3 Chinese workers sue Singapore remittance firm for US$48,000 after mainland police freeze money

The trio are seeking 347,501 yuan (US$48,417) from Samlit Moneychanger Pte, as part of other claims, alleging breach of agreements, according to a suit filed to the city state’s courts in October and obtained by Bloomberg News.

Samlit denied the allegations. It said it fulfilled its obligations and cannot be responsible for what happens after money reaches designated accounts in China, according to court documents.

Police in China have blocked hundreds of remittances from Singapore, many of them sent by Samlit, a licensed money changer based in the city’s Chinatown area, according to complaints made to authorities in Singapore.

In the lawsuit, Tan Mingshi said Chinese police allegedly froze 250,000 yuan that was transferred into his wife’s bank account in 2022 because of “suspicion of money laundering.” Only after he followed police instructions to return to China and transfer 142,226 yuan to “scam victims” were the remaining funds released, according to court documents.

Peng Fang Fang, another claimant, said she gave S$40,000 to Samlit to send the equivalent of about 195,600 yuan to her account in China, only to have most of it frozen by police. Qi Chao, the third claimant, said most of the S$10,576 moved to his Chinese bank account was frozen as the police investigated his “illegal activities” related to the transfer, according to the court filing.

Like Tan, Peng said she returned to China to answer questions from police. Qi also said he had to comply with instructions from police. Their frozen funds were transferred out of their bank accounts, with Peng notified that this was done by the Chinese police bureau, the lawsuit states. All three said they followed police orders “for fear of criminal consequences,” the suit