SGX-listed 17Live director quits after US sanctions over scam links

Karen Chen Xiuling has resigned as an independent director of Singapore-listed 17Live Group after being added to a US sanctions list over alleged links to a Cambodian businessman accused of operating global scam networks.

17Live, a Taiwanese livestreaming company listed on the Singapore Exchange, said Chen stepped down on October 15.

She is among three Singaporeans and 17 Singapore-registered entities newly named to the US Specially Designated Nationals and Blocked Persons list.

US authorities allege Chen is connected to Chen Zhi, a Cambodian national accused of directing forced labor scam operations that ran cryptocurrency fraud schemes.

The company said Chen was not involved in 17Live’s business operations beyond her board role and that it has never conducted business with her, her employer DW Capital Holdings, or Chen Zhi.

Shares of 17Live dropped 1.6% to S$0.92 (US$0.67) at midday on October 16.

Chen had been an independent director since December 2023.

🔗 Source: The Straits Times

🧠 Food for thought

Implications, context, and why it matters.

OFAC 50 Percent Rule does not automatically block 17Live based on a sanctioned director

The US Treasury’s Office of Foreign Assets Control (OFAC) 50 Percent Rule blocks an entity only when sanctioned persons hold 50% or more of it, alone or together 1.
A director title by itself does not trigger blocking under this ownership test 1.
Karen Chen Xiuling resigned on Oct 15, which lowers immediate board exposure, but partners should still avoid any direct or indirect dealings with entities she owns 50% or more since those are treated as blocked 1.
Control without 50%+ ownership does not pull the rule into play, so a sanctioned board seat alone does not block the company 1.
SGX listings with global investors face tighter scrutiny as SGX expects companies to manage U.S./UK/EU sanctions beyond Singapore’s 2.

Compliance steps for SGX-listed companies on screening directors and officers

SGX Rule 719(1) requires adequate internal controls plus risk management systems, and this covers sanctions risk 2.
After recent SGX queries on sanctions/export controls, companies may need ongoing screening of directors/officers against sanctions lists, not one-off checks 2.
Document group-wide sanctions risk reviews for subsidiaries and associates to meet cross-border expectations 2.
Controls should cover exposure to foreign regimes across operations and supply chains, beyond Singapore’s 2.