On 19 August 2024, in a decisive move to uphold the integrity of Singapore’s financial advisory sector, the Monetary Authority of Singapore (MAS) issued a nine-year prohibition order (PO) against Mr. Hoi Wei Kit, a former representative of OCBC Bank. This action follows Mr. Hoi’s conviction for multiple serious offences under the Penal Code (PC) and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA). The prohibition order is a clear message from MAS about its zero-tolerance policy towards financial misconduct, particularly when it involves a breach of trust with clients.
The criminal activities committed by Mr. Hoi occurred between October 2017 and January 2018, during which he defrauded five OCBC customers. By falsely claiming that OCBC was offering time deposit accounts, Mr. Hoi induced these customers to sign up for these non-existent products. He then transferred a total of $170,000 from their accounts into his own personal bank account. Such fraudulent behavior not only violated the trust of the affected customers but also severely tarnished the reputation of the financial institution he represented.
Following an investigation, Mr. Hoi was convicted on 21 February 2022 of five counts of cheating under section 420 of the Penal Code, one count of acquiring benefits from criminal conduct under section 47(1)(c) of the CDSA, and one count of giving false information to a public servant. In addition to these convictions, the court took into consideration three additional counts of cheating and ten counts of acquiring benefits from criminal conduct during sentencing. Consequently, Mr. Hoi was sentenced to 30 months of imprisonment, reflecting the severity of his crimes.
Given these convictions, the MAS deemed Mr. Hoi unfit to continue in any capacity within the financial advisory sector. The prohibition order, which took effect immediately, bars Mr. Hoi from providing any financial advisory services, participating in the management, acting as a director, or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act (FAA) for a period of nine years. This prohibition underscores the MAS’s commitment to ensuring that only individuals who meet the highest standards of integrity and professionalism are allowed to operate within the financial services industry.
The legal basis for Mr. Hoi’s conviction and the subsequent prohibition order lies in the provisions of the Penal Code and the CDSA. Section 420 of the Penal Code addresses the crime of cheating. It stipulates that any individual who dishonestly induces a person to deliver property, alter, or destroy a valuable security, or any document that is signed or sealed and capable of being converted into a valuable security, can be punished with imprisonment for a term that may extend to 10 years, and may also be liable to a fine. This section underscores the seriousness with which the law views deceitful acts that result in financial loss or damage to another person.
Moreover, section 47(1) of the CDS Act criminalizes actions related to the concealment, disguise, conversion, or transfer of property that represents benefits from criminal conduct. It also criminalizes the acquisition, possession, or use of such property. These provisions are designed to prevent individuals from benefiting from illicit gains and to ensure that the financial system is not used as a vehicle for money laundering or other illegal activities.
The case of Mr. Hoi serves as a crucial reminder to all financial advisers and professionals within the financial services industry of the importance of maintaining the highest standards of honesty and integrity. The MAS’s stringent regulatory measures are in place to ensure that those entrusted with public confidence are fit and proper to carry out their duties. The prohibition order against Mr. Hoi is not just a punitive measure but also a preventive one, aimed at protecting the public and maintaining the credibility of Singapore’s financial system.
