-year-old Durairaj Kulothungan,found guilty of unauthorized cross-border remittance services without licenses.
Arivalagan got 15 months,three weeks in prison, plus a SGD 6,000 fine. Kulothungan sentenced to eight months, three weeks. Their scheme, during COVID-19 pandemic, involved convincing dormitory workers to let them withdraw funds and send money to India.
Illegal remittances hit SGD 4,099,305 from 28 bank accounts between January and March 12,2023. Then March 13 to July 2023, another SGD 6,166,515 sent from 33 accounts. Arivalagan collected cash from workers,bought items,sold overseas for profit.
Scheme fell apart when bystander saw Kulothungan withdrawing large sums from ATM at Plaza Singapura July 2023. Alert led to police action, arresting Kulothungan on-site. Authorities seized 51 ATM cards, nearly SGD 75,000 cash. Arivalagan nabbed next month .
Case shows legal risks of unauthorized money transfers,especially in strict-regulation Singapore. Court's ruling warns against such illicit activities…but will it deter others?
