SINGAPORE Law and Practice Contributed by: Jansen Chow and Ang Leong Hao, Rajah & Tann Singapore LLP
Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower
Singapore 018937 Tel: +65 6535 3600 Email: info@rajahtannasia.com Web: sg.rajahtannasia.com
1. Fraud Claims 1.1 General Characteristics of Fraud Claims As a trading and financial hub, there is often an international element to fraud claims in Singa - pore. The general characteristics of fraud claims in Singapore include: • the making of false statements; • misappropriation or diversion of assets (par - ticularly through multiple and offshore enti - ties); • falsification of documents and banking records; • conspiracy to defraud (including between individuals and the corporate entities used to perpetrate the fraud); • breach of fiduciary duties by an agent or officer of a company; • dishonest assistance; and • corrupt payments. 1.2 Causes of Action After Receipt of a Bribe The principal’s cause of action may be found - ed on restitution (money had and received) or breach of fiduciary duty (prohibition against secret profits). The latter is relevant if the princi - pal also intends to seek a constructive trust over the bribe and trace the proceeds thereof.
A principal’s right at common law to recover the bribe or the monetary value of the bribe received by its agent is also statutorily recognised. Sec - tion 14 of the Prevention of Corruption Act 1960 provides that a principal may recover as a civil debt the amount or monetary value of the bribe received by the agent, or from the person who gave the bribe, and no conviction or acquittal of the defendant shall operate as a bar to recovery. The fact that the agent had paid fines equivalent to or in excess of the value of the bribe received is not a bar to recovery by the principal. The pos - sibility of double disgorgement acts as a further deterrent against corruption. 1.3 Claims Against Parties Who Assist or Facilitate Fraudulent Acts The party who assisted or facilitated the fraudu - lent acts of another may be liable in a claim for: • unlawful means conspiracy, together with the primary wrongdoer, if the fraudulent acts were carried out by one or more of them pursuant to a conspiracy between them to injure the victim; • dishonest assistance, if that party assisted or facilitated the breach of fiduciary duties; or • knowing receipt, where the assistance/facili - tation involved the receipt of trust/proprietary funds.
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