Clause 10

Any person who participates in a specified arrangement, knowing or having reasonable grounds to believe that the person’s participation is for a fraudulent purpose, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $500,000 or to imprisonment for a term not exceeding 10 years or to both. (2) For the purpose of subsection (1), a person participates in a specified arrangement if the person does any of the following:

devises or assists in devising the plan for any part of the specified arrangement;

directs or assists in directing the plan or any part of the plan, including by instructing any other person as to the steps to be carried out in respect of any part of the plan;

receives instructions in respect of the plan or any part of the plan, and carries out or causes to be carried out any of those instructions.(3) For the purposes of the offence under subsection (1), the person need not know of the specified arrangement or of any details of the plan devised for any part of the specified arrangement.(4) Where a sole proprietorship, partnership, limited liability partnership or company is used to carry out a plan devised for a specified arrangement, any person who was or is, as the case may be —

the sole proprietor;

a partner of the partnership or limited liability partnership; or

a director of the company,shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 12 months or to both. (5) To avoid doubt, the offence under subsection (4) is a strict liability offence.(6) It is a defence to a charge for an offence in respect of subsection (4) for the person to prove that —

the sole proprietorship, partnership, limited liability partnership or company was used to carry out the plan devised for the specified arrangement without the person’s knowledge; and

the person took reasonable precautions and exercised due diligence to ensure that the sole proprietorship, partnership, limited liability partnership or company would not be so used.(7) This section applies whether the person participating in a specified arrangement does so while the person is in Singapore or outside Singapore, and if the offence under subsection (1) was committed outside Singapore, the person may be dealt with as if the offence had been committed in Singapore.(8) In this section —“limited liability partnership” has the meaning given by the Limited Liability Partnerships Act 2005;“specified arrangement” means an arrangement to cause loss of public revenue (whether or not the loss was in fact caused) as described in section 20(2B) (read with section 20(2BA)).”.