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When you want to transfer you then select which of the frequent flyer accounts you want to transfer to, and Amex transmits the name and details of the account as set up to the airline. This is to prevent precisely the problem that has arisen in OP's case; by transmitting to SQ the name of the authorized user, Amex ensures that there is a "name match" on the SQ side. As far as SQ can see the points are coming from an account tied to the authorized user because that is the information Amex is giving them.
Not sure how SQ can credit the points first, if all the information matches, then come back for audit, even if all the information matches.
I'm also looking to transfer some UOB (SIN bank) points to my wife's KF account, which the bank claims is possible as long as she is a supplementary card holder, now just worried about KF side.
I just read the KF terms & conditions, nothing explicitly stating that credit card points must go to your own account only.