The Monetary Authority of Singapore (MAS) has imposed lengthy bans on two individuals found guilty of insurance fraud, effectively removing them from participating in the country’s regulated financial sector.
The Prohibition Orders (POs), issued under the Financial Services and Markets Act 2022, took effect on Oct. 23 and target Benjamin Song Junde and Charn Sze Choong.
Under the terms of the orders, Song is barred from regulated activities for nine years, while Charn faces a 15-year prohibition.
Both men were involved in a scheme that resulted in significant financial losses for Prudential Assurance Co Singapore Pte Ltd (Prudential).
According to MAS, Charn – who previously worked as a claims assessor at Prudential – abused his position by orchestrating false insurance claims.
He manipulated internal processes by instructing administrative staff to redirect beneficiary accounts for policies owned by others to accounts controlled by himself or his associates.
He then submitted and approved fictitious claims, ensuring that the resulting payouts were transferred to his own accounts or used to settle his personal debts.
Over a period exceeding two years, these actions led to approximately S$1.9 million in fraudulent payouts.
Song, a friend of Charn and a former representative at another financial institution, was insured under two of the policies targeted in the scheme.
MAS found that Song was aware of the fraudulent activity but did not report it to Prudential, as he was a beneficiary of funds used by Charn to repay debts owed to him.
The courts convicted Song on four charges on Oct. 3, 2024, with eight additional charges considered during sentencing. He received a custodial sentence totalling 18 months and two weeks.
Charn was convicted on nine charges, with 17 further charges taken into account, and was sentenced on Oct. 22, 2024, to 88 months in prison and a S$1,000 fine.
The POs prevent both individuals from engaging in any MAS-regulated business or service, including holding management or directorial roles in financial institutions.
They are also restricted from acquiring substantial shareholdings or new voting shares in such entities.
Additionally, Charn is specifically barred from functions involving the handling of funds or assets, risk management, and critical system administration.
MAS stated that these actions are intended to maintain trust in Singapore’s financial sector and to deter similar misconduct.
The regulator emphasised the importance of upholding high standards of integrity among financial professionals.
Separately, MAS has initiated a public consultation on proposed reforms to improve the ability of investors to seek civil compensation in cases of market misconduct.
The consultation paper – released on Oct. 24 – outlines potential changes to address obstacles faced by retail investors, such as difficulties in organizing group actions and securing funding for legal proceedings.
One key proposal is the introduction of a framework allowing an independent designated representative to coordinate and initiate legal action on behalf of affected investors. MAS intends to set clear criteria to ensure that such representatives act without conflicts of interest.
The regulator is also considering a grant scheme to partially offset the costs of pursuing legitimate claims and to support the organizational expenses of designated representatives. Safeguards would be implemented to prevent abuse of the scheme.
Additional proposals include simplifying the process for “piggyback claims” – those based on prior enforcement actions – and expanding the types of resolved cases that can serve as a basis for such claims.
MAS is also reviewing statutory limits on compensation, with a view to allowing courts greater discretion in determining appropriate awards.
MAS is inviting feedback from industry participants and the public until Dec. 31, with submissions accepted through its website.
