(Aug 20): Singapore’s police force has begun looking into Radiant World after receiving reports on the iron ore trader, a spokesperson said on Thursday.

No further details were immediately available on the reports or the timeline of any inquiry.

Radiant World has been under pressure in recent weeks as a number of its counterparties and creditors stepped back from the firm because of concerns over allegedly falsified documents. Bloomberg previously reported that Vitol Group and Cargill Inc had stopped trading with Radiant World and creditors were reviewing their exposure.

A Radiant World spokesperson had no immediate comment on the Singapore inquiries.

The US Justice Department is also probing transactions around Radiant World, according to people familiar with the matter. The US Commodity Futures Trading Commission is also examining trades involving the company and its creditors, some of the people said.

In the UK, the Financial Conduct Authority (FCA) is monitoring developments involving Radiant World and engaging with relevant firms on any impacts on UK markets, according to a person familiar with the regulator’s thinking. An FCA spokesperson said the agency’s policy is not to comment on whether it is investigating particular firms or individuals.

Radiant World has not been accused of wrongdoing and investigations do not always lead to charges. The company told Bloomberg late last week that it had not been made aware of any US investigations.

It has previously denied wrongdoing and said that it conducts its business to the “highest commercial and legal standards”.

Little known outside the industry, Radiant World has become a significant player in the iron ore market, with a trading hub and office in Singapore. Its founder Pinkesh Nahar is listed in public documents as a resident of the city-state.

Bloomberg reported on July 31 that several major commodity traders had moved to cut ties with the trading house amid concerns it provided falsified documents to banks. Since then, Deutsche Bank AG and KBC Group NV froze funds in some of Radiant World’s Singapore accounts, and the company has been working to sell commodity inventories to boost its liquidity. 

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